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27 January 2016
ISIL-Linked Hacker Arrives in U.S. to Face Terrorism ChargesRead the Press Release
ALEXANDRIA, Va. – Ardit Ferizi, 20, a citizen of Kosovo, made his initial appearance here this afternoon on charges alleging that he provided material support to the Islamic State of Iraq and the Levant (ISIL), a designated foreign terrorist organization, and committed computer hacking and identity theft violations in conjunction with the theft and release of personally identifiable information (PII) of U.S. service members and federal employees.
Ferizi, who was detained by Malaysian authorities on a U.S. provisional arrest warrant, was charged by criminal complaint on Oct. 6, 2015. The criminal complaint was unsealed on Oct. 15, 2015.
Ferizi’s next court appearance will be on Friday at 2 p.m. at the federal courthouse in Alexandria.
Ferizi faces a maximum penalty of 35 years in prison, if convicted. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; John Carlin, Assistant Attorney General for National Security; Paul M. Abbate, Assistant Director in Charge of the FBI’s Washington Field Office; and Special Agent in Charge Michelle S. Klimt of the FBI’s Jacksonville, Florida, Division, made the announcement after Ferizi’s initial appearance in front of U.S. Magistrate Judge Ivan D. Davis. Special Assistant U.S. Attorney Brandon L. Van Grack and Trial Attorney Gregory R. Gonzalez of the National Security Division’s Counterterrorism Section are prosecuting the case. The investigation is being conducted by the FBI’s Washington Field Office and FBI’s Jacksonville Division.
The U.S. Attorney, Assistant Attorney General, and FBI Assistant Director thanked the Malaysian authorities for their assistance in this matter.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:15-MJ-515.
A criminal complaint contains allegations that a defendant has committed a crime. Every defendant is presumed to be innocent until and unless proven guilty in court.
Huntsville Man Charged with Sexual Abuse of MinorRead the Press Release
BIRMINGHAM – A federal grand today indicted a 45-year-old Huntsville man on charges he sexually abused a minor, announced U.S. Attorney Joyce White Vance and FBI Special Agent in Charge Roger C. Stanton.
An indictment filed in U.S. District Court charges WILLIAM MAURICE PATTERSON with four counts of engaging in a sexual act with a girl who was between 12 and 16 years old. The indictment charges the abusive conduct occurred between July 1, 2015, and Jan. 4, 2016, within the jurisdiction of Redstone Arsenal.
Each count of sexual abuse of a minor carries a maximum penalty of 15 years in prison and a $250,000 fine.
The FBI and U.S. Army Criminal Investigation Command investigated the case, which Assistant U.S. Attorney Mary Stuart Burrell is prosecuting.
An indictment contains only charges. A defendant is presumed guilty unless and until proven guilty.
Head of Mental Health Clinic Charged in Fraud Scheme Involving Federal FundsRead the Press Release
PHILADELPHIA – An indictment was unsealed today charging Renee Tartaglione, 60, of Philadelphia, PA, with conspiracy, fraud, and theft involving a nonprofit clinic which provides mental health services to persons eligible under Medicaid. According to the indictment, Tartaglione defrauded the Juniata Community Mental Health Clinic (JCMHC) by misappropriating funds of the clinic. The charges were announced by United States Attorney Zane David Memeger, FBI Special Agent-in-Charge William F. Sweeney, Jr., IRS Criminal Investigations Special Agent-in-Charge Akeia Conner, and Philadelphia Inspector General Amy Kurland.
Specifically, it is alleged that between 2007 and 2015, Tartaglione, as President of JCMHC’s Board of Directors, defrauded and stole money from JCMHC through a series of actions designed to benefit Tartaglione at the expense of the clinic. It is alleged that Tartaglione purchased the building on 3rd Street in Philadelphia which housed the clinic and then raised the rent, repeatedly, causing the clinic’s rent for the 3rd Street building to increase from $4,500 per month to $25,000 per month.
It is further alleged that in July of 2010, a co-conspirator, known to the Grand Jury, made a deposit on the purchase of a building located on 5th Street in Philadelphia using a check signed by defendant Tartaglione. In December 2011, the conspirators, through Tartaglione’s company, Norris Hancock LLC, purchased the building on 5th Street, and, in December 2012, leased it to JCMHC under a lease that called for rent of $35,000 per month for the first two years, and $75,000 per month for the next three years. The indictment alleges that the rent Tartaglione charged the nonprofit clinic was substantially in excess of the market rent.
The indictment alleges that neither the rent increases nor the lease agreements were approved by JCMHC’s Board of Directors and that Tartaglione and her co-conspirators created false and fictitious documents in an attempt to make the transactions appear legitimate.
The indictment also charges that Tartaglione defrauded and took money from JCMHC through kickbacks from persons who were issued checks drawn on JCMHC’s accounts, and by causing JCMHC to pay Norris Hancock more than 12 months of rent in some years.
The indictment further alleges that Tartaglione falsified Federal income tax returns by underreporting her income for tax years 2008, 2009, 2010, and 2012.
“Non-profit organizations, including those that deliver health care, hold a special place in our society, and the people who manage them are required to act in the best interests of the nonprofit,” said Memeger. “When instead, those trusted leaders decide to commit fraud, and line their pockets with the funds of the nonprofit, they appropriately face the severe consequences of a federal prosecution.”
“The IRS enforces the nation's tax laws, but also takes particular interest in cases where someone, for their own personal benefit, has taken what belonged to others,” said Conner. “With both law enforcement and financial investigation expertise, our agents are uniquely qualified to assist federal law enforcement agencies with these types of cases by following the money.”
“We’re committed to holding nonprofits accountable because of what’s at stake: the well-being of some of our most vulnerable friends and neighbors,” said Kurland. “For those who depend on our nonprofits, the impact of fraud is real and direct. It’s the bed that’s no longer available at a local shelter. It’s the shuttered soup kitchen in a neighborhood that desperately needs one.”
If convicted of all charges, the defendant faces a substantial prison term, restitution, possible fines, supervised release, and special assessments.
This case was investigated by the FBI, IRS Criminal Investigation, and the Philadelphia Office of the Inspector General. It is being prosecuted by Assistant United States Attorney Bea Witzleben.
An Indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Grand Forks Resident Sentenced in Fentanyl Conspiracy Operation DenialRead the Press Release
FARGO - U S. Attorney Christopher C. Myers announced that on Jan. 26, 2016, Joshua Tyler Fulp, 20, Grand Forks, N.D., was sentenced before U. S. District Judge to serve 12 years in prison for Conspiracy to Distribute Controlled Substances Resulting in Serious Bodily Injury and Death. Judge Erickson also sentenced Fulp to 36 months supervised release and to pay $17,264 restitution jointly and severally with other co-defendants, as well as pay a $100 special assessment to the Crime Victims Fund.
Beginning in January 2014, Fulp and a co-defendant’s began receiving shipments of fentanyl from Oregon. The investigation started in North Dakota on Jan. 3, 2015, with the overdose death of 18-year-old Bailey Henke of Grand Forks. The Organized Crime and Drug Enforcement Task Force began investigating what would become known as "Operation Denial," which alleges that the drugs and substances were obtained from Canada and China.
On Jan. 25, 2016, Judge Erickson also sentenced co-defendants David Todd Noye Jr., 19, Grand Forks, ND, to 39 months in prison followed by 36 months of supervised release, and also Kain Daniel Schwandt, 20, Grand Forks, ND, to 42 months in prison followed by 36 months of supervised release.
This case is being investigated by the Department of Homeland Security - Homeland Security Investigations, Drug Enforcement Administration, United States Postal Inspection Service, Grand Forks Narcotics Task Force, Royal Canadian Mounted Police, Portland Oregon Police Bureau – Drugs and Vice Division, Portland HIDTA Interdiction Task Force, Oregon State Police, and the Grand Forks Police Department.
U. S. Attorney Christopher C. Myers and AUSA Scott Schneider are prosecuted the case.
Former Talladega Correctional Officer Indicted for Accepting Bribe to Smuggle Phone to InmateRead the Press Release
BIRMINGHAM – A federal grand jury today indicted a former corrections officer at the Federal Correctional Institution in Talladega on charges she accepted a bribe in exchange for providing a cell phone to an inmate, announced U.S. Attorney Joyce White Vance and U.S. Department of Justice Office of the Inspector General Special Agent in Charge Robert A. Bourbon.
A two-count indictment filed in U.S. District Court charges correctional officer STACIE MARIE GARDNER, 31, of Weaver, with accepting $1,474, sent via Western Union in January 2015, in exchange for smuggling contraband into the prison. The indictment also charges that Gardner smuggled a cell phone into the prison and provided it to an inmate in exchange for the payment.
The maximum penalty for receipt of a bribe by a public official is 15 years in prison and a $250,000 fine. The maximum penalty for providing contraband to a federal prisoner is one year in prison and a $100,000 fine.
DOJ OIG investigated the case, which Assistant U.S. Attorney Davis A. Barlow is prosecuting.
An indictment contains only charges. A defendant is presumed innocent unless and until proven guilty.
Former Postal Inspector Sentenced to 3 Years in Prison for Possession of Stolen Mail and Marijuana TraffickingRead the Press Release
SAN JOSE, Calif. — Quan Pham Howard, 53, of Saratoga, California, a former supervisory postal inspector who worked at the San Jose Processing and Distribution Center was sentenced today by U.S. District Judge Lucy H. Koh to three years in prison for possession of stolen U.S. mail and possession with intent to distribute marijuana, United States Attorney Benjamin B. Wagner announced.
At sentencing, Judge Koh noted that as a sworn federal officer, Howard abused his position of trust, and that he obstructed justice when he interfered with the investigation into his criminal activity by attempting to influence or tamper with witnesses. Judge Koh set a hearing to decide restitution and any fine for March 16, 2016. She ordered Howard to begin serving his sentence on March 17, 2016.
According to court documents, on June 26, 2014, following an investigation and the execution of a search warrant at his house and office, Howard was arrested and charged with theft of mail. He pleaded guilty to the charges on July 22, 2015.
According to the plea agreement, between late 2010 and June 25, 2014, Howard unlawfully opened and stole United States mail that contained quantities of prescription drugs. He also possessed a variety of items that had been stolen from the mail distribution center including: a gun scope, a silver bar, jewelry, coins, gift cards, a gun silencer, a Rolex watch and other items. Howard also possessed over eight kilograms of marijuana with the intent to distribute. During this period, to conceal his theft and trafficking, Howard falsified postal records and disabled a surveillance camera at the distribution center.
After Howard was arrested and released on bond, he attempted to obstruct justice. On July 2, 2014, Howard contacted a former USPS employee whom he had supervised and attempted to influence the employee’s testimony with instructions regarding what to remember about Howard's prior supervision. In addition, Howard repeatedly contacted one of his former supervisors in an attempt to obtain her support for his false explanation of his possession of stolen property.
U.S. Attorney Wagner stated: “We are grateful for the assistance of the U.S. Postal Inspection Service in securing justice in this case. Mr. Howard violated the law, victimized postal customers, and endangered the critical trust between law enforcement and the community. We will continue our efforts to nurture that trust by working with our law enforcement partners to vigorously investigate and prosecute such cases.”
“When the USPS OIG receives these types of complaints, we take them very seriously and investigate them to their fullest. This sentencing serves as a deterrent to employees who think this type of behavior is acceptable and may be willing to compromise the integrity of the mail or their responsibility as a Postal Service employee,” says Special Agent in Charge Curtis Lembke.
U.S. Postal Inspection Service Special Agent in Charge Rafael E. Nunez stated: “It is disheartening to see a Postal Inspector accused and convicted of violating laws they were sworn to uphold, but it is reassuring that justice has been done today. Howard's actions should not diminish the fine work the men and women of the U.S. Postal Inspection Service do every day. We will continue to work with honor and integrity in a steadfast effort to maintain the safety and security of the U.S. Mail.”
