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17 February 2016
Mission Man Sentenced for Failure to Register as a Sex OffenderRead the Press Release
United States Attorney Randolph J. Seiler announced that a Mission, South Dakota, man convicted of Failure to Register as a Sex Offender was sentenced on February 16, 2016, by U.S. District Court Judge Roberto A. Lange.
Richard Peneaux, age 22, was sentenced to 12 months and 1 day in custody, 5 years of supervised release, and a $100 special assessment to the Federal Crime Victims Fund.
Peneaux was indicted for Failure to Register as a Sex Offender by a federal grand jury on August 11, 2015. He pled guilty on December 2, 2015.
On March 4, 2014, Peneaux pled guilty to Sexual Abuse of Minor, requiring him to register as a sex offender. Between June 13, 2015, and August 11, 2015, Peneaux, a person required to register under the Sex Offender Registration and Notification Act, and a sex offender by reason of a conviction under Federal Law, failed to properly register as a sex offender in Pennington County and elsewhere.
This case was investigated by the U.S. Marshals Service and the South Dakota Division of Criminal Investigation. Assistant U.S. Attorney Carrie G. Sanderson prosecuted the case.
Peneaux was immediately turned over to the custody of the U.S. Marshals Service.
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Mission Man Sentenced for Conspiracy to Distribute MethamphetamineRead the Press Release
United States Attorney Randolph J. Seiler announced that a Mission, South Dakota, man convicted of Conspiracy to Distribute a Controlled Substance was sentenced on February 16, 2016, by U.S. District Roberto A. Lange.
William Paul Whiting, age 42, was sentenced to 120 months in custody, 5 years of supervised release, and $100 to the Federal Crime Victims Fund.
Whiting was indicted by a federal grand jury on July 21, 2015. He pled guilty on December 1, 2015. The drug quantity attributed to Whiting as a part of his role in the narcotics trafficking conspiracy was between 500 grams and 1.5 kilograms of methamphetamine.
During 2014 and up until his arrest in July of 2015, Whiting was a daily user of methamphetamine. To support his habit, Whiting routinely purchased and sold methamphetamine himself. At one point during that time, Whiting distributed three to four 8-balls (3.54 grams) of methamphetamine daily, seven days a week, or until he ran out. Whiting also recruited two or more individuals who acted as subordinates and distributed methamphetamine for him on the Rosebud Sioux Reservation.
This case was investigated by the Rosebud Sioux Tribe Law Enforcement Services and the Northern Plains Safe Trails Drug Enforcement Task Force. Assistant U.S. Attorneys Ted McBride and SaraBeth Donovan prosecuted the case.
Whiting was immediately turned over to the custody of the U.S. Marshals Service.
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Maryland man pleads guilty to lying to purchase firearmsRead the Press Release
ELKINS, WEST VIRGINIA – Jarrud Michael Dixon, 26, of New Market, Maryland, pled guilty in federal court today to providing false information in order to purchase firearms, United States Attorney William J. Ihlenfeld, II, announced.
Throughout 2013 and 2014, Dixon conspired with other individuals, including a licensed firearms dealer in Pocahontas County, West Virginia, to unlawfully transport firearms across state lines from West Virginia into Maryland. Specifically, Dixon attempted to purchase two firearms in Pocahontas County by falsely stating that the firearms were being purchased for a different individual who could lawfully purchase firearms in West Virginia.
Dixon pled guilty today to one count of “False Statement in Firearms Dealer Records.” He faces up to five years in prison and a fine of up to $250,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorneys Stephen Warner and Sarah Montoro prosecuted the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms and Explosives and the Baltimore, Maryland Police Department investigated.
U.S. Magistrate Judge Michael John Aloi presided.
Maryland Health Care Provider Convicted for Patient DeathsRead the Press Release
Baltimore, Maryland - A federal jury today convicted the owner of Alpha Diagnostics, Rafael Chikvashvili, age 67, of Baltimore, Maryland, of health care fraud and wire fraud conspiracy, healthcare fraud, including two counts of health care fraud resulting in death, as well as wire fraud, false statements and aggravated identity theft, related to a scheme to defraud Medicare and Medicaid of more than $7.5 million. Judge Bredar ordered that Mr. Chikvashvili be immediately taken into custody. A detention hearing will be held on Thursday, February 18, 2016 at 2:00 p.m. to determine whether he will remain in custody pending his sentencing.
The conviction was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Nicholas DiGiulio, Office of Investigations, Office of Inspector General of the Department of Health and Human Services; and Special Agent in Charge Kevin Perkins of the Federal Bureau of Investigation, Baltimore Field Office.
“The evidence showed that Rafael Chikvashvili failed to provide medical services to patients who needed them, and billed for services that he did not provide,” said U.S. Attorney Rod J. Rosenstein. “The jury found that two patients died because their X-rays were not reviewed by a qualified radiologist. Health care fraud has consequences, in money wasted and lives lost.”
According to the evidence presented at the two-and-a-half week trial, Chikvashvili formed Alpha Diagnostics Services, Inc., which later became Alpha Diagnostics, LLC, in 1993, and was the Managing Member, Authorized Official, Managing Employee, President and Chief Executive Officer for Alpha Diagnostics. Chikvashvili holds a PhD in mathematics, but was never a medical doctor or licensed physician. Timothy Emeigh was the Vice President in charge of Operations at Alpha Diagnostics and was a licensed radiologic technologist.
Alpha Diagnostics was a portable diagnostic services provider, principally of X-rays, but also provided ultrasound tests, and cardiologic examinations. Alpha Diagnostics’ clients included nursing homes whose patients were covered by Medicare and Medicaid. Alpha Diagnostics operated in Maryland, Delaware, Pennsylvania, Virginia and the District of Columbia, but was headquartered in Owings Mills, Maryland, where Chikvashvili worked full time.
Based on the evidence, the jury found that from 1997 through October 2013, Chikvashvili conspired with others to defraud Medicare and Medicaid by: creating false radiology, ultrasound and cardiologic interpretation reports; by submitting insurance claims for medical examination interpretations that were never completed by licensed physicians; by falsely representing to Medicare and Medicaid, as well as to treating physicians, that the interpretations had, in fact, been completed by actual licensed physicians; by submitting insurance claims for radiology, ultrasound and cardiologic examinations (and their associated costs) that were never performed and/or were not ordered by the treating physician; and by submitting claims for transportation and other charges that Alpha Diagnostics was not entitled to receive.
According to witness testimony, Chikvashvili instructed his non-physician employees, including Emeigh, to interpret X-rays, ultrasounds and cardiologic examinations instead of licensed radiologists. For example, in June 2012, Emeigh traveled to Jamaica for a vacation. The evidence showed that Chikvashvili directed Emeigh, through text messages and telephone calls, to view medical images using his personal laptop in his hotel room and then draft false physician interpretation reports. Alpha Diagnostics personnel subsequently submitted false claims to Medicare for these images and fraudulent physician reports.
The evidence showed that Chikvashvili also caused employees to draft licensed physician’s examination reports. Chikvashvili, in turn, caused a copy of the handwritten signature of the actual physician to be affixed to the report, or forged the physician’s signature himself, creating the appearance that a licensed physician had performed the medical interpretation.
According to the testimony provided at trial, two patients died because their X-rays were not interpreted by a qualified radiologist. Instead, non-physician Alpha Diagnostics employees reviewed the images and failed to detect congestive heart failure. As a result of the incorrect reading the her chest X-ray, the first patient with congestive heart failure was not transferred to an acute care facility for treatment, as is standard medical practice, but remained in a rehabilitative nursing home. The patient died four days after unqualified Alpha Diagnostics personnel misinterpreted her chest X-ray. Witnesses testified that had the patient been transferred, her symptoms could have been addressed. The second patient was scheduled to undergo elective surgery and the chest X-ray was a pre-operation test to determine if the patient could safely have surgery. According to the evidence presented at trial, although the patient’s X-ray revealed mild congestive heart failure, the non-physician Alpha Diagnostics employee failed to detect it. A patient in congestive heart failure is at an increased risk of bleeding during and after surgery. As a result of the incorrect reading of the chest X-ray, the patient was cleared for elective surgery and experienced significant bleeding during and after the elective surgery, and the worsening of her congestive heart failure. Six days after unqualified Alpha Diagnostics personnel misinterpreted her chest X-ray, the patient died.
Subsequently, Alpha Diagnostics submitted claims to Medicare falsely representing that licensed radiologists had interpreted both patients’ chest X-rays. Medicare paid Alpha Diagnostics $8.87 for the first claim and $218.36 for the second claim.
Chikvashvili faces a maximum sentence of life in prison for each of the two counts of healthcare fraud resulting in death; 10 years in prison for each of nine counts of health care fraud; 20 years in prison for each of eight counts of wire fraud and for the conspiracy count; a maximum of five years in prison for each of 11 counts of false statements relating to health care matters; and a mandatory two years, consecutive to any other sentence imposed, for two counts of aggravated identity theft.
Timothy Emeigh, age 51, of York Springs, Pennsylvania previously pleaded guilty to health care fraud and is awaiting sentencing.
United States Attorney Rod J. Rosenstein praised the HHS-OIG and the FBI for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorneys Leo J. Wise and P. Michael Cunningham, who are prosecuting the case.
Marion Prison Inmate Sentenced to an Additional 6 ½ Years for Seriously Assaulting Another Inmate with Two WeaponsRead the Press Release
William Fuller III, 40, an inmate at the United States Penitentiary at Marion, Illinois, was sentenced today in United States District Court in Benton to an additional term of 77 months in prison for possessing two weapons in that facility and using them to assault another inmate, announced James L. Porter, Acting United States Attorney for the Southern District of Illinois. The offenses were committed at USP-Marion on April 6, 2015. Fuller pled guilty to those charges on October 15th.
Evidence adduced in support of the guilty plea and sentence showed that Fuller attacked the victim from behind while the victim was sitting at a table wearing a pair of bulky headphones. As captured on the prison’s video surveillance system, Fuller pulled a sock filled with chunks of concrete out of his clothing and struck the victim on the left side of the head with it. The blow shattered the headphones the victim was wearing and resulted in a deep laceration to the side of his face that would have been much more serious but for the headphones absorbing the majority of the impact. Fuller then pulled a second weapon from his clothing, a metal combination lock tied to a lanyard, and chased the victim up a set of stairs while swinging both weapons over his head in a threatening manner until prison officials were able to intervene.
At the time of the assault, Fuller was serving a 262 federal sentence imposed in the Northern District of Illinois for various drug offenses. The 77 month sentence in this case was imposed consecutively to that sentence. In addition, Fuller was placed on 3 years of supervised release to follow his incarceration and was ordered to pay the United States $300 in special assessments. Fuller was immediately returned to the custody of the Federal Bureau of Prisons to resume serving his sentences.
The case was investigated by the Federal Bureau of Investigation with the assistance of the Federal Bureau of Prisons and was prosecuted by Assistant United States Attorney James M. Cutchin.
Man Indicted for Using Stolen Identities to Defraud Various Financial Institutions of More Than $1.6 MillionRead the Press Release
Memphis, TN – A man has been indicted for allegedly using the stolen identities of personal acquaintances, car dealers and over 145 Memphis Neurology patients to defraud various financial institutions of more than $1.6 million. Edward L. Stanton III, U.S. Attorney for the Western District of Tennessee, announced the indictment today.
According to the indictment, Jeremy Jones, 37, of Memphis, Tennessee, allegedly executed a scheme to steal the identities of personal acquaintances, car dealers and over 145 Memphis Neurology patients throughout 2011, 2012 and 2015. Jones reportedly used this identifying information to apply for loans and credit cards and open bank accounts in the individuals’ names without their knowledge. A co-conspirator, who was employed at Memphis Neurology, removed patient information from the company’s database and provided it to Jones upon his request. Jones agreed to compensate the co-conspirator for providing him with this information.
Jones allegedly sent and received applications, checks and other financial information to and from various lenders through mail carriers to other states. The potential loss to the financial institutions is $1,660,587.30.
On Tuesday, February 16, 2016, Jones was indicted on individual counts of conspiracy to commit identity theft, identity theft, mail fraud, and aggravated identity theft.
The maximum prison sentence for conspiracy is 5 years. The maximum sentence for identity theft is 5 years. The maximum sentence for mail fraud is 20 years. The maximum sentence for aggravated identity theft is a mandatory penalty of 2 years imprisonment consecutive to any other sentence imposed.
This case is being investigated by the U.S. Postal Inspection Service and U.S. Secret Service.
Assistant U.S. Attorney Damon K. Griffin is prosecuting this case on the government’s behalf.
The charges and allegations contained in the indictment are merely accusations, and the defendant is considered innocent unless and until proven guilty.
