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1 February 2016
Adams County Man Indicted Federally for Receipt and Possession of Child PornographyRead the Press Release
HARRISBURG - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that an Adams County man was indicted by a federal grand jury in Harrisburg on January 20, 2016 for receipt and possession of child pornography.
According to United States Attorney Peter Smith, the grand jury alleges that Earl Greg Walker, age 53, received and possessed child pornography at his home in Adams County in 2011-2012. The indictment was unsealed today following Walker’s arrest on January 29, 2016. Walker is due to appear before U.S. Magistrate Judge Susan E. Schwab today for his initial appearance.
This case was investigated by Homeland Security Investigations and the Pennsylvania State Police and is being prosecuted by Assistant United States Attorney Daryl F. Bloom.
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."
Indictments are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court. A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law is 30 years’ 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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13 People Arrested after Law Enforcement Intercepts Nearly 3,000 Pounds of Marijuana being Smuggled into U.S. by Panga BoatRead the Press Release
LOS ANGELES – Federal authorities on Saturday arrested 13 people after law enforcement authorities interdicted nearly 3,000 pounds of marijuana that they were trying to smuggle into the United States by panga boat at Arroyo Quemada Beach in southern Santa Barbara County, just north of the city of Santa Barbara. All 13 defendants were named in a criminal complaint filed Sunday that charges them with possession of marijuana with the intent to distribute.
“Smuggling by panga boat endangers the lives of both the smugglers and authorities interdicting the boats and their payloads,” said United States Attorney Eileen M. Decker. “Law enforcement has and will continue to use all available means to curtail this dangerous activity.”
According to the affidavit in support of the criminal complaint filed yesterday, the United States Coast Guard first observed the panga boat at Arroyo Quemada Beach early Saturday morning. The affidavit notes that drug-traffickers commonly use panga boats at night in an effort to evade law enforcement.
In this case, authorities believe that three people were in the boat, and approximately 15 people were observed on shore helping to unload the bales of marijuana. Two vans and a pick-up truck separately drove to the beach, and bales of marijuana were loaded into the pick-up and one of the vans. The vehicles then departed the beach at about the same time, but they went in separate directions. One van, which was being used to transport the marijuana, was stopped in Camarillo; the second van, which was being used to transport people, was stopped when it returned to Arroyo Quemada Beach; and the pick-up, which was being used to transport marijuana, was stopped in Carpinteria. Law enforcement seized 114 bales of marijuana from the van stopped in Camarillo and the pick-up truck stopped in Carpinteria.
Authorities arrested the following individuals:
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Hector Raul Bernal-Lara, 41;
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Ricardo Sanchez-Marquez, 36;
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Daniel Aguilar, 25;
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Mark Garcia, 23;
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Susana Tobaldo, 42;
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Kevin Tes, 22;
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Josh Rubio, 21;
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Alfonso Aguilar-Ballestros, 48;
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Jesus Moreno-Sepulveda, 31;
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Santiago Galvan-Carrillo, 48;
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Paul Armenta-Bueno, 34;
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Bryan Castro, 18; and
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Daniel Fernando-Huizar, 26.
All 13 defendants are expected to make their initial appearances today in federal court in Los Angeles.
A criminal complaint contains allegations that a defendant has committed a crime. Every defendant is presumed innocent until and unless proven guilty in court.
The statutory maximum penalty for a violation of possession nearly 3,000 pounds of marijuana with the intent to distribute it is life in prison.
The investigation in this case was conducted by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, the United States Coast Guard, the United States Border Patrol, the Los Angeles County Sheriff’s Department, the Santa Barbara County Sheriff’s Department, and the Ventura County Sheriff’s Department.
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30 January 2016
Riverside Man Faces 10-Year Mandatory Federal Prison Term after Being Convicted for Third Time of Possessing Child PornographyRead the Press Release
LOS ANGELES – A Riverside resident has pled guilty to possessing child pornography and now faces a 10-year mandatory minimum sentence in federal prison.
James Gregory O’Neill, 58, of Riverside pleaded guilty on Monday, January 25 before United States District Judge R. Gary Klausner to possession of child pornography.
Because O’Neill has twice before been convicted of possessing child pornography, he will face a 10-year mandatory minimum prison term – and could be sentenced to as much as 20 years – when he is sentenced on April 18.
“Despite being convicted twice previously for possessing child pornography, Mr. O’Neill continued to victimize children by creating a market for child pornography,” said United States Attorney Eileen M. Decker. “It is one of the highest priorities of my office to prosecute those who would seek to victimize children, and in particular those who do so repeatedly.”
O’Neill pleaded guilty to possessing an SD memory card containing as many as 97 images of child pornography which he accessed on his cellphone. He possessed the memory card despite his convictions in 2003 in federal court for possessing child pornography – for which he was sentenced to 40 months in prison – and in 2011 in Riverside County Superior Court.
The case against O’Neill was investigated by the Riverside Police Department and U.S. Immigration and Customs Enforcement’s Homeland Security Investigations.
Former Owner and Operator of Long Beach Medical Equipment Supply Company Sentenced for Their Roles in $1.5 Million Medicare Fraud SchemeRead the Press Release
LOS ANGELES – The former owner and the former operator of a durable medical equipment supply company based in Long Beach have been sentenced for their roles in a $1.5 million Medicare fraud scheme.
Amalya Cherniavsky, 41, and her husband, Vladislav Tcherniavsky, 46, both of Long Beach, were ordered to pay $614,418 in restitution at a hearing yesterday afternoon before United States District Judge Terry J. Hatter Jr.
Judge Hatter ordered Tcherniavsky to serve 51 months in prison at yesterday’s hearing, while Cherniavshy was placed on probation.
On October 15, 2015, a federal jury convicted both defendants of one count of conspiracy to commit health care fraud and five counts of health care fraud.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Eileen M. Decker of the Central District of California, Special Agent in Charge Chris Schrank of the U.S. Department of Health and Human Services Office of the Inspector General (HHS-OIG) Los Angeles Region, Assistant Director in Charge David Bowdich of the FBI’s Los Angeles Division and Special Agent in Charge Joseph Fendrick of the California Department of Justice’s Bureau of Medi-Cal Fraud and Elder Abuse made the announcement.
The evidence at trial demonstrated that Cherniavsky owned JC Medical Supply, a purported durable medical equipment supply company that she co-operated with Tcherniavsky. Evidence further showed that the defendants paid illegal kickbacks to patient recruiters in exchange for patient referrals and paid kickbacks to physicians for fraudulent prescriptions – primarily for expensive, medically unnecessary power wheelchairs – which the defendants then used to support fraudulent bills to Medicare.
Between 2006 and 2013, the defendants submitted $1,520,727 in claims to Medicare and received $783,756 in reimbursement for those claims, according to evidence presented at trial.
“The sole purpose of JC Medical Supply was to obtain fraudulent prescriptions and submit bills to Medicare for unneeded but expensive durable medical equipment,” said United States Attorney Eileen M. Decker. “The defendants attempted to hide their activity from Medicare by seeking reimbursement for a variety of equipment. Prosecutors saw through that deception, resulting in today’s sentences and restitution orders.”
The case was brought as part of the Medicare Fraud Strike Force, supervised by the Criminal Division’s Fraud Section and the U.S. Attorney’s Office of the Central District of California. HHS-OIG’s Los Angeles Regional Office, the FBI and the California Department of Justice’s Bureau of Medi-Cal Fraud and Elder Abuse investigated the case. Attorneys Blanca Quintero and Kevin R. Gingras of the Criminal Division’s Fraud Section prosecuted the case.
Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged more than 2,300 defendants who have collectively billed the Medicare program for more than $7 billion. In addition, the HHS Centers for Medicare & Medicaid Services, working in conjunction with HHS-OIG, is taking steps to increase accountability and decrease the presence of fraudulent providers.
To learn more about the Health Care Fraud Prevention and Enforcement Action Team (HEAT), go to Health Care Fraud Unit.
Former Owner and Operator of Long Beach Medical Equipment Supply Company Sentenced for Their Roles in $1.5 Million Medicare Fraud SchemeRead the Press Release
LOS ANGELES – The former owner and the former operator of a durable medical equipment supply company based in Long Beach have been sentenced for their roles in a $1.5 million Medicare fraud scheme.
Amalya Cherniavsky, 41, and her husband, Vladislav Tcherniavsky, 46, both of Long Beach, were ordered to pay $614,418 in restitution at a hearing yesterday afternoon before United States District Judge Terry J. Hatter Jr.
Judge Hatter ordered Tcherniavsky to serve 51 months in prison at yesterday’s hearing, while Cherniavshy was placed on probation.
On October 15, 2015, a federal jury convicted both defendants of one count of conspiracy to commit health care fraud and five counts of health care fraud.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Eileen M. Decker of the Central District of California, Special Agent in Charge Chris Schrank of the U.S. Department of Health and Human Services Office of the Inspector General (HHS-OIG) Los Angeles Region, Assistant Director in Charge David Bowdich of the FBI’s Los Angeles Division and Special Agent in Charge Joseph Fendrick of the California Department of Justice’s Bureau of Medi-Cal Fraud and Elder Abuse made the announcement.
The evidence at trial demonstrated that Cherniavsky owned JC Medical Supply, a purported durable medical equipment supply company that she co-operated with Tcherniavsky. Evidence further showed that the defendants paid illegal kickbacks to patient recruiters in exchange for patient referrals and paid kickbacks to physicians for fraudulent prescriptions – primarily for expensive, medically unnecessary power wheelchairs – which the defendants then used to support fraudulent bills to Medicare.
Between 2006 and 2013, the defendants submitted $1,520,727 in claims to Medicare and received $783,756 in reimbursement for those claims, according to evidence presented at trial.
“The sole purpose of JC Medical Supply was to obtain fraudulent prescriptions and submit bills to Medicare for unneeded but expensive durable medical equipment,” said United States Attorney Eileen M. Decker. “The defendants attempted to hide their activity from Medicare by seeking reimbursement for a variety of equipment. Prosecutors saw through that deception, resulting in today’s sentences and restitution orders.”
The case was brought as part of the Medicare Fraud Strike Force, supervised by the Criminal Division’s Fraud Section and the U.S. Attorney’s Office of the Central District of California. HHS-OIG’s Los Angeles Regional Office, the FBI and the California Department of Justice’s Bureau of Medi-Cal Fraud and Elder Abuse investigated the case. Attorneys Blanca Quintero and Kevin R. Gingras of the Criminal Division’s Fraud Section prosecuted the case.
Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged more than 2,300 defendants who have collectively billed the Medicare program for more than $7 billion. In addition, the HHS Centers for Medicare & Medicaid Services, working in conjunction with HHS-OIG, is taking steps to increase accountability and decrease the presence of fraudulent providers.
To learn more about the Health Care Fraud Prevention and Enforcement Action Team (HEAT), go to Health Care Fraud Unit.
Canadian Man Sentenced to Nearly Four Years in U.S. Prison for Mass Marketing Schemes Targeting U.S. CitizensRead the Press Release
LOS ANGELES – A Canadian man has been sentenced to nearly four years in prison on a federal fraud charge for targeting American victims in several schemes, including a fake lottery scam, one involving “secret shopper” pitch letters, and another involving bogus credit repair services.
Peter Omagbemi, 45, of Montreal, was sentenced yesterday to 47 months in prison by United States District Judge George H. Wu. In addition to the federal prison term, Judge Wu ordered Omagbemi to pay just over $1 million in restitution.
“The border between the United States and Canada did not protect Mr. Omagbemi from prosecution,” said United States Attorney Eileen M. Decker. “My office will pursue foreign nationals who seek to profit by defrauding people in the United States. In this case, Mr. Omagbemi’s fraud was particularly harmful as it caused the arrest of one of his victims.”
Omagbemi operated a MoneyGram outlet in Montreal and engaged in a mass marketing fraud scheme by targeting victims – primarily in the United States – and fraudulently claiming that the victims had won a lottery or sweepstakes. In some cases, Omagbemi claimed the victim had been offered a job as a mystery shopper, or that he could repair the victim’s credit.
In the lottery scheme, Omagbemi claimed that the victim had won a lottery or sweepstakes, but, in order to claim the funds, the victim needed to send money through MoneyGram to pay for taxes, fees and other purported expenses. In the mystery shopper scheme, Omagbemi falsely told the victim that they had been selected as a mystery shopper, which he followed up with by sending the victim a counterfeit check to deposit and directing them to send some of the money to MoneyGram. Finally, in the credit repair scheme, the defendant would claim that he could repair the victim’s credit in exchange for a fee. All of these claims were false.
Omagbemi’s schemes caused 294 victims to send him money. After the victims deposited the counterfeit checks and sent money to Omagbemi, the banks would reverse payment and would debit the amount against the victim’s own bank funds. Some victims fell behind on their bills, and, in one case, a victim was arrested for passing a fraudulent check.