This case was the product of an investigation by the United States Postal Service Office of Inspector General. Assistant United States Attorney Michelle Rodriguez, of the Eastern District of California, is prosecuting the case. Because Howard was a postal inspector who investigated cases in the Northern District of California, the U.S. Attorney’s Office for the Northern District was recused from this case. The case was heard in the U.S. District Court in San Jose.
Former Marion County, Florida, Deputy Sheriff Charged with Excessive Use of ForceRead the Press Release
Former Marion County, Florida, Deputy Sheriff Jesse Alan Terrell, 33, was indicted late yesterday on charges of violating the civil rights of “D.P.”, an unnamed victim, by using excessive force during an arrest. The indictment was returned by a federal grand jury in the Middle District of Florida, and was announced by Principal Deputy Assistant Attorney General Vanita Gupta, head of the Civil Rights Division, and U.S. Attorney A. Lee Bentley III of the Middle District of Florida.
The indictment alleges that on Aug. 7, 2014, Terrell, while working as a deputy sheriff with the Marion County Sheriff’s Office, assaulted “D.P.,” resulting in bodily injury. The indictment alleges that Terrell repeatedly struck, kneed and kicked the victim in the head, neck and shoulder area.
If convicted, the defendant faces a maximum sentence of 10 years in prison and a fine of up to $250,000.
An indictment is merely an accusation, and the defendant is presumed innocent unless and until proven guilty.
This case is being investigated by the FBI’s Jacksonville Division, and is being prosecuted by U.S. Attorney A. Lee Bentley III of the Middle District of Florida and Mark Blumberg and Maura White of the Civil Rights Division’s Criminal Section.
Terrell Indictment
Former Marion County Deputy Charged with Excessive Use of ForceRead the Press Release
Tampa, FL – United States Attorney A. Lee Bentley, III announces the return of an indictment charging former Marion County Deputy Sheriff Jesse Alan Terrell, 33, with violating the civil rights of “D.P.”, an unnamed victim, by using excessive force during an arrest.
The indictment alleges that on Aug. 7, 2014, Terrell, while working as a deputy sheriff with the Marion County Sheriff’s Office, assaulted “D.P.,” resulting in bodily injury. The indictment alleges that Terrell repeatedly struck, kneed and kicked the victim in the head, neck and shoulder area.
If convicted, the defendant faces a maximum sentence of 10 years in prison and a fine of up to $250,000.
An indictment is merely an accusation, and the defendant is presumed innocent unless and until proven guilty.
Four other deputies from the Marion County Sheriff’s Office were previously charged for their roles in the August 2014 incident. Cody Hoppel, Adam Crawford, James Amidei, and Trevor Fitzgerald have each pleaded guilty to federal civil rights violations and are currently awaiting sentencing.
This case is being investigated by the FBI’s Jacksonville Division, and is being prosecuted by U.S. Attorney Bentley and Mark Blumberg and Maura White of the Civil Rights Division’s Criminal Section.
Former Manager at HBO Agrees to Plead Guilty to Federal Fraud and Tax Charges in Scheme that Stole about $1 Million from CompanyRead the Press Release
LOS ANGELES – A San Fernando Valley woman was charged today with three federal offenses in relation to a scheme in which she submitted fraudulent bills and illegally took approximately $1 million from HBO, where she worked as manager in the Talent Relations Department.
In court documents filed today, Jennifer Choi, 38, of Valley Village, agreed to plead guilty to two counts of wire fraud and one count of tax evasion.
Choi, who worked at HBO for nearly 10 years, where she was responsible for scheduling services – such as hairstyling, wardrobe and make-up – for actors associated with HBO. Choi set up a company called Shine Glossy, LLP, which she used to submit bogus invoices to HBO for style and make-up services supposedly provided to actors. But, according to court documents, the services were never actually provided, and HBO funds instead went directly into a bank account she had established. Through Shine Glossy, Choi submitted nearly 300 fraudulent invoices that led HBO to pay approximately $940,000.
“Ms. Choi has admitted to bilking her employer out of nearly a million dollars through a fraud scheme that used a fake company that provided no services,” said United States Attorney Eileen M. Decker. “This long-term scheme violated both her duty to her employer as well as federal law, and Ms. Choi now faces serious consequences beyond losing her job.”
Choi also admitted in a plea agreement filed today that she used a car service for herself, her family and her friends and provided HBO’s account information, which led the car service to bill HBO for the unauthorized rides. In this part of the scheme, Choi fraudulently obtained approximately $63,000 in car services that were paid for by HBO.
Choi was terminated by HBO in September 2014.
“The defendant stole $1 million from her employer by concocting a scheme to conceal her misdeeds – enriching herself by choosing greed over good judgment,” said David Bowdich, the Assistant Director in Charge of the FBI's Los Angeles Field Office. “The FBI will continue to work with our partners to ensure that those who engage in this kind of financial fraud are held accountable.”
In her plea agreement, Choi also admitted that she failed to file federal income tax returns for several years, even though she earned hundreds of thousands of dollars in the years 2011, 2013 and 2014. She also admitted significantly under-reported her income when she did file tax returns for the years 2010 and 2012.
“Spanning more than six years, Ms. Choi stole funds from her employer by creating phony invoices for services which were never provided,” stated Erick Martinez, Special Agent in Charge of IRS - Criminal Investigation. “Our office will vigorously investigate individuals who line their pockets with fraudulently obtained funds and then file fraudulent tax returns.”
Choi is expected to make her first court appearance in this case on February 19.
The three charges alleged in this case carry a statutory maximum penalty of 45 years, although the parties in this case believe that her actual sentence will be significantly less than that. The actual sentence to be imposed after she pleads guilty will be determined solely by the judge presiding over the case.
The investigation into Choi was conducted by the Federal Bureau of Investigation and IRS – Criminal Investigation.
Former Fair Bluff Police Officer Charged with the Manufacturing of Child Pornography Pleads GuiltyRead the Press Release
RALEIGH – The United States Attorney’s Office for the Eastern District of North Carolina announced that in federal court on January 25, 2016, DONALD BRIAN BEAUCHAINE, 40, of Lake Waccamaw, North Carolina, pled guilty before Chief United States District Judge James C. Dever, III, to one count of manufacturing child pornography, in violation of Title 18, United States Code, Section 2251(a)and (d).
According to the investigation, On June 4, 2014, BEAUCHAINE was previously employed as a police officer with the Fair Bluff Police Department. He was caught secretly videotaping his girlfriend’s minor daughter in the bathroom. He admitted to videotaping the girl beginning in April 2014 until he was caught. A forensics examination of BEAUCHAINE’S cellphone and laptop 12,000 images of child pornography.
At sentencing, not yet scheduled by the court, BEAUCHAINE faces up to 30 years imprisonment.
The criminal investigation of this case was conducted by the North Carolina State Bureau of Investigation and the Lake Waccamaw Police Department. Assistant United States Attorney Ethan A. Ontjes is handling the prosecution on behalf of the Eastern District of North Carolina.
This case was part of the Project Safe Childhood initiative, a national program aimed at ensuring that criminals exploiting children are effectively prosecuted by making full use of all available law enforcement resources at every level. For more information about this important national project, Project Safe Childhood, go to www.projectsafechildhood.gov.
Former D’hanis State Bank President Sentenced to Federal PrisonRead the Press Release
In San Antonio today, a former D’Hanis State Bank (DSB) president Laurie Mayfield (aka “Laurie H. Scott”) was sentenced to two years in federal prison after admitting that she filed fraudulent bank regulating reports which overestimated the bank’s assets announced United States Attorney Richard L. Durbin, Jr., Special Agent in Charge Christopher Combs of the FBI’s San Antonio Division and U.S. Secret Service Special Agent in Charge Lee Dotson.
In addition to the prison term, United States District Judge Xavier Rodriguez ordered that Mayfield pay $817,892.32 restitution and be placed on supervised release for a period of three years after completing her prison term. Judge Rodriguez also ordered Mayfield to surrender to federal authorities on or before April 1, 2016, to begin serving her prison term.
On June 9, 2015, the 55–year-old Fredericksburg, TX, resident pleaded guilty to one count of wire fraud. According to court records, from January 2012 until September 2014, Mayfield prepared and filed false Consolidated Reports of Condition and Income (aka “Call Reports) with federal and state bank regulators on behalf of DSB which overstated the assets of DSB by approximately $830,000. By pleading guilty, Mayfield admitted that on September 16, 2014, she emailed those false reports to a prospective buyer of DSB. The buyer relied on those false DSB Call Reports in their decision to purchase DSB.
The case resulted from a joint investigation by the Federal Bureau of Investigation, U.S. Secret Service, Federal Deposit Insurance Corporation (FDIC) and the Office of Inspector General for the Board of Governors of the Federal Reserve System – Consumer Financial Protection Bureau. This case is being prosecuted by Assistant United States Attorney Greg Surovic.
Former Credit Union Employee Pleads Guilty to $34,000 EmbezzlementRead the Press Release
KANSAS CITY, KAN. - A former credit union employee pleaded guilty Wednesday to embezzling more than $34,000, U.S. Attorney Barry Grissom said.
Susan Wooten-Robb, 25, pleaded guilty to one count of wire fraud. In her plea, she admitted the crime occurred while she worked for Community America Credit Union at 5601 W. 95th in Overland Park, Kan. In February 2014 two account holders complained about unauthorized debits from their accounts. Investigation revealed Wooten-Robb had made unauthorized debits totaling $34,035. In one instance, she attempted to cover up an unauthorized debit by filing a false currency transaction report claiming the account holders took out the money to assist a family member with paying tuition.
Sentencing will be set for a later date. She faces a maximum penalty of 30 years in federal prison and a fine up to $1 million.
Grissom commended the U.S. Secret Service and Assistant U.S. Attorney Jabari Wamble for their work on the case.
Former Buffalo Nurse Pleads Guilty to Stealing Pain Medications Intended for Patients from Local HospitalRead 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 Leyla Samadi, 54, formerly of Buffalo, NY, currently of St. Mary’s County, Maryland, pleaded guilty to illegally obtaining controlled substances by fraud. The charge carries a maximum penalty of four years in prison and a $250,000 fine.
“This nurse not only stole pain medicine intended for patients, she refilled the medicine bottles with useless saline to conceal her tracks,” said U. S. Attorney Hochul. “Because Samadi then returned the tampered bottles to the dispenser, it’s possible that deserving patients received nothing more potent than water.”
Assistant U.S. Attorney George C. Burgasser, who is handling the case, stated that between November 22, 2014 and January 7, 2015, the defendant tampered with pain medications Demerol and Hydromorphone while working as a registered nurse at Sisters of Charity Hospital in Buffalo.
Samadi, while working in her capacity as a nurse, would log into a Pyxis machine which is used to automatically dispense liquid pain medications using her username and fingerprint scan. The defendant would identify the narcotic and patient it would be administered to. But rather than administer the medication to the patient, Samadi would instead inject herself with the narcotic. The defendant then replaced the missing medication with saline solution and returned it to the Pyxis machine. Once she returned the vile to the Pyxis machine, Samadi would cancel the transaction claiming that she had selected the wrong medication or the wrong patient.
This is the second time in three days there has been a development involving a medical professional accused of inappropriately utilizing controlled substances. On Monday, Dr. Pravin Mehta was sentenced to 24 months in prison for illegally prescribing massive quantities of pain medications.
The plea is the culmination of an investigation by the Food and Drug Administration, Office of Criminal Investigations, under the direction of Acting Special Agent in Charge Spencer Morrison, the New York State Attorney General’s Office, under the direction of Eric T. Schneiderman, New York State Department of Health, Bureau of Narcotic Enforcement, under the direction of Joshua Vinciguerra, and the New York State Office of the Attorney General, Medicaid Fraud Control Unit, under the direction of Chief Upstate Investigator Upstate William Falk.
Former Bank Branch Manager Pleads Guilty to Embezzlement, False Tax ReturnRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that the former branch manager of a Mountain Grove, Mo., bank pleaded guilty in federal court today to embezzling approximately $140,000 from the bank and failing to pay taxes on that income.