Long Island Man Pleads Guilty to Capturing and Killing Federally Protected Hawks in StamfordRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, and Honora Gordon, Special Agent in Charge of the Northeast Region of the U.S. Fish and Wildlife Service, Office of Law Enforcement, announced that THOMAS KAPUSTA, 63, of Westbury, N.Y., pleaded guilty today in Hartford federal court to one count of conspiracy to take, capture and kill red-tailed hawks and Cooper’s hawks, and four counts of taking, capturing and killing red-tailed hawks or Cooper’s hawks.
According to court documents and statements made in court, red-tailed hawks and Cooper’s hawks are birds of prey, also known as raptors, and consume pigeons as part of their natural diet. These hawks are protected under the federal Migratory Bird Treaty Act.
In pleading guilty, KAPUSTA admitted that he and another individual were racing pigeon enthusiasts who constructed and maintained a pigeon coop at 330 Weed Avenue in Stamford. KAPUSTA and his associate kept a large number of racing pigeons at this coop, and regularly let them fly outside the coop for exercise. Because KAPUSTA and his associate viewed these hawks as a threat to their pigeons, they systematically captured the hawks in a trap specifically designed to capture birds of prey, shot and killed them in the trap, and disposed of their carcasses. KAPUSTA admitted that he and his associate killed red-tailed hawks on September 8 and October 14, 2015, and Cooper’s hawks on September 2 and October 21, 2015.
“Red-tailed and Cooper’s hawks are protected species under federal law,” said U.S. Attorney Daly. “With our law enforcement partners, the U.S. Attorney’s Office will continue to investigate and prosecute individuals who violate the law and harm such protected migratory birds.”
“We greatly appreciate our state and local partners in law enforcement, and the support of the U.S. Attorney's Office in prosecuting those who violate federal wildlife laws and holding them accountable for their actions,” said Special Agent in Charge Gordon. “The plea agreement today is a success in our collective efforts to conserve migratory birds and other wildlife.”
KAPUSTA is scheduled to be sentenced by U.S. District Judge Robert N. Chatigny on May 13, 2016. He faces a maximum term of imprisonment of 30 months and a fine of up to $75,000.
This matter is being investigated by the U.S. Fish and Wildlife Service, Office of Law Enforcement and the Division of Refuge Law Enforcement, and the Environmental Conservation Police of the Connecticut Department of Energy and Environmental Protection, with the assistance of the Stamford Police Department. The case is being prosecuted by Assistant U.S. Attorney Hal Chen.
Laplace Man Sentenced for Conspiracy to Commit Wire Fraud in Aftermath of BP Oil SpillRead the Press Release
U.S. Attorney Kenneth A. Polite announced that HARDELL MACK, age 44, a resident of LaPlace, was sentenced today after previously pleading guilty to a conspiracy to defraud the Gulf Coast Claims Facility (“GCCF”) in the aftermath of the BP oil spill.
U.S. District Judge Sarah S. Vance sentenced MACK to 12 months and one day incarceration and ordered restitution in the amount of $65,300, to be paid jointly and severally with his co-defendant.
According to court documents, beginning in or about September 2010, MACK and his co-defendant recruited claimants, requested their personal information, and submitted or caused to be submitted fraudulent GCCF claim forms generated online and transmitted to the GCCF. The claim forms falsely stated that the claimants worked as non-owner captain/deckhands on a shrimp boat in Venice, Louisiana, and suffered economic loss. Based on the fraudulent documentation, the GCCF issued approximately $65,300 to undeserving individuals. MACK and his co-defendant shared in the claims proceeds.
This case was brought as part of this District’s partnership with the National Center for Disaster Fraud (“NCDF”), a nationwide initiative to protect available funds and assistance for those victims of both natural and man-made disasters such as hurricanes, floods, tornadoes and the recent Gulf oil spill. If you have knowledge of fraud, waste, abuse or allegations of mismanagement involving disaster relief operations, you can contact the NCDF by either calling the hotline at (866) 720-5721, faxing (225) 334-4707, emailing at [email protected], or in writing to National Center for Disaster Fraud, Baton Rouge, LA 70821-4909.
U.S. Attorney Polite praised the work of the U.S. Postal Inspection Service and the U.S. Secret Service in investigating this matter. Assistant U. S. Attorney Julia K. Evans was in charge of this prosecution.
Kenner Man Pleads Guilty to Conspiracy to Sell Identification Documents and Selling Identification DocumentsRead the Press Release
U.S. Attorney Kenneth A. Polite announced that ALEJANDRO D. RODRIGUEZ, age 36, of Kenner, pled guilty today to conspiracy to transfer identification documents and to transferring identification documents, in violation of 18 U.S.C. § 1028(f) and 42 U.S.C. § 408(a)(7)(C), respectively.
According to court documents, RODRIGUEZ, with the assistance of two other individuals, sold authentic social security cards and birth certificates to a confidential informant working with Special Agents of the Department of Homeland Security.
RODRIGUEZ faces a maximum term of imprisonment of fifteen years, a maximum fine of $250,000, a maximum term of supervised release of three years, and a mandatory $100 special assessment. U.S. District Judge Sarah S. Vance set sentencing for June 1, 2016.
U.S. Attorney Polite praised the work of the United States Department of Homeland Security, Homeland Security Investigations, in investigating this matter. Assistant U.S. Attorney Spiro G. Latsis is in charge of the prosecution.
Kaufman County Man Sentenced to 20 Years in Federal Prison on Firearms ConvictionsRead the Press Release
DALLAS — A multi-convicted felon, Tracy Norman Hanson, 51, of Kaufman County, who was arrested after his involvement in a shootout with law enforcement officers in Van Zandt County, Texas, in January 2015, and who pleaded guilty in August 2015 to two counts of being a felon in possession of a firearm, was sentenced by U.S. District Judge Sam A. Lindsay to serve the statutory maximum sentence of 240 months in federal prison. U.S. Attorney John Parker of the Northern District of Texas made the announcement today.
According to documents filed in the case and statements made on the record at his sentencing hearing yesterday, on September 23, 2015, Hanson, a multi-convicted felon on parole for serious felonies, possessed a Ruger .44 magnum caliber revolver that was recovered by deputies with the Kaufman County Sheriff’s Office. This firearm, alleged in Count One of the indictment, was one of five firearms stolen from a residence in Kaufman County, Texas, and the burglar had sold that firearm to Hanson. State arrest warrants were then issued for Hanson.
On January 16, 2015, two law enforcement officers who were searching for Hanson spotted him hiding at a mobile home park in Kaufman County. As they waited for backup officers to arrive, Hanson departed the location as the front-seat passenger in a pickup truck. The officers attempted to stop the pickup, but a high-speed chase—with speeds exceeding 100 miles per hour—ensued along two-lane county roads and graveled lanes. During the course of the police chase, the pickup nearly collided with another vehicle, and it dangerously blazed past a school bus carrying 28 children.
The pickup truck eventually turned into Van Zandt County, where it experienced mechanical failure and came to a stop in a road-side ditch. The law enforcement officers had followed the pickup, but encountered gunfire from Hanson and the pickup’s driver—both armed with pistols—as they turned onto the road. Multiple shots were fired at the officers just as the school bus that they had blazed past crossed the intersection behind the officers. The officers, fearing for their lives, exited their vehicle with service weapons in hand and returned fire. The pickup’s driver was shot and killed in the gun battle, and the pickup’s backseat passenger was also shot. Hanson, for his part, experienced a weapon malfunction, tossed his pistol and surrendered. The officers arrested Hanson and recovered a stolen Bersa .380 caliber pistol that Hanson had fired at them. This firearm is alleged in Count Two of the indictment. Hanson is also facing charges in Van Zandt County for assault of a public servant with a dangerous weapon.
The Bureau of Alcohol, Tobacco, Firearms and Explosives, the Kaufman County Sheriff’s Office and the Texas Rangers investigated.
Deputy Criminal Chief Assistant U.S. Attorney Gary Tromblay prosecuted the case.
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Jamaican National Indicted for Passport FraudRead the Press Release
HARRISBURG – The United States Attorney’s Office for the Middle District of Pennsylvania announced today that a federal grand jury in Harrisburg has indicted Melton Minto of making a false statement in a passport application, falsely claiming United States citizenship, and aggravated identity theft.
According to U.S. Attorney Peter Smith, Minto, a 46 year old Jamaican national, presented a fraudulent driver’s license and birth certificate in applying for a U.S. Passport in Harrisburg in 2011.
The matter was investigated by the U.S. Department of State Diplomatic Security Service and the case is being prosecuted by Assistant U.S. Attorney Scott R. Ford.
Indictments are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty for these offenses under federal law is 45 years of imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Investment Advisor Charged with Defrauding ClientsRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that a federal grand jury in New Haven has returned an indictment charging AARON J. JOHNSON, 35, formerly of Haddam, with defrauding clients of his investment business. The indictment was returned on February 4, 2016, and JOHNSON was arrested today.
As alleged in the indictment, JOHNSON was President and Chief Investment Officer of J. Capital Advisors, a Connecticut company, and a registered investment advisor with Trade PMR, a Florida company that provides brokerage and custody services for registered investment advisors. From approximately May 2010 until approximately May 2013, JOHNSON engaged in a scheme to defraud his clients by causing excessive and unearned fees to be deducted from his clients’ accounts at Trade PMR and deposited into JOHNSON’s Trade PMR sundry account.
The indictment further alleges that JOHNSON attempted to delay and prevent the discovery of the full scope of his scheme by repaying fees he took from one victim, claiming to the victim and to investigators with the State of Connecticut Department of Banking, Securities and Business Investments Division that the fees were taken out due to a “glitch in the system.” Also, during the Department of Banking’s investigation, JOHNSON was asked to provide proof that he had funds with which to repay his victims. JOHNSON then emailed a falsified account statement to investigators in which he purported to have more than $117,000 in his investment account when, in fact, he had a negative balance in the account.
The indictment also alleges that, in December 2012, JOHNSON took $150,000 from a second victim and promised to deposit the money into a trust account for the victim’s benefit. On approximately February 20, 2013, JOHNSON presented the victim with an application purportedly to open the trust account. By that time, however, JOHNSON had already spent all of the $150,000 he received from the victim. Instead of depositing the money into a trust account, JOHNSON had deposited it into a J. Capital Advisors bank account and subsequently spent much of the money for his own personal use, including on the purchase of a convertible Jaguar and a $10,000 transfer into his personal account at SunTrust Bank.
The indictment charges JOHNSON with three counts of mail fraud, one count of wire fraud and two counts of interstate transportation of stolen money. If convicted of mail fraud or wire fraud, JOHNSON faces a term of imprisonment of up to 20 years. If convicted of interstate transportation of stolen money, JOHNSON faces a term of imprisonment of 10 years on each count.
Following his arrest, JOHNSON appeared before U.S. Magistrate Judge Sarah A. L. Merriam in New Haven and was ordered detained. A detention hearing is scheduled for February 19 at 3 p.m.
U.S. Attorney Daly stressed that an indictment is not evidence of guilt. Charges are only allegations, and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This matter is being investigated by the U.S. Postal Inspection Service and the State of Connecticut Department of Banking. The case is being prosecuted by Assistant U.S. Attorney Susan L. Wines.
The case has been assigned to U.S. District Judge Jeffrey Alker Meyer in New Haven.
Honduran National Pleads Guilty to Illegally ReentryRead the Press Release
U.S. Attorney Kenneth A. Polite announced that ALEX JAVIER HERNANDEZ-MEJIA, age 22, a citizen of Honduras, pled guilty today to a one-count Bill of Information for illegal reentry of removed alien.
According to the Bill of Information, on or about November 9, 2015, HERNANDEZ-MEJIA was found in the United States after having been officially deported and removed on or about April 22, 2014.
HERNANDEZ-MEJIA faces a maximum term of imprisonment of two years and a fine of $250,000, one year supervised release after imprisonment, and a $100 special assessment. U.S. District Judge Sarah S. Vance set sentencing for April 6, 2016.
U.S. Attorney Polite praised the work of the United States Department of Homeland Security, Immigration Enforcement in investigating this matter. Assistant United States Attorney Irene González is in charge of the prosecution.
Holyoke Gang Member Sentenced for Illegally Possessing A FirearmRead the Press Release
BOSTON – A member of the La Familia Gang, a national gang with a significant presence in Holyoke and Springfield, was sentenced yesterday in U.S. District Court in Springfield for possessing a firearm with an obliterated serial number while being a convicted felon.
Joshua Marrero, 28, of Holyoke, was sentenced by U.S. District Court Judge Timothy S. Hillman to 75 months in prison to be followed by three years of supervised release, a special assessment and forfeiture of the firearm and ammunition. In October 2015, Marrero pleaded guilty to the charges.
On April 19, 2014, Marrero possessed a Lorcin Model L 380 .380 caliber firearm with an obliterated serial number and seven rounds of .380 caliber ammunition. After being spotted with the firearm by law enforcement officers, Marrero ran into an alley in South Holyoke and was caught after he tripped. Marrero has an extensive violent criminal history, including a 2010 conviction of assault and battery on a police officer.