The case against Omagbemi was investigated by the Federal Bureau of Investigation and the United States Postal Inspection Service. The case originated from an investigation by the Royal Canadian Mounted Police.
Albuquerque Woman Sentenced to 36 Months in PrisonRead the Press Release
ALBUQUERQUE – Cordelia Louisa Espinosa, 52, of Albuquerque, N.M., was sentenced in federal court today to 36 months in prison for conspiracy and distribution of at least 50 grams of methamphetamine.
According to court documents, Espinosa participated in a methamphetamine trafficking conspiracy from the beginning of April 2015 to February 9, 2017. As part of the conspiracy, she participated in a drug transaction in Albuquerque on December 7, 2016. Espinosa gave a gift bag containing approximately 553 grams of methamphetamine to another drug trafficker, who then gave the bag to an undercover law enforcement officer posing as a drug purchaser. On February 9, 2017, Espinosa participated further in the conspiracy by coordinating a drug transaction by telephone involving more than 14 kilograms of methamphetamine.
The indictment against Espinosa also charged three co-defendants. On January 3, 2019, Hector Hugo Magana, 35, of Redwood City, California, received a sentence of 70 months in prison after pleading guilty to distribution of 500 grams or more of methamphetamine.
On July 3, 2018, Efrain Espinoza-Pena, 45, of Mexico, pleaded guilty to conspiracy, distribution of at least 50 grams of methamphetamine, and possession with intent to distribute at least 50 grams of methamphetamine. On September 13, 2018, Edgar Madrid-Rascon, 33, of Mexico, pleaded guilty to distribution of 500 grams or more of methamphetamine and possession of a firearm in furtherance of a drug trafficking crime. Both of these co-defendants are awaiting sentencing.
The Albuquerque office of the Bureau of Alcohol, Tobacco, Firearms, and Explosives investigated the case with assistance from the Drug Enforcement Administration, the New Mexico State Police, and Immigration and Customs Enforcement. Assistant U.S. Attorneys Paul J. Mysliwiec and David Cowen prosecuted the case.
29 January 2016
Woman Submitted False Student Loan DocumentsRead the Press Release
PITTSBURGH - A former resident of Turtle Creek, Pennsylvania, pleaded guilty in federal court to charges of mail fraud, United States Attorney David J. Hickton announced today.
Mary Beth Bawden, 54, waived indictment and pleaded guilty to the two felony counts before United States District Judge David Stewart Cercone.
According to information presented to the Court at the guilty plea, Bawden defrauded Doral Bank and Sallie Mae by submitting false and fraudulent student loan documents purportedly for her son.
Judge Cercone scheduled sentencing for June 2, 2016. The law provides for a maximum total sentence of 30 years in prison, a fine of $1,000,000 or both, at each count. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Pending sentence, the court released Bawden on bond.
Assistant United States Attorney Robert S. Cessar is prosecuting this case on behalf of the government.
The United States Postal Inspection Service and the Office of Inspector General, U.S. Department of Education conducted the investigation leading to the Information in this case.
Williamsport Man Indicted for Drug Trafficking and Firearms ViolationsRead the Press Release
WILLIAMSPORT. The United States Attorney’s Office for the Middle District of Pennsylvania announced that a Williamsport man was indicted yesterday by a federal grand jury for narcotics trafficking and possessing firearms in furtherance of his drug trade.
According to United States Attorney Peter Smith, the grand jury alleges that Kalonji Jones, age 37, trafficked a substantial quantity of heroin in Williamsport and the surrounding area. A search of his premises at the time of his arrest yielded 110 packets of heroin packaged for individual sale to users and additional materials for the packaging and distribution of heroin including empty glassine packets, a grinder and scale. Also recovered at the time of the Defendant’s arrest were 3 unlicensed handguns that he is prohibited from possessing under Federal law. These items were found in a 2014 investigation by the Williamsport Police Department.
The charges stem from an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Williamsport Bureau of Police, and the Lycoming County District Attorney’s Office. This case is being prosecuted by Assistant U.S. Attorney Geoffrey MacArthur.
This case was brought as part of the Violent Crime Reduction Partnership (“VCRP”), a district wide 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.
This case was also brought as part of a district wide initiative to combat the nationwide epidemic regarding the use and distribution of heroin. Led by the United States Attorney’s Office, the heroin initiative targets heroin traffickers operating in the Middle District of Pennsylvania and is part of a coordinated effort among federal, state and local law enforcement agencies.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law is 30 years to life imprisonment, a term of 6 years’ supervised release following imprisonment, and a $2 million dollar 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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U.S. Navy Officer Sentenced to 40 Months in Prison for Selling Classified Ship and Submarine Schedules as Part of Navy Bribery ProbeRead the Press Release
For Further Information, Contact: Assistant U.S. Attorney Mark W. Pletcher (619) 546-9714
NEWS RELEASE SUMMARY – January 29, 2016
SAN DIEGO – U.S. Navy Lieutenant Commander Todd Dale Malaki was sentenced in federal court today to 40 months in prison for accepting cash, hotel expenses and the services of a prostitute in return for providing classified U.S. Navy ship and submarine schedules and other internal Navy information to a foreign defense contractor.
Malaki, 44, of Oxnard, California, pleaded guilty in April to one count of conspiracy to commit bribery. As part of his guilty plea, Malaki admitted that in 2006, while he was working as a supply officer for the U.S. Navy’s Seventh Fleet, he began a corrupt relationship with Leonard Glenn Francis, the former president and chief executive officer of Glenn Defense Marine Asia (GDMA), a company that provided services to the U.S. Navy.
During today’s sentencing hearing, U.S. District Judge Janis L. Sammartino noted that a more significant sentence was warranted in this case in part because Malaki’s conduct was not a momentary lapse in judgment but long-term corruption that spanned more than seven years. She described Malaki’s case as “one of the most serious offenses the court has seen in its tenure in the Southern District of California.”
In addition to his prison sentence, Judge Sammartino ordered Malaki to pay a $15,000 fine and $15,000 in restitution to the Navy. He was ordered to report to the U.S. Bureau of Prisons on May 2, 2016.
As part of the scheme, Malaki provided Francis with classified U.S. Navy ship and submarine schedules and proprietary invoicing information about GDMA’s competitors. In exchange, Malaki admitted, Francis provided him with luxury hotel nights on at least a dozen occasions in Singapore, Hong Kong and the island of Tonga, as well as envelopes of cash, entertainment expenses and the services of a prostitute.
Malaki is the second defendant to be sentenced in the investigation of corruption and fraud in the U.S. Navy. Last week, U.S. Navy Petty Officer First Class Daniel Layug was sentenced to 27 months in prison for conspiracy to commit bribery
To date, 10 individuals have been charged in connection with this scheme; of those, nine have pleaded guilty, including Malaki, Commander Michael Vannak Khem Misiewicz, Captain Daniel Dusek, NCIS Special Agent John Beliveau, Commander Jose Luis Sanchez and Layug as well as GDMA executives Francis, Alex Wisidagama and Edmond Aruffo. Former Department of Defense civilian employee Paul Simpkins awaits trial. GDMA the corporate entity has also pleaded guilty.
“Malaki sold out the U.S. Navy which had provided him escape from his impoverished upbringing,” said U.S. Attorney Laura Duffy. “He put fellow sailors and warships at risk of exploitation, attack, or worse, and tarnished the reputations of those who had selected him from among the enlisted ranks and sponsored him to become a commissioned officer. Those who fail to uphold the public’s trust will pay the consequences for their crimes.”
“Today's sentencing of Lt. Commander Malaki is part of an ongoing joint effort by the Defense Criminal Investigative Service, the Naval Criminal Investigative Service and the Department of Justice to identify, investigate and bring to justice those seeking to enrich themselves at the expense of U.S. taxpayers,” said James B. Burch, Director, DCIS. “While the conduct of the vast majority of those in the U.S. Navy is beyond reproach, we will vigorously pursue those individuals who put the safety and security of U.S. Navy personnel at risk. The conduct of Lt. Commander Malaki is reprehensible and today's sentencing demonstrates the Defense Criminal Investigative Service and its law enforcement partners will continue to pursue allegations of fraud and corruption that puts the Warfighter at risk.”
“Lieutenant Commander Malaki betrayed his oath of office, failed to uphold the standards of selfless service, and threatened the security of Sailors when he sold U.S. Navy ship schedules for cash, hotel expenses, and the services of a prostitute," said NCIS Director Andrew Traver. “NCIS, in collaboration with Defense Criminal Investigative Service and the Department of Justice, will continue to aggressively pursue this investigation."
The ongoing investigation is being conducted by NCIS, DCIS and the Defense Contract Audit Agency. The case is being prosecuted by Assistant U.S. Attorney Mark W. Pletcher of the Southern District of California and Trial Attorneys Brian R. Young and Lawrence Atkinson of the Criminal Division’s Fraud Section.
Those with information relating to fraud, corruption or waste in government contracting should contact the NCIS anonymous tip line at www.ncis.navy.mil or the DOD Hotline at www.dodig.mil/hotline, or call (800) 424-9098.
DEFENDANT Case Number: 15cr967
Todd Dale Malaki Age: 44 Oxnard, California
SUMMARY OF CHARGES
Conspiracy to Commit Bribery, in violation of 18 U.S.C. § 371. Maximum penalty five years in prison, $250,000 fine or twice the gross pecuniary gain or loss from the offense, whichever is greater;
INVESTIGATING AGENCIES
Defense Criminal Investigative Service
Naval Criminal Investigative Service
Defense Contract Audit Agency
U.S. Navy Officer Sentenced to 40 Months in Prison for Selling Classified Ship Schedules as Part of Navy Bribery ProbeRead the Press Release
A U.S. Navy Lieutenant Commander was sentenced today to 40 months in prison for accepting cash, hotel expenses and the services of a prostitute from foreign defense contractor Glenn Defense Marine Asia (GDMA) in exchange for classified U.S. Navy ship and submarine schedules and other internal Navy information.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Laura Duffy of the Southern District of California, Deputy Inspector General for Investigations James B. Burch of the Defense Criminal Investigative Service (DCIS) and Director Andrew Traver of the Naval Criminal Investigative Service (NCIS) made the announcement.
In April 2015, Todd Dale Malaki, 44, pleaded guilty to one count of conspiracy to commit bribery and admitted that in 2006, while he was working as a supply officer for the U.S. Navy’s Seventh Fleet, he began a corrupt relationship with Leonard Glenn Francis, the former president and CEO of GDMA, a company that provided port services to U.S. Navy ships and submarines throughout the Pacific. In addition to his prison sentence, U.S. District Judge Janis L. Sammartino of the Southern District of California ordered Malaki to pay a $15,000 fine and $15,000 in restitution to the Navy.
As part of the scheme, Malaki provided Francis with classified U.S. Navy ship schedules and proprietary invoicing information about GDMA’s competitors in exchange for luxury hotel stays in Singapore, Hong Kong and the island of Tonga, as well as envelopes of cash, entertainment expenses and the services of a prostitute. Malaki admitted that the total value of the benefits he received from Francis was approximately $15,000.
To date, 10 individuals have been charged in connection with this scheme; of those, nine have pleaded guilty, including Malaki, Commander Michael Vannak Khem Misiewicz, Captain Daniel Dusek, NCIS Special Agent John Beliveau, Commander Jose Luis Sanchez and U.S. Navy Petty Officer First Class Dan Layug. Former Department of Defense (DoD) civilian employee Paul Simpkins awaits trial. On Jan. 21, 2016, Layug was sentenced to 27 months in prison and a $15,000 fine; the others await sentencing.
The NCIS, the DCIS and the Defense Contract Audit Agency are conducting the ongoing investigation. Assistant Chief Brian Young of the Criminal Division’s Fraud Section and Assistant U.S. Attorneys Mark W. Pletcher and Robert S. Huie of the Southern District of California are prosecuting the case.
Those with information relating to fraud, corruption or waste in government contracting should contact the NCIS anonymous tip line at www.ncis.navy.mil or the DoD Hotline at www.dodig.mil/hotline, or call (800) 424-9098.
Two Sentenced in Pill Mill CaseRead the Press Release
DALLAS — Two defendants who pleaded guilty to their roles in a pill mill operation they were involved in during parts of 2013-2014 have been sentenced.
U.S. Attorney John Parker announced that Shane Barron, 27, of Austin, Texas, was sentenced today by U.S. District Judge Sidney A. Fitzwater to 37 months in federal prison, following his guilty plea in October 2015 to one count of unlawful use of a communication facility. Last Friday, January 22, co-defendant Tonya Sue Griggs, 34, of Dallas, was also sentenced by Judge Fitzwater to 37 months in federal prison. She pleaded guilty in August 2015 to the same offense.