Diana L. Emery, 47, of Mount Grove, pleaded guilty before U.S. District Judge M. Douglas Harpool to one count of making a false entry in banking documents and one count of filing a false federal income tax return.
Emery was employed by First Home Savings Bank (FHSB) for approximately 15 years, first as a bookkeeper and eventually as branch manager at FHSB in Mountain Grove.
By pleading guilty today, Emery admitted that she used her position to make unauthorized payments to herself from bank funds from 2008 to 2012. Emery secretly took money from the bank vault and concealed her theft by making false entries in FHSB’s books, reports and the electronic journal detail report. Emery embezzled at least $139,999 from FHSB, which she deposited into her personal checking accounts.
When Emery filed her federal income tax returns, she excluded her embezzlement income and thus underreported her income by $205,325 (of which at least $139,999 was embezzled from FHSB; the rest came from unidentified sources). This underreported income, along with additional unreported deposits, resulted in a total tax due and owing from 2008 through 2012 of $53,155.
Under the terms of today’s plea agreement, Emery will be held accountable for her entire tax loss – which consists of the $53,155 tax due and owed for the tax years 2008 through 2012, plus any fees, penalties and restitution owed to the Internal Revenue Service and/or FHSB. The total amount of restitution owed to FHSB is $148,851 (which includes the embezzled amount plus expenses incurred by the bank as a result of her theft).
Under federal statutes, Emery is subject to a sentence of up to 33 years in federal prison without parole, plus a fine up to $1,250,000 and an order of restitution. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Abram McGull II. It was investigated by IRS-Criminal Investigation and the FBI.
Former Army Employee at Redstone Indicted for Submitting False Tax ReturnRead the Press Release
BIRMINGHAM – A federal grand jury today indicted a former U.S. Army Contracting Command employee for submitting a false federal income tax return for 2013, announced U.S. Attorney Joyce White Vance and Internal Revenue Service Criminal Investigation Special Agent in Charge Veronica Hyman-Pillot.
A one-count indictment filed in U.S. District Court charges that WILLIS EPPS, 61, of Madison, knowingly omitted $56,250 of income on a tax return he signed and submitted in April 2014 for the 2013 tax year. Epps, now retired, worked as a contracting official for the ACC at Redstone Arsenal, assigned to the Non-Standard Rotary Wing Aircraft Project.
The maximum penalty for subscribing a false return is three years in prison and a $100,000 fine.
IRS-CI, in conjunction with the Special Inspector General for Afghanistan Reconstruction, Department of Defense Criminal Investigative Service, Army Criminal Investigation Command and FBI, investigated the case. Assistant U.S. Attorneys Ramona C. Albin and Henry Cornelius are prosecuting the case.
An indictment contains only charges. A defendant is presumed innocent unless and until proven guilty.
Florida Residents Sentenced to Prison for Involvement in Stolen Identity Tax Refund Fraud SchemeRead the Press Release
Two Miami, Florida residents were sentenced to prison for their role in a stolen identity tax refund fraud scheme, U.S. Attorney Wifredo A. Ferrer of the Southern District of Florida, Acting Assistant Attorney General Caroline D. Ciraolo of the Justice Department’s Tax Division and Special Agent in Charge Kelly R. Jackson of the Internal Revenue Service (IRS) Criminal Investigation announced yesterday.
Roland Alexis, 34, was sentenced yesterday to 42 months in prison followed by three years of supervised release. Alexis’s co-conspirator, Jim Joseph, 31, was previously sentenced to 42 months in prison followed by three years of supervised release on Jan. 20.
“Identity theft and filing false tax returns are serious crimes that inflict tremendous damage on innocent victims,” said Acting Assistant Attorney General Ciraolo. “We will continue to work with our federal and state law enforcement partners to aggressively investigate and prosecute these crimes and, where appropriate, seek the maximum sentence available to punish the perpetrators, deter others from engaging in such behavior, and seek justice for the victims.”
According to the indictment and information disclosed in court proceedings, Joseph and Alexis conspired to file more than 860 false income tax returns claiming more than $1 million in refunds from the IRS. Alexis’s conduct resulted in a tax loss of $1.8 million; Joseph’s conduct resulted in a tax loss of $1.2 million. Joseph and Alexis each pleaded guilty in November 2015 to one count of a multi-object conspiracy to defraud the IRS, commit wire fraud and commit aggravated identity theft, as well as one count of aggravated identity theft.
Between 2007 and July 2014, Joseph, Alexis and others filed false federal income tax returns using stolen identities. Joseph and Alexis obtained the personal identification information including names, social security numbers, addresses and dates of birth, without the individuals’ authorization. Much of the stolen personal identification information belonged to prisoners and deceased individuals. Joseph, Alexis and others recruited knowing co-conspirators and unknowing victims to obtain Electronic Filing Identification Numbers (EFINs) in their names through which fraudulent income tax returns would be filed. In late 2009, Alexis and Joseph, along with a co-conspirator, formed Worldwide Income Tax Multi-Services LLC and North Miami Income Tax Services. The companies were created with the intended purpose of filing fraudulent tax returns using stolen identities. Worldwide Income Tax Multi-Services was located in Miramar, Florida and listed Alexis as President and Joseph as Vice-President. North Miami Income Tax Services was set up in Miami and listed Alexis as Registered Agent. Joseph, Alexis and others then used the stolen identities and EFINs to electronically file fraudulent tax returns.
In addition to the prison term, U.S. District Judge William Zloch for the Southern District of Florida ordered Joseph to pay $1,225,686.12 in restitution to the IRS. Alexis was also ordered to pay $1,805,332.71 in restitution, forfeit two single family owned properties in Miami and $369,776.18 in proceeds held in a bank account.
U.S. Attorney Ferrer, Acting Assistant Attorney General Ciraolo and Special Agent in Charge Jackson commended special agents of IRS Criminal Investigation and Homeland Security Investigations, who investigated the case and Assistant U.S. Attorney Neil Karadbil of the Southern District of Florida and Assistant Chief Gregory E. Tortella of the Tax Division, who prosecuted the case.
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.
Florence Man Indicted on Federal Domestic Violence and Stalking ChargesRead the Press Release
BIRMINGHAM – A federal grand jury today indicted a Florence man on interstate domestic violence and stalking charges for assaulting and sending threatening phone messages to a former girlfriend living on Redstone Arsenal, announced U.S. Attorney Joyce White Vance.
An indictment filed in U.S. District Court charges RONNIE CHRISTOPHER RICKS, 46, with one count of interstate domestic violence for coming into the U.S. government’s special territorial jurisdiction of Redstone Arsenal and striking his former girlfriend with his fists on Aug. 5. The indictment also charges Ricks with interstate stalking for using an electronic communication system of interstate commerce, a cellular telephone, in order to harass or intimidate the woman and cause, or attempt to cause her substantial emotional distress.
The maximum penalty for each count is five years in prison and a $250,000 fine.
The Redstone Arsenal Police investigated the case, which Assistant U.S. Attorney David Estes is prosecuting.
An indictment contains only charges. A defendant is presumed innocent unless and until proven guilty.
Federal Drug Initiative Nets 19 Arrested on Federal and State Drug OffensesRead the Press Release
CHARLOTTE, N.C. – United States Attorney Jill Westmoreland Rose announced that during an early morning round-up FBI agents and Charlotte-Mecklenburg police officers arrested 19 individuals charged with federal and state drug offenses. A federal criminal indictment returned on January 20, 2016, and unsealed today, names 20 defendants charged with multiple federal drug related offenses. Eight others will be prosecuted in state court, bringing the total number of those charged in connection with the federal drug initiative to 28.
John A. Strong, Special Agent in Charge of the Federal Bureau of Investigation in North Carolina and Chief Kerr Putney, of the Charlotte-Mecklenburg Police Department (CMPD), join U.S. Attorney Rose in making today’s announcement.
The six-month joint federal and local investigation aimed at reducing drug distribution and drug related criminal activity and increasing community safety in Mecklenburg County was focused on the Belmont neighborhood in Charlotte.
“This morning’s arrests are the result of a joint law enforcement investigation targeting an area of Charlotte that has been plagued by drug trafficking and drug-related criminal activity. I want to thank our law enforcement partners for working together in this initiative to identify and remove the individuals who continue to pose a threat to our community,” said U.S. Attorney Rose in making today’s announcement. “Also, let this be a warning, that as we work with our law enforcement partners to combat drug activity and violent crime throughout Mecklenburg County, we are keenly focused on specific neighborhoods where crime statistics are significant. To the law abiding citizens who reside in these areas, we will continue to work hard to restore your neighborhoods as places where you can live and prosper. To those who engage in criminal activity, our message is clear: we will not sit on the sidelines while you continue to pollute our neighborhoods with drugs and crime,” Rose added.
“The danger and chaos that drugs create in our local communities eats away at the ability of our citizens to live their lives peacefully. These arrests are an outstanding example of what federal and local law enforcement can accomplish when we work together to target the individuals who threaten the safety and stability of our neighborhood streets,” said FBI’s SAC Strong.
“The Charlotte-Mecklenburg Police Department will continue our relentless pursuit of community safety. We remain focused in our efforts and continue to work with our partner agencies to ensure neighborhoods like Belmont remain safe,” said Chief Putney.
The 20 defendants named in the federal indictment are each charged with conspiracy to distribute crack cocaine and related drug offenses. They are:
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Emmanuel Gooding, 39, of Charlotte. (not arrested yet)
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Daniel Simpson, 32, of Charlotte. (arrested)
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James Dixon, 48, of Charlotte. (arrested)
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Vinton Teeter, 35, of Charlotte. (arrested)
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Ricki Foster, 35, of Charlotte. (arrested)
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Lamont Davis, 39, of Charlotte. (arrested)
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Johnny Byrd, 38 of Charlotte. (arrested)
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Jasper Toney, Jr. 24, of Charlotte. (arrested)
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Miguel Mantic Perry, 36, of Charlotte. (not arrested yet)
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Tony William Robinson, 36, of Charlotte. (arrested)
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Derek Murphy, 41, of Charlotte. (arrested)
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Donald Jenkins, 62, of Charlotte. (arrested)
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Shawnda Craig-Houston, 41, of Charlotte. (arrested)
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Rodney Scott Smith, 45, of Charlotte. (arrested)
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Thomas Pearce, 26, of Charlotte. (not arrested yet)
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Mckinza Feaster, 26, of Charlotte. (previously in federal custody)
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Andrea Hines, 45, of Charlotte. (arrested)
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Quanard Harrison, 38, of Charlotte. (arrested)
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Kenneth Wallace, 23, of Charlotte. (arrested)
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James Lamont Walker, 27 of Charlotte (arrested)
Sixteen of the 20 federal defendants were arrested this morning and one was already in federal custody. Federal arrest warrants have been issued against Gooding, Perry and Pearce.
Today’s initiative netted eight additional defendants facing state drug charges. The three arrested earlier today are Cleveland Little, Michael Young, Rochilla Harrell. Three more individuals, Dontaie Patton, Tanisha Harris, and Charles Vaughn, Jr. are still wanted by law enforcement. Brandon Monk and Rysuon Norris, were already in state custody on separate charges.
“My office is grateful for the strong working relationship we enjoy with the U.S. Attorney’s Office, the FBI and CMPD as we all work together to keep our communities safe from illegal drugs and criminal activity associated with those drugs,” said Andrew Murray, District Attorney for Mecklenburg County, whose office will be handling the prosecution of those charged with state offenses.
In making today’s announcement, U.S. Attorney Rose thanked District Attorney Murray, for his office’s continued collaboration and support.
The charges contained in the indictment are allegations. The defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
The investigation was conducted by the FBI and CMPD. U.S. Attorney Rose also thanked the U.S. Marshals Service, Gastonia Police Department and the Union County Sheriff’s Office for their assistance with this investigation.
Assistant U.S. Attorneys William Bozin and Lambert Guinn of the U.S. Attorney’s Office in Charlotte are leading the prosecution.