United States Attorney Carmen M. Ortiz; Daniel J. Kumor, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms & Explosives, Boston Field Division; and Holyoke Police Chief James M. Neiswanger made the announcement today. The case was prosecuted by Assistant U.S. Attorney Deepika Bains Shukla of Ortiz’s Springfield Branch Office.
Herrin Man Sentenced on Heroin OffensesRead the Press Release
On February 10, 2016, James N. Taylor, a/k/a "James Taylor, Jr.", "James Taylor, II," and "Oolie," 47, Herrin, Ill., was sentenced for heroin offenses, the Acting United States Attorney for the Southern District of Illinois, James L. Porter, announced today.
Taylor, who had previously pled guilty to a two-count indictment charging conspiracy to distribute heroin and distribution of heroin, was sentenced to 63 months in federal prison, to be followed by 3 years’ supervised release, and fined $400.00. The offense occurred between 2014 and July 2015, in Williamson County. Evidence at the plea and sentencing hearings established that Taylor was involved with others in the distribution of heroin. On June 25, 2015, and June 26, 2015, Taylor sold heroin to a confidential source working for law enforcement. During a July 1, 2015, search of Taylor and his Herrin residence, agents located pre-packaged heroin and pre-recorded buy money. Upon his arrest, Taylor admitted that he was involved with others in the distribution of heroin. At sentencing, the district court found that Taylor was responsible for the distribution of approximately 248 grams of heroin and 10 grams of crack cocaine.
The investigation was conducted by the Southern Illinois Enforcement. The Williamson County State’s Attorney’s Office assisted in the investigation.
The case was assigned to Assistant United States Attorney Amanda A. Robertson for prosecution.
Harrisburg Man Pleads Guilty to Illegal Possession of A FirearmRead the Press Release
HARRISBURG - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that a Harrisburg man has pleaded guilty to being a felon in possession of a firearm. Shaun L. Graves, age 33, entered a guilty plea today to the charge before Senior U.S. District Court Judge William Caldwell in Harrisburg. The plea was conditional so that Graves can appeal Judge Caldwell’s December 2, 2015 denial of his motion to suppress the firearm to the U.S. Court of Appeals.
The Indictment stems from an October 16, 2014, incident in South Harrisburg in which Graves was arrested by Harrisburg police officers and was found to be in possession of a loaded Bersa .380 caliber semi-automatic pistol with an obliterated serial number.
The case was investigated by the Harrisburg Office of the Bureau of Alcohol, Tobacco, Firearms and Explosives and is being prosecuted by Assistant US Attorney Kim Douglas Daniel.
This case is part of the Violent Crime Reduction Partnership (“VCRP”), a districtwide initiative to combat the spread of violent crime in the Middle District of Pennsylvania. Led by the United States Attorney’s Office, the VCRP consists of federal, state and local law enforcement agencies whose mission is to locate, apprehend, and prosecute individuals who commit violent crimes.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty for the felon in possession charge is life imprisonment. The maximum term of imprisonment for the obliterated serial number charge is five years imprisonment.
Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Greene County Man Sentenced to Time-Served for Damaging Energy FacilityRead the Press Release
PITTSBURGH - A resident of Greene County, Pennsylvania, has been sentenced in federal court to time served (12 months) on his conviction of damaging of an energy facility, United States Attorney David J. Hickton announced today.
United States District Judge Mark R. Hornak imposed the sentence yesterday on Heath A. Rankin, 34, of Carmichaels, Pa.
According to the information presented to the court, Rankin along with a previously prosecuted defendant, Brian Harbarger, damaged the Burchianti Pad, a pad of five natural gas wells operated by Chevron North America Exploitation and Production Company, a division of Chevron USA, Inc. Rankin and Harbarger cut and stole copper grounding wire from the production tanks and impoundment area resulting in the pad being shut in until all of the damage was repaired. Chevron’s cost to repair the damage was $18,624.67. The court ordered Rankin and Harbarger to pay restitution in that amount.
Assistant United States Attorney Nelson P. Cohen prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the Federal Bureau of Investigation and the Pennsylvania State Police for the successful investigation leading to the prosecution of Heath A. Rankin.
Grand Jury Returns 20-Count Indictment Charging Darron Wint in Murders of Four People During Home InvasionRead the Press Release
WASHINGTON – An indictment was returned today charging Darron Dellon Dennis Wint with a total of 20 felony charges, including first-degree murder while armed, burglary, kidnapping, extortion, arson, and theft, in the slayings last May of Savvas Savopoulos, his wife, Amy Savopoulos, their son, Philip Savopoulos, and a household employee, Veralicia Figueroa.
The indictment, returned by a grand jury in the Superior Court of the District of Columbia, was announced by U.S. Attorney Channing D. Phillips and Cathy L. Lanier, Chief of the Metropolitan Police Department (MPD).
Wint, 35, of Lanham, Md., also known as Daron Dylon Wint, was charged with crimes that took place May 13 and May 14, 2015, during a home invasion of the Savopoulos family residence in Northwest Washington. He is to be arraigned on the charges on Friday, Feb. 19, 2016, at a hearing before the Honorable José M. López.
According to the indictment, Wint entered the Savopoulos home, seized and kidnapped the four victims, stole $40,000 through means of extortion, murdered the victims, and set fire to the house. After responding to reports of the fire, authorities discovered the bodies of Savvas Savopoulos, 46, Amy Savopoulos, 47, Philip Savopoulos, 10, and Veralicia Figueroa, 57.
Wint was indicted on a total of 12 counts of first-degree murder while armed, all with aggravating circumstances. The charges include four counts of first-degree murder while armed (felony murder) in the course of a kidnapping; four counts of first-degree murder while armed (felony murder) in the course of a burglary, and four counts of first-degree premeditated murder while armed. In addition, the grand jury indicted Wint on four counts of kidnapping and one count each of first-degree burglary, extortion, arson, and first-degree theft.
In addition to the various substantive crimes specified in the indictment, the indictment charges Wint with specified “aggravating circumstances,” including one finding that the murders were especially heinous, atrocious or cruel. If these are found by a jury at trial, Wint could face a maximum of life imprisonment without the possibility of release on each of the 12 murder charges. Each of the murder charges carries a mandatory minimum prison term of 30 years.
Additionally, each of the kidnapping counts involving the three adult victims carries a maximum sentence of 30 years; the kidnapping count involving Philip Savopoulos carries up to 45 years. First-degree burglary also carries a 30-year maximum prison sentence, and arson, extortion, and first-degree theft have maximum prison terms of 10 years each.
Wint was arrested May 21, 2015 and has been in custody ever since. He initially was charged with one count of first-degree murder while armed in the death of Savvas Savopoulos.
The investigation into the murders is continuing.
An indictment is merely a formal allegation that a defendant has committed a violation of criminal laws and every defendant is presumed innocent until, and unless, proven guilty.
In announcing the indictment, U.S. Attorney Phillips and Chief Lanier praised the efforts of those who have investigated the case from the Metropolitan Police Department. They also expressed appreciation for the work of the many other agencies that have provided assistance, including the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives, the U.S. Marshals Service, the U.S. Secret Service, the District of Columbia Department of Fire and Emergency Medical Services, the Prince George’s County, Md., Department of Fire and Emergency Medical Services, and the District of Columbia Department of Forensic Sciences.
They commended the work of those who are handling the case from the U.S. Attorney’s Office, including Victim/Witness Advocate Marcia Rinker and Paralegal Specialists Kendra Johnson and Meridith McGarrity. Finally, they acknowledged the efforts of Assistant U.S. Attorneys Laura R. Bach and Emily A. Miller, who are investigating and prosecuting the case.
Franklinville Man Pleads Guilty to Illegally Buying and Selling Elephant TusksRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y. — U.S. Attorney William J. Hochul, Jr., announced today that Ferdinand E. Krizan, 77, of Franklinville, NY, pleaded guilty before Chief U.S. District Judge Frank P. Geraci, Jr. to trafficking in prohibited wildlife. The charge carries a maximum penalty of five years in prison and a fine of $250,000.
“Since the passage of the Lacey Act in 1900, Congress and the American people have sought to protect endangered wildlife by outlawing the trafficking in certain vulnerable creatures, said U.S. Attorney Hochul. “Certainly the existential dangers facing elephants – the world’s largest land animal – are well known due to the continuing predations of poachers. But even beyond reasons of conservation, enforcement of wildlife trafficking laws attacks organized criminal groups who most frequently engage in this illegal trade. This Office will continue to vigorously enforce these important laws, both to protect our world’s wildlife for future generations, and to serve as an example for other nations considering similar efforts.”
“Elephants are being slaughtered daily by poachers for their ivory. Each tusk represents one step closer to their extinction, said Edward Grace, Deputy Chief, Office of Law Enforcement for the U.S. Fish and Wildlife Service. “Our special agents and wildlife inspectors are not only working tirelessly to investigate, apprehend, and prosecute the illegal ivory trade in the United States, but we are also working with global counterparts to track criminals abroad. Ivory poachers and traffickers will understand that the U.S. is committed to stopping this heinous activity and we will find you. If the demand for ivory is not reduced, and the illegal activities continue, then these magnificent animals won’t be on our planet for future generations to enjoy.”
“When Governor Cuomo signed a new state law in 2014 to prevent the trade of illegal ivory, the goal was to eliminate this illegal and immoral activity in New York and safeguard imperiled species of animals around the globe,” said New York State Department of Environmental Conservation Acting Commissioner Basil Seggos. “Today’s announcement builds on that promise and serves as a declaration to the public that we will not take this lightly. I applaud the efforts of DEC’s Environmental Conservation Officers and all the agencies involved that brought the perpetrators to justice.”
Assistant U.S. Attorney Aaron J. Mango, who is handling the case, stated that on November 6, 2013, Krizan, owner of Fred’s Antiques in Franklinville, purchased two elephant tusks from an auction house in Montreal, Quebec for $4,320 Canadian dollars. The defendant then had the tusks shipped to an address in Niagara Falls, Ontario.
On November 28, 2013, Krizan transported the tusks from Niagara Falls, Ontario into the United States through the Rainbow Bridge port of entry, violating the Endangered Species Act. Subsequently, on May 31, 2014, the defendant sold the tusks, along with four additional tusks to a buyer in Massachusetts for $50,000 American dollars. At the time of that sale, Krizan knew that the two elephant tusks had been improperly transported into the United States. At no time did the defendant apply for or receive a permit under the Endangered Species Act authorizing the importation, delivery, receipt, transportation, or sale of elephant ivory.
The investigation also determined that the defendant also illegally trafficked in other protected wildlife including:
• a Narwhal tusk, which he sold for $8,000 American dollars in violation of the Marine Mammal Protection Act; • two elephant tusks, which he sold for $66,000 American dollars; • a carved elephant ivory art object, which he purchased for $1,020 Canadian dollars; • one elephant tusk, which he purchased for $3,130.68 Canadian dollars; • one hippo ivory carving, which he sold for $1,400 American dollars; • one elephant ivory musician carving, which he sold for $2,525 American dollars; • one bronze and elephant ivory sosoon figurine, which he sold for $3,700 American dollars; • one elephant ivory trip-tix, which he sold for $2,700 Canadian dollars; and
• one carved coral figurine, which he sold for $3,400 American dollars.The total value of the wildlife trafficked by the defendant is $141,877.00. As part of the plea, the defendant will also abandon approximately 100 pieces elephant ivory carvings.
The plea is the culmination of an investigation by the U.S. Fish and Wildlife Service, under the direction of Honora Gordon, Special Agent in Charge, Northeast Region, and the New York State Department of Environmental Conservation, under the direction of Captain Frank Lauricella.
Sentencing is scheduled for May 19, 2016 at 10:30 a.m. before Judge Geraci.
Four people indicted for heroin trafficking in YoungstownRead the Press Release
A federal grand jury returned a 29-count indictment charging four people with drug trafficking crimes, said Carole S. Rendon, Acting United States Attorney for the Northern District of Ohio.
Andre L. Duncan, 37, of Brent, Alabama; Morris D. Perry, 37, of Youngstown; Shon D. Rankin, 36, of Youngstown; and Phillip T. Devine, 26, of Leetonia, Ohio, knowingly conspired to possess with the intent to distribute and to distribute heroin between May 2014 and continuing through August 2014, according to the indictment.
Duncan supplied heroin to Rankin and Perry for distribution in the Youngstown area. Perry supplied heroin to Devine for distribution in the Youngstown area, according to the indictment.
It was further part of the conspiracy that cellular telephones, code words and phrases were used by the co-conspirators to facilitate their drug trafficking activities.