In March 2015, a federal grand jury in Dallas indicted 23 individuals, including Barron and Griggs, on offenses related to their participation in a prescription drug distribution conspiracy. That indictment alleged that from at least May 2013 through July 2014, the defendants participated in a scheme to illicitly obtain prescriptions for pain medications, such as oxycodone and hydrocodone, and then distribute those controlled substances for profit. As part of the conspiracy, individuals, often homeless or of limited means, were recruited and paid to pose as patients at medical clinics, including the McAllen Medical Clinic in Dallas, to obtain prescriptions to fill those prescriptions at designated pharmacies. Many of those defendants have pleaded guilty and are awaiting sentencing.
According to documents filed in the Barron case, on February 18, 2014, co-conspirator Cornelius Robinson told Barron, on a phone call, that he found a bottle of 154 pills in his kitchen cabinet that he had forgotten he had. Robinson told Barron that finding the pills was like finding free money. Barron estimated that the pills were worth $2,000, but the co-conspirator said $3,000. Barron then knew that the pills were 30 mg oxycodone and that the then-going rate for one 30 mg oxycodone pill was approximately $20. Barron admits he intended to obtain some of these oxycodone pills from Robinson to distribute to his own customers and admits that he used a cell phone to facilitate the conspiracy to distribute oxycodone. Robinson pleaded guilty in October 2015 to one count of conspiracy to distribute a controlled substance and is scheduled to be sentenced in April 2015. He faces a maximum statutory penalty of 20 years in federal prison and a $1 million fine.
According to documents filed in the Griggs case, in a phone call on October 30, 2013, another co-conspirator instructed Griggs to recruit six new individuals to pose as patients to obtain prescriptions for hydrocodone from a clinic. The co-conspirator told Griggs he would pay her $15 per recruit. The next day, Griggs sent the co-conspirator a text stating she had six recruits, but three left before going to the clinic. Another co-conspirator picked up Griggs’ three recruits and transported them to McAllen Medical Clinic to obtain prescriptions.
Last week, however, a physician, Dr. Richard Andrews, 63, of Dallas, and pharmacists, Ndufola Kigham, 44, of Arlington, Texas, and Kumi Frimpong, 55, of Grand Prairie, Texas, were arrested on charges outlined in a superseding indictment that charged them with offenses related to their roles in the conspiracy. They are on bond; trial is set for June 2016. All three were ordered to surrender their DEA registration numbers, preventing Dr. Andrews from issuing prescriptions for controlled substances and pharmacists Kigham and Frimpong from dispensing controlled substances. Also, Kigham surrendered her stock of controlled substances that she had at her pharmacy to DEA.
The investigation is being conducted by the Drug Enforcement Administration, with assistance from the Texas Department of Public Safety, the Louisiana State Police, the Grand Prairie Police Department, the Dallas Police Department, the Houston Police Department, the Arlington Police Department, the Greenville Police Department, the Parker County Sheriff’s Office, the U.S. Marshal’s Service, the U.S. Postal Inspection Service, and the Diplomatic Security Service. Assistant U.S. Attorney Mary Walters is prosecuting.
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Two Palm Beach County Residents Sentenced for Their Participation in Stolen Identity Tax Fraud Scheme Involving at Least 790 IdentitiesRead the Press Release
Two Palm Beach County residents were sentenced to prison for their participation in a stolen identity tax fraud scheme involving at least 790 stolen identities.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Kelly R. Jackson, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), Nadine Gurley, Special Agent in Charge, U.S. Department of Housing and Urban Development, Office of the Inspector General (HUD-OIG), and Karen Citizen-Wilcox, Special Agent in Charge, U.S. Department of Agriculture, Office of Inspector General (USDA OIG), made the announcement.
Latonia Verdell, 40, of Palm Beach County (Case No. 14-CR-80158), and Starling Willis, 32, of West Palm Beach (Case No. 15-CR-80119), were each sentenced to a term of imprisonment by U.S. Senior District Judge Daniel T. K. Hurley, for their participation in a stolen identity tax fraud conspiracy. Verdell and Willis were previously convicted of aggravated identity theft, in violation of Title 18, United States Code, Section 1028A(a)(1), and conspiracy to commit wire fraud, in violation of Title 18, United States Code, Sections 1343 and 1349. Verdell was also convicted of being a felon in possession of a firearm, in violation of Title 18, United States Code, Section 922(g)(1); possession of fifteen or more unauthorized access devices, in violation of Title 18, United States Code, Section 1029(a)(3); theft of government property, in violation of Title 18, United States Code, Section 641; and making a false statement to a federal government agency, in violation of Title 18, United States Code, Section 1001(a)(2).
Verdell was sentenced to a total of 94 months in prison, to be followed by three years of supervised release, and was ordered to pay restitution in the amount of $947,296.81. Verdell’s sentence includes a concurrent term of 70 months in prison for each count of conviction for theft of government money, felon in possession, and unauthorized access devices; and a concurrent sentence of 5 years in prison for the false statement conviction. In addition, Verdell was sentenced to a mandatory term of 24 months in prison, to run consecutive to all other sentences, for the aggravated identity theft conviction.
Willis was sentenced to a total of 33 months in prison, to be followed by three years of supervised release, and ordered jointly and severally liable for restitution, with Verdell, in the amount of $32,4551. Willis was sentenced to 9 months in prison for the conspiracy, to be followed by a mandatory consecutive term of 24 months in prison for the aggravated identity theft conviction.
According to court documents and the defendants’ testimony during the sentencing hearings, Verdell, Willis and co-defendant Kelli Witherspoon McIntosh, participated in a widespread stolen identity refund fraud scheme involving at least 790 stolen identities and personal identification information (PII). The PII was used to file fraudulent on-line income tax returns, with those refunds being directed to various bank accounts created and maintained by Verdell, McIntosh and Willis, as well as to reloadable debit cards. Identity theft victims whose personal information was used for this scheme spanned from Indian River, Highlands, St. Lucie, Martin and Palm Beach Counties, as well as persons outside the State of Florida. This scheme resulted in the submission to the IRS of more than 590 fraudulent returns in the names of other persons, seeking approximately $1.5 million in fraudulent income tax refunds.
Court documents also indicate that on September 1, 2010, while Verdell was receiving unauthorized income from the filing of fraudulent income tax returns with the IRS, she received a housing assistance payment funded by the U.S. Department of Housing and Urban Development (HUD), while knowing she was not entitled to receive such a payment. On September 24, 2013, Verdell submitted an application for enrollment in the Supplemental Nutrition Assistance Program (SNAP), also referred to as ‘food stamps.’ In her application, Verdell knowingly stated that her only monthly income was $715, without any other source of income, when she was in fact receiving significant income from fraudulent tax refund payments.
Court documents also indicate that evidence of the stolen PII, a list of bank accounts belonging to Willis, information regarding accounts which received fraudulent refunds, and a stolen .38 caliber pistol, were found in Verdell’s home during the execution of a federal search warrant.
Kelli Witherspoon McIntosh is scheduled to be sentenced on February 16, 2016 in West Palm Beach by U.S. Senior District Judge Hurley.
Mr. Ferrer commended the investigative efforts of the IRS-CI, HUD-OIG, and USDA OIG. Mr. Ferrer also thanked the Palm Beach County Sheriff’s Office for their assistance with this investigation. The case is being prosecuted by Assistant U.S. Attorney Theodore Cooperstein.
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.
Two Men Convicted of Illegally Possessing a Firearm, After Shooting at a Miami-Dade Police OfficerRead the Press Release
Two Miami-Dade residents were convicted by a jury in federal court for being felons in possession of a firearm, after they shot at a police officer with an AK-47 rifle.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Carlos A. Canino, Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), Miami Field Division, and Juan Perez, Acting Director, Miami-Dade Police Department (MDPD), made the announcement.
Theodist Grimes, III, 27, and Wendell Trenell Clark, 25, both of Miami, were convicted after a nine-day trial before U.S. District Judge Joan Lenard for being felons in possession of a firearm.
According to evidence presented at trial, on April 22, 2015, Grimes and Clark, both convicted felons, along with a third male, entered a convenience store in Miami to confront two men they believed had stolen their friend's gun. After the initial confrontation, the defendants went back to their car to arm themselves with two handguns and an AK-47 rifle. Customers called 911 and Miami-Dade police officers responded.
The first officer on the scene testified that he immediately saw Grimes with a Glock handgun and grabbed him. After a brief struggle, Grimes jumped out of his shorts and sprinted away in his underwear, all of which was captured on the store surveillance video. Clark then pulled the get-away car around to pick up Grimes and led police on a high-speed chase. Unable to elude the pursuing officers, Clark maneuvered the car so that Grimes could lean out the window and open fire with the AK-47 rifle on the Miami-Dade robbery detective who was chasing them. The detective, who is also assigned as an ATF Task Force Officer, testified that Grimes fired eight to ten rounds at the detective’s car, and that he was able to pull his car out of the line of fire.
Clark and Grimes continued to flee and, after crashing their car into a pick-up truck, ran away on foot. A nearby resident watched from inside his home as Grimes jumped over the fence in his yard and discarded the AK-47 rifle in a trash can on his property. This resident then immediately ran into the street, flagged down a police officer and showed the officer where the rifle was abandoned. A perimeter was set up and aviation helped track the defendants, who were located and arrested shortly thereafter.
Grimes and Clark are currently scheduled to be sentenced on April 13, 2016.
Mr. Ferrer commended the investigative efforts of ATF and MDPD. Mr. Ferrer also thanked the City of Miami Police Department and Miami Beach Police Department for their assistance and cooperation in this matter. This case was prosecuted by Assistant U.S. Attorney Miesha Shonta Darrough and Deputy Chief Michael Thakur.
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.
Two Men Arrested in Watertown Area for Unlawful Possession of FirearmsRead the Press Release
SYRACUSE, NEW YORK – Loren Woodard, 34, of Calcium, New York and Corey Daniels, 33, of Watertown, New York, were arrested on federal firearms charges, announced United States Attorney Richard S. Hartunian.
Woodard appeared in court yesterday and Daniels appeared in court today on a ten-count indictment alleging possession of firearms by a convicted felon and possession of stolen firearms. Woodard is also charged with possession of a firearm with an obliterated serial number. The indictment alleges felony violations with respect to seven (7) different firearms, including multiple pistols and long guns.
If convicted, each defendant faces a maximum sentence of ten (10) years imprisonment, a term of supervised release of up to three (3) years following imprisonment, and a fine of up to $250,000. Actual sentences are typically less than the maximum penalties. Sentences are imposed by a judge based on U.S. Sentencing Guidelines and other statutory factors.
The defendants appeared in federal court in Syracuse, New York, before United States Magistrate Judge Andrew T. Baxter.
The charges in the indictment are merely accusations. The defendants are presumed innocent until proven guilty.
This case is being investigated by the United States Bureau of Alcohol, Tobacco, Firearms & Explosives ("ATF") and the New York State Police, and is being prosecuted by Assistant U.S. Attorney Nicolas Commandeur.
Two Men Arrested and Charged with Conspiracy to Distribute Ecstasy and MollyRead 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 Richard Clarke, 47, a Canadian citizen residing in Buffalo, and Barrett Johnson, 32, of Jamestown, NY, were arrested and charged by criminal complaint with conspiracy to distribute controlled substances. The charge carries a maximum penalty of 20 years in prison and a fine of $1,000,000.
“Synthetic drugs such as ecstasy and molly can be deadly and have no place on the streets of our community,” said U.S. Attorney Hochul. “As always, we work closely with our law enforcement partners at every level to ensure all drugs, including synthetics, and those who deal in them are brought to justice.”
“These dangerous synthetic drugs are wreaking havoc in communities all over the country and right here in Western New York,” said HSI Buffalo Special Agent in Charge James C. Spero. “As today’s charges clearly demonstrate, HSI will continue to aggressively target the individuals and groups distributing this poison.”
Assistant U.S. Attorney Michael J. Adler, who is handling the case, stated that according to the complaint, the investigation began in March of 2015. Clarke was identified through surveillance as the supplier of MDA and MDMA, also known as ecstasy or molly, to Johnson over a 10-month period. On January 28, 2016, law enforcement officers established surveillance at Clarke’s Nottingham Terrace residence in Buffalo and Johnson’s business, Iconz Barbershop on Hertel Avenue in Buffalo. Officers trailed Clarke and Johnson to Elmwood Avenue where they observed Johnson approaching Clarke’s vehicle and the two exchanged what appeared to be a blue colored bottle.
Subsequently, officers executed a search warrant at Iconz Barbershop where Johnson was arrested. At the time of the arrest, the defendant threw all of the items in his hands to the ground including a blue Pepsi cup which contained a substance similar to molly.
During the execution of a search warrant at Clarke’s Nottingham Terrance residence, officers seized specific amounts of powder molly and ecstasy pills as well as approximately $13,000 in cash.