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Federal Court Permanently Enjoins California Business from Accruing Payroll Tax LiabilitiesRead the Press Release
A federal court has ordered a San Diego, California provider of collection services to pay its payroll taxes as they become due, the Justice Department announced today. Judge Larry Alan Burns of the U.S. District Court for the Southern District of California entered a permanent injunction requiring Prolien Services LLC and its owner, Albert F. Quintrall, to pay Prolien’s federal payroll tax liabilities as they become due and owing.
The defendants agreed to entry of the injunction and admitted the allegations in the government’s complaint. Prolien has repeatedly failed to make sufficient federal employment tax deposits since 2009 and has amassed substantial employment tax liabilities.
Under the terms of the injunction, the business must deposit its payroll taxes and file its employment tax returns on a timely basis. The defendants are also required to notify the Internal Revenue Service (IRS) that the required tax deposits have been made and tell the IRS if they begin operating any new business. The defendants are precluded from assigning property or making any payments to other creditors until the employment tax liabilities are paid. The injunction is effective immediately.
Acting Assistant Attorney General Caroline D. Ciraolo of the Tax Division thanked the revenue officer of IRS Field Collection for investigating and preparing the civil case and the attorneys who handled the litigation.
Additional information about the Tax Division and its enforcement efforts may be found on the Division’s website.
Fall River Man Sentenced to Prison for Marijuana ConspiracyRead the Press Release
BOSTON – A Fall River man was sentenced yesterday in U.S. District Court in Boston in connection with his role in a scheme to distribute over 1,000 kilograms of marijuana in the Fall River area.
Edward Boyer, 54, a former criminal defense attorney, was sentenced by U.S. District Court Judge Nathaniel M. Gorton to nine years in prison, four years of supervised release and ordered to forfeit $250,000. Boyer pleaded guilty in October 2015 to conspiring to distribute marijuana and money laundering.
Boyer, a former criminal defense lawyer, was disbarred after a state court conviction for interfering with a witness and bribery in 1997. In 2012, federal agents determined that Boyer was regularly shipping packages containing $20,000 to post office boxes in Mendocino, Calif. Surveillance and shipping records showed that Boyer was also regularly receiving large boxes from Mendocino. In June 2013 and May 2014, federal agents obtained search warrants and seized packages destined for Boyer which contained 6-7 kilograms of marijuana. Evidence from the investigation revealed that from 2012 to 2014, suppliers in California shipped over 1,500 kilograms of high-grade marijuana to Boyer who sold it in the Fall River area to a network of distributors. Boyer shipped the proceeds back to the suppliers in California, totaling over $8 million, and used bank accounts to transfer the funds.
At today’s sentencing hearing, the Court found that Boyer was the leader of the organization and was responsible for the distribution of over 1,000 kilograms of marijuana. Boyer’s seven co-defendants, including three individuals from California, have also been convicted and are awaiting sentencing.
United States Attorney Carmen M. Ortiz; Michael J. Ferguson, Special Agent in Charge of the Drug Enforcement Administration, New England Field Division; Shelly Binkowski, Inspector in Charge of the U.S. Postal Inspection Service; and Kristina O’Connell, Acting Special Agent in Charge of the Internal Revenu Service’s Criminal Investigation in Boston, made the announcement. The case was prosecuted by Assistant U.S. Attorney Ted Heinrich of Ortiz’s Narcotics and Money Laundering Unit.
Fairfax Man Sentenced for His Role in Amtrak Wreck Conspiracy and for Federal Firearm ChargeRead the Press Release
Contact Person: Stacey Haynes (803) 929-3000
Columbia, South Carolina ---- United States Attorney Bill Nettles stated today that James Duvall Love age 34, of Fairfax, South Carolina was sentenced to 46 months imprisonment today in federal court. On June 17, 2015, Love plead guilty to two separate charges: conspiracy to commit wire fraud/cause a train wreck/interfere with a train operator and to being a felon in possession of a firearm and ammunition, all in violation of Title 18, United States Code, Section 371 and Title 18, United States Code, Sections 922(g)(1) and 924(a)(2). United States District J. Michelle Childs sentenced Love to 46 months imprisonment to be followed by 3 years of federal supervised release on each charge, to run concurrently, and ordered Love to make restitution to Amtrak in the amount of $46,690.27. Judge Childs stated that a sentence at the top of the sentencing guidelines range was warranted due to the “very serious” nature of the case.
With regard to the firearm and ammunition charge, evidence presented at the earlier change of plea hearing established that on August 30, 2013, an officer with the Fairfax Police Department was on routine patrol when he noticed Love walking down the road with a shotgun in his hand. When the officer turned his car around, Love laid the firearm down and kept walking. The officer approached Love and asked why he was walking down the street with a shotgun, Love replied, that someone at the club had been talking negatively toward him. Love was detained on a state weapon charge and the loaded shotgun was seized. Love was thereafter released on state bond. Further investigation revealed that Love was prohibited from possessing firearms and ammunition based upon prior state convictions for distribution of cocaine, failure to stop for blue light, and possession of crack cocaine.
With regard to the conspiracy charge, the evidence presented showed that during the early morning hours of September 6, 2013, Love and Deon Dovell Roberts parked a car at Bakers Mill Crossing in Allendale, South Carolina, in the path of an oncoming Amtrak passenger train, got out of the car prior to the collision, and then returned to the car after the collision, feigning injury, all for the purpose of submitting bogus claims for personal injuries and other losses. Love’s co-defendant Roberts plead guilty in federal court on November 2, 2015, and is awaiting sentencing.
The case was investigated by the Federal Bureau of Investigation, Amtrak Office of Inspector General, Bureau of Alcohol, Tobacco and Firearms, the Fairfax Police Department, and the Allendale County Sheriff’s Department. Assistant United States Attorneys Eric Klumb and Stacey D. Haynes of the Columbia office handled the prosecution of the case.
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Extradited Chinese National Sentenced to Nine Years for Providing U.S. Goods to Iran to Support its Nuclear ProgramRead the Press Release
BOSTON – A Chinese national was sentenced today in U.S. District Court in Boston in connection with supplying a U.S. designated Iranian Weapons of Mass Destruction (WMD) Proliferator with 1,185 pressure transducers that could be used to make nuclear weapons-grade uranium.
Sihai Cheng, a/k/a Chun Hai Cheng, a/k/a Alex Cheng, 35, a citizen of the People’s Republic of China (PRC), was sentenced by U.S. District Court Chief Judge Patti B. Saris to nine years in prison. In December 2015, Cheng pleaded guilty to two counts of conspiring to commit export violations and smuggle goods from the United States to Iran and four counts of illegally exporting U.S. manufactured pressure transducers to Iran.
“Cheng knowingly provided more than 1,000 pressure transducers to Iran which advanced its nuclear weapons capabilities,” said United States Attorney Carmen M. Ortiz. “At this critical time, the prosecution of individuals who violate our export laws – wherever they are located – is just as important, if not more, than ever before.”
“Massachusetts is a worldwide leader of innovative technology and research,” said Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division. “Mr. Cheng smuggled some of that technology used to process weapons-grade uranium into Iran. As this case illustrates, the FBI will do everything it can to keep U.S. weapons technology and other restricted materials from falling into the wrong hands and hurting our nation’s security.”
“Today’s lengthy sentence serves as a warning to others that stiff penalties are waiting for anyone attempting to steal/sell American technologies or trade them to foreign powers,” said Matthew Etre, Special Agent in Charge of HSI Boston. “HSI and our law enforcement partners take the national security interests of this nation very seriously and will aggressively pursue any criminal or organization engaged in these activities.”
"Today's sentence reaffirms OEE's commitment to identifying, disrupting and enforcing illegal procurement networks and preventing sensitive WMD materials and technology from being exported contrary to U.S. export law,” said Michael S. Imbrogna Acting Special Agent in Charge of the Department of Commerce, Office of Export Enforcement, Boston Field Office. “Our special agents will continue to work hand in hand with our law enforcement partners and the U.S. Attorney's Office to protect Americans worldwide."
In 2013, Cheng was charged in an indictment with conspiring to export, and exporting, highly sensitive U.S. manufactured goods with nuclear applications to Iran from at least 2009 to 2012. Cheng pleaded guilty to conspiring with other individuals in China and Iran to illegally obtain hundreds of U.S. manufactured pressure transducers manufactured by MKS Instruments, Inc., a company headquartered in Massachusetts, and export them to Iran. As established at the sentencing hearing, Cheng knew that the parts were being supplied to Kalaye Electric Co., a U.S. designated Iranian WMD Proliferator responsible for the Government of Iran’s nuclear centrifuge program and the development of weapons-grade uranium. Pressure transducers can be used in gas centrifuges to enrich uranium and produce weapons-grade uranium and are therefore subject to strict export controls. They cannot be shipped from the United States to China without an export license or shipped from the United States to Iran at all.
At today’s sentencing, the government argued that Cheng’s conduct gravely harmed and jeopardized the national security of the United States as well as other countries throughout the world. Cheng even invoked the threat of war between Iran and the United States as a means of increasing his profits. Cheng’s procurement network was responsible for supplying Iran thousands of components for its nuclear proliferation activities and advancing Iran’s nuclear capabilities. Cheng knew he was providing Iran critical components for use in the development of weapons-grade uranium and that the parts he was supplying were going Iran’s nuclear program. Indeed, in 2009, according to evidence at the sentencing hearing, when Cheng supplied his first four shipments of pressure transducers, Iran was secretly constructing the Fordow Fuel Enrichment Plant for the purpose of developing nuclear weapons. Further, based upon expert testimony, from 2009 to 2011, when Cheng supplied Iran 1,185 MKS pressure transducers, Iran was engaged in nuclear proliferation activities.
In imposing the nine year sentence, Judge Saris found that Cheng “knowingly provided material support to develop a nuclear weapon.”
MKS Instruments, Inc., is not a target of this investigation and has been cooperating in this matter.
U.S. Attorney Ortiz, FBI SAC Shaw, HSI SAC Etre, and Commerce Acting SAC Imbrogna, made the announcement today. Assistance was also provided by the U.S. Department of Energy. The case is being prosecuted by Assistant U.S. Attorney B. Stephanie Siegmann of Ortiz’s National Security Unit.
Emporia Man Sentenced to 8 Years for Heroin and Gun CrimesRead the Press Release
NORFOLK, Va. – Collie Rashad Sanks, 37, of Emporia, was sentenced today to 96 months in prison for his role in a conspiracy to distribute heroin and his firearms trafficking activities.
Sanks pleaded guilty on Sept. 17, 2015. According to court documents, Sanks was the second highest ranking member of a Bloods street gang known as the Red Stone Rydahs, which operated in Emporia and Franklin. Along with his co-conspirator, Phillip Jerome Murphy, 41, of Franklin, Sanks began distributing significant quantities of heroin in Franklin, Smithfield, and Emporia in approximately 2012. As frequently as twice per month, Sanks and Murphy would travel to New York to purchase bulk quantities of heroin and then travel back to southeastern Virginia to distribute the drug. Both men sold heroin themselves, and also employed other individuals to assist them in their distribution activities. Additionally, court documents revealed that Sanks was heavily involved in firearms trafficking on behalf of the Red Stone Rydahs. On two occasions, he sold a total of eleven firearms – including high caliber rifles, assault rifles, and pump action shotguns – as well as a ballistic vest to an undercover law enforcement officer. During search warrants executed at residences associated with Sanks, law enforcement recovered four different types of ammunition, an AK-47 assault rifle, and three other firearms, in addition to heroin, marijuana, narcotics packaging materials, and gang paraphernalia.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; John S. Adam, Special Agent in Charge of the FBI’s Norfolk Field Office; Ricky Pinksaw, Chief of Emporia Police; and Phillip Hardison, Chief of Franklin Police, made the announcement after sentencing by Chief U.S. District Judge Rebecca Beach Smith. Assistant U.S. Attorneys William D. Muhr and V. Kathleen Dougherty prosecuted the case.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case . 2:15cr115 (Collie Sanks) and Case No. 2:15cr103 (Phillip Murphy).