If convicted, the defendants’ sentences will be determined by the Court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violations. In all cases, the sentence will not exceed the statutory maximum and, in most cases, it will be less than the maximum.
The investigation preceding the indictment was conducted by the Drug Enforcement Administration. The case is being prosecuted by Assistant United States Attorney David M. Toepfer.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Four Midlands Residents Sentenced to Jail for Mail Theft ConspiracyRead the Press Release
Contact Person: John Potterfield (803) 929-3000
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Columbia, South Carolina---- U.S. Attorney Bill Nettles announced that four individuals were sentenced in federal court in Columbia, SC as part of a mail theft and forgery ring that was operating in the Midlands of South Carolina from July 2014 through November 2014. Johnnie Wayne Martin, III, 50, of Lexington, SC, Sandra Kay Cheeks, 48, of Lexington, SC, Brodie Kale Sexton, 39, of Columbia, SC, and Brandy Michelle Mitchell, 36, of Lexington, SC, were all sentenced by The Honorable Mary Geiger Lewis. The four all plead guilty in federal court in 2015 to an indictment which alleged that the individuals would illegally remove checks from mail boxes and other mail receptacles. The indictment further alleged that the defendants would change the amount and the name of the payee on the check to one of the defendants or the name of an innocent victim whose identification had been illegally obtained by the defendants.
Johnnie Martin, III, was sentenced to a term of imprisonment of 42 months with 3 years of supervision upon release and was ordered to pay $7,616.79 in restitution.
Sandra Cheeks was sentenced to a term of imprisonment of 24 months with 1 year of supervision upon release and was ordered to pay $1,044.28 in restitution.
Brodie Sexton was sentenced to a term of imprisonment of 24 months with 1 year of supervision upon release and was ordered to pay $1,264.76 in restitution.
Brandi Mitchell was sentenced to a term of imprisonment of 10 months with 5 years of supervision upon release and was ordered to pay $302.69 in restitution.
The investigation was conducted by the Midlands Financial Crimes Group, or MFCG, and led by the US Postal Inspection Service Columbia, SC field office. The MFCG is a group of federal, state, and local law enforcement agencies, along with bank investigators and private industry security personnel, that meets once a month to discuss ongoing criminal incidents involving forgery, theft, fraud, identity theft, and other similar white collar crimes in the Midlands of South Carolina.
The case was prosecuted by Assistant US Attorney John Potterfield of the US Attorney’s Office for the District of South Carolina in Columbia, SC.Former Staff Mentor at Florida Keys Children’s Shelter Sentenced to 380 Months’ Imprisonment for Child Sex TraffickingRead the Press Release
A former staff mentor at the Florida Keys Children’s Shelter, a residential facility in Tavernier, Florida, was sentenced today by United States District Judge Marcia G. Cooke to 380 months’ imprisonment, following his conviction for child sex trafficking.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, made the announcement.
Following a three-week jury trial beginning on October 19, 2015, Ricky Jermaine Atkins, 29, of Key Largo, was convicted of conspiracy to engage in the sex trafficking of minors, in violation of Title 18, United States Code, Section 1594(c), as well as two counts of sex trafficking of a minor, in violation of Title 18, United States Code, Section 1591(a)(1). The Court sentenced Atkins to concurrent terms of 380 months’ imprisonment as to each count, to be followed by a lifetime term of supervised release.
Atkins’ co-defendant, Sandra Simon, 24, of Homestead, previously pled guilty to one count of sex trafficking of a minor, in violation of Title 18, United States Code, Section 1591(a)(1). On November 20, 2015, Simon was sentenced to 136 months’ imprisonment.
According to evidence presented at trial, Atkins worked overnight shifts as a staff mentor at the Florida Keys Children’s Shelter, a residential facility in Tavernier for minor children. Atkins obtained two of the children living at the shelter, girls aged fifteen and sixteen, to be brought from Tavernier to a hotel in Cutler Bay, where Simon supervised their prostitution. On the night of August 15, 2014, Atkins personally transported the minor victims from Tavernier to Cutler Bay, where he left them with Simon. Earlier on that day, Simon had pled guilty in state court to procuring a minor for prostitution, and had received a sentence of probation.
Evidence presented at trial further established that Atkins subsequently collected money earned from the minor victims’ prostitution, and delivered to Simon a cellular phone and other items intended to facilitate the prostitution of the minor victims. Further evidence admitted at trial established that Atkins simultaneously prostituted an 18-year-old woman whom Atkins had met while the woman was a minor child living at the shelter.
Mr. Ferrer thanked the FBI’s Child Exploitation Task Force, the State Attorney’s Office Human Trafficking Task Force, the Monroe County Sherriff’s Office and the North Port Police Department for their work on this case. The case is being prosecuted by Assistant U.S. Attorneys Seth M. Schlessinger and Elina A. Rubin-Smith.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Former Schuylkill County Employee Sentenced to 12 Months in Prison for Embezzling $452,186Read the Press Release
HARRISBURG – The United States Attorney’s Office for the Middle District of Pennsylvania announced today that a former Schuylkill County employee, Virginia G. Kunigonis, age 54, of Pottsville, Pennsylvania, was sentenced to 12 months imprisonment by U.S. District Judge William W. Caldwell to embezzling $452,186 from the Schuylkill County Conservation District between 2007 and 2014.
Kunigonis pled guilty in October 2015 before Judge Caldwell to an Information charging her with Theft From Programs Receiving Federal Funds pursuant to a plea agreement with the government. The Schuylkill County Conservation District receives in excess of $10,000 in federal grant monies each year.
According to United States Attorney Peter Smith, the Information alleged Kunigonis forged 437 Conservation District checks totaling $410,435 payable to herself between October of 2007 and May of 2014. The Information also alleged Kunigonis charged $41,751 in personal expenses against a Conservation District credit card during that same time period. Evidence elicited during the sentencing hearing was that the embezzlement scheme was undetected for so long because of the District’s failure to implement adequate internal controls and that Kunigonis used the stolen money, in part, to pay down more than $135,000 in credit card debt.
In addition to her 12 month sentence, Judge Caldwell ordered Kunigonis to pay $452,186 restitution consisting of $3,122 to Schuylkill County and $449,064 to Pennsylvania Counties Risk Pool (PCoRP), Schuylkill County’s bonding company. Judge Caldwell also directed the forfeiture of Kunigonis’ interest in her Pottsville residence, and her interest in her Schuylkill County retirement account.
Kunigonis began working as an administrative assistant for the Schuylkill County Conservation District in approximately 2002. Prior to that she worked in various capacities for Schuylkill County since 1986.
The case was investigated by the Scranton Office of the Federal Bureau of Investigation and is being prosecuted by Assistant U.S. Attorney Kim Douglas Daniel.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Former Parochial Vicar Sentenced for Child Exploitation ChargesRead the Press Release
PHILADELPHIA – Mark Haynes, 56, of West Chester, PA, was sentenced today to 240 months in prison for child sexual abuse and exploitation. Haynes, a former parochial Vicar at Saint Simon and Jude’s Church in West Chester, pleaded guilty on June 8, 2015 to using the Internet to entice a minor to engage in sexual conduct, transfer of obscene material to a minor, distribution of child pornography, possession of child pornography, and destruction or concealment of evidence. In addition to the prison term, U.S. District Court Judge R. Barclay Surrick ordered 10 years of supervised release, a fine of $15,000, and a $700 special assessment.
Around 2010, Haynes posed as a 15-year old girl named “Katie” on a teen pen pal site on Instagram. As “Katie,” Haynes would meet young teenage girls online, engage in sexual chats, and send them child pornography photos and videos in an attempt to entice them to take and send sexually explicit pictures of themselves. Haynes is also charged with distributing other images and videos of children being sexually assaulted over the Internet in 2014. After his arrest by the Chester County Criminal Investigation Division, Haynes was released on bail. While under court supervision, Haynes duped an 86-year old friend of his mother into retrieving his computer from his apartment at the rectory at Saint Simon and Jude’s. Haynes then destroyed the computer, discarding the hard drive in a dumpster in New Jersey. At sentencing, Judge Surrick heard testimony from victims regarding Haynes’ sexual abuse of children from his parish at Saint Ann’s in Phoenixville as far back as 1985 through 1991.
The case was investigated by the FBI in conjunction with the Delaware County Internet Crimes Against Children Task Force and the Chester County Criminal Investigative Division. It was prosecuted by Assistant United States Attorney Michelle Rotella.
Former Marion Man Charged with Receipt and Possession of Child PornographyRead the Press Release
Andrew Schrock, age 32, formerly of Marion, Iowa, has been charged with receipt and possession of child pornography. The charges are contained in an Indictment filed on January 12, 2016, in United States District Court in Cedar Rapids.
The Indictment alleges that, between 2013 and 2014, Schrock received and possessed child pornography.
If convicted, Schrock faces a mandatory minimum sentence of five years’ imprisonment and a possible maximum sentence of 40 years’ imprisonment, a $500,000 fine, a $200 special assessment, and at least five years and up to life on supervised release following any imprisonment.
Schrock appeared on February 9, 2016, in federal court in Cedar Rapids and was held without bond. Schrock’s next appearance for trial is set for April 11, 2016.
As with any criminal case, a charge is merely an accusation and a defendant is presumed innocent until and unless proven guilty.
This case is being prosecuted by Assistant United States Attorney Mark Tremmel and was investigated by the Marion Police Department.
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.”
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is CR 16-0006.
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Former Fugitive Sentenced for Failure to AppearRead the Press Release
DAYTON – Lance Ealy, 29, of Dayton, was sentenced in U.S. District Court to 24 months in prison for failure to appear consecutive to his underlying sentence of 124 months for access device fraud, wire fraud, aggravated identity theft and related charges.
A jury in the Southern District of Ohio convicted Ealy in November 2014 of buying stolen identities online and using the identities to file more than 150 fraudulent federal income tax returns seeking refunds to which he was not entitled.
Ealy failed to appear for his jury trial on November 17, 18 and 19, 2014. He became a fugitive on November 15, 2014, after he removed his electronic monitoring device and fled while under bond conditions. He was recaptured in late March 2015 in Georgia.
He was sentenced for the underlying charges on November 21, 2015.
Carter M. Stewart, United States Attorney for the Southern District of Ohio, United States Marshal Peter Tobin, Guy A. Ficco, Acting Special Agent in Charge, Internal Revenue Service Criminal Investigation (IRS), and Mark Porter, Special Agent in Charge, U.S. Secret Service, announced the latest sentence, which was handed down yesterday by U.S. District Judge Thomas M. Rose.
According to court testimony in the jury trial, between approximately January 2013 and October 2013, Ealy electronically filed at least 150 fraudulent federal income tax returns, including returns filed using the personal information of others that he had unlawfully acquired from an illicit online source. Ealy opened dozens of bank accounts at multiple financial institutions using the names and social security numbers of other individuals – without their knowledge or permission – in order to electronically deposit the fraudulent tax refunds.
The jury convicted Ealy of 46 charges, including one count of illegally possessing 15 or more unauthorized access devices, 11 counts of filing false claims for income tax refunds with the IRS, 14 counts of wire fraud, 14 counts of aggravated identity theft, one count of mail fraud, and one count of using unauthorized access devices to obtain $1,000 or more in a one-year period. An access device includes things such as payment cards and bank account numbers used to access financial accounts.
Ealy was initially charged in a federal complaint filed on October 28, 2013 following an investigation by Secret Service agents that revealed that Ealy had purchased stolen identities from an illicit online source. A federal grand jury initially indicted Ealy in November 2013, charging him with one count of knowingly possessing 15 or more access devices with intent to defraud.
U.S. Attorney Stewart commended the investigation of this case by the United States Marshals Service, Secret Service and IRS-Criminal Investigation agents, and Assistant U.S. Attorneys Alex R. Sistla and Andrew J. Hunt, who are prosecuting the case.
Former Freedom president sentenced to prison for role in chemical spillRead the Press Release
CHARLESTON, W.Va. – The former president of Freedom Industries was sentenced today to 30 days in federal prison, to be followed by a six-month term of supervised release, and a $20,000 fine for environmental crimes connected to the 2014 Elk River chemical spill, announced Acting United States Attorney Carol Casto. Gary Southern, of Marco Island, Florida, previously pleaded guilty in August 2015 to negligently discharging a pollutant, unlawfully discharging refuse matter, and negligently violating an environmental permit by failing to have a pollution prevention plan. Southern is one of six former officials of Freedom Industries, in addition to Freedom Industries itself as a corporation, to be prosecuted for federal crimes associated with the chemical spill.
On January 9, 2014, a major chemical leak was discovered in Charleston at the above-ground storage tank area owned and operated by Freedom Industries (Freedom) on the Elk River. Freedom used these storage tanks to keep and process chemicals, and the leak consisted primarily of 4-methylcyclohexane methanol (MCHM), a chemical used in the coal mining industry as a cleansing agent. A significant amount of MCHM leaked into the Elk River, flowed into a water treatment plant, and contaminated the water supply of Charleston and the surrounding areas for several days. Freedom did not have a permit required by law that would have allowed the company to discharge MCHM into the Elk River.