The defendants made an initial appearance before U.S. Magistrate Judge H. Kenneth Schroeder this morning and were released on conditions.
The complaint is the result of an investigation by Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Special Agent in Charge James C. Spero and the Border Enforcement Security Taskforce which includes the Ontario Provincial Police, Niagara Regional Police, Peel Regional Police and Toronto Police Services.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
Two Individuals Indicted in Fraud Scheme Involving Distribution of Infectious Human RemainsRead the Press Release
A husband and wife from Grosse Pointe Park, Michigan, have been charged in an indictment with wire fraud, transportation of hazardous material, and false statements in an alleged scheme involving the distribution of body parts, some that tested positive for diseases, including HIV and hepatitis, announced United States Attorney Barbara L. McQuade. McQuade was joined in the announcement by Special Agent in Charge David P. Gelios, Federal Bureau of Investigation, Detroit Division; Regional Special Agent-in-Charge Thomas J. Ullom, U.S. Department of Transportation - Office of Inspector General; Officer in Charge Elizabeth Harton of the Centers for Disease Control and Prevention, Division of Global Migration & Quarantine and Arizona Attorney General Mark Brnovich. Indicted were Arthur Rathburn, 62 and Elizabeth Rathburn, 55. The indictment was unsealed today upon the arrest of the defendants. As alleged in the 13-count indictment, Arthur Rathburn and Elizabeth Rathburn were the owners and operators of International Biological, Inc. (“IBI”). IBI’s primary function was renting human body parts, such as heads and torsos, to customers who used the remains for medical or dental training. The Rathburns participated in a scheme to defraud in which IBI obtained donated bodies and body parts from suppliers, which IBI would then typically dismember and rent out to customers for medical or dental training. Arthur and Elizabeth Rathburn knew that the donors of a number of these bodies had died of an infectious disease, or that the bodies had tested positive for an infectious disease. IBI sometimes obtained diseased remains from their suppliers at a reduced cost, due to the fact that end users of human remains generally reject infectious bodies and body parts for use in medical or dental training. It was part of the scheme that the Rathburns would provide human remains to IBI’s customers, falsely representing to those customers that the remains were free of certain infectious diseases. The Rathburns were aware that IBI’s customers would not accept remains infected with certain diseases. The scheme included directly profiting from infectious remains supplied to unwitting customers in violation of contractual agreements and failing to disclose to customers that IBI ignored industry standard precautions to prevent potential cross-contamination between infectious and non-infectious remains. The indictment further alleges that Arthur Rathburn willfully caused to be delivered hazardous material regulated by the Department of Transportation, namely a human head of an individual known to have died from bacterial sepsis and aspiration pneumonia, to Delta Cargo, an air carrier, for transportation in air commerce in violation of federal regulations. In violation of these regulations, the human head was packaged in a trash bag placed within a camping cooler. Seven other human heads were also part of the shipment and packed in the same manner. Large quantities of liquid blood were found within the coolers. Furthermore, Arthur Rathburn was charged with making three false statements connected to this shipment. “This alleged scheme to distribute diseased body parts not only defrauded customers from the monetary value of their contracts, but also exposed them and others to infection,” McQuade said. “The alleged conduct risked the health of medical students, dental students and baggage handlers.” “These indictments represent one step in the FBI’s larger investigation into violations of federal law by individuals working within the poorly regulated willed-body-to-science industry,” said David P. Gelios, Special Agent in Charge, FBI Detroit Division. “We recognize that thousands of donor families, medical doctors and affiliated personnel across the country have been adversely affected by these illegal acts. This investigation does not stop here. We continue to work with our state and federal partners to conduct a full and rigorous investigation. And, while all of our partnerships on this case have been valuable, special thanks is due to the staff of the CDC’s Detroit Quarantine Station, without whose extensive help, this investigation would have been greatly hampered." Martin S. Cetron, MD, Director, Division of Global Migration, Centers for Disease Control and Prevention said, "The CDC is pleased to have provided its technical assistance on public health concerns related to the safe handling, packaging, and import of human remains that pose a potential threat to human health. U.S. quarantine stations are part of a comprehensive system that serves to limit the introduction and spread of infectious diseases into the United States. We continue to support our law enforcement partners, other federal agencies, and state and local entities on this important public health matter." “The indictment brought against Arthur Rathburn and Elizabeth Rathburn for allegations related to wire fraud, transportation of HAZMAT, and false statements demonstrates that ensuring the safety of the Nation’s transportation system remains a high priority for the Office of Inspector General (OIG), the Department of Transportation (DOT) and its Pipeline and Hazardous Materials Safety Administration,” said Thomas J. Ullom, DOT OIG Regional Special Agent-in-Charge. “Working with our law enforcement and prosecutorial colleagues, we will continue our efforts to uncover illicit hazardous materials shipments, whether that be body parts with infectious diseases or otherwise, and prevent their use and punish those who seek to compromise the integrity of DOT’s safety program.” "These federal indictments are a significant step in our pursuit of justice for donors' families and medical staff affected by these despicable acts," said Arizona Attorney General Mark Brnovich. "Last month, Arizona successfully convicted a defendant involved in this multi-state investigation. Our team will continue to work with the Department of Justice to ensure that everyone involved in these illegal acts is appropriately prosecuted." An indictment is only a charge and is not evidence of guilt. A defendant is presumed not guilty unless convicted at trial by a jury. If convicted, the Rathburns face a maximum statutory penalty of twenty years in prison for each of nine counts of wire fraud. Arthur Rathburn also faces a maximum of five years in prison for one charge of Transporting Hazardous Material under 49 U.S.C. §463 and a maximum of five years in prison for each of three counts charging him with making false statements to the United States Government. The investigation in this case was handled by the Federal Bureau of Investigation, the Centers for Disease Control and Prevention, the Arizona Attorney General’s Office, and the U.S. Department of Transportation, Office of Inspector General with support from U.S. Customs and Border Protection and Homeland Security Investigations. Special thanks are also due to the Wayne County Medical Examiner’s Office for their critical assistance. The case is being prosecuted by Assistant U.S. Attorneys John K. Neal and Timothy J. Wyse.Twice Convicted Pedophile Sentenced to 10 Years in Prison for Possession of Child PornographyRead the Press Release
Baltimore, Maryland – U.S. District Judge George L. Russell III sentenced William Sylvia, age 71, of Hagerstown, Maryland, today to 10 years in prison, followed by lifetime supervised release, for possession of child pornography. Judge Russell ordered that Sylvia must continue to register as a sex offender in the place where he resides, where he is an employee, and where he is a student, under the Sex Offender Registration and Notification Act (SORNA).
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein and Special Agent in Charge Kevin Perkins of the Federal Bureau of Investigation, Baltimore Field Office.
According to Sylvia’s plea agreement, in approximately 1995, Sylvia was convicted of raping a child in Massachusetts, and sentenced to seven to 10 years’ incarceration. On September 3, 2004, in the Circuit Court of Berkeley County, West Virginia, Sylvia was convicted of sexual abuse by a parent, custodian or guardian, and of third degree sexual abuse, and was sentenced to one to five years in prison.
Sylvia admitted that from April 1, 2013 through July 13, 2014, he used a computer to send, receive and collect child pornography. For example, on April 1, 2013, Sylvia sent another user six visual depictions of minors engaging in sexually explicit conduct. On September 4, 2014, law enforcement obtained a search warrant for Sylvia’s email account which revealed emails sent and received by Sylvia that included attachments of child pornography.
During the time of this investigation, Sylvia was a registered sex offender living at a motel in Hagerstown. On February 20, 2015, a search warrant was executed at Sylvia’s residence at the motel and law enforcement seized a desktop computer, camera, flash drive and other digital media. A forensic examination of the desktop computer and the flash drive recovered additional images of minors – including prepubescent minors – engaged in sexually explicit conduct.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc. For more information about internet safety education, please visit www.justice.gov/psc and click on the "resources" tab on the left of the page.
United States Attorney Rod J. Rosenstein commended the FBI for its work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Paul E. Budlow who prosecuted the case.
Three Tennessee Men Sentenced for Killing During Home-Invasion RobberyRead the Press Release
Three Clarksville, Tennessee, men were sentenced for shooting and killing a man during a home-invasion robbery, announced Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division and U.S. Attorney David Rivera of the Middle District of Tennessee.
Jerry Dinkins, 27, was sentenced today to 300 months in prison by Chief U.S. District Judge Kevin H. Sharp of the Middle District of Tennessee. Cornell Oliver, 24, and Blake Wright, 26, were sentenced on Dec. 2, 2015, to 300 months and 285 months in prison, respectively, by Judge Sharp.
According to the plea agreements, on Oct. 27, 2010, Oliver, Dinkins and Wright planned a home-invasion robbery targeting a Clarksville house where a man was known to cook and sell substantial amounts of crack cocaine and to have large amounts of cash. When the defendants arrived at the house, at least eight people were inside and one of the defendants kicked open the door. The defendants then entered and demanded money and drugs from the victim, and one of the defendants proceeded to hit the victim with a gun. The defendants forced the victim outside after he indicated that he did not have money or drugs. People inside the house then heard multiple gunshots, but did not see which defendant fired the weapon. The defendants then fled, and the victim was pronounced dead at the scene.
The Clarksville Police Department and the Drug Enforcement Administration investigated the case. Trial Attorney Laura Gwinn of the Criminal Division’s Organized Crime and Gang Section and Assistant U.S. Attorney Lynne T. Ingram of the Middle District of Tennessee prosecuted the case.
Three Hot Springs Arkansas Men Sentenced to Total of 15 Years for Drug and Firearm OffensesRead the Press Release
Hot Springs - Kenneth Elser, Acting United States Attorney for the Western District of Arkansas, announced that Jerry Lee Rudkin, age 30, was sentenced to 48 months in federal prison followed by three years of supervised release on one count of Distribution of Methamphetamine; Jasmer West, age 26, was sentenced to 72 months in federal prison followed by three years of supervised release on one count of Distribution of Methamphetamine; Brian Robbins, age 34, was sentenced to 60 months in federal prison and three years of supervised release on one count of Possession of a Firearm in Furtherance of a Drug Trafficking Offense. The Honorable Susan O. Hickey presided over the sentencing hearings this week in the United States District Court in Hot Springs.
Jerry Lee Rudkin: According to court records, in September 2014, officers with the Drug Enforcement Administration (DEA) in Little Rock began receiving information from the 18th East Drug Task Force that Rudkin was a distributor of methamphetamine in Hot Springs and surrounding areas. On October 8, 2014, agents made a controlled purchase of methamphetamine from Rudkin. A federal grand jury issued an indictment for Rudkin on November 19, 2014, and he pleaded guilty to one count of Distribution of Methamphetamine on March, 27, 2015.
Jasmer West: According to court records, On October 2, 2014, agents with Homeland Security Investigations and the 18th East Drug Task Force made a controlled purchase of methamphetamine from West. A federal grand jury issued an indictment for West on November 19, 2014, and he pleaded guilty to one count of Distribution of Methamphetamine on April, 23, 2015.
Brian Robbins: According to court records, on August 25, 2014, Homeland Security Investigations and the 18th East Drug Task Force made a controlled purchase of methamphetamine and a.45 caliber pistol from Robbins. On August 27, 2014, investigators executed a search warrant at Robbins’ residence based upon the drug transaction and located and seized two .22 rifles, two small bags of cocaine, and one small bag of methamphetamine. On September 9, 2014, the defendant was located and arrested. During an interview of Robbins, he admitted that all of the guns and drugs found in his house belonged to him. Robbins was charged on November 19, 2014 and pleaded guilty on June 5, 2015.
These cases were investigated by Homeland Security Investigations, the Drug Enforcement Administration, and the 18th East Drug Task Force. Assistant United States Attorney David Harris prosecuted the case for the United States.
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Related court documents may be found on the Public Access to Electronic Records website @ www.pacer.gov
Three Clarksville Tennessee Men Sentenced for Killing During Home Invasion RobberyRead the Press Release
Three Clarksville, Tennessee men were sentenced for shooting and killing a man during a home-invasion robbery, announced David Rivera, U.S. Attorney for the Middle District of Tennessee and Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division
Jerry Dinkins, 27, was sentenced today to 300 months in prison by Chief U.S. District Judge Kevin H. Sharp of the Middle District of Tennessee. Cornell Oliver, 24, and Blake Wright, 26, were sentenced on Dec. 2, 2015, to 300 months and 285 months in prison, respectively, by Judge Sharp.
According to the plea agreements, on Oct. 27, 2010, Oliver, Dinkins and Wright planned a home-invasion robbery targeting a Clarksville house where a man was known to cook and sell substantial amounts of crack cocaine and to have large amounts of cash. When the defendants arrived at the house, at least eight people were inside and one of the defendants kicked open the door. The defendants then entered and demanded money and drugs from the victim, and one of the defendants proceeded to hit the victim with a gun. The defendants forced the victim outside after he indicated that he did not have money or drugs. People inside the house then heard multiple gunshots, but did not see which defendant fired the weapon. The defendants then fled, and the victim was pronounced dead at the scene.