Edwardsville Woman Pleads Guilty to Structuring ChargesRead the Press Release
James L. Porter, Acting United States Attorney for the Southern District of Illinois, announced today that Song Chong Fulton, 50, of Edwardsville, Illinois, pled guilty today in federal district court in East St. Louis to an Information charging her with the crime of Structuring Financial Transactions to Avoid a Currency Transaction Report.
The charges relate to sixty-four currency deposits that Fulton made into a bank account between January 22, 2014, and August 11, 2015. Under federal law, financial institutions are required to report to the IRS any currency transaction, such as deposits, exceeding $10,000. It is a federal crime to structure financial transactions in such a way as to avoid this reporting requirement. Documents filed with the court indicate that the total amount of deposits made by Fulton during the above period was over $190,000.
The maximum statutory penalties for this offense are 5 years’ imprisonment, a $250,000 fine, or both; 3 years’ supervised release; and a $100 special assessment.
Sentencing is set for May 17, 2016, at 10:30 A.M. before Judge Yandle in Benton, Illinois.
The case was investigated by members of IRS and HHS, and was prosecuted by Assistant United States Attorney Stephen Clark.
District Man Sentenced to Eight Years in Prison for Armed Robbery in Southeast WashingtonRead the Press Release
WASHINGTON – Isaac Williams, 63, of Washington, D.C., has been sentenced to an eight-year prison term for an armed robbery of two armored car guards at a store in Southeast Washington, U.S. Attorney Channing D. Phillips announced.
Williams pled guilty in October 2015, in the U.S. District Court for the District of Columbia, to one count of interference with interstate commerce by robbery. He was sentenced on Jan. 21, 2016, by the Honorable Randolph D. Moss. Following his prison term, Williams will be placed on three years of supervised release.
According to the government’s evidence, on the morning of July 21, 2010, Williams, while armed with a firearm and assisted by two accomplices, entered a CVS store in the 500 block of 12th Street SE. Once inside, Williams robbed two armored car security guards who were servicing a TD Bank ATM machine inside the store. Williams and his accomplices took $38,120 from the guards. The next day, Williams used a portion of the stolen money to purchase a 1998 Ford Expedition. Williams was indicted in April 2015 after having been released from prison for violating the terms of his supervised release for two prior convictions. As part of his sentence, Williams was ordered to pay restitution in the amount of $38,120 to TD Bank and to forfeit the vehicle he purchased with the proceeds of the robbery.
In announcing the sentence, U.S. Attorney Phillips commended the work of the FBI’s Washington Field Office and the Metropolitan Police Department (MPD). He also acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Paralegal Specialist Samantha Prinsen, former Assistant U.S. Attorney David Kent, who indicted the matter, and Assistant U.S. Attorneys Kenneth Whitted and Christopher Macchiaroli, of the Violent Crimes and Narcotics Trafficking Section, who prosecuted the case.
Developer Sentenced to 10 Years for Investment and Bankruptcy FraudRead the Press Release
PHOENIX – Yesterday, John Keith Hoover, age 64, of Mohave Valley, Ariz., was sentenced to 10 years in prison by U.S. District Judge Susan R. Bolton. His wife, Deborah B. Hoover, also 64, of Mohave Valley, Ariz, was convicted of conspiracy to commit bankruptcy fraud and was sentenced to one year of home confinement followed by five years of supervised release.
U.S. Attorney John Leonardo stated, “This investment fraud was particularly reprehensible because it targeted a number of widows and other friends of the defendants who trusted the defendant’s investment and legal advice. Defendants also violated the integrity of the U.S. Bankruptcy Court by shielding assets from victim creditors who were entitled to them by law. This prison sentence imposes accountability on the defendants for their crimes and sends a message to others who would engage in such fraudulent misconduct at the expense of others.”
"This investigation highlights the need for consumers and investors to do their homework before entering into business arrangements and not simply take the word of someone who may be out to steal their hard-earned money. If something seems too good to be true, it almost always is. I want to thank the IRS and the United States Attorney’s Office for their important role and partnership in this investigation. At its most basic level, this is a case about greed and the abuse of trust. The subjects took advantage of trusted relationships to persuade the victims to invest in staged real estate ventures which were supported by lies and false documents,” stated FBI Special Agent in Charge Douglas G. Price.
"Mr. Hoover financed his lavish lifestyle by swindling investors. IRS Special Agents will continue to investigate investment fraud schemes in order to deliver justice to victims and protect the integrity of the U.S. financial system,” stated IRS-CI Special Agent in Charge Ismael Nevarez Jr.
According to the Superseding Indictment, Defendant’s plea, and other filings, John Hoover was a homebuilder in Fort Mohave and surrounding areas. Hoover created nearly two dozen companies that he used to solicit money from Arizona and California investors for bogus real-estate developments beginning in 1997. Several investors were widows who gave Hoover control of the bulk of their estates based on his friendship with their families and because of the trust he developed as an attorney. Hoover told investors their money would go to specific real-estate developments and then diverted the money for his own personal use. In some cases, Hoover told investors that their money had been placed in secure loans while he actually used it to invest in his own high-risk, speculative real-estate ventures in Arizona.
Hoover encouraged investors to liquidate retirement accounts, life-insurance policies, mutual funds and securities, and Social Security death benefits to fund their investments with him. Hoover then used investor money to pay his living expenses. Among those expenses were a multimillion-dollar Newport Beach, Calif. home and a condominium; an apartment in Paris; a $200,000 Bentley Flying Spur and other high-end automobiles; jewelry; artwork; furnishings; high end hotels and restaurants; and lavish expenditures for family members living in Paris, France. Hoover also took vacations disguised as business trips to Hawaii, China, South America, and Europe.
When Hoover ran out of money, he refinanced properties with false representations about salary, assets, liabilities, employment, and sources of down payments. Then, he and his wife filed bankruptcy while hiding assets. When the Hoovers were arrested, agents located numerous assets that had been concealed from the Bankruptcy Court.
The investigation in this case was conducted by the Internal Revenue Service-Criminal Investigation and the Federal Bureau of Investigation. The prosecution was handled by Assistant U.S. Attorney Kevin M. Rapp and Special Assistant U.S. Attorney Jennifer A. Giaimo.
CASE NUMBER: CR-14-CR-00554-SRB
RELEASE NUMBER: 2015-005_Hoovers
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For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.
Dallas Man Sentenced to 216 Months in Federal Prison on Firearms and Drug Distribution ConvictionsRead the Press Release
DALLAS — Kerry Lynn Lewis, Jr., 26, of Dallas, who pleaded guilty last year to firearm and drug offenses, was sentenced today by Chief U.S. District Judge Jorge A. Solis to 216 in federal prison, announced U.S. Attorney John Parker of the Northern District of Texas.
Specifically, Lewis pleaded guilty in September 2015 to one count of being a felon in possession of a firearm, one count of possession with intent to distribute a controlled substance and one count of possession of a firearm in furtherance of a drug trafficking crime.
According to plea documents filed in the case, in February 2014, officers with the Dallas Police Department executed a search warrant at a residence on McBroom Street in Dallas, where Lewis was exiting the residence’s side door as the officers arrived. During the search, officers found three firearms, one of which, a Ruger 9 millimeter pistol, was recovered from inside a wall in the guesthouse. Officers also recovered marijuana from the kitchen and Lewis’s bedroom in the main house and two bags of cocaine from the guesthouse. One of the firearms was reported stolen out of Dallas and one was reported stolen out of Mesquite, Texas. A forensic analysis of the drugs concluded it was a mixture or substance containing cocaine, with a net weight of 5.9 grams.
Prior to the date of the execution of that search warrant, Lewis had several felony convictions in Dallas County: 1) On March 10, 1998, Lewis was convicted and sentenced to two-years confinement for Unlawful Possession of a Cocaine; 2) On January 18, 2007, Lewis was convicted and sentenced to seven-months confinement for Unlawful Delivery of Cocaine; 3) On July 14, 2011, Lewis was convicted and sentenced to three-years confinement for Delivery of a Controlled Substance; 4) On August 17, 2012, Lewis was convicted and sentenced to 30 days confinement for Unlawful Possession of Marijuana; 5) On July 14, 2011, Lewis was convicted and sentenced to three-years confinement for Unlawful Possession of a Firearm by a Felon; and 6) On July 14, 2011, Lewis was convicted and sentenced to three-years confinement for Retaliation.
Lewis also admitted that he possessed a Sig Sauer, Model P226, 9-millimeter pistol, a Keltec, Model P11, 9-millimeter pistol, and a Ruger, Model SR9c, 9-millimeter pistol in furtherance of a drug trafficking crime.
The Bureau of Alcohol, Tobacco, Firearms and Explosives and the Dallas Police Department investigated.
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Cullman County Man and Dekalb County Man Indicted Separately for Child PornographyRead the Press Release
BIRMINGHAM – A federal grand jury today returned separate child pornography indictments against a Dekalb County man and a Cullman County man, announced U.S. Attorney Joyce White Vance and Homeland Security Investigations, New Orleans Field Office, Special Agent in Charge Raymond R. Parmer Jr.
Unrelated indictments filed in U.S. District Court charge both FRANK DEWAYNE KELLEY, 46, of Dekalb County, and JAMES KEITH STEWART, 36, of Cullman County, with receiving, distributing and possessing child pornography.
Stewart currently is serving time for a 2013 conviction on state charges in Chilton County for sexual abuse of a child younger than 12. He also was convicted by court martial in 2003 for indecent acts upon a child. Today’s indictment charges Stewart with two counts of distributing child pornography and one count each of receiving and possessing child pornography, all between 2010 and 2012.
Kelley faces one count each of receiving, distributing and possessing child pornography between 2014 and 2015.
The maximum penalty for each count of receiving, distributing, and possessing child pornography is 20 years in prison and a $250,000 fine. The maximum penalty for distribution and receipt of child pornography increases to 40 years and a mandatory minimum of 15 years is imposed for individuals with prior sex offenses. A mandatory minimum of 10 years for possession of child pornography applies to individuals with prior sex offenses.
HSI investigated the cases. Assistant U.S. Attorney Jacquelyn Hutzell is prosecuting Kelley’s case and Assistant U.S. Attorney Erica Barnes is prosecuting Stewart’s case.
An indictment contains only charges. A defendant is presumed innocent unless and until proven guilty.
Columbus County Man Receives 11 Years in Prison for Crop Fraud Conspiracy, Money Laundering, and Bank FraudRead the Press Release
RALEIGH – The United States Attorney’s Office for the Eastern District of North Carolina announced that today in federal court, MILTON RUSS BARNHILL, 48, of Tabor City, North Carolina, was sentenced to a total of 11 years in federal prison on charges of Conspiracy to Make False Statements in Connection with Federal Crop Insurance; Making False Statements in Connection with Federal Crop Insurance; Mail Fraud, and Money Laundering. BARNHILL was also sentenced to 3 years of supervised release and ordered to make restitution of $2,512,097 to various federal programs and to the Horry County State Bank. The Court also ordered BARHNILL to forfeit the proceeds of his crimes.
BARNHILL previously went to trial on these charges on August 4, 2015, but pled guilty following jury selection.
Count one of the Indictment charged the defendant with conspiring with others to defraud the Federal Crop Insurance Corporation (FCIC) and the Farm Service Agency (FSA), both agencies of the United States, in connection with federal crop insurance claims and other federal taxpayer subsidies. As charged, the defendant produced crops which he sold in the names of others. The Defendant and others then reported on insurance claims that the crops were lost due to natural disasters. The defendant also placed crops and insurance policies into the names of conspirators to boost the amount of money he could collect on the insurance claims.
Counts two through eight, ten, and eleven of the Indictment each charged the defendant with falsifying and aiding and abetting others to falsify federal crop insurance claims. The defendant received more than $1 Million into his bank account that was derived from hidden crop production, underreported crop production, and overstated crop acreages, all on federal crop insurance documents.