Southern became associated with Freedom in 2009 and joined its board of directors in March 2010. He became president of Freedom in December 2013, and was serving as Freedom’s president at the time of the chemical spill. In these capacities, Southern was a responsible corporate officer of Freedom from at least March 2010 through January 9, 2014, with the responsibility and the authority to ensure that Freedom and its facility on the Elk River complied with the law.
Freedom had a permit issued by West Virginia’s Department of Environmental Protection that allowed for the discharge of storm water and groundwater subject to monitoring and reporting requirements. However, this permit did not allow for the discharge of MCHM, and required the development and implementation of a storm water plan and a groundwater plan. Generally, storm water and groundwater plans identify potential sources of pollution and outline steps to prevent, contain, and reduce pollutants.
Southern admitted that he was aware of the permit and that he should have known that Freedom was required to have a storm water plan. He further admitted that he had the responsibility and authority to ensure that Freedom complied with the permit by having a storm water and groundwater plan in place. During Southern’s tenure as a responsible corporate officer, Freedom never developed or implemented a storm water or groundwater plan. Southern’s negligence in failing to ensure that Freedom developed and implemented a storm water and groundwater plan was a proximate and contributing cause of the chemical spill.
“We are pleased to bring these cases to conclusion,” said Acting United States Attorney Carol Casto. “Many thought that those responsible for contaminating our water would never see the inside of a courtroom, but six individuals and Freedom Industries now stand convicted and have been sentenced for the offenses that they committed. It is my hope that these prosecutions will serve as a message to others that we will follow the evidence, charge the cases that are developed, and hold those responsible accountable to the extent permitted by law.”
Southern is one of seven defendants that have been sentenced as part of the investigation into the chemical spill. Robert J. Reynolds, of Apex, North Carolina, who worked as an environmental consultant with Freedom, was sentenced on February 1, 2016, for negligently discharging a pollutant. Charles E. Herzing, of McMurray, Pennsylvania, a former owner and vice president of Freedom, was sentenced on February 2, 2016, for unlawfully discharging refuse matter. Freedom, as a corporation, was sentenced on February 4, 2016, for negligently discharging a pollutant, unlawfully discharging refuse matter, and knowingly violating an environmental permit. Michael E. Burdette, of Dunbar, a former plant manager for Freedom’s facility on the Elk River, was sentenced on February 4, 2016, for negligently discharging a pollutant. William E. Tis, of Verona, Pennsylvania, a former owner and secretary of Freedom, was sentenced on February 8, 2016, for unlawfully discharging refuse matter. Dennis P. Farrell, of Charleston, a former Freedom president and owner, was sentenced on February 11, 2016, for unlawfully discharging refuse matter and violating a permit by failing to have a pollution prevention plan.
The investigation of the chemical spill was conducted by the Federal Bureau of Investigation and the Environmental Protection Agency’s Criminal Investigation Division. Assistant United States Attorneys Philip H. Wright, Larry R. Ellis, and Eric P. Bacaj, as well as the Environmental Protection Agency’s Regional Criminal Enforcement Counsel Perry D. McDaniel, handled the prosecutions. United States District Judge Thomas E. Johnston imposed the sentences for each of the defendants.
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Former Dubuque Man Charged with Distribution, Receipt, and Possession of Child PornographyRead the Press Release
Robert Even, age 45, of Bellevue, Iowa, formerly of Dubuque, has been charged with distribution, receipt, and possession of child pornography. The charges are contained in an Indictment unsealed on February 8, 2016, in United States District Court in Cedar Rapids.
The Indictment alleges that, between 2013 and 2014, Even distributed, received, and possessed child pornography.
If convicted, Even faces a mandatory minimum sentence of five years’ imprisonment and a possible maximum sentence of 60 years’ imprisonment, a $750,000 fine, a $300 special assessment, and at least five years and up to life on supervised release following any imprisonment.
Even appeared for a detention hearing on February 11, 2016, in federal court in Cedar Rapids and was released on bond. Even’s next appearance for trial is set for April 11, 2016.
As with any criminal case, a charge is merely an accusation and a defendant is presumed innocent until and unless proven guilty.
This case is being prosecuted by Assistant United States Attorney Mark Tremmel and was investigated by the Dubuque County Sheriff’s Office and the Cedar Rapids Police Department.
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.”
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is CR 16-1002.
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Former Chief Operating Officer of Davis Bio-Pesticide Company Indicted for Securities FraudRead the Press Release
SACRAMENTO, Calif. — Hector Absi, 47, of Las Vegas, Nevada, was arrested today by FBI agents at his home in Las Vegas. He is charged in a 16-count indictment, unsealed today, that was returned by a federal grand jury in Sacramento on February 11. The indictment charges Absi with conspiracy to commit mail fraud, wire fraud, and securities fraud; substantive counts of mail, wire, and securities fraud; and with other securities-related charges, United States Attorney Benjamin B. Wagner announced.
According to court documents, Absi is the former head of the sales department of Marrone Bio Innovations Inc. (MBI), a company that developed and sold “bio-based” pesticides and is headquartered in Davis, California. Absi also served as MBI’s Chief Operating Officer from January 2014 until his resignation in August 2014. MBI is a publicly traded company; its stock trades on the NASDAQ exchange under the ticker symbol “MBII.” As a publicly traded company, it is required to file quarterly and annual reports with the Securities and Exchange Commission (SEC). In its reports, MBI stated that it recorded revenue in accordance with generally accepted accounting principles (GAAP).
The indictment alleges that, in order to increase sales of MBI products, Absi sold MBI products to customers with side agreements that offered “inventory protection,” under which MBI agreed to either repurchase the product from the customer or extend the terms of payment if the customer was still in possession of the product after a specified time period. Under GAAP, revenue from sales that include such agreements cannot be recognized on the company’s books. The indictment alleges that between March 2013 and July 2014, Absi conspired with at least one other MBI employee to misrepresent to MBI’s accounting department, its external auditors, and the investing public that MBI had made sales under such terms. By concealing the practice, Absi caused MBI to report a doubling of its revenue in 2013 in comparison to 2012. Absi also allegedly conspired with others to backdate the delivery of certain shipments of MBI’s products to enhance MBI’s reported revenues for the quarter. Absi received a performance-based bonus and exercised stock options during a time when MBI’s inflated revenue figures were being reported.
“It is critical to the integrity of the securities markets that we criminally prosecute those who act to profit by deceiving those markets and the investing public who rely on the accuracy of publicly filed reports,” said U.S. Attorney Wagner. “I am pleased that we have been able to coordinate effectively with the SEC in this matter.”
“We thank the SEC for their partnership in this successful investigation. Such collaboration is essential to the success of securities fraud investigations and ultimately protecting the integrity of the securities market,” said Assistant Special Agent in Charge Manuel Alvarez of the Federal Bureau of Investigation’s Sacramento field office. “Securities fraud is something most associate with Wall Street, not our region; however, our region is home to many successful, publicly traded companies. Unfortunately, this success also attracts greed-based crime and we will work with our partners to root out those who seek to deceive investors by manipulating revenue data.”
“We allege that Marrone Bio misled investors to make itself look like a fast-growing new public company,” said Jina L. Choi, Director of the SEC’s San Francisco Regional Office. “Public companies and their officers should know better that taking shortcuts to recognize revenue in the near term is harmful to investors and can be damaging to a company’s long-term success.”
This case is the product of an investigation by the Federal Bureau of Investigation. Assistant United States Attorney Todd A. Pickles is prosecuting the case.
The Securities and Exchange Commission has also conducted an investigation into the conduct of Hector Absi while he was an officer of MBI. Today it filed a civil complaint against Absi in the U.S. District Court for the Eastern District of California, alleging that Absi violated the Securities Act of 1933, and the Securities Exchange Act of 1934, and federal rules issued under the Exchange Act, and seeking an injunction against Absi, disgorgement of wrongfully obtained benefits, and civil penalties.
If convicted, Absi faces a maximum statutory penalty of 25 years in prison and a $5 million fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Former Chief Operating Officer of Davis Bio-Pesticide Company Indicted for Securities FraudRead the Press Release
SEC Files Separate Civil Complaint
Hector Absi, 47, of Las Vegas, Nevada, was arrested today by FBI agents at his home in Las Vegas. He is charged in a 16-count indictment, unsealed today, that was returned by a federal grand jury in Sacramento, California, on February 11. The indictment charges Absi with conspiracy to commit mail fraud, wire fraud and securities fraud; substantive counts of mail, wire and securities fraud; and with other securities-related charges, U.S. Attorney Benjamin B. Wagner for the Eastern District of California announced.
According to court documents, Absi is the former head of the sales department of Marrone Bio Innovations Inc. (MBI), a company that developed and sold “bio-based” pesticides and is headquartered in Davis, California. Absi also served as MBI’s Chief Operating Officer from January 2014 until his resignation in August 2014. MBI is a publicly traded company; its stock trades on the NASDAQ exchange under the ticker symbol “MBII.” As a publicly traded company, it is required to file quarterly and annual reports with the Securities and Exchange Commission (SEC). In its reports, MBI stated that it recorded revenue in accordance with generally accepted accounting principles (GAAP).
The indictment alleges that, in order to increase sales of MBI products, Absi sold MBI products to customers with side agreements that offered “inventory protection,” under which MBI agreed to either repurchase the product from the customer or extend the terms of payment if the customer was still in possession of the product after a specified time period. Under GAAP, revenue from sales that include such agreements cannot be recognized on the company’s books. The indictment alleges that between March 2013 and July 2014, Absi conspired with at least one other MBI employee to misrepresent to MBI’s accounting department, its external auditors and the investing public that MBI had made sales under such terms. By concealing the practice, Absi caused MBI to report a doubling of its revenue in 2013 in comparison to 2012. Absi also allegedly conspired with others to backdate the delivery of certain shipments of MBI’s products to enhance MBI’s reported revenues for the quarter. Absi received a performance-based bonus and exercised stock options during a time when MBI’s inflated revenue figures were being reported.
“It is critical to the integrity of the securities markets that we criminally prosecute those who act to profit by deceiving those markets and the investing public who rely on the accuracy of publicly filed reports,” said U.S. Attorney Wagner. “I am pleased that we have been able to coordinate effectively with the SEC in this matter.”
“We thank the SEC for their partnership in this successful investigation,” said Assistant Special Agent in Charge Manuel Alvarez of the FBI’s Sacramento Field Office. “Such collaboration is essential to the success of securities fraud investigations and ultimately protecting the integrity of the securities market. Securities fraud is something most associate with Wall Street, not our region; however, our region is home to many successful, publicly traded companies. Unfortunately, this success also attracts greed-based crime and we will work with our partners to root out those who seek to deceive investors by manipulating revenue data.”
“We allege that Marrone Bio misled investors to make itself look like a fast-growing new public company,” said Director Jina L. Choi for the SEC’s San Francisco Regional Office. “Public companies and their officers should know better that taking shortcuts to recognize revenue in the near term is harmful to investors and can be damaging to a company’s long-term success.”
This case is the product of an investigation by the FBI. Assistant U.S. Attorney Todd A. Pickles is prosecuting the case.
SEC has also conducted an investigation into the conduct of Hector Absi while he was an officer of MBI. Today it filed a civil complaint against Absi in the U.S. District Court for the Eastern District of California, alleging that Absi violated the Securities Act of 1933 and the Securities Exchange Act of 1934 and federal rules issued under the Exchange Act and seeking an injunction against Absi, disgorgement of wrongfully obtained benefits, and civil penalties.
If convicted, Absi faces a maximum statutory penalty of 25 years in prison and a $5 million fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Former Bank Officer Sentenced to 41 Months’ in Federal Prison for EmbezzlementRead the Press Release
A former officer of the board of Country Bancorporation who embezzled more than $1,000,000 over nearly a decade was sentenced on February 16, 2016, to more than three years in federal prison.
Heidi Wagler, age 50, from Wayland, Iowa, received the prison term after a October 6, 2015, guilty plea to one count of embezzlement by a bank officer.
In a plea agreement, Wagler admitted that from June 2004 through October 2013 she embezzled at least $864,835 from Country Bancorporation, which controlled seven banks, by paying herself salary to which she was not entitled. At the time, Wagler was an officer and employee of Country Bancorporation and was in charge of doing payroll for each of these banks. She was also a member of the Board of Directors of one of the banks and her husband, Russell Wagler, was the Director, President, and CEO of that same bank. Wagler further admitted that, although she was entitled to compensation from Country Bancorporation for doing the payroll for its banks, she paid herself excess compensation from each of the seven banks at various times over the course of her embezzlement. At sentencing, she also admitted that, from January 2008 through November 2013, she paid her husband more than $200,000 in additional compensation to which he was not entitled. At the sentencing hearing, the judge stated that Wagler’s crime was a “pure crime of greed, of avarice.”