The Clarksville Police Department and the Drug Enforcement Administration investigated the case. Assistant U.S. Attorney Lynne T. Ingram of the Middle District of Tennessee and Trial Attorney Laura Gwinn of the Criminal Division’s Organized Crime and Gang Section prosecuted the case.
Temple Terrace Men Convicted in String of Armed RobberiesRead the Press Release
Tampa, Florida – United States Attorney A. Lee Bentley, III announces that a federal jury today found Samuel Lee Lynch (29) and Reo Thomas Nance (31), both of Temple Terrace, guilty of conspiracy, armed robbery, and firearms offenses in connection with five Tampa Bay area armed robberies occurring between March 15, 2015, and April 24, 2015. Lynch and Nance targeted check cashing businesses that kept large amounts of cash on hand, ultimately stealing more than $93,000. During each robbery, both defendants brandished firearms. During a March 26, 2015, robbery of the Nebraska Food Market, Lynch shot an accomplice and bystander.
Lynch faces a mandatory life sentence, and Nance faces a mandatory minimum penalty of 32 years’ imprisonment. Their sentencing hearing is scheduled for May 11, 2016.
This case was investigated by Federal Bureau of Investigation, the Tampa Police Department, and the Temple Terrace Police Department. It is being prosecuted by Assistant United States Attorney Carlton C. Gammons.
Syracuse Woman Sentenced to 78 Months in Prison for Irs and Social Security FraudRead the Press Release
SYRACUSE, NEW YORK – Patique Donerlson, 34, of Syracuse, New York, was sentenced today to 78 months in prison to be followed by 3 years of supervised release, as a result of her conviction for three counts of aggravated identity theft and three counts of misuse of a social security number, announced United States Attorney Richard S. Hartunian. Donerlson was also ordered to pay $12,239 in restitution to the Internal Revenue Service ("IRS").
Donerlson’s sentence stemmed from her scheme to obtain federal income tax refunds by preparing and electronically filing fraudulent tax returns using other people’s personal information (names, dates of birth, and social security numbers). In the commission of these crimes, the defendant obtained the personal identification information in various ways, including some from persons whose taxes she had prepared in the past, without obtaining their permission and without their knowledge for the current filings. In each instance, the defendant fraudulently claimed these individuals had self-employment income and were eligible for an earned income tax credit from the IRS in the form of a refund, which was false. She then directed the IRS to issue the fraudulent tax refunds for these individuals on a prepaid debit card in the taxpayer’s name, and requested they be mailed to an address belonging or accessible to Donerlson.
This case was investigated by the Social Security Administration and Internal Revenue Service, Criminal Investigations, and was prosecuted by Assistant U.S. Attorney Carl G. Eurenius
St. Croix Man Pleads Guilty to Being a Felon in Possession of a FirearmRead the Press Release
St. Croix, USVI –On Thursday, January 28, 2016, Misael Melendez, aka Salao, 50, pleaded guilty in federal court to being a felon in possession of a firearm, United States Attorney Ronald W. Sharpe announced.
According to the plea agreement filed with the court, on February 11, 2015, Melendez sold a stolen .22 caliber rifle to an undercover informant. Melendez had been previously convicted in 2009 of the felony of possession with intent to distribute cocaine in the District Court of the Virgin Islands.
Melendez faces a maximum of 10 years in prison and a $250,000 fine. A sentencing date has been set for June 1, 2016.
The case is the result of months of investigative work by the Bureau of Alcohol, Tobacco, Firearms and Explosives, U.S. Drug Enforcement Administration and the Virgin Islands Police Department. The case is being prosecuted by Assistant U.S. Attorney Christian Stringer.
Sioux Falls Man Sentenced for Gun CrimeRead the Press Release
United States Attorney Randolph J. Seiler announced that a Sioux Falls, South Dakota, man convicted of a firearms offense was sentenced on January 25, 2016, by U.S. District Judge Karen E. Schreier.
Justin Christopher Moe, age 35, was sentenced to 77 months in custody, followed by 3 years of supervised release, and ordered to pay $100 to the Federal Crime Victims Fund.
Moe was indicted for Felon in Possession of Firearms by a federal grand jury on July 7, 2015. He pled guilty on November 10, 2015.
On April 3, 2015, law enforcement came into contact with Moe in Lennox, South Dakota, and located a .45 caliber semi-automatic pistol in his vehicle. A search warrant was executed on Moe’s residence in Sioux Falls and a 12-gauge shotgun was found. Moe has previously been convicted of five felonies and is prohibited from possessing firearms.
This case was investigated by the Sioux Falls Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorney Jennifer D. Mammenga prosecuted the case.
Moe was immediately turned over to the custody of the U.S. Marshals Service.
Sioux Falls Man Found Guilty in Methamphetamine Distribution ConspiracyRead the Press Release
United States Attorney Randolph J. Seiler announced that Jaime Aroldo Duarte-Lopez, a/k/a Jimmy Duarte, age 23, of Sioux Falls, South Dakota, was found guilty of six drug charges as a result of a federal jury trial in Sioux Falls.
Each count carries a maximum penalty of 20 years in custody and/or a $1 million fine, 3 years of supervised release, and a $100 special assessment to the Federal Crime Victims Fund.
Duarte-Lopez was indicted by a federal grand jury on December 15, 2015, on the charges of Conspiracy to Distribute Methamphetamine and five counts of Distribution of Methamphetamine.
From approximately November 2014 to August 2015, Duarte-Lopez and others distributed methamphetamine in the Sioux Falls area. Law enforcement used a confidential informant to purchase methamphetamine from Duarte-Lopez on five occasions. Duarte-Lopez was responsible for distributing over 175 grams of methamphetamine throughout the course of the conspiracy. Duarte-Lopez indicated to the confidential informant on multiple occasions that he had the ability to obtain pounds of methamphetamine to sell.
This case was investigated by the Sioux Falls Area Drug Task Force and the Drug Enforcement Administration. Assistant U.S. Attorney Jennifer D. Mammenga prosecuted the case.
A presentence investigation was ordered and a sentencing date was set for April 11, 2016. The defendant was remanded to the custody of the U.S. Marshals Service.
Salt Lake City Man Pleads Guilty to Possession of Child Pornography; Agreement Includes Stipulated 156-Month SentenceRead the Press Release
SALT LAKE CITY -- Jonathan Brett Wood, age 49, of Salt Lake City, pleaded guilty to one count of possession of child pornography in U.S. District Court Wednesday afternoon. The plea agreement reached with federal prosecutors includes a stipulated 156-month sentence. The case is a part of the Utah Project Safe Childhood initiative, which brings together federal, state and local agencies to investigate and prosecute individuals who exploit children.
The significant sentence is subject to the approval of U.S. District Judge Clark Waddoups, who will impose a sentence in the case on June 2, 2016. Judge Waddoups also will impose a term of supervised release for Wood, who faces at least five years of supervised release when he finishes his federal prison sentence with a maximum term of life. (There is no parole in the federal criminal system.) Wood also agreed to forfeit a Samsung laptop computer as a part of the plea agreement reached with federal prosecutors.
As a part of the plea agreement, Wood admitted that on a date unknown and continuing to Feb. 11, 2015, he possessed a computer that contained images of child pornography, including images depicting prepubescent children engaged in sexually explicit conduct. He also acknowledged that he has a previous conviction for aggravated sexual abuse of a child in Utah’s 4th District Court.
“Protecting vulnerable victims is a top priority for the Department of Justice and my office in Utah. We are particularly focused on the exploitation of children,” U.S. Attorney John W. Huber said today. “In this case, our federal, state, and local law enforcement partners contributed to the successful prosecution of an individual who is a repeat offender. We will continue to work together to keep children in Utah safe from these predators.”
Wood was charged with distribution of child pornography, receipt of child pornography, and possession of child pornography in a three-count indictment returned by a federal grand jury in September following an investigation by local, state, and federal agents participating as members of the Utah Internet Crimes Against Children Task Force.
Roseville Wealth Advisor Pleads Guilty to Wire FraudRead the Press Release
SACRAMENTO, Calif. — Lee Loomis, 58, of Granite Bay, pleaded guilty today to wire fraud, United States Attorney Benjamin B. Wagner announced.
According to court documents, Loomis was president of a company called Loomis Wealth Solutions. Through seminars and face-to-face meetings, he induced individuals to invest money in the Naras Funds, which he claimed were liquid, savings account-like investments that yielded a 12 percent annual return. He also claimed the investment was secured by a third party that was using the money to make loans secured by residential properties.
In fact, investors in the Naras Funds lost their investments. In his plea agreement, Loomis admitted that the funds were not used as was promised to investors. Instead, Loomis and his co-defendants used the funds to pay for ongoing operations and to pay previous investors. Loomis took in more than $10 million in investor funds, defrauding more than 50 individuals. At the time law enforcement executed search warrants at the business, only $4,313 was left in investor accounts.
“This guilty plea brings to an end Lee Loomis’s long and destructive scheme to defraud investors,” said U.S. Attorney Wagner. “While it is doubtful that investor victims will ever be made whole, Loomis has been brought to justice, and he will never again be in a position to cause financial harm to others.”
This case is the product of an investigation by the Federal Bureau of Investigation, the Internal Revenue Service-Criminal Investigation, the United States Securities and Exchange Commission, and the California Bureau of Real Estate. Assistant United States Attorneys Paul Hemesath and Jared Dolan are prosecuting the case.
Loomis has been in custody since September 14, 2012. He will remain in custody pending sentencing. Co-defendants Dawn C. Powers, 45, of Lincoln, John Hagener, 79, of Granite Bay, and Joseph Gekko, 47, of Yorba Linda, have previously pleaded guilty and are awaiting sentencing. Co-defendants Michael Llamas, 31, of Tracy, and Peter Woodard, 47, of Ventura, are also named co-defendants in the mortgage fraud allegations in the indictment. A trial against Llamas and Woodard is set for September 12, 2016. The charges against them are allegations: the defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt.
Loomis is scheduled to be sentenced by United States District Judge John A. Mendez on May 10, 2016. Loomis faces a maximum statutory penalty of 20 years in prison and a $250,000 fine. The actual sentence, however, will 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.
Rose Radiology Centers Agree to Pay More Than $8 Million for False Billing of Medical Procedures and KickbacksRead the Press Release
Tampa - Rose Radiology Centers Inc. has agreed to pay $8.71 million to the government to resolve allegations that it violated the False Claims Act by billing federal health care programs for radiology procedures that were not medically necessary or furnished in violation of applicable Federal regulations, the United States Attorney’s Office for the Middle District of Florida announced today. Rose Radiology is a provider of radiology services and has offices in multiple locations in the greater Tampa area.
“This settlement resolves myriad allegations involving standards of medical care, false billing practices, and breaches of trust,” said U.S. Attorney A. Lee Bentley, III. “There is no room for such practices in our public health care programs. We will continue to do everything within our power to protect the public against such violations, when and where they are found.”
The settlement resolves allegations originally brought in a lawsuit filed by two separate whistleblowers under the qui tam provisions of the False Claims Act, which allow private parties to bring suit on behalf of the government and to share in any recovery. The whistleblowers will receive a combined $1.7 million as their share of the recovery in this case.
Among the allegations resolved was that Rose Radiology knowingly submitted false claims to the federal health care programs by administering contrast dye during MRI scans on patients without proper physician supervision. Contrast dye is a chemical that is injected intravenously into the body in order to make certain tissues, abnormalities, or disease processes more clearly visible on an MRI. Federal regulations require that a physician directly supervise the administration of contrast dye when used for an MRI as a potential adverse side effect is anaphylactic shock. Even though Rose Radiology was aware of this safety requirement, there were Rose Radiology locations that rarely, if ever, had a physician present when contrast dye was being administered.
The settlement also resolves allegations that Rose Radiology improperly billed for radiology procedures referred by chiropractors. The regulations are clear that Medicare does not pay for diagnostic test orders made by chiropractors. To circumvent this prohibition, Rose Radiology would accept orders from chiropractors and bill for them as if the tests were actually ordered by a Rose Radiology employed physician.
In addition, the settlement resolves the claim that Rose Radiology would perform and bill for radiology procedures that were never actually ordered by the patients’ treatment providers. Independent Diagnostic Testing Facilities (“IDTFs”), like Rose Radiology, are not permitted to add any procedures without a written order from the treating physicians. Also resolved was the claim that Rose Radiology submitted claims to Medicare for radiology services performed at locations that were not enrolled as authorized Medicare providers and billing Medicare for those services as if they had actually been performed at a different facility that was properly enrolled with Medicare.
