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19 January 2016
Two Men Sentenced to Prison Marijuana Cultivation Operation that Damaged Sequoia National ForestRead the Press Release
FRESNO, Calif. — Senior United States District Judge Anthony Antonio W. Ishii sentenced Antonio Garcia-Villa (Garcia), 46, to seven years in prison and Uriel Silva-Garcia (Silva), 24, to six years and six months in prison for conspiring to manufacture, distribute and possess with intent to distribute marijuana and possessing firearms in furtherance of a large-scale cultivation operation near Little Poso Creek in the Sequoia National Forest, United States Attorney Benjamin B. Wagner announced.
Both men pleaded guilty last fall. According to court documents, the defendants were paid to tend more than about 8,500 marijuana plants found at the grow site. To facilitate the cultivation activities, they possessed a loaded rifle and handgun. The cultivation activities caused extensive damage to the public land and natural resources. Native trees and plants were cut down and steep hillsides were terraced to plant the marijuana. Pesticides, including Malathion, fertilizer, water lines, trash, clothing and camping equipment were scattered throughout the site. Judge Ishii ordered the men to pay $4,267 in restitution to the U.S. Forest Service to cover the cost of cleaning up the site. Both defendants are from Michoacan, Mexico.
This case is the product of an investigation by the U.S. Forest Service, Kern County Sheriff’s Office, and the U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI). Assistant United States Attorney Karen Escobar prosecuted the case.
Two Broward County Residents Pled Guilty for their Involvement in a Stolen Identity Tax Fraud SchemeRead the Press Release
Two Broward County residents pled guilty for their involvement in a stolen identity tax fraud scheme.
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), Brian Swain, Special Agent in Charge, U.S. Secret Service (USSS), Miami Field Office, and Scott Israel, Sheriff, Broward Sheriff’s Office (BSO), made the announcement.
Stacy A. Gaines, 39, and Nicaya T. Cooper, 35, both of Tamarac, each pled guilty to one count of mail fraud conspiracy, in violation of Title 18, United States Code, Section 1349. As part of their plea agreements, Gaines and Cooper agreed to restitution in the amounts of $266,866.39 and $284,162.49, respectively. At sentencing, the defendants each face a maximum statutory sentence of twenty years in prison.
According to court documents, Cooper opened two bank accounts and gave Gaines access to those accounts to deposit various fraudulent tax refunds. Gaines also opened a bank account in her name for the purpose of depositing additional fraudulent tax refunds. From February 2010 through May 2013, Gaines mailed 139 fraudulent tax returns to the IRS seeking refunds in the amount of $299,433.88 by utilizing the personal identification information (PII) of various individuals. Gaines and Cooper received approximately $279,866.39 in fraudulent refunds from the IRS based upon the fraudulent returns. The true taxpayers did not give Gaines or Cooper permission to file fraudulent tax returns on their behalf.
Gaines is scheduled to be sentenced on March 22, 2016 at 1:15 p.m. and Cooper is scheduled to be sentenced on March 31, 2016 at 1:15 p.m., both before U.S. District Judge William P. Dimitrouleas.
Mr. Ferrer commended the investigative efforts of IRS-CI, the USSS South Florida Organized Fraud Task Force (SFOTF), and BSO. The case is being prosecuted by Assistant U.S. Attorney Alicia E. Shick.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Two Brothers Admit Filing Fraudulent Tax Returns Seeking Refunds of over $218 MillionRead the Press Release
Criminals Received $16 Million in Refunds After Filing Bogus Tax Returns
Two brothers pleaded guilty today in the District of Maryland in a scheme in which they filed approximately 37 fraudulent tax returns seeking refunds of over $218 million. The guilty plea was announced by Acting Assistant Attorney General Caroline D. Ciraolo of the Justice Department’s Tax Division, U.S. Attorney Rod J. Rosenstein for the District of Maryland and Special Agent in Charge Thomas Jankowski of the Internal Revenue Service - Criminal Investigation (IRS-CI)., Washington, D.C. Field Office.
Sean Aude Gallman, 39, of Upper Marlboro, Maryland, and his brother Eric Maurice Gallman, 42, of Huntersville, North Carolina, pleaded guilty today to a conspiracy to commit mail and wire fraud, mail fraud and conspiracy to commit money laundering. Sean Gallman also pleaded guilty to aggravated identity theft and money laundering charges.
“With the 2016 tax filing season officially underway today, taxpayers can take comfort that the Department of Justice and IRS are aggressively pursuing those who seek to defraud the government through the filing of false tax returns,” said Acting Assistant Attorney General Ciraolo.
“These two criminals filed bogus tax returns claiming ‘refunds’ that were not owed, and stole over $16 million from the IRS,” said U