Wagler was sentenced in Cedar Rapids by United States District Court Chief Judge Linda R. Reade. Wagler was sentenced to 41 months’ imprisonment and fined $50,000. A special assessment of $100 was imposed, and she was ordered to make $1,065,799 in restitution to Country Bancorporation. She must also serve a five-year term of supervised release after the prison term. There is no parole in the federal system.
Wagler was released on the conditions of release previously set and is to surrender to the Bureau of Prisons on a date yet to be set.
The case was prosecuted by Assistant United States Attorney Anthony Morfitt and investigated by the Federal Bureau of Investigation and Federal Deposit Insurance Corporation.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 15-CR-00089.
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Former Army Reserve Staff Sergeant Sentenced to 21 Months in Prison for Bulk Cash Smuggling and Theft of Government Property while Serving in AfghanistanRead the Press Release
A Fort Buchanan Army Reserve Staff Sergeant was sentenced today to 21 months in prison for bulk cash smuggling of $113,050 and theft of government property worth $6,302.69 while serving in Afghanistan.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Rosa Emilia Rodríguez-Vélez of the District of Puerto Rico, Special Agent in Charge Douglas A. Leff of the FBI’s San Juan, Puerto Rico, Division, Acting Special Agent in Charge James M. Gibbons of the U.S. Immigration and Customs Enforcement-Homeland Security Investigations (ICE-HSI) Chicago Field Office, Special Inspector General for Afghanistan Reconstruction John F. Sopko, Director Frank Robey of the U.S. Army Criminal Investigation Command’s (CID) Major Procurement Fraud Unit and Special Agent in Charge Robert E. Craig Jr. of the Defense Criminal Investigative Service’s (DCIS) Mid-Atlantic Field Office made the announcement.
On July 15, Luis Ramon Casellas, 42, of Canóvanas, Puerto Rico, pleaded guilty before U.S. Magistrate Judge Camille L. Velez-Rive of the District of Puerto Rico to three counts of bulk cash smuggling and one count of theft of government property. In addition to imposing the prison term, U.S. District Judge Carmen Consuelo Cerezo of the District of Puerto Rico ordered Casellas to forfeit $113,050.
Casellas was an Army Reservist Staff Sergeant on active status based at Fort Buchanan in Guaynabo, Puerto Rico. In April 2013, Casellas was deployed by the Army to Kandahar Airfield in Afghanistan. As part of his duties, Casellas was responsible for helping to break down smaller bases in preparation for the withdrawal of U.S. military forces from Afghanistan. These duties included retrieving U.S. government property for future use and selling as scrap to Afghan contractors.
Between June 17 and Aug. 9, 2013, Casellas was the leader of the three-person Army team that went to a Forward Operating Base (FOB) in Afghanistan to help break down that base. In connection with his guilty plea, Casellas admitted that while this team was at the FOB, he stole tools and equipment, including laptops, belonging to the U.S. Department of Defense. Casellas also admitted that, in July 2013, he sent approximately eight boxes from the FOB through the U.S. Postal Service addressed to his wife in Puerto Rico, and that the boxes contained some of the government property and undeclared U.S. currency totaling $50,500.
In addition, in August 2013, Casellas sent two boxes from Kandahar Airfield through UPS, again addressed to his wife in Puerto Rico, that were marked as “gifts for family.” In connection with his plea, Casellas admitted that, although he declared that the items inside the boxes were valued at $700 and $400, respectively, one box contained some of the stolen government property as well as $41,750 in U.S. currency, and the other box contained $20,800 in U.S. currency. These boxes were intercepted by U.S. Customs in Louisville, Kentucky.
This case was investigated by the Special Inspector General for Afghanistan Reconstruction, the FBI, ICE-HSI, Army CID and DCIS, with assistance from the Defense Contract Audit Agency. This case was prosecuted by Trial Attorney Daniel P. Butler of the Criminal Division’s Fraud Section and Assistant U.S. Attorneys Julia M. Meconiates and Myriam Fernandez of the District of Puerto Rico.
Fifty-One Hospitals Pay United States More Than $23 Million to Resolve False Claims Act Allegations Related to Implantation of Cardiac DevicesRead the Press Release
The Department of Justice has reached settlements with 51 hospitals in 15 states for more than $23 million related to cardiac devices that were implanted in Medicare patients in violation of Medicare coverage requirements, the Department of Justice announced today. These settlements represent the final stage of a nationwide investigation into the practices of hundreds of hospitals improperly billing Medicare for these devices. With these additional agreements, the Justice Department’s investigation has now yielded settlements with more than 500 hospitals totaling more than $280 million.
“These settlements demonstrate the Department’s continued vigilance in pursuing hospitals and health systems that violate Medicare’s national coverage rules,” said Principal Deputy Assistant Attorney General Benjamin C. Mizer, head of the Justice Department’s Civil Division. “We will hold accountable those who do not abide by the government’s rules in order to protect the federal fisc and, more importantly, patient health.”
An implantable cardioverter defibrillator, or ICD, is an electronic device that is implanted near and connected to the heart. It detects and treats chaotic, extremely fast, life-threatening heart rhythms, called fibrillations, by delivering a shock to the heart, restoring the heart’s normal rhythm. It is similar in function to an external defibrillator (often found in offices and other buildings) except that it is small enough to be implanted in a patient’s chest. Only patients with certain clinical characteristics and risk factors qualify for an ICD covered by Medicare.
Medicare coverage for the device, which costs approximately $25,000, is governed by a National Coverage Determination (NCD). The Centers for Medicare and Medicaid Services implemented the NCD based on clinical trials and the guidance and testimony of cardiologists and other health care providers, professional cardiology societies, cardiac device manufacturers and patient advocates. The NCD provides that ICDs generally should not be implanted in patients who have recently suffered a heart attack or recently had heart bypass surgery or angioplasty. The medical purpose of a waiting period - 40 days for a heart attack and 90 days for bypass/angioplasty - is to give the heart an opportunity to improve function on its own to the point that an ICD may not be necessary. The NCD expressly prohibits implantation of ICDs during these waiting periods, with certain exceptions. The Department of Justice alleged that from 2003 to 2010, each of the settling hospitals implanted ICDs during the periods prohibited by the NCD.
“The settlements announced last October and today demonstrate the Department of Justice’s commitment to protect Medicare dollars and federal health benefits,” said U.S. Attorney Wifredo A. Ferrer of the Southern District of Florida. “Guided by a panel of leading cardiologists and the review of thousands of patients’ charts, the extensive investigation behind the settlements was heavily influenced by evidence-based medicine. In terms of the number of defendants, this is one of the largest whistleblower lawsuits in the United States and represents one of this office’s most significant recoveries to date. Our office will continue to vigilantly protect the Medicare program from potential false billing claims.”
“We will not stand idly by while Medicare coverage rules are ignored,” said Inspector General Daniel R. Levinson of the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG). “OIG worked closely with the Department of Justice to ensure such violators made substantial payments to settle these false billing claims.”
The department previously settled with 457 hospitals for more than $250 million.
The settlements announced today involve 51 hospitals, which are listed on the attached chart. Most of the settling defendants were named in a qui tam, or whistleblower, lawsuit brought under the False Claims Act, which permits private citizens to bring lawsuits on behalf of the United States and receive a portion of the proceeds of any settlement or judgment awarded against a defendant. The lawsuit was filed in federal district court in the Southern District of Florida by Leatrice Ford Richards, a cardiac nurse and Thomas Schuhmann, a health care reimbursement consultant. The whistleblowers have received more than $3.5 million from the settlements announced today.
The settlements were the result of a coordinated effort among the Civil Division’s Commercial Litigation Branch, the U.S. Attorney’s Office of the Southern District of Florida and HHS-OIG’s Office of Investigations and Office of Counsel to the Inspector General.
This settlement illustrates the government’s emphasis on combating health care fraud and marks another achievement for the Health Care Fraud Prevention and Enforcement Action Team (HEAT) initiative, which was announced in May 2009 by the Attorney General and the Secretary of Health and Human Services. The partnership between the two departments has focused efforts to reduce and prevent Medicare and Medicaid financial fraud through enhanced cooperation. One of the most powerful tools in this effort is the False Claims Act. Since January 2009, the Justice Department has recovered a total of more than $27.4 billion through False Claims Act cases, with more than $17.4 billion of that amount recovered in cases involving fraud against federal health care programs.
The claims resolved by these settlements are allegations only and there has been no determination of liability.
This lawsuit is captioned U.S. ex rel. Ford et al. v. Abbott Northwestern et al. No. 08-cv-20071 (S.D. Fla.)
Federal Prison for ID Theft and Credit Card FraudstersRead the Press Release
CORPUS CHRISTI, Texas - Ibrahin Suarez-Venerao, 29, and San Juanita Avalos, 32, both of Corpus Christi, have each been sentenced to more than five years in federal prison for credit card fraud and identity theft, announced U.S. Attorney Kenneth Magidson. Both pleaded guilty to the charges June 15, 2015.
Today, Senior U.S. District Judge John D. Rainey ordered Suarez-Venerao to serve 40 months for the fraud as well as a mandatory and consecutive 24 months for the identity theft. The total 64-month sentence will be immediately followed by three years of supervised release. Judge Rainey had previously sentenced Avalos to 61 months in federal prison – 37 months for the fraud and 24 months for identity theft - followed by three years of supervised release. Both defendants were further ordered to pay $29,551.00 in restitution.
The case began following the receipt of numerous credit card fraud complaints. Investigators with the Corpus Christi Police Department (CCPD) used store surveillance footage and were able to identify Suarez-Venerao and Avalos using counterfeit credit cards to make thousands of dollars in purchases. The purchases were made at area merchants including Wal-Mart and Home Depot. Officers executed a search warrant and discovered a credit card embossing machine, fake identification documents, counterfeit credit cards, more than 300 gift cards worth $5,300 and more than $16,000 in cash. A search of the computers at the residence revealed almost 500 more compromised credit card numbers.
Both defendants were ordered to remain in custody pending transfer to a U.S. Bureau of Prisons Facility.
The charges were the result of an investigation conducted by CCPD and the U.S. Secret Service. Assistant United States Attorney Robert D. Thorpe Jr. prosecuted the cases.
Federal Grand Jury in Nevada Indicts Cliven Bundy and Four Others for Felony Crimes Related to 2014 StandoffRead the Press Release
LAS VEGAS, Nev. – Nevada resident Cliven Bundy and four others were indicted by the federal grand jury today on 16 felony charges related to the armed assault against federal law enforcement officers that occurred in the Bunkerville, Nev. area on April 12, 2014.
U.S. Attorney Daniel G. Bogden for the District of Nevada, Special Agent in Charge Laura Bucheit for the FBI in Nevada, and Bureau of Land Management Director Neil Kornze made the announcement.
“The rule of law has been reaffirmed with these charges,” said U.S. Attorney Bogden. “Persons who use force and violence against federal law enforcement officers who are enforcing court orders, and nearly causing catastrophic loss of life or injury to others, will be brought to justice.”
“This indictment sends a resounding message to those who wish to participate in violent acts that our resolve to pursue them and enforce the law remains unwavering,” said Special Agent in Charge Bucheit.
“Today marks a tremendous step toward ending more than 20 years of law breaking,” said Bureau of Land Management Director Neil Kornze. “The nation's public lands belong to all Americans.”
Cliven D. Bundy, 69, of Bunkerville, Nev., Ryan C. Bundy, 43, of Mesquite, Nev., Ammon E. Bundy, 40, of Emmet, Idaho, Ryan W. Payne, 32, of Anaconda, Mont., and Peter T. Santilli, Jr., 50, of Cincinnati, Ohio, are charged with one count of conspiracy to commit an offense against the United States, one count of conspiracy to impede or injure a federal officer, four counts of using and carrying a firearm in relation to a crime of violence, two counts of assault on a federal officer, two counts of threatening a federal law enforcement officer, three counts of obstruction of the due administration of justice, two counts of interference with interstate commerce by extortion, and one count of interstate travel in aid of extortion. The indictment also alleges five counts of criminal forfeiture which upon conviction would require forfeiture of property derived from the proceeds of the crimes totaling at least $3 million, as well as the firearms and ammunition possessed and used on April 12, 2014.
The defendants are currently in custody in Oregon. Their arraignments on these charges have not yet been set.