Finally, the settlement resolves allegations that Rose Radiology engaged in the practice of giving kickbacks to referring physicians for the purpose of soliciting radiology referrals from these physicians. It is a violation of both the Anti-Kickback Act and the Stark Law to provide financial benefits to referring physicians. It was alleged that Rose Radiology provided key referral sources financial incentives in the forms of lunches, gift cards, and tickets to concerts or sporting events in exchange for receiving radiology business from these physicians.
"The Defense Criminal Investigative Service is committed to protecting the integrity of TRICARE, the U.S. military health care program, so that it may continue to provide quality medical care to America's Warfighters and their families, said John F. Khin, Special Agent in Charge, Defense Criminal Investigative Service - Southeast Field Office."
“It is unconscionable for a physician to allow someone without the proper medical training to administer a test that could cause serious harm” said Shimon Richmond, Special Agent in Charge for the HHS Office of the Inspector General. “Not only do the kinds of frauds that were alleged in this case rob Medicare of needed funds, they threatened the health of elderly and disabled Americans.”
The investigation was handled by Assistant U.S. Attorney Kyle S. Cohen from the Fort Myers Division of the U.S. Attorney’s Office for the Middle District of Florida and Trial Attorney Eva Gunasekera from the Civil Division’s Commercial Litigation Branch, with assistance from HHS-OIG and DCIS.
The two lawsuits are captioned United States ex. rel. Schimke v. Rose Radiology Centers, Inc., Case No. 8:12-cv-2576-T35-MAP and United States ex. rel. Miller v. Rose Radiology, Inc., Case No. 8:13-CV-2757-T-35-EAJ. The claims resolved by the settlement are allegations only, and there has been no determination of liability.
Ridgeview Man Charged with Burglary and AssaultRead the Press Release
United States Attorney Randolph J. Seiler announced that a Ridgeview, South Dakota, man has been indicted by a federal grand jury for First Degree Burglary and Assault with a Dangerous Weapon.
Shilo Hill, a/k/a Shilo Roubideau, age 20, was indicted on January 21, 2016. He appeared before U.S. Magistrate Judge Mark A. Moreno on January 25, 2016, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 25 years in custody and/or a $250,000 fine, 5 years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The indictment alleges that on or about October 3, 2015, Hill unlawfully entered and remained in an occupied structure, the victim’s residence, in the nighttime with the intent to commit the crime of assault. On the same date, Hill unlawfully assaulted the victim with a tire iron, with intent to do bodily harm to the victim.
The charge is merely an accusation and Hill is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Cheyenne River Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Jay Miller is prosecuting the case.
Hill was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has not been set.
Retired High School Teacher Charged with Attempting to Engage in Illicit Sex with a MinorRead the Press Release
JEFFERSON CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a retired high school teacher in Sedalia, Mo., was charged in federal court today with arranging to meet a woman and her 14-year-old daughter (actually an undercover law enforcement officer) for illicit sexual activity.
Paul Robert Cannon, 71, of Sedalia, Mo., was charged in a criminal complaint filed in the U.S. District Court in Jefferson City, Mo., with attempting to induce a minor to engage in illicit sexual activity. Cannon was arrested today and remains in federal custody pending an initial court appearance on Monday, Feb. 1, 2016.
According to an affidavit filed in support of today’s federal criminal complaint, Cannon posted an advertisement on Craigslist on Jan. 18, 2016, entitled “Grandpa looking for a couple with kids.” The posting read, “Grandpa looking for a couple that would like to include their kids in sexual fun. White man, very discreet, very safe, retired teacher, and well endowed. Age and race are not an issue.”
On Jan. 21, 2016, a detective with the Boone County, Mo., Sheriff’s Department responded to the Craigslist advertisement, portraying himself as a single mother with a 14-year-old daughter. Over the next six days, the affidavit says, the detective exchanged numerous e-mails with Cannon. In these exchanges, Cannon allegedly described various sex acts he intended to perform with the minor daughter. He also allegedly offered to have sex with both the mother and minor daughter together and said he was looking for “a continuing relationship.” The detective also exchanged numerous texts with Cannon, the affidavit says, in which Cannon described various sex acts he intended to perform with the minor daughter.
The undercover detective arranged to meet Cannon at a Columbia, Mo., restaurant this afternoon. Cannon offered to buy lunch for the mother and daughter, the affidavit says, before going to their residence for a sexual rendezvous. When Cannon arrived at the restaurant, he was redirected to another nearby restaurant, where he was arrested.
Dickinson cautioned that the charge contained in this complaint is simply an accusation, and not evidence of guilt. Evidence supporting the charge must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Supervisory Assistant U.S. Attorney Michael S. Oliver. It was investigated by the FBI and the Boone County Cyber Crimes Task Force.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Rapid City Man Sentenced for Possession of Child PornographyRead the Press Release
United States Attorney Randolph J. Seiler announced that a Rapid City man convicted of Possession of Child Pornography was sentenced on January 25, 2016, by Chief Judge Jeffrey L. Viken, U.S. District Court.
Shaun Meyer, age 39, was sentenced to 120 months in custody, followed by 20 years of supervised release, and ordered to pay a $100 special assessment to the Federal Crime Victims Fund.
Meyer was charged on April 21, 2015, and pleaded guilty on August 28, 2015.
The conviction stems from Meyer knowingly possessing child pornography on a computer in Rapid City between March 2015 and April 2015.
This case was investigated by the Internet Crimes Against Children Task Force. Assistant U.S. Attorney Sarah B. Collins prosecuted the case.
Rapid City Man Sentenced for Possession of Child PornographyRead the Press Release
United States Attorney Randolph J. Seiler announced that a Rapid City, South Dakota, man convicted of Possession of Child Pornography was sentenced on January 19, 2016, by Chief Judge Jeffrey L. Viken, U.S. District Court.
Gary Asmus, age 43, was sentenced to 18 months in custody, 5 years of supervised release, ordered to register as a sex offender, and to pay a $100 special assessment to the Federal Crime Victims Fund.
Asmus was charged on October 21, 2014, and pleaded guilty on September 18, 2015. The conviction stems from Asmus knowingly possessing child pornography on a computer in Rapid City between December 2013 and March 2014.
This case was investigated by the Internet Crimes Against Children Task Force. Assistant U.S. Attorney Sarah B. Collins prosecuted the case.
Asmus was immediately turned over to the custody of the U.S. Marshals Service.
Rapid City Man Sentenced for Possessing with Intent to Distribute MethRead the Press Release
United States Attorney Randolph J. Seiler announced that a Rapid City, South Dakota, man convicted of Possession with Intent to Distribute a Controlled Substance was sentenced on January 22, 2016, by Chief Judge Jeffrey L. Viken, U.S. District Court.
Matthew Wilhelm, age 40, was sentenced to 60 months in custody, followed by 4 years of supervised release, and a $100 special assessment to the Federal Crime Victims Fund. He pled guilty on August 14, 2015.
On March 19, 2015, Wilhelm obtained distributable quantities of methamphetamine, which he intended to distribute within South Dakota.
This case was investigated by Unified Narcotics Enforcement Team, United States Drug Enforcement Administration, Bureau of Alcohol, Tobacco, Firearms, and Explosives, South Dakota Division of Criminal Investigation, Pennington County Sheriff’s Office, and the Rapid City Police Department. Assistant U.S. Attorneys Ted L. McBride and Kathryn N. Rich prosecuted the case.
Wilhelm was immediately turned over to the custody of the U.S. Marshals Service.
Rapid City Man Sentenced for Escape from CustodyRead the Press Release
United States Attorney Randolph J. Seiler announced that a Rapid City, South Dakota, man convicted of Escape from Custody was sentenced on January 27, 2016, by Chief Judge Jeffrey L. Viken, U.S. District Court.
Christopher Alan Becker, age 32, was sentenced to 12 months and 1 day in custody, and ordered to pay a $100 special assessment to the Federal Crime Victims Fund.
Becker was indicted for the charge on August 18, 2015. Becker pleaded guilty on October 30, 2015.
The conviction stems from Becker escaping from the custody of the Bureau of Prisons at the Community Alternatives of the Black Hills, where he was in custody on August 13, 2015.
This case was investigated by the U.S. Marshals Service. Assistant U.S. Attorney Eric Kelderman prosecuted the case.
Becker was immediately turned over to the custody of the U.S. Marshals Service.
Rapid City Man Sentenced for ArsonRead the Press Release
United States Attorney Randolph J. Seiler announced that a Rapid City, South Dakota, man convicted of Arson was sentenced on January 20, 2016, by Chief Judge Jeffrey L. Viken, U.S. District Court.
Moses Catches, age 26, was sentenced to time served, 3 years of supervised release, and ordered to pay a $100 special assessment to the Federal Crime Victims Fund.
Catches was indicted for the charge on December 16, 2014. Catches pleaded guilty on June 2, 2015.
The conviction stems from Catches partially filling a bottle with gas on September 26, 2013, near Pine Ridge, and then giving this bottle to his brother, who lit the Molotov cocktail and threw it through the window of an occupied structure.
This case was investigated by the Bureau of Indian Affairs, Office of Justice Services, the Oglala Sioux Tribe Department of Public Safety, the Federal Bureau of Investigation, and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorney Kathryn N. Rich prosecuted the case.
Prison Guard Convicted of Having Sex with InmateRead the Press Release
HOUSTON - A former prison guard at the federal prison camp in Bryan has entered a guilty plea to two counts of sexual abuse of a ward, announced U.S. Attorney Kenneth Magidson.
Kendrick Desmond Brooks, 45, of Bryan, was charged with engaging in a sexual relationship with an inmate who was under his custodial, supervisory or disciplinary authority.
Brooks was an employee at the federal prison camp in Bryan. He admitted that in November 2014, he picked up a female inmate who was in official detention at the camp and told her they were going to the “comm shop.” Once there, Brooks pulled the inmate’s pants down and they engaged in sexual contact and intercourse.
Then, in January 2015, Brooks met the inmate in the hallway while she was on route to the commissary and asked her to help him fix the temperature in the chapel/education area. They went to the boiler room located at the back of the educational section, at which time they again engaged in sexual contact.
At the time of these acts, Brooks was an employee of the federal prison camp and the inmate was in official detention and under his custodial, supervisory or disciplinary authority.
U.S. District Judge Ewing Werlein Jr. accepted the guilty plea today and has set sentencing for May 6, 2016. At that time, he faces up to 15 years in federal prison and a possible $250,000 fine. He was permitted to remain on bond pending that hearing.
The charges are the result of an investigation conducted by the Office of Inspector General. Assistant U.S. Attorneys Ruben R. Perez and Jill Stotts are prosecuting the case.
Postal Worker Pleads Guilty to Stealing $68,000 in Sports Trading CardsRead the Press Release
BOSTON – A Dorchester woman pleaded guilty today in U.S. District Court in Boston to stealing 23 sports trading cards valued at $68,668 from the U.S. Mail while working as a clerk at the U.S. Post Office in Jamaica Plain.
Venecia McLaren, 30, pleaded guilty to one count of theft of mail by a postal service employee. U.S. District Court Senior Judge Mark L. Wolf scheduled sentencing for April 25, 2016.
On Jan. 21, 2015, McLaren stole a Priority Express Mail package containing sports trading cards from the Post Office in Roxbury. McLaren then gave her sister, Ophelia McLaren, from Queens, N.Y., a portion of the stolen cards to sell with the understanding that the two would share the proceeds. McLaren and her sister then posted some of the stolen cards for sale online. In late March and early April 2015, McLaren sold nine of the cards to a good faith purchaser. Around that same time, federal agents established undercover web-based accounts to communicate with Venecia McLaren and her sister. On April 9, 2015, after communicating with agents, McLaren sold three of the cards to an undercover agent in Boston and offered to sell a fourth. She was placed under arrest. On that same date, McLaren’s sister and brother, Lennica McLaren, were arrested after they attempted to sell four of the stolen trading cards to an undercover agent in New York.
Ophelia and Lennica McLaren have since pleaded guilty to larceny charges in Queens County Criminal Court, New York.
The charge of mail theft by a postal employee provides for a sentence of no greater than five years in prison, three years of supervised release and a fine of $250,000 and restitution.Actual sentences for federal crimes are typically less than the maximum penalties.Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Carmen M. Ortiz; Eileen Neff, Special Agent in Charge of the U.S. Postal Service, Office of the Inspector General, Northeast Area Field Office; and Boston Police Commissioner William Evans, made the announcement today. The case is being prosecuted by Assistant U.S. Attorney William F. Bloomer of Ortiz’s Major Crimes Unit.