Count twelve of the Indictment charged the defendant with committing mail fraud that resulted in Horry County State Bank paying out approximately $450,000 in fraudulent loan proceeds. On this count, the defendant supplied a fictitious tobacco sales contract to Horry County State Bank as collateral for a farm operating loan. In fact, the contract was fictitious, included references to a bogus tobacco receiving station, and was signed using the name of a fictitious person. The phone number the defendant provided to the bank as the number for the tobacco receiving station was, in fact, a prepaid cell phone that the defendant purchased in Clinton, North Carolina. The P.O. Box for the tobacco receiving station was, in fact, a mailing address applied for by the defendant.
Counts fifteen through nineteen charged the defendant with using the proceeds from the foregoing frauds to fund other transactions in excess of $10,000 in value. The evidence showed that the defendant received fraudulent bank monies into his account. The defendant then used those funds to promote the ongoing production of crops in the names of conspirators, who he also caused to file false crop insurance claims.
The criminal investigation of this case was conducted by United States Department of Agriculture–Office of the Inspector General-Investigations; United States Department of Agriculture-Risk Management Agency–Special Investigations Branch; the United States Internal Revenue Service–Criminal Investigations; and the United States Postal Inspection Service, with the assistance of the Columbus County Sheriff’s Office and the Whiteville Police Department. Assistant United States Attorneys Banumathi Rangarajan and William M. Gilmore handled the prosecution on behalf of the Eastern District of North Carolina.
Cleveland woman charged with stealing firearms from Broadview Heights storeRead the Press Release
Michaele N. Lenzy, 28, of Cleveland, was charged with stealing firearms from a federal firearms licensee, said Steven M. Dettelbach, U.S. Attorney for the Northern District of Ohio.
The Indictment charges that on or about December 13, 2015, Lenzy knowingly stole and unlawfully took away two semi-automatic firearms from LTD Gun Shop and Pistol Range, which is engaged in the business of dealing in firearms.
If convicted, the defendant’s sentence will be determined by the court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense, and the characteristics of the violation. In all cases, the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
This case is being prosecuted by Assistant United States Attorney Benedict S. Gullo. The case was investigated by the Broadview Heights Police Department and the Bureau of Alcohol, Tobacco, Firearms, and Explosives.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Cleveland man faces drug and firearms chargesRead the Press Release
A federal grand jury returned a two-count indictment charging Paul E. Loines, 53, of Cleveland, with being a felon in possession of a firearm and possession of crack cocaine with the intent to distribute, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
The indictment alleges that Loines was found to be in possession of a .22 caliber handgun and 4.94 grams of crack cocaine with intent to distribute.
Assistant United States Attorney Karrie D. Howard is prosecuting the case, following an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives.
If convicted, the court will determine the defendant’s sentence after a review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense, and the characteristics of the violation. In all cases, the sentence will not exceed the statutory maximum. In most cases, it will be less than the maximum.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government's burden to prove guilt beyond a reasonable doubt.
Cleveland man faces drug and firearm chargesRead the Press Release
A Cleveland man faces drug and firearms charges, said Steven M. Dettelbach, U.S. Attorney for the Northern District of Ohio.
A six-count indictment was filed charging Jakub Wojtan, 23, on one count of possession with intent to distribute MDMA and five firearm counts.
Wojtan on Dec. 17 possessed a STEN 9 mm submachine gun with no serial number, which had not been registered with the National Firearms Registration and Transfer Record, as required under law; a sawed-off shotgun; a silencer which had not been registered with the National Firearms Registration and Transfer Record, as required under law; and an AK-47 which had not been registered with the National Firearms Registration and Transfer Record, as required under law, according to the indictment.
Assistant United States Attorney Karrie D. Howard is prosecuting the case, following an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Parma Heights Police Department.
If convicted, the court will determine the defendant’s sentence after a review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense, and the characteristics of the violation. In all cases, the sentence will not exceed the statutory maximum. In most cases, it will be less than the maximum.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government's burden to prove guilt beyond a reasonable doubt.
Chinese National Pleads Guilty to Conspiring to Steal Trade SecretsRead the Press Release
Mo Hailong, aka Robert Mo, 46, pleaded guilty today to conspiracy to steal trade secrets before U.S. District Judge Stephanie M. Rose of the Southern District of Iowa, announced Assistant Attorney General for National Security John P. Carlin and Acting U.S. Attorney Kevin E. VanderSchel of the Southern District of Iowa.
According to the plea agreement, Hailong admitted to participating in long-term conspiracy to steal trade secrets from DuPont Pioneer and Monsanto. Hailong further admitted to participating in the theft of inbred – or parent – corn seeds from fields in the Southern District of Iowa for the purpose of transporting those seeds to China. The stolen inbred seeds constitute the valuable intellectual property of DuPont Pioneer and Monsanto.
During the conspiracy, Hailong was employed as director of international business of the Beijing Dabeinong Technology Group Company, a Chinese conglomerate with a corn seed subsidiary company, Kings Nower Seed. Hailong is a Chinese national who became a lawful permanent resident of the United States pursuant to an H-1B visa.
Hailong is scheduled to be sentenced at a date to be determined later in Des Moines, Iowa. Conspiracy to steal trade secrets is a felony that carries a maximum sentence of 10 years in prison and a maximum fine of $250,000. As part of Hailong’s plea agreement, the government has agreed not to seek a prison sentence exceeding five years.
The investigation was initiated when DuPont Pioneer security staff detected suspicious activity and alerted the FBI. DuPont Pioneer and Monsanto have fully cooperated throughout the investigation. The case is being investigated by the FBI. The case is being prosecuted by the U.S. Attorney’s Office of the Southern District of Iowa and the National Security Division’s Counterintelligence and Export Control Section.
Hailong Plea Agreement
Chicago Resident Pleads Guilty to Participating in Multi-State Heroin Trafficking ConspiracyRead the Press Release
SCRANTON-The United States Attorney’s Office for the Middle District of Pennsylvania announced that a 39-year-old Mexican national who resided in Chicago at the time of his arrest pled guilty today before U.S. District Court Judge Robert D. Mariani to participating in a drug conspiracy that was responsible for distributing large quantities of heroin during a four-year time period in Monroe, Carbon, Montgomery, and Berks Counties in Pennsylvania.
According to United States Attorney Peter Smith, the defendant, Romualdo Hermosillo-Avendano, also known as “Flaco,” admitted to distributing more than one kilogram of heroin via courier from Chicago to Pennsylvania during December 2013-January 2014.
Hermosillo-Avendano was indicted by a federal grand jury in March 2014, as a result of an investigation by the Drug Enforcement Administration (DEA), Homeland Security Investigations, the Pennsylvania State Police, the Pennsylvania Attorney General’s Office, Berks County Detectives and Montgomery County Detectives. Assistant U.S. Attorney Francis P. Sempa is prosecuting the case.
Hermosillo-Avendano faces a mandatory minimum sentence of 10 years in prison and a potential maximum sentence of life in prison. He also faces possible deportation as a result of his guilty plea. Judge Mariani ordered a pre-sentence report to be completed. Sentencing is scheduled to take place in April 2016.
This case was 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.
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 life 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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Charleston heroin and crack dealer pleads guilty to Federal drug crimeRead the Press Release
CHARLESTON, W.Va. – A Charleston heroin and crack dealer pleaded guilty today to a federal drug crime, announced Acting United States Attorney Carol Casto. Donovan Hardison, 25, entered his guilty plea in federal court to possession with intent to distribute heroin and crack.
Hardison admitted that on May 8, 2015, when he was arrested by agents of the Charleston Police Department’s Special Enforcement Unit, he had heroin and crack concealed in his sock that he intended to sell. Hardison also admitted that on several occasions in early 2015, he sold heroin and crack in the Charleston area to confidential informants working with the Charleston Police Department’s Special Enforcement Unit and the Metropolitan Drug Enforcement Network Team. Hardison further admitted that prior to the drug deals, he often stored the heroin and crack in his residence on 2nd Street in Charleston.
Hardison faces up to 20 years in federal prison and a $1 million fine when he is sentenced on April 27, 2016.
The investigation of Hardison was conducted by the Charleston Police Department’s Special Enforcement Unit, the Metropolitan Drug Enforcement Network Team, and the West Virginia State Police. Assistant United States Attorney John J. Frail is handling the prosecution. Hardison entered his plea before United States District Judge John T. Copenhaver, Jr.
This case is being prosecuted as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs and heroin. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal pill trafficking, eliminating open air drug markets, and curtailing the spread of opiate painkillers and heroin in communities across the Southern District.
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Centreville Man Indicted for Commercial Sex Trafficking of A MinorRead the Press Release
The United States Grand Jury has returned a two-count indictment against Demerous E. Foxworth, 24, of Centreville, Illinois, charging him with Commercial Sex Trafficking of a Minor and Use of a Facility of Interstate Commerce to Promote an Unlawful Activity, Acting United States Attorney James L. Porter announced today. The Court ordered that Foxworth be held without bond pending trial after a hearing held today.
The offenses charged in the indictment allege that, from on or about June 1, 2014, to February 28, 2015, Foxworth recruited, enticed, provided and maintained a person knowing that the person had not attained the age of 18 years and knowing that the person would be caused to be engaged in a commercial sex act. The indictment further alleges that from on or about October 1, 2012 to October 10, 2015, Foxworth used a facility of interstate commerce, being the Internet, with the intent to promote, manage, establish, carry on and facilitate an unlawful activity, being illegal prostitution under Illinois law.
A trial date is set for April 4, 2016. If convicted of Commercial Sex Trafficking of a Minor, Foxworth faces a term in prison of not less than ten (10) years up to life, a fine up to $250,000, and a term of supervised release of not less than five (5) years up to life. If convicted of Use of a Facility of Interstate Commerce to Promote an Unlawful Activity, Foxworth faces a term in prison of up to five (5) years, a fine up to $250,000, and a term of supervised release of up to three (3) years.
An indictment is a formal charge against a defendant that is comprised of the essential facts constituting the offense charged. Under the law, a defendant is presumed to be innocent of a charge until proven guilty beyond a reasonable doubt to the satisfaction of a jury.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
This investigation was conducted by the St. Louis County Police Department and the Federal Bureau of Investigation, St. Louis and Springfield Offices. The case is assigned to Assistant United States Attorney Ali Summers
Cedar Rapids Man Convicted of Gun Theft ChargeRead the Press Release
A man who stole a gun from a Cedar Rapids gun store was convicted by a jury today after a 2-day trial in federal court in Cedar Rapids.
Dante Glinn from Cedar Rapids was convicted of theft of a firearm from a licensed dealer. The verdict was returned following about four hours of deliberations.
The evidence at trial showed that, on August 25, 2015, Glinn walked into Sports Outfitters, a Cedar Rapids gun store, reached behind the counter, and stole a .45 caliber Kimber pistol before fleeing the scene. Surveillance videos captured Glinn stealing the pistol. Testimony at trial established that Glinn used an alias to get medical treatment at a local hospital for a wound visible in the videos the same evening as the theft.
Sentencing before United States District Court Chief Judge Linda R. Reade will be set after a presentence report is prepared. Glinn remains in custody of the United States Marshal pending sentencing. He faces a possible maximum sentence of 10 years’ imprisonment, a $250,000 fine, $100 in special assessments, and 3 years of supervised release following any imprisonment.
The case was investigated by the Cedar Rapids Safe Street Task Force. The task force is composed of representatives from the Federal Bureau of Investigation; Drug Enforcement Administration; Bureau of Alcohol, Tobacco, Firearms, and Explosives; U.S. Immigration and Customs Enforcement; United States Marshals Service; Iowa Division of Criminal Investigation; Cedar Rapids Police Department; Marion Police Department; Sixth Judicial District Department of Correctional Services; Linn County Sheriff’s Office; and Iowa Department of Inspections and Appeals. The case is being prosecuted by Assistant United States Attorney Jacob Schunk.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 15-CR-00093.