The indictment states that the charges result from a massive armed assault against federal law enforcement officers that occurred in and around Bunkerville, Nev., on April 12, 2014. The defendants are alleged to have planned, organized, and led the assault in order to extort the officers into abandoning approximately 400 head of cattle that were in their lawful care and custody. In addition to conspiring among themselves to plan and execute these crimes, the defendants recruited, organized, and led hundreds of other followers in using armed force against law enforcement officers in order to thwart the seizure and removal of Cliven Bundy’s cattle from federal public lands. Bundy had trespassed on the public lands for over 20 years, refusing to obtain the legally-required permits or pay the required fees to keep and graze his cattle on the land.
The indictment charges that Cliven Bundy was the leader, organizer, and chief beneficiary of the conspiracy, and possessed ultimate authority over the conspiratorial operations and received the economic benefits of the extortion. The remaining defendants are charged as leaders and organizers who conspired with Bundy to achieve his criminal objectives.
The maximum penalties for the charges are stated below.
Conspiracy to Commit an Offense Against the U.S. – 5 years, $250,000 fine
Conspiracy to Impede and Injure a Federal Law Enforcement Officer – 6 years, $250,000 fine
Assault on a Federal Law Enforcement Officer – 20 years, $250,000 fine
Threatening a Federal Law Enforcement Officer – 10 years, $250,000 fine
Use and Carry of a Firearm in Relation to a Crime of Violence – 5 years minimum and consecutive
Obstruction of the Due Administration of Justice - 10 years, $250,000 fine
Interference with Interstate Commerce by Extortion - 20 years, $250,000 fine
Interstate Travel in Aid of Extortion – 20 years, $250,000 fine
The case is being investigated by the FBI and the Bureau of Land Management. It is being prosecuted by Assistant U.S. Attorneys Steven W. Myhre and Nicholas D. Dickinson and Special Assistant U.S. Attorneys Nadia J. Ahmed and Erin M. Creegan.
The public is reminded that an indictment contains only charges and is not evidence of guilt. The defendants are presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
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Federal Government Contractor Sentenced to Prison for Accepting Kickbacks and Tax EvasionRead the Press Release
Concealed Receipt of Approximately $2 Million in Kickbacks from IRS
An Enterprise, Alabama, resident was sentenced today in the Southern District of Florida to 48 months in prison to be followed by three years of supervised release for accepting unlawful kickbacks and tax evasion, announced Acting Assistant Attorney General Caroline D. Ciraolo of the Justice Department’s Tax Division.
According to court documents and statements made in open court, Victor Villalobos, 47, worked for a federal prime contractor at Fort Rucker, Alabama. In 2009, Villalobos approached Maxim Silinsky, a Florida-based subcontractor for this company, and solicited illegal kickbacks on the federal subcontracts that Silinsky held in connection with the federal prime contractor. Villalobos agreed that in exchange for kickback payments he would refrain from conduct that would unfavorably affect Silinsky’s business relationship with the federal prime contractor and help ensure that he obtained additional business.
As part of his plea, Villalobos admitted that from June 2009 to December 2014, he received approximately 57 separate wire transfers totaling more than $1.9 million in kickback payments from various foreign and domestic bank accounts controlled by Silinsky. At two separate meetings in 2015, Villalobos accepted envelopes from Silinsky containing cash kickbacks totaling $60,000. Between June 2009 and February 2015, Villalobos attempted to conceal his receipt of the kickbacks by forming nominee entities and opening nominee bank accounts. Villalobos also admitted that he evaded paying income taxes on the kickback payments by causing false federal income tax returns to be filed with the Internal Revenue Service (IRS).
In addition to his prison sentence, U.S. District Judge Daniel T.K. Hurley ordered Villalobos to pay $542,562 in restitution to the IRS. As part of his plea agreement, Villalobos also agreed to be permanently debarred from federal government contracting.
Silinsky pleaded guilty to filing a false tax return in November 2015 and cooperated in the investigation and prosecution of Villalobos. Silinsky was sentenced to one year and one day in prison on Feb. 2. Silinsky also cooperated in the investigation and prosecution of Trevor Smith, a retired U.S. Air Force Master Sergeant who pleaded guilty in October 2015 to unlawfully disclosing confidential procurement information and filing a false tax return. On Jan. 28, Smith was sentenced to 18 months in prison.
Acting Assistant Attorney General Ciraolo commended special agents of IRS Criminal Investigation, the U.S. Air Force’s Office of Special Investigations, the Department of Defense’s Office of the Inspector General and the U.S. Army’s Criminal Investigation Division, who investigated this case and Trial Attorneys Charles M. Edgar Jr. and Jason H. Poole of the Tax Division, who prosecuted this case. Acting Assistant Attorney General Ciraolo also thanked the U.S. Attorney’s Office of the Southern District of Florida for their substantial assistance.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Farmington Man Sentenced to Prison for Violating Federal Firearms LawsRead the Press Release
ALBUQUERQUE – Michael Graham, 43, of Farmington, N.M., was sentenced today in federal court in Albuquerque, N.M., to 46 months in prison for unlawfully possessing a firearm and ammunition. He will be on supervised release for two years after completing his prison sentence.
Graham was charged in an indictment on Aug. 26, 2014, with being a felon in possession of firearms and ammunition on Feb. 9, 2014, in San Juan County, N.M. At the time, Graham was prohibited from possessing firearms or ammunition because he had previously been convicted of accessory to bringing contraband into a jail, aggravated assault, and being a felon in possession of a firearm.
Graham pled guilty to the indictment on July 8, 2015, and admitted that on Feb. 9, 2014, he possessed a loaded pistol with an obliterated serial number in Farmington. Graham also admitted knowing he was prohibited from possessing firearms or ammunition because of his status as a convicted felon.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Farmington Police Department and was prosecuted by Assistant U.S. Attorney Paul Mysliwiec.
Essex County, New Jersey, Man Charged with Bank Robbery SpreeRead the Press Release
NEWARK, N.J. – A Newark, New Jersey, man was charged today with committing five bank robberies in Union and Essex Counties from August 2015 through October 2015, U.S. Attorney Paul J. Fishman announced.
James Glenn, 59, of Newark, New Jersey, is charged by criminal complaint with five counts of bank robbery. He appeared this afternoon before U.S. Magistrate Judge Leda D. Wettre in Newark federal court and was detained.
According to the complaint, Glenn robbed the following New Jersey banks on the dates set forth below:
Bank
Location
Date
Connect One Bank
Union
Aug. 28, 2015
Hudson City Savings Bank
Roseland
Sept. 9, 2015
TD Bank
Orange
Sept. 25, 2015
Connect One Bank
Union
Sept. 28, 2015
Santander Bank
Union
Oct. 16, 2015
Glenn typically robbed the banks using notes that threatened physical harm and demanded cash. For instance, during the Sept. 9, 2015 robbery, Glenn handed the teller a handwritten note indicating, “[t]his is a robbery . . . [t]his is not your money so be careful – [n]o alarms [n]o dye pack I know them. No one wants to get hurt so remember I know where you live.” Also, during the spree, Glenn robbed the same Connect One Bank in Union, New Jersey, including threatening the same teller, on Aug. 28, 2015 and Sept. 28, 2015. He was arrested by the Union Township police department on Oct. 27, 2015.
The bank robbery charges each carry a maximum potential penalty of 20 years in prison and a $250,000 fine.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Acting Special Agent in Charge Andrew Campi in Newark, with the investigation leading to the charges. He also thanked the Union Township, Roseland, and Orange police departments, as well as the Union County Prosecutor’s Office, the Essex County Prosecutor’s Office, and the NJ State Parole Board for their assistance.
The government is represented by Assistant U.S. Attorney Jihee G. Suh of the U.S. Attorney’s Office General Crimes Unit in Newark.
The charges and the allegations contained in the complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Defense counsel: Leticia Olivera Esq., Assistant Federal Public Defender
East Carondelet Man Charged with Possession, Distribution and Receipt of Child PornographyRead the Press Release
James L. Porter, Acting United States Attorney for the Southern District of Illinois, announced today that on February 12, 2016, Richard Lee Doerr, III, 28, East Carondelet, IL, was arraigned on a five-count Indictment charging him, in Count 1, with Distribution of Child Pornography, in Counts 2-4, with Receipt of Child Pornography, and, in Count 5, with Possession of Prepubescent Child Pornography. Doerr was ordered detained, that is, held without bond, after a detention hearing today.
Count 1 alleges that, on or about December 27, 2013, Doerr knowingly distributed at least four visual depictions of child pornography, as described in the Indictment. Counts 2 through 4 allege that, on July 11, August 31, and September 1, 2014, respectively, Doerr knowingly received at least seven (7) visual depictions of child pornography, as described in the Indictment. Finally, Count 5 alleges that, on or about October 2, 2014, Doerr knowingly possessed material that contained child pornography that involved prepubescent minors or minors who had not attained 12 years of age, as described in the Indictment.
Trial is scheduled for April 4, 2016, in East St. Louis, Illinois. The penalty for Distribution and Receipt of Child Pornography is a term of imprisonment of not less than five (5) years but not more than twenty (20) years, a fine up to $250,000, and a term of supervised release of not less than five (5) years to life. The penalty for Possession of Prepubescent Child Pornography is a term of imprisonment of not more than twenty (20) years, a fine up to $250,000, and a term of supervised release of not less than five (5) years to life.
An indictment is merely the method by which federal charges are lodged. A defendant is presumed innocent until proven guilty beyond a reasonable doubt.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in 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."
The case was investigated by the Federal Bureau of Investigation's Springfield Child Exploitation Task Force. The case is assigned to Assistant United States Attorney Angela Scott.
Deported Jamaican Gets 18 Months in Prison for Re-entering U.S. without PermissionRead the Press Release
JOHNSTOWN, Pa. - A citizen of Jamaica has been sentenced in federal court to 18 months in prison and upon his release, after notice and hearing, deported to Jamaica, on his conviction of re-entry of an illegal alien, United States Attorney David J. Hickton announced today.
United States District Judge Kim R. Gibson imposed the sentence on Hubert E. Minott, 32, of North Miami Beach, FL.
According to information presented to the court, on Feb. 6, 2014, Minott, an alien who had been deported from the United States on June 12, 2008, was found in Somerset County, PA. He had unlawfully re-entered this country without receiving permission from the Secretary of the Department of Homeland Security to do so.
Assistant United States Attorney John J. Valkovci, Jr. prosecuted this case on behalf of the government.
Mr. Hickton commended the Department of Homeland Security/Immigration and Customs Enforcement for the investigation leading to the successful prosecution of Minott.
Danville Man Pleads Guilty to Manufacturing and Distributing Illegal Dietary SupplementsRead the Press Release
ABINGDON, VIRGINIA – A Danville business owner, who manufactured and shipped illegal pro-hormones, designer steroids, throughout the United States, pled guilty today in the United States District Court for the Western District of Virginia in Abingdon.
Steven Donald Wood, 37, of Danville, Va., waived his right to be indicted today and pled guilty to a one count Information charging him with illegally distributing misbranded drugs in interstate commerce. Wood agreed to forfeit $1.5 million in U.S. currency to the Government and has paid the forfeiture obligation in full prior to pleading guilty. Wood will be sentenced on May 17, 2016, at 10:30 a.m.
“The misbranding of drugs is a serious offense that puts those who ingest these substances in danger,” United States Attorney John P. Fishwick Jr. said today. “I am grateful to our law enforcement partners who continue to investigate the misbranding of these powerful steroids.”
Wood, through his business entities Competitive Edge Labs, LLC, and MKZ Exports, LLC, caused the manufacture and distribution of large amounts of dietary supplements, specifically “pro-hormones,” a new generation of steroids not specifically listed as an anabolic steroid under the Controlled Substances Act. Wood obtained his raw powder from Xinli “Eric” Li, a Chinese national, who pleaded guilty in federal court in Abingdon on December 4, 2015. Li, who forfeited $1.6 million, will be sentenced in Abingdon on March 9, 2016, at 2:30 p.m.
Dade City Gang Member Sentenced to 17 Years for Gun and Drug OffensesRead the Press Release
Tampa, Florida – U.S. District Judge Susan C. Bucklew yesterday sentenced Seguiel Medrano (31, Dade City) to 17 years in federal prison for drug distribution and firearm charges. Medrano pleaded guilty on October 15, 2015.
According to court documents, Medrano, a member of a Dade City street gang, sold methamphetamine to undercover law enforcement officers, and was armed during the drug transactions. During a search of Medrano’s residence, law enforcement seized multiple firearms, ammunition, narcotics, and cash.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Pasco County Sheriff’s Office. It was prosecuted by Assistant United States Attorney Stacie B. Harris.
This is another case prosecuted as a part of the Department of Justice’s “Project Safe Neighborhoods” Program - a nationwide, gun-violence reduction strategy. United States Attorney A. Lee Bentley, III, along with Regina Lombardo, Special Agent in Charge, ATF, is coordinating the Project Safe Neighborhoods effort here in the Middle District of Florida in cooperation with federal, state, and local law enforcement officials. It is also a part of ATF’s Frontline strategy to reduce violent crime in our communities.