Possession of 309 Counterfeit Gift CardsRead the Press Release
Contact Person: A Bradley Parham (843) 665-6688
Florence, South Carolina ---- United States Attorney Bill Nettles stated today that Raquan Etheridge, age 28, of Long Island City, New York was sentenced on January 27, 2016 by United States District Judge R. Bryan Harwell in federal court in Florence, to 42 months imprisonment and ordered to pay $7,986.31 in restitution for knowingly possessing 309 counterfeit gift cards with intent to defraud, a violation of Title 18, United States Code, Section 1029(a)(3).
Evidence presented at the guilty plea hearing established that on January 23, 2015, deputies with the Dillon County Sheriff’s Office responded to a report that an individual driving a Gold minivan with Florida license plates was attempting to use a stolen credit card in a business in Latta. Shortly thereafter, deputies located a van matching that description and identified Etheridge as the driver. During a search of the van deputies recovered 309 counterfeit gift cards which had been encoded with unauthorized account numbers belonging to numerous other individuals. Also found in the van were receipts reflecting purchases of cigarettes from businesses in different states, including Virginia and South Carolina, which purchases were made with some of the counterfeit cards encoded with unauthorized account numbers. In addition, over 170 cartons and 193 loose packs of cigarettes were recovered from the van.
The case was investigated by agents of the United States Secret Service with the assistance of the Dillon County Sheriff’s Office. Assistant United States Attorney A. Bradley Parham of the Florence office is prosecuting the case.
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Pine Ridge Woman and Man Plead Not Guilty to Murder and Accessory to MurderRead the Press Release
United States Attorney Randolph J. Seiler announced that a federal grand jury has indicted a Pine Ridge, South Dakota, woman for First Degree Murder, and a Pine Ridge, South Dakota, man for Accessory to First Degree Murder.
Elizabeth Ann LeBeau, a/k/a Ann LeBeau, age 23, and Fred Quiver, a/k/a Fred Brings Plenty, age 29, were indicted on January 26, 2016. LeBeau and Quiver appeared before U.S. Magistrate Judge Daneta Wollmann on January 29, 2016, and pled not guilty to the Indictment.
The maximum penalty upon conviction for LeBeau is life in prison and/or a $250,000 fine, and 5 years of supervised release. The maximum penalty upon conviction for Quiver is up to 15 years in custody and/or a $125,000 fine, and 3 years of supervised release.
The Indictment alleges that on or between January 1 and January 3, 2016, LeBeau murdered Emily Bluebird by strangulation, and that Quiver was an accessory to Bluebird’s murder.
The charges are merely an accusation and LeBeau and Quiver are presumed innocent until and unless proven guilty.
The investigation is being conducted by the Federal Bureau of Investigation. Assistant U.S. Attorney Megan Poppen is prosecuting the case.
LeBeau and Quiver were remanded to the custody of the U.S. Marshals Service pending trial. A trial date has not been set.
Pine Ridge Man Sentenced for Child AbuseRead the Press Release
United States Attorney Randolph J. Seiler announced that a Pine Ridge, South Dakota, man convicted of Felony Child Abuse and Neglect and Assault Resulting in Serious Bodily Injury was sentenced on January 22, 2016, by Chief Judge Jeffrey L. Viken, U.S. District Court.
Timothy White Plume, age 37, was sentenced to 96 months in custody, followed by 3 years of supervised release, and ordered to pay a $100 special assessment to the Federal Crime Victims Fund.
White Plume was charged on January 23, 2013, and was found guilty by a jury after a trial in federal court on July 14, 2015.
The conviction stems from White Plume assaulting a three-month old infant, causing life-threatening and permanent injuries.
This case was investigated by the Bureau of Indian Affairs, Office of Justice Services, the Oglala Sioux Tribe Department of Public Safety, and the South Dakota Division of Criminal Investigation. Assistant U.S. Attorney Sarah B. Collins prosecuted the case.
White Plume was immediately turned over to the custody of the U.S. Marshals Service.
Philadelphia Doctor Charged in Scheme to Defraud Social SecurityRead the Press Release
PHILADELPHIA – An indictment was unsealed today charging Dr. Frederick Douglas Burton, 67, of Conshohocken, PA, with two counts of mail fraud and attempted mail fraud, announced United States Attorney Zane David Memeger.
According to the indictment, in November 2013, Dr. Burton met with Dr. Dennis Erik Fluck Von Kiel and agreed to sign and send letters to support what Von Kiel knew would be a fraudulent application for social security disability benefits. The letters contained representations that Von Kiel was unable to work as a result of Post-Traumatic Stress Disorder. Burton was not a psychiatrist, had no specialized mental health training, and did not diagnose Dr. Von Kiel with PTSD or receive a referral from another doctor who had diagnosed Dr. Von Kiel with PTSD. In order to help Von Kiel file a fraudulent application for social security disability benefits, Burton allegedly signed and mailed two letters, containing false representations, to a law firm that specializes in social security benefit applications.
If convicted, Dr. Buton faces a maximum possible sentence of 40 years in prison, followed by up to three years of supervised release, a possible fine, and a $200 special assessment.
The case was investigated by IRS Criminal Investigations and the FBI. It is being prosecuted by Assistant United States Attorney Mark B. Dubnoff.
An Indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Pagans Motorcycle Club Members Sentenced for Firearms ViolationsRead the Press Release
Two additional members of the Pagans Motorcycle Club (PMC) were sentenced yesterday by United States District Judge Donald L. Graham in Fort Pierce, after being convicted of firearms charges.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, A. Lee Bentley, III, United States Attorney for the Middle District of Florida, George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, Paul Wysopal, Special Agent in Charge, Federal Bureau of Investigation (FBI), Tampa Field Office, Carlos A. Canino, Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Miami Field Division, Regina Lombardo, Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Tampa Field Division, J. Michelle Morris, Chief, Sebastian Police Department, Diane Hobley-Burney, Chief of Police, Fort Pierce Police Department, Ken J. Mascara, Sheriff, St. Lucie County Sheriff’s Office, William D. Snyder, Sheriff, Martin County Sheriff’s Office, Ben Johnson, Sheriff, Volusia County Sheriff’s Office, and Ronald Wright, Chief, South Daytona Police Department, made the announcement.
Richard Todd Badali, 53, of Casselberry, Florida was previously found guilty by a jury of the unlawful sale of a firearm to a convicted felon, in violation of Title 18, United States Code, Section 922(d)(1), and possession of a firearm by a convicted felon, in violation of Title 18, United States Code, Section 922(g)(1). Badali was sentenced to 18 months in federal prison, to be followed by two years of supervised release.
Thomas Richard Laakmann, 60, of Orange City, Florida, was previously found guilty by a jury of sale of a firearm to a convicted felon, in violation of Title 18, United States Code, Section 922(d)(1), and possession of a firearm by a person convicted of misdemeanor crime of domestic violence, in violation of Title 18, United States Code, Section 922(g)(9). Laakmann was sentenced to 12 months in federal prison, to be followed by two years of supervised release.
According to statements made in court and documents filed in the case, Badali was a ranking member of the PMC and in charge of all PMC members in Florida. Laakmann was a rank-in-file member of the PMC. Pursuant to the sentencing order, Badali and Laakkmann are also prohibited from associating with members and associates of the PMC while on supervised release.
The sentencing of Badali and Laakkmann concludes a multi-jurisdictional law enforcement investigation into the illicit conduct of PMC members that spanned a number of years. During the course of the investigation, the FBI was able to infiltrate the PMC operating in Florida and documented the unlawful distribution of narcotics and firearms. According to court records, much of the criminal conduct, including the firearms offenses committed by Badali and Laakmann, took place at a former PMC club house in Sebastian, Florida. Other unlawful transactions occurred in Miami, Ft. Lauderdale, Fort Pierce, Stuart, and Daytona Beach. During the course of the undercover operation, law enforcement purchased 24 firearms from PMC members and their associates. Many of the illegal firearms sellers had prior criminal convictions. In addition, many of the recovered firearms were determined to be stolen or had obliterated serial numbers. In addition, controlled substances, including cocaine, prescription pills and marijuana were also purchased from the targets during the course of the undercover investigation.
In addition to Badali and Laakkmann, eight other individuals previously pleaded guilty and have been sentenced for their participation in narcotics and firearms offenses related to this investigation, including: William Tendrich, 40, of Fort Pierce, was sentenced to 15 years’ imprisonment for firearms offenses; Anthony Posadas, 67, of Fort Pierce, was sentenced to 18 months’ imprisonment for firearms offenses; Michael Clancy, 58, of Vero Beach, was sentenced to 2 years’ imprisonment for narcotics (cocaine) offense; Jorge Duquen, 53, of Miami, was sentenced to 10 months’ imprisonment for a narcotics (cocaine) offense; Hector Garcia, 62, of Miami, was sentenced to 18 months’ imprisonment for a narcotics (cocaine) offense; Michael Carter, 62, of New Smyrna Beach, was sentenced to 51 months’ imprisonment for firearms offenses; Robert Klimkowski, 61, of Melbourne, was sentenced to 1 year of probation for narcotics offenses; and Thomas Close, 60, of Sebastian, was sentenced to 15 years’ imprisonment for a firearm offense.
Mr. Ferrer commended the investigative efforts of the FBI, ATF, Sebastian Police Department, Fort Pierce Police Department, St. Lucie County Sheriff’s Office, Martin County Sheriff’s Office, Volusia County Sheriff’s Office, and South Daytona Police Department. These cases were prosecuted by Assistant United States Attorneys for the Southern District of Florida Russell R. Killinger and Adam McMichael, Special Assistant United States Attorney Southern District of Florida Ryan L. Butler, and Assistant United States Attorney for the Middle District of Florida Bruce Ambrose.
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.
Northwest Side Pharmacist Sentenced to a Year and a Day in Federal Prison for Selling Counterfeit Viagra and CialisRead the Press Release
CHICAGO — A suspended Chicago pharmacist was sentenced today to a year and a day in federal prison for dispensing counterfeit erectile-dysfunction pills he had imported from China.
MICHAEL MARKIEWICZ sold approximately 1,600 counterfeit Viagra and Cialis tablets without a prescription to customers at his Northwest Side pharmacy. Markiewicz had ordered the phony pills from China via the Internet. Had the pills been genuine, their retail value would have been approximately $35,000.
Markiewicz, 39, of Norridge, pleaded guilty last year to one count of trafficking and attempting to traffic in a counterfeit drug, and one count of dispensing a counterfeit drug with the intent to defraud and mislead.
In addition to the prison term, U.S. District Judge John Z. Lee also fined Markiewicz $10,000 and ordered him to forfeit his pharmacy to the government.
“Defendant’s conduct risked the health of his customers, both by ordering a drug with mysterious origins and by giving it to patients without a doctor’s authorization,” Assistant U.S. Attorney Samuel B. Cole argued in the government’s sentencing memorandum. “It was a substantial breach of trust by a medical professional.”
According to Markiewicz’ plea agreement, the counterfeit tablets from China were shipped in boxes that purported to contain pens. The customs declaration described the packages as containing only the pens, without identifying the hidden tablets. Markiewicz sold the counterfeit tablets in his pharmacy for at least $20 per pill, according to the plea agreement.
The Illinois Department of Professional Regulation suspended Markiewicz’ pharmacist license in 2012, and it also revoked the pharmaceutical privileges of his business, Belmont Pharmacy. Markiewicz had most recently been operating the business as an herb and nutrient retailer in the same location, 6148 W. Belmont Ave. in Chicago.
The sentencing was announced today by Zachary T. Fardon, United States Attorney for the Northern District of Illinois; Mark S. McCormack, Acting Special Agent-in-Charge of the U.S. Food and Drug Administration’s Office in Chicago; and Antonio Gómez, Inspector-in-Charge of the U.S. Postal Inspection Service in Chicago.
The government is represented by Mr. Cole and Assistant U.S. Attorney Eric S. Pruitt.
North Pole Man Sentenced to Thirteen Years in Prison for Fairbanks Methamphetamine, Heroin, and Firearms OffensesRead the Press Release
Fairbanks, Alaska — U.S. Attorney Karen L. Loeffler announced today that a North Pole man was sentenced in federal court in Fairbanks for one count of trafficking methamphetamine and heroin, and one count of possessing a firearm in furtherance of a drug trafficking crime.
Ray Don Groskreutz, 39, of North Pole, Alaska, was sentenced today by U.S. District Judge Ralph R. Beistline, to thirteen years in prison, to be followed by four years of supervised release.
According to Assistant U.S. Attorney Andrea Hattan, who prosecuted the case, Groskreutz was apprehended on July 27, 2015, after the Alaska State Troopers (AST) conducted a welfare check at the Fairbanks hotel where Groskreutz was staying. AST confirmed Groskreutz was on court-ordered release in connection with three separate state criminal cases. When AST encountered him, Groskreutz admitted he had been “shooting up” earlier that day, and agreed to be searched: Groskreutz had a loaded .380 caliber handgun on his hip, along with nearly $6,000 in cash and a Taser in his front pants pocket. Further investigation revealed that Groskreutz’s backpack – which AST found in his room – contained over 200 grams of methamphetamine, 71.1 grams of heroin, $11,000 cash, a drug ledger, a digital scale, and numerous small unused plastic baggies, and drug paraphernalia. Groskreutz’s van, parked at the hotel, contained another 14 firearms and numerous rounds of ammunition, which he has agreed to forfeit and which he admitted were proceeds of and/or facilitated his drug trafficking crime.