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California Man Pleads Guilty to Conspiracy to Commit Bank Fraud and Aggravated Identity TheftRead the Press Release
BOISE - Christopher Sheldon Miller, 40, of Union City, California, pleaded guilty on January 27, 2016, to conspiracy to commit bank fraud and aggravated identity theft, U.S. Attorney Wendy J. Olson announced. Miller was indicted by a federal grand jury in Boise on September 9, 2015.
According to court proceedings, Miller admitted that he and his co-conspirators traveled to the District of Idaho from California for the purpose of executing the bank fraud scheme. Between June 25 and 29, 2015, the defendant and his co-conspirators made and attempted to make a number of fraudulent withdrawals at various banks in Ada County and Canyon County. The defendant would go into a bank, impersonate a real account holder, and present a fake California driver’s license and other personal information of the real account holder to obtain a temporary debit card. Miller attempted to make and made withdrawals at the banks. The defendant and his co-conspirators also made fraudulent purchases at various stores, using the customer account information. The defendant and his co-conspirators made at least $34,958.95 in fraudulent withdrawals and purchases in Idaho. In addition, the defendant and his co-conspirators made an additional $35,632.01 in fraudulent withdrawals and purchases in Colorado in June 2015.
The charge of conspiracy to commit bank fraud is punishable by up to 30 years in prison, a maximum fine of $1,000,000.00, and up to five years of supervised release. The charge of aggravated identity theft is punishable by a mandatory term of imprisonment of two years consecutive to the underlying conspiracy to commit bank fraud charge.
Sentencing is set for April 12, 2016, before Senior U.S. District Judge Edward J. Lodge at the federal courthouse in Boise.
The case was investigated by Federal Bureau of Investigation and the Boise Police Department.
Broward County Resident Charged for Participation in Stolen Identity and Tax Fraud Schemes Involving at Least 652 IdentitiesRead the Press Release
A Broward resident was charged for her participation in stolen identity and tax fraud schemes involving at least 652 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), and Dwayne Flournoy, Chief, Hallandale Beach Police Department (HBPD), made the announcement.
Laveisha Dorray Charles-Coldros, 30, of Miramar, Florida, was charged with one count of possession of fifteen or more unauthorized access devices, in violation of Title 18, United States Code, Section 1029(a)(3), one count of using one or more unauthorized access devices, in violation of Title 18, United States Code, Sections 1029(a)(2) and 2, and four counts of aggravated identity theft, in violation of Title 18, United States Code, Section 1028A(a)(1). If convicted, Charles-Coldros faces a maximum of ten years in prison for each of the access device charges, and a mandatory term of two years’ imprisonment, consecutive to any other prison term, for the aggravated identity theft charges.
According to court documents, during a vehicle search where Charles-Coldros was the sole occupant, a Hallandale Beach Police Department officer found mail addressed to numerous individuals and a large duffel bag with multiple pieces of paper and notebooks that contained the names, dates of birth, and Social Security numbers of approximately 652 different individuals.
IRS-CI Special Agents interviewed numerous individuals whose PII was found in the duffel bag. The individuals did not authorize Charles-Coldros to have their names, date of births, and Social Security numbers in her possession, and did not authorize a tax return be filed in their names. Another individual did not authorize Charles-Coldros to have a debit card in his/her name.
Mr. Ferrer commended the investigative efforts of IRS-CI, United States Secret Service, and the Hallandale Beach Police Department, and thanked Federal Protective Service for its assistance in this matter. The case is being prosecuted by Assistant U.S. Attorney Cynthia R. Wood.
An indictment is merely an allegation, and every defendant is presumed innocent until proven guilty beyond a reasonable doubt.
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.
Bradenton Man Pleads Guilty to Selling Counterfeit, Unapproved, and Misbranded DrugsRead the Press Release
Tampa, Florida – United States Attorney A. Lee Bentley, III announces that Robert Lohr (72, Bradenton) today pleaded guilty to conspiracy to smuggle goods into the United States. He faces a maximum penalty of five years in federal prison. A sentencing date has not yet been set.
According to the plea agreement, from July 2009 through September 25, 2015, Lohr operated a business in Bradenton known as “Canadian American Drug Club” or “American Drug Club of Bradenton.” The business sold and distributed illegally smuggled prescription drugs, including Viagra, Cialis, Achiphex, and Lipitor, as well as other drug products that were falsely represented as “herbal”, but that contained active prescription ingredients. At no time was Lohr ever licensed as a pharmacist, a drug importer, or drug wholesaler. Neither was American Drug Club a licensed pharmacy or licensed drug importer or wholesaler.
Between March 21, 2014, and September 15, 2015, several undercover purchases of misbranded, unapproved, and counterfeit prescription drugs were made from Lohr’s business. Prescriptions for Viagra and Cialis were filled and mailed from the business, along with counterfeit drugs made in China. Other prescription drugs, such as Achiphex and Lipitor, were filled by foreign pharmacies with foreign drugs, which had not been approved for the U.S. market. Lohr also sold several herbal Viagra products, without prescriptions, that had been illegally smuggled from China. These products, with names such as “Maxmen”, “Superhard”, or “Vigour,” contained Sildendafil Citrate, the active pharmaceutical ingredient in Viagra. Several of the packages addressed to Lohr’s business, containing the counterfeit drugs, were seized by U.S. Customs and Border Protection.
Lohr generated more than $1.1 million in sales from these counterfeit drugs. The proceeds were deposited in the form of cash, third-party customer checks, and bank card transactions into business and personal bank accounts controlled by Lohr and others. The proceeds from the sales were seized and forfeited in September 2015, including $765,909.35 from an investment account, $60,722 from a business bank account, as well as $79,700 in cash that was stored in Lohr’s safe deposit box. Another $20,135 in cash was seized from Lohr’s business.
This case was investigated by U.S. Immigration and Customs Enforcement’s Homeland Security Investigaitons and the United States Food and Drug Administration (“FDA”), which is responsible for protecting the health and safety of the American public, and ensuring that drugs intended for human use bear true and accurate information and are safe and effective for their intended uses. This case is being prosecuted by Assistant United States Attorneys Kelley Howard-Allen and Holly Gershow.
Bellevue Man Charged with Conspiracy to Distribute MethamphetamineRead the Press Release
United States Attorney, Deborah R. Gilg, announced that on January 27, 2016, an Indictment was unsealed charging Casey Eugene Knudsen, 21, of Bellevue, with conspiracy to distribute and possess with the intent to distribute 500 grams or more of a substance containing methamphetamine between July 1, 2014, and January 5, 2016. The charge carries a possible penalty of not less than 10 years, and not more than life imprisonment, and a fine of up to $10,000,000. Following any prison term, there would be a term of supervised release of at least five years.
Knudsen had an initial appearance in federal court in Lincoln on January 27, 2016. He is scheduled for trial beginning on April 4, 2015, and was ordered detained pending trial.
This case was investigated by the Lincoln/Lancaster County Drug Task Force, the Omaha Police Department, the Douglas County Sheriff’s Department, and the Sarpy County Sheriff’s Department.
Baltimore Drug Trafficker Sentenced to 15 Years in PrisonRead the Press Release
Baltimore, Maryland – U.S. District Judge George L. Russell III sentenced Mario Lamar Wair, a/k/a “Unda,” age 42, of Baltimore, today to 15 years in prison, followed by five years of supervised release, for conspiracy to distribute and possess with intent to distribute cocaine and crack cocaine; and for possession with intent to distribute cocaine and crack cocaine. During the course of the sentencing hearing, Judge Russell found that Wair obstructed justice by falsely testifying at trial. A federal jury convicted Wair on November 5, 2015.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Kevin Perkins of the Federal Bureau of Investigation, Baltimore Field Office; Commissioner Kevin Davis of the Baltimore Police Department; and Baltimore City State’s Attorney Marilyn J. Mosby.
According to evidence presented at his four day trial, from no later than June 2013 through June 2014, Wair conspired with others to distribute cocaine and crack cocaine in southwest Baltimore. Kareem Moore, Raymond Comegys, Stephon Lowery and other co-defendants operated a street-level drug shop in the southwest area of Baltimore City that sold crack cocaine daily to customers. Trial evidence showed that two to three times per week Wair supplied cocaine to a co-defendant who cooked the cocaine into crack cocaine. The crack cocaine was then sold to other distributors and in user-quantity amounts to street level customers. Wair either was present when the cocaine was cooked into crack cocaine or would call to check in on the quality of the crack cocaine.
According to the trial evidence, Wair distributed more than two kilograms of cocaine and crack cocaine.
All nine defendants charged in this indictment have been convicted for their participation in the conspiracy. Raymond Comegys, age 31, of Baltimore, and Stephon Lowery, age 30, of Baltimore, were sentenced to 12 years and 10 years in prison, respectively. Kareem Moore pleaded guilty before trial and was sentenced to 66 months in prison, and five other co-defendants have received sentences of between 30 and 78 months.
United States Attorney Rod J. Rosenstein commended the FBI, Baltimore Police Department and Baltimore City State’s Attorney’s Office for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorneys Seema Mittal and Leo J. Wise, who prosecuted the case.
Area Ambulance Company Owner Sentenced in Health Care Fraud SchemeRead the Press Release
McALLEN, Texas ‐ The owner of Vic’s Texas Transport, Inc. (dba Victory EMS) has been ordered to federal prison following his conviction of health care fraud and aggravated identity theft, announced U.S. Attorney Kenneth Magidson. Victor Lee Gonzalez, 28, of Mission, pleaded guilty Sept, 22, 2015.
Today, Chief U.S. District Judge Ricardo Hinojosa, handed Gonzalez a 30-month sentence for the fraud. He also received a mandatory 24-month term for the identity theft which must be served consecutively for a total sentence of 54 months in prison. He was further ordered to pay $458,904.45 in restitution. In handing down the sentence, Judge Hinojosa noted that the sentence was appropriate to promote respect for the law and to deter future criminal conduct of the defendant. Gonzalez will also be required to serve a term of three years of supervised release following completion of the prison term.
As part of the plea, Gonzalez admitted he submitted claims with Medicare and Texas Medicaid for reimbursement of ambulance transportation services that were not provided. To further execute his scheme to defraud, Gonzalez used the Texas Medicaid number of a patient to submit false and fraudulent billings to Texas Medicaid. The aggregate sum of the false and fraudulent claims submitted by Gonzalez was $1,080,213 to Medicare and Texas Medicaid. As a result of those fraudulent claims, Medicare and Texas Medicaid paid approximately $458,904.45.
Gonzalez, whose bond was previously revoked in the case, will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The investigation was conducted by the U.S. Department of Health and Human Services‐Office of Inspector General and the Texas Attorney General’s Medicaid Fraud Control Unit. Assistant United States Attorneys Michael Day and Linda Requenez are prosecuting the case.
Ambulance Company Owners Agree to Pay More Than $245,000 to Resolve Kickback AllegationsRead the Press Release
HOUSTON – The former owner and operator of Houston-area ambulance company National Care EMS has agreed to settle allegations that he and the company provided kickbacks to various nursing facilities and hospitals in exchange for rights to the institutions’ more lucrative Medicare and Medicaid transport referrals, announced U.S. Attorney Kenneth Magidson along with Gregory Demske, Chief Counsel to the Inspector General of the U.S. Department of Health and Human Services - Office of Inspector General (HHS-OIG) and Special Agent in Charge CJ Porter, of HHS-OIG, Office of Investigations - Dallas Regional Office.
Mohammed Elsaleh, 27, of Sugar Land, formerly owned National Care EMS, which is no longer in business. The settlement calls for Elsaleh to pay $125,000 to resolve the “swapping” allegations made against him and the company. In addition, Elsaleh’s brother, Husam Alsaleh, 29, also of Sugar Land, the owner and operator of a successor company also called National Care EMS has agreed to pay $120,000, plus interest, in furtherance of the settlement.
“This settlement send a message that any alleged kickback or improper relationship among providers will not be tolerated,” said Magidson. “We will continue to hold those accountable that attempt to detrimentally impact the integrity of our health care system.”