Court Awards Judgment Against Cosmetology School in Aiken for Federal Education Grant and Loadn FraudRead the Press Release
Contact Person: Robert Sneed (803) 929-3000
Columbia, South Carolina – The United States District Court of South Carolina awarded a $9,283,123.00 default judgment against Lacy School of Cosmetology and Earnest “Jay” Lacy, for presenting false claims to the U.S. Department of Education for federal student loans and grants, the United States Attorney for the District of South Carolina William Nettles announced today.
This is a default judgment which the Court granted after the Defendants failed to answer the Complaint or the entry of default. This civil default judgment is based on a lawsuit originally filed under the qui tam, or whistleblower, provision of the False Claims Act, which allows private persons with knowledge of false claims to bring civil actions on behalf of the government and to share in any recovery. The whistleblower in this case was represented by the Richard A. Harpootlian Law Firm, of Columbia. The lawsuit was filed in the District of South Carolina, Case Number 1:13-cv-00218. Jay Lacy was the President and CEO of the Lacy School of Cosmetology, which before it closed, had four offices in South Carolina: Aiken (main campus), Lexington, Goose Creek, and Charleston. The United States Department of Education approved the school to participate in federal student aid programs. Through its investigation the government learned that the school misappropriated funds by knowingly failing to comply with numerous federal program regulatory requirements, making unauthorized disbursements of federal student aid funds, failing to refund student credit balances, and concealing its actions by submitting false statements of compliance. The total award of $9,283,123 is based on damages and statutory penalties. The Court held that the government’s actual damages were $2,185,041, which is based on Pell Grants ($2,078,448) and federally backed student loans ($106,593). The False Claims Act requires these damages to be “trebled” (tripled) for a total amount of $6,555,123. Additionally, the False Claims Act imposes a statutory civil penalty ranging from $5,500 to $11,000 per violation; under the minimum civil penalties imposed here, the total civil penalty was $2,728,000. “This use of the False Claims Act shows we are on the leading edge of qui tam litigation across the country,” said U.S. Attorney Nettles. “Through this type of litigation we continue our efforts to stop fraud and protect federal funds.” The case was the result of a coordinated effort among Assistant United States Attorneys Rob Sneed and Fran Trapp of the United States Attorney’s Office for the District of South Carolina and agents for the U.S. Department of Education. #####Clay County felon sentenced to over eight years in prison for Federal gun crimeRead the Press Release
CHARLESTON, W.Va. – A Clay County man was sentenced today to eight years and four months in federal prison for being a felon in possession of a firearm, announced Acting United States Attorney Carol Casto. Lloyd Ellis Rapp, 44, of Duck, previously pleaded guilty in November 2015 to the federal gun crime.
Rapp admitted that on June 15, 2015, he was fleeing on his motorcycle from the West Virginia State Police. The high-speed chase ended with Rapp wrecking his motorcycle. After the wreck, he was arrested and law enforcement found Rapp in possession of a Hi-Point Model C-9, 9mm semiautomatic handgun. Rapp was prohibited from possessing any firearm under federal law because of a 2008 felony conviction in United States District Court, Southern District of West Virginia, for distribution of methamphetamine.
The West Virginia State Police and the Bureau of Alcohol, Tobacco, Firearms and Explosives conducted the investigation. Assistant United States Attorney Timothy D. Boggess handled the prosecution. The sentence was imposed by United States District Judge John T. Copenhaver, Jr.
This case was brought as part of Project Safe Neighborhoods. Project Safe Neighborhoods is a nationwide commitment to reduce gun crime in the United States by networking existing local programs that target gun crime.
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Charlotte Man Sentenced to More Than 10 Years in Prison on Drug and Firearm ChargesRead the Press Release
CHARLOTTE, N.C. – Today, U.S. District Judge Max O. Cogburn, Jr. ordered Jerry Lee Edwards, 30, of Charlotte, to serve 130 months in prison and three years of supervised release on drug and firearm charges, announced Jill Westmoreland Rose, U.S. Attorney for the Western District of North Carolina.
U.S. Attorney Rose is joined in making today’s announcement by C.J. Hyman, Special Agent in Charge of the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Charlotte Field Division and Chief Kerr Putney of the Charlotte Mecklenburg Police Department (CMPD).
According to filed court documents and statements made in court, on August 15, 2013, while investigating criminal activity near the Sugar Creek/Interstate 85 corridor, law enforcement arrested Edwards, who was in a vehicle parked in a hotel parking lot in the area. According to court records, at the time of his arrest, Edward possessed cocaine, crack cocaine, and a set of digital weight scales. Law enforcement also recovered three firearms, one of which was later determined to be stolen. According to court records, Edwards has a prior North Carolina conviction of robbery with a dangerous weapon and is prohibited from possessing a firearm.
Court records show that in May 2014, Edwards was found guilty by a bench trial of one count of possession with intent to distribute crack cocaine, one count of possession with intent to distribute cocaine, one count of possession of a firearm during and in relation to a drug trafficking crime and one count of possession of a firearm by a convicted felon.
In handing down today’s sentence, Judge Cogburn stated that, “Edwards had a very serious criminal record, and a 130-month sentence will hold him responsible for his criminal actions. Individuals with that many firearms in their vehicle are up to no good.”
Edwards has been in federal custody since August 2013. He will be transferred to the custody of the Federal Bureau of Prisons upon designation of a federal facility. All federal sentences are served without the possibility of parole.
The investigation was handled by ATF and CMPD. The case was handled by Assistant United States Attorney Sanjeev Bhasker of the U.S. Attorney’s Office in Charlotte.
Career Offender Sentenced to 16 Years in Prison for Committing Three Armed Robberies in Maryland in Six WeeksRead the Press Release
Greenbelt, Maryland – U.S. District Judge George J. Hazel sentenced James Davis, age 57, formerly of Washington, D.C., today to 16 years in prison followed by three years of supervised release for conspiring to commit robbery, robbery of money belonging to the United States, carrying and brandishing a firearm during a robbery, and being a felon in possession of a firearm.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Assistant Director in Charge Paul M. Abbate of the Federal Bureau of Investigation - Washington Field Office; Postal Inspector in Charge Maria L. Kelokates of the U.S. Postal Inspection Service - Washington Division; Chief Henry P. Stawinski of the Prince George’s County Police Department and Chief Douglas Holland of the Hyattsville Police Department.
“Today’s sentencing is the result of the U.S. Postal Inspection Service working diligently with our law enforcement partners to make sure that U.S. Postal Service customers, employees and facilities are protected,” stated Postal Inspector in Charge Maria L. Kelokates of the U.S. Postal Inspection Service - Washington Division.
According to his plea agreement, on August 8, 2013, Davis and co-conspirator Recardo Beatty drove to the Hyattsville Post Office. Beatty first entered the post office to scout the inside. Davis then entered, while Beatty waited outside in their getaway vehicle. Davis pointed a long black paintball gun at an employee. The employee and another employee fled from their cash registers, while Davis grabbed money and money orders out of the register. Davis and Beatty fled in their vehicle.
On August 15, 2013, the pair traveled to the Glut Food Co-Op in Mt. Rainer, Maryland. As Beatty waited outside in the vehicle, Davis entered the store, walked behind a counter where an employee was working and displayed a paintball gun. Davis ordered the employee to open the cash register and Davis removed money. Davis and Beatty fled in their vehicle.
On September 17, 2013, Davis and Beatty traveled to the Dollars and Sense store in Brentwood, Maryland and entered the store together. Davis demanded that an employee open a cash register, from which he took money and a cash box. Beatty, who was armed with a firearm, saw another employee approach a store exit door. A fight ensued, and the employee was hit on the head. Davis and Beatty fled the store in their vehicle.
On the same day as the Dollars and Sense robbery, officers recovered the firearm from Beatty that was used in the robbery. The next day, September 18, 2013, officers executed a search warrant at Beatty’s residence where Davis was staying, and recovered a paintball gun and clothing used in the robberies.
Davis had previously been convicted of a felony and was thus prohibited from possessing a firearm.
Recardo Beatty, age 50, of Washington, D.C., previously pleaded guilty to his participation in the robberies and is scheduled to be sentenced on February 29, 2016 at 9:00 a.m.
United States Attorney Rod J. Rosenstein commended the FBI, U.S. Postal Inspection Service and the Prince George’s County and Hyattsville Police Departments for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorney Leah Jo Bressack and Special Assistant United States Attorney Matthew L. Paeffgen, who prosecuted the case.
California Man Sentenced for Human Trafficking and Methamphetamine in the BakkenRead the Press Release
FARGO - U. S. Attorney Christopher C. Myers announced that on Feb. 17, 2016, Keith Alexander Graves, 39, Los Angeles, Calif., was sentenced before U. S. District Judge Daniel L. Hovland to serve 33 years and nine months in prison following an eight-day jury trial. Graves was found guilty of five (5) counts of Sex Trafficking by Force or Coercion and one count each of Distribution and Possession of Methamphetamine. Judge Hovland also ordered that Graves be placed on lifetime supervised release, as well as pay a $625 special assessment to the Crime Victims’ Fund.
On or about July 29, 2014, the Williston Police Department received a call requesting assistance from a female victim near the Walmart located in Williston, ND. The victim was scared and concerned that the individual she was reporting to law enforcement would see her and stated that she was involuntarily involved in prostitution and drugs under the control of Graves. Throughout witness testimony during trial, several victim witnesses described being sexually assaulted and/or raped by Graves, as well as being forced into ingesting methamphetamine. Graves also used force or the threat of force in coercing the victims to engage in prostitution.
In July 2014 a search warrant was executed on a motel room related to the case, where several items were found, including: an aluminum bat, marijuana, methamphetamine, pills, as well as several other items located in a nearby vehicle. A BB gun was located where he was residing.
This case was investigated by the Federal Bureau of Investigation, North Dakota BCI, and the Williston Police Department.
Assistant U. S. Attorneys Brandi Russell and Gary Delorme prosecuted the case.
California Man Pleads to Heroin PossessionRead the Press Release
On February 10, 2016, Conrad Valdez, Jr., 45, of Selma, California, pled guilty to a one-count indictment charging possession with intent to distribute more than one kilogram of heroin, the Acting United States Attorney for the Southern District of Illinois, James L. Porter, announced today.
Evidence at the plea hearing established that Valdez was involved with others in the distribution of heroin. During a September 27, 2016, traffic stop in Effingham County, officers located approximately 20 kilograms of heroin in Valdez’s truck. Valdez is currently being held without bond pending a June 8, 2016, sentencing hearing.
The heroin offense carries a penalty of 10 years’ to life imprisonment, to be followed by at least 5 years’ supervised release, and a fine of up to $10,000,000.
The ongoing investigation is being conducted by the Drug Enforcement Administration, Central Illinois Enforcement Group and Illinois State Police. The Effingham County State’s Attorney’s Office assisted in the investigation.
The case is assigned to Assistant United States Attorney Amanda A. Robertson for prosecution.
Buffalo Man Sentenced for Food Stamp FraudRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051
BUFFALO, N.Y.-U.S. Attorney William J. Hochul Jr. announced today that Ahmed Hassan, 67, of Buffalo, NY, who was convicted of food stamp fraud, was sentenced to two years probation including eight months home detention and ordered to pay restitution totaling $68,177 by Chief U.S. District Judge Frank P. Geraci.
Assistant U.S. Attorney Marie P. Grisanti, who handled the case, stated that the defendant operated the Ferry Community Market on E. Ferry Street in Buffalo. Between June 1, 2012 and August 31, 2012, Hassan directed and authorized employees to purchase food stamp benefits for less than their full value for cash from eligible beneficiaries. By swiping the food stamp cards through the electronic funds transfer terminal installed at Ferry Community Market, employees engaged in approximately $68,177 of illegitimate transactions for the time period in question.
The sentencing was the result of an investigation by Special Agents of the U.S. Department of Agriculture, Office of Inspector General, under the direction of William G. Squires Jr., Special Agent in Charge, Northeast Region.
Buffalo Man Pleads Guilty to Distributing FentanylRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y. — U.S. Attorney William J. Hochul, Jr., announced today that Alexander Snow, 33, of Buffalo, NY, pleaded guilty before Chief U.S. District Judge Frank P. Geraci, Jr. to distribution of fentanyl. The charge carries a maximum penalty of 20 years in prison and a fine of $1,000,000.
Assistant U.S. Attorney Caleb J. Petzoldt, who is handling the case, stated that between December 2014 and January 2015, the defendant distributed fentanyl in the city of Buffalo which included six undercover controlled purchases by the Drug Enforcement Administration.
The plea is the culmination of an investigation by the Drug Enforcement Administration, under the direction of Special Agent in Charge James J. Hunt, New York Field Division.
Sentencing is scheduled for May 19, 2016 at 11:00 a.m. before Judge Geraci.