As part of his plea deal with the United States, Groskreutz has agreed to resolve all of his numerous pending state criminal matters. For instance, as detailed in his plea agreement, Groskreutz has agreed to plead guilty to one count of misconduct involving weapons in the third degree as charged in State of Alaska v. Groskreutz, No. 4FA-12-01406CR (i.e., a crime that arose on June 9, 2011), and to one count of burglary in the second degree as charged in State of Alaska v. Groskreutz, No. 4FA-14-03341CR (i.e., a crime that arose in June 2014).
During the sentencing hearing, Judge Beistline noted that the defendant had been “on a crime spree for the last three years” related to guns and drugs.
“This prosecution represents our continuing efforts, working cooperatively with our State and local partners to focus on our mission to protect public safety by working to reduce the damaging effects of drug trafficking and weapons,” said U.S. Attorney Loeffler.
“This habitual offender no longer poses a threat to the residents of Fairbanks,” added DEA Special Agent in Charge Keith Weis, who commended the participating agencies’ efforts and the court’s sentencing.
U.S. Attorney Loeffler commended the U.S. Drug Enforcement Administration (DEA) and the Alaska State Troopers Fairbanks Statewide Drug Enforcement Unit for their investigation of this case, as well as the Fairbanks District Attorney’s Office and the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) for their assistance in this matter.
North Pole Man Sentenced to Eight Months in Prison for Passport Fraud Committed in FairbanksRead the Press Release
Fairbanks, Alaska — U.S. Attorney Karen L. Loeffler announced today that a North Pole man was sentenced in federal court in Fairbanks for one count of presenting a false application for a United States Passport.
Bryan Edward Tucker, 41, of North Pole, Alaska, was sentenced today by U.S. District Judge Ralph R. Beistline, to eight months in prison, to be followed by one years of supervised release.
According to Assistant U.S. Attorney Andrea W. Hattan, who prosecuted the case, Tucker presented a fraudulent application for a United States passport at the United States Post Office on Barnette Street in downtown Fairbanks. In doing so, Tucker used his brother’s name and identification information, and presented an Alaska driver’s license bearing his photograph but issued in his brother’s name, as well as a copy of his brother’s birth certificate. Tucker certified, under penalty of perjury, that his passport application was true and correct, and that the documents he had presented were not false.
Further investigation revealed that Tucker had been using his brother’s identity for nearly a year to obtain identification documents that were necessary to obtain an Alaska commercial driver’s license (CDL). Tucker admitted that he did so because he knew that Alaska law prohibited him from obtaining a CDL in his own name due to his prior Alaska convictions for driving under the influence of alcohol in 2012 and 2014, respectively. Before getting caught, Tucker obtained the following documents in his brother’s name: social security card, a medical examiner’s certificate from Alaska Occupational Health, and two standard Alaska driver’s licenses issued in his brother’s name.
During the sentencing hearing, Judge Beistline expressed the seriousness of the crime and the need to deter “at a time when the integrity of a passport is especially important.”
“Lying about your identify in order to obtain official documents has serious implications,” said Kevin Feldis, First Assistant U.S. Attorney. “Trying to obtain a passport with your photograph in someone else’s name, for whatever reason, is a serious crime. In this case, the defendant was trying to hide prior crimes that were directly relevant to whether or not he was qualified and had earned the right to obtain a commercial driver’s license. I commend the investigators who handled this case.”
U.S. Attorney Loeffler commended the U.S. Department of State Diplomatic Security Service and the Alaska State Troopers for their investigation of this case, as well as the United States Marshals Service for their assistance in this matter.
Nevada Man Sentenced in Marijuana ConspiracyRead the Press Release
United States Attorney Randolph J. Seiler announced that a Reno, Nevada, man convicted of Conspiracy to Distribute Marijuana was sentenced on January 25, 2016, by U.S. District Judge Karen E. Schreier.
Robert Lukasz Rydlewski, age 31, a citizen of Poland, was sentenced to 30 months in custody, to be followed by 4 years of supervised release. He was also ordered to pay $100 to the Federal Crime Victims Fund.
Rydlewski was indicted by a federal grand jury on February 4, 2015. He pled guilty on November 4, 2015.
Rydlewski was a member of a conspiracy formed in about January 2012, to distribute marijuana in South Dakota and elsewhere. While he was living in California, he used cash sent to him by a co-conspirator to purchase marijuana from individuals running a marijuana grow operation in California. He then mailed the marijuana to the co-conspirator at different locations, including South Dakota.
Later on, Rydlewski set up deals for the sale and purchase of marijuana with several co-conspirators who were living in South Dakota. The co‑conspirators traveled to California to meet with Rydlewski. He sold them marijuana which was put in triple vacuum-sealed packages inside suitcases. The co-conspirators would bring Rydlewski suitcases of money, and he would in turn give them the suitcases of marijuana.
This case was investigated by the Sioux Falls Police Department, the South Dakota Division of Criminal Investigation, Immigration and Customs Enforcement, the Drug Enforcement Administration, and the Internal Revenue Service – Criminal Investigation. Assistant U.S. Attorney John E. Haak prosecuted the case.
Rydlewski was immediately turned over to the custody of the U.S. Marshals Service.
Nashua Felon Arrested in New Fraud SchemeRead the Press Release
BOSTON – A Nashua man was arrested yesterday in connection with defrauding investors in a purported water resource company and laundering money obtained through various online fraud schemes.
Edmond P. LaFrance, 70, was charged in a complaint with wire fraud and money laundering. LaFrance was convicted in federal court in 1990 of structuring currency transactions, making false statements and conspiracy to defraud the United States and a second time in 2007 of wire fraud and making false statements.
The criminal complaint alleges that from 2012 to 2013, LaFrance solicited investments and loans for a shell company he created – Natural Waters – that fraudulently claimed to buy and sell mineral water in bulk. In fact, there were no mineral water sales and a large portion of the investor money LaFrance received for Natural Waters was directed to his own uses or transferred to co-conspirators. The complaint further alleges that around 2015, LaFrance laundered money for various online fraud schemes being perpetrated by individuals located primarily outside of the United States. LaFrance allegedly accepted hundreds of thousands of dollars from victims he did not know, and with whom he had no business relationship, and wired the money to third parties whose true identities were concealed from the victims.
The charge of wire fraud provides for a sentence of no greater than 20 years in prison, three years of supervised release, a fine of $250,000 and restitution. The charge of money laundering provides for a sentence of no greater than 20 years in prison, three years of supervised release, a fine of $500,000 and restitution. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Carmen M. Ortiz and Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division, made the announcement today. The case is being prosecuted by Assistant U.S. Attorney Stephen P. Heymann of Ortiz’s Economic Crimes Unit.
The details contained in the complaint are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Multiple Defendants in Synthetic Marijuana, Bath Salts Distribution Ring SentencedRead the Press Release
Jackson, TN – Fourteen members of a drug ring responsible for manufacturing and distributing hundreds of thousands of dollars’ worth of synthetic cannibinoids and synthetic cathinones have been collectively sentenced to more than 290 months in federal prison. Edward L. Stanton III, U.S. Attorney for the Western District of Tennessee, announced the sentencings today.
The defendants and their respective sentences include:
- Saed Abdeljawwad: 24 months, 2 years supervised release
- Mohammed Sadek: 12 months, 2 years supervised release
- Ali Safa: 6 months, 6 months home detention, 2 years supervised release
- Mohammed Khalil: 60 months, 3 years supervised release
- Ehab "Mark" Rezk: 30 months, 3 years supervised release
- Hussein Salloukh: 48 months, 3 years supervised release
- Nazem Salloukh: 36 months, 3 years supervised release
- Ahmed "Eddie" Elsebae: 48 months, 3 years supervised release
- Akram Nagi: 6 months, 2 years supervised release
- Paula Neil Kirk: 2 years probation, 6 months home detention
- Irene Rosas-Montalvo: Time served, 12 months supervised release
- Deok Hee "Simon" Han: 27 months, 3 years supervised release
- Hani Tarhini: 2 years probation, 6 months home detention
- See Wan "Steven" Kang: 2 years probation, 6 months home detention
- Hassan "Sam" Safa: Fugitive
- Mahmoud "Steve" Safa: Fugitive
According to information presented in court, between 2011 and 2013, all of the defendants conspired to distribute large quantities of Schedule I and Analogue synthetic cannibinoids (marijuana simulates, aka "spice" or "K2") and synthetic cathinones (cocaine/methamphetamine simulates, aka "bath salts") throughout West Tennessee and other areas of the country.
Synthetic marijuana is made by mixing a raw Schedule 1 drug and analogue powder chemicals with surfactants, acetone, and glue, and spraying damiana, a dried vegetable matter, for a product which can be smoked. To manufacture bath salts, Schedule 1 drugs and Analogues are mixed and cut with adulterants, and packaged for snorting or ingesting.
Defendants involved with the drug ring either manufactured, distributed, or obtained units of drugs and/or wired currency and deposited proceeds into bank accounts to further the conspiracy. Some of the defendants worked as owners, managers, and retail clerks at Jackson area gas stations and convenience stores.
In February 2011, multiple packages containing synthetic cannibinoids and cathinones were intercepted by officers with the Jackson Metro Narcotics Unit. Testing revealed the substances were both Schedule I and Analogues of Schedule I substances. Subsequently, law enforcement discovered the same types of drugs were being sold at area gas stations and convenience stores. In November 2011, officers served a series of search warrants on local gas stations and convenience stores, many of which were owned by the defendants. Synthetic cannibinoids and cathinones were seized, as well as tens of thousands of dollars in currency. Amongst the substances being sold at the establishments were AM2201; JWH-018; JWH-081; Methylone; MDPV; UR-144; XLR11; 5-MeO-DALT; and 5-Fluoro-PB22.
In February 2012, law enforcement seized more synthetic cannibinoids and synthetic cathinones at gas stations and convenience stores in another round of search warrants. Law enforcement’s investigation discovered hundreds of thousands of these drugs were being ordered and sold by Hassan Safa and Ahmad Elsebae. The synthetic drugs were being shipped throughout the Western District of Tennessee and other states.
In summer 2012, packages were intercepted from the United States Postal Service and FedEx, all containing Schedule I drugs and Analogues. It was determined that Hassan Safa obtained the raw chemicals from China. The chemicals were reportedly being cooked or manufactured at office buildings Hassan Safa owned in Jackson. He supplied various stores with the drugs to sell.
The investigation revealed that each defendant was involved in the conspiracy with Safa. In 2013 and 2014, all of the above defendants were indicted for their roles in the conspiracy to distribute synthetic cannabinoids and synthetic cathinones, among other charges.
Over $1.4 million in assets have been forfeited as a result of the investigation, including residences, local convenience stores, a grocery store, and more than $150,000 in bank deposits. The forfeitures come from both Operation Desert Spice and a separate civil forfeiture case against assets owned by fugitive defendants Hassan Safa and Mahmoud Safa.
The investigation was conducted by the Tennessee Bureau of Investigation; Drug Enforcement Administration; Internal Revenue Service; Jackson-Metro Narcotics Unit; Jackson Police Department; Madison County Sheriff’s Office; and the Tennessee Highway Patrol.
Assistant U.S. Attorneys Matt Wilson and Chris Cotten prosecuted these cases on the government’s behalf.
Morrisville Man Arrested for Receipt and Possession of Child PornographyRead the Press Release
SYRACUSE, NEW YORK – Michael Caraher, 26, of Morrisville, New York, was arrested yesterday on charges of receipt and possession of child pornography following the execution of a search warrant at his residence by Special Agents of the Federal Bureau of Investigation ("FBI"), announced United States Attorney Richard S. Hartunian.
The defendant appeared yesterday in federal court in Syracuse, New York, before United States Magistrate Judge Andrew T. Baxter. He is being held in custody pending a detention hearing set for Tuesday, February 2, 2016.
If convicted of receiving and possessing child pornography, Michael Caraher faces a mandatory minimum sentence of five (5) years imprisonment and a maximum term of 20 years imprisonment, a fine of up to $250,000, a term of supervised release of at least 5 years and up to life, and mandatory registration as a sex offender. Actual sentences are typically less than the maximum penalties and are imposed by a judge based on U.S. Sentencing Guidelines and other statutory factors.
The charges in the complaint are merely accusations. The defendant is presumed innocent until proven guilty.
This case was investigated by The FBI, and is being prosecuted by Assistant U.S. Attorney Emmet O’Hanlon.