The Anti-Kickback Statute prohibits offering, paying, soliciting or receiving remuneration to induce referrals of items or services covered by federal health care programs, including Medicare and Medicaid. The settlement announced today resolves allegations that Elsaleh and National Care EMS provided free and heavily discounted ambulance transports to various nursing facilities and hospitals in exchange for the institutions’ referral of other lucrative Medicare and Medicaid business to National Care EMS.
“This settlement sends a message to the health care industry that both sides of a swapping arrangement can be held responsible for their improper actions, not just the entity that actually bills Medicare or Medicaid for the services,” said Demske. “Any company or individual considering entering such schemes should understand that their actions may have serious legal and financial consequences.”
Medicaid is funded jointly by the states and the federal government. The state of Texas paid for some of the Medicaid claims at issue and will receive approximately $21,000 of the settlement amount.
“The Office of Investigations will continue to pursue all parties in improper swapping arrangements to insure legitimacy in health care expenditures across all service areas, including ambulance transports,” said Porter.
Today’s announcement also marks another achievement for the Health Care Fraud Prevention and Enforcement Action Team initiative, which was announced in May 2009 by the Attorney General and the Secretary of Health and Human Services. The partnership between the two departments has focused efforts to reduce and prevent Medicare and Medicaid financial fraud through enhanced cooperation.
The settlement was the result of a coordinated effort among the U.S. Attorney’s Office, HHS-OIG, HHS-OIG (Office of Counsel to the Inspector General) and the Texas Attorney General’s Office. Assistant U.S. Attorney Kenneth Shaitelman handled the case on behalf of the U.S. Attorney’s Office for the Southern District of Texas.
The claims resolved by this settlement are allegations only, and there has been no determination of liability.
2 Individuals Indicted for Mail FraudRead the Press Release
SAN JUAN, Puerto Rico – Yesterday, January 26, 2016, a Federal grand jury in the District of Puerto Rico returned a twenty-three count indictment against Oscar Ferrer (“Ferrer”) and Jonathan A. Rivera-Padilla (“Rivera-Padilla”) charging them with conspiracy to commit mail fraud, mail fraud, and monetary transactions in property derived from specified unlawful activity announced Rosa Emilia Rodríguez-Vélez, United States Attorney for the District of Puerto Rico. The United States Postal Inspection Service (“USPIS”) and Federal Bureau of Investigation (“FBI”) are in charge of the investigation. The indictment was unsealed today following the arrest of Ferrer in Florida and Rivera-Padilla in Puerto Rico.
These charges resulted from a Ponzi scheme originating in the Cabo Rojo area of Puerto Rico and involving the payment of approximately $5.7 million to corporations operated by Ferrer in Puerto Rico and Florida. The corporations, including Reco Financial, Inc., National Western HIA, Inc., and CGB Financial, Inc., were utilized to receive victim’s purported investment deposits and to disburse the funds to Ferrer and Rivera-Padilla for their own personal use.
Ferrer and Padilla used their connections and referrals in the Cabo Rojo area to meet potential investors. In order to obtain purported investments, misrepresentations were made that the principal and interest on the investment would be guaranteed. Investors were then directed to make their payment to one of the corporations operated by Ferrer. Once deposited, the funds were not invested. Instead, they were withdrawn by Ferrer or transferred to personal bank accounts belonging to Ferrer, Rivera-Padilla, or others.
As a lulling tactic to avoid detection, some interest payments were made and false investment statements were created and mailed to the investors/victims. The investment statements misrepresented the state of their investment. Specifically, the investment statements misrepresented that the funds had been invested and/or that the principal and/or interest were guaranteed.
From 2011 to the present, approximately $5.7 million was invested in this scheme and approximately $1.6 million was paid to investors. The total amount netted in this scheme was approximately $4.1 million.
If found guilty, Ferrer and Rivera-Padilla face a maximum penalty of twenty years in prison for mail fraud and conspiracy to commit mail fraud, and ten years in prison for monetary transactions in property derived from specified unlawful activity.
Assistant U.S. Attorney Seth A. Erbe is prosecuting the case. Indictments contain only charges and are not evidence of guilt. Defendants are presumed to be innocent unless and until proven guilty. The investigation is ongoing.
26 January 2016
Union County, New Jersey, Man Sentenced to 63 Months in Prison for Role in Scheme to Smuggle More Than Three Kilograms of Cocaine into the United StatesRead the Press Release
NEWARK, N.J. – An Elizabeth, New Jersey, man was sentenced today to 63 months in prison for his role in a conspiracy to smuggle approximately three kilograms of cocaine from Haiti into the United States, U.S. Attorney Paul J. Fishman announced.
Schirmer Monestime, 39, was previously convicted on an indictment charging him with one count of conspiracy to distribute cocaine following a four-day trial before U.S. District Judge Susan D. Wigenton. The jury deliberated for four hours before returning the guilty verdict. Monestime was originally arrested and charged by complaint on March 5, 2013. Judge Wigenton imposed the sentence today in Newark federal court.
According to the indictment and evidence at trial:
On Feb 28, 2013, while conducting routine examinations of express mail parcels arriving from Haiti, law enforcement examined a parcel addressed to Bobby Lewis, 59, of Elizabeth. The examination revealed a package containing six large picture frames filled with a powdery-white substance that field-tested positive for cocaine. The net weight of the cocaine in the picture frames was approximately three kilograms.
Law enforcement officers replaced the drugs in the parcel with fake cocaine. On March 4, 2015, an undercover postal inspector delivered the parcel to Lewis, who signed for it at his Elizabeth address. Law enforcement surveillance observed Lewis take the parcel to a nearby parking lot and signal an approaching vehicle driven by Monestime. Although Monestime did not stop to receive the parcel, he later admitted that he intended to do so.
In addition to the prison term, Judge Wigenton sentenced Monestime to three years of supervised release.
Charges against Lewis are still pending. The charges and allegations against him are merely accusations, and he is presumed innocent unless and until proven guilty.
U.S. Attorney Fishman credited special agents of U.S. Department of Homeland Security-Homeland Security Investigations (DHS-HSI), under the direction of Special Agent in Charge Terence S. Opiola, and inspectors of the U.S. Postal Inspection Service, under the direction of Inspector in Charge Maria L. Kelokates, with the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorney Barry A. Kamar of the U.S. Attorney’s Office General Crimes Unit in Newark.
Defense counsel: Cynthia H. Hardaway Esq., Montclair, New Jersey.
U.S. Postal Service Employee Indicted for Assaulting SupervisorRead the Press Release
Memphis, TN – A United States Postal Service employee has been indicted for assaulting a colleague while at work. Edward L. Stanton III, U.S. Attorney for the Western District of Tennessee, announced the indictment today.
According to the indictment, on January 23, 2016, Richard Martin, 59, of Memphis, knowingly and forcibly assaulted a U.S. Postal Service employee. The assault reportedly occurred while the defendant and the victim were at work.
On Tuesday, January 26, 2016, Martin was indicted on one count of assault on a federal officer or employee. If convicted, he faces up to 20 years imprisonment and a fine of up to $250,000.
This case is being investigated by the U.S. Postal Inspection Service.
Assistant U.S. Attorney Stephen Hall is prosecuting this case on the government’s behalf.
The charges and allegations contained in the indictment are merely accusations, and the defendant is considered innocent unless and until proven guilty.
Two sentenced for drug traffickingRead the Press Release
ELKINS, WEST VIRGINIA – Two individuals were sentenced in federal court today for drug trafficking, United States Attorney William J. Ihlenfeld, II, announced.
Vincent Paul Gibson, 29, of Coalton, West Virginia, was discovered in Randolph County, West Virginia, in possession of materials commonly used to manufacture methamphetamine. Those materials included plastic bottles, batteries, rubber tubing, empty packages of medication containing pseudoephedrine, coffee filters, drain cleaner, mason jars, and instant ice compresses. Following an investigation by the Mountain Region Drug and Violent Crime Task Force, he pled guilty in August 2015 to one count of “Possession of Material used in the Manufacture of Methamphetamine.” He was sentenced today to 48 months in prison.
Santos Macedoni Barragan, 31, of Moorefield, West Virginia, sold cocaine near an elementary and secondary school in Hardy County, West Virginia. Following an investigation by the Eastern Panhandle Drug and Violent Crime Task Force, a HIDTA-funded initiative, he pled guilty in September 2015 to one count of “Distribution of Cocaine within 1,000 Feet of a School.” He was sentenced today to 12 months in prison.
Assistant U.S. Attorney Stephen Warner prosecuted the cases on behalf of the government.
U.S. District Judge John Preston Bailey presided.
Two drug dealers sentenced for Federal heroin crimesRead the Press Release
CHARLESTON, W.Va. – Acting United States Attorney Carol Casto announced that two heroin dealers were sentenced today on federal drug charges.
Andre Luke Perryman, 24, of Detroit, was sentenced to a year and a day in federal prison for aiding and abetting the distribution of heroin. Perryman previously pleaded guilty to the federal drug crime in October of 2015. On December 10, 2014, officers with the Charleston Police Department’s Special Enforcement Unit used a confidential informant to purchase heroin from Perryman. The informant called Perryman’s co-defendant, Robert James Bellamy, to set up the drug deal, which occurred at Rite Aid on Rebecca Street in Charleston. After the drug deal, law enforcement arrested Perryman. He admitted that he had come to Charleston from Detroit in July of 2014, and since his arrival he had been working with Bellamy to sell heroin in the area. Perryman further admitted that he and Bellamy distributed over 250 grams of heroin during that time period. Bellamy has pleaded guilty to distribution of heroin and faces up to 20 years in federal prison when he is sentenced on March 23, 2016.
As the result of a separate investigation, Devonte L. Andrews, 23, of Charleston, was sentenced to eight months in federal prison for distribution of heroin. Andrews previously pleaded guilty in October of 2015 to the federal drug charge. Andrews admitted that on August 26, 2014, he sold heroin to a confidential informant working with the Charleston Police Department’s Special Enforcement Unit. The drug deal took place on 21st Street in Charleston.
The investigation of Perryman and Bellamy was conducted by the Charleston Police Department’s Special Enforcement Unit. Assistant United States Attorney Haley Bunn is handling the prosecution of both Perryman and Bellamy. United States District Judge John T. Copenhaver, Jr., imposed Perryman’s sentence.
The Charleston Police Department’s Special Enforcement Unit and the Metropolitan Drug Enforcement Network Team conducted the investigation of Andrews. Assistant United States Attorney John Frail is in charge of the prosecution. Andrews’ sentence was imposed by United States District Judge Thomas E. Johnston.
These cases are being prosecuted as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs and heroin. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal pill trafficking, eliminating open air drug markets, and curtailing the spread of opiate painkillers and heroin in communities across the Southern District.
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Tobyhanna Man Sentenced to 21 Months Incarceration for Passing $8,500 in Counterfeit Currency in Area CasinosRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced that Jason Mitchell, age 31, Tobyhanna, Pennsylvania, was sentenced yesterday to 21 months’ imprisonment by United States District Court Judge James M. Munley in Scranton for passing counterfeit currency in area casinos.
According to U.S. Attorney Peter Smith, Mitchell was charged in an indictment by a grand jury in November 2014 and pleaded guilty in September 2015 to conspiracy to pass counterfeit United States Federal Reserve Notes. Mitchell and others conspired to receive, exchange, transfer, and pass approximately $8,500 in counterfeit $100 Federal Reserve Notes at the Mount Airy Casino in Mount Pocono, and the Mohegan Sun Casino in Plains on various dates in June 2014.
Also charged in the indictment with Mitchell are Andrew Turner, age 28, and Michael Turner, age 22, both from Tobyhanna, Pennsylvania. Both are awaiting trial.
The case was investigated by the United States Secret Service and the Pennsylvania State Police, Bureau of Gaming Enforcement. Prosecution is assigned to Assistant United States Attorney Michelle Olshefski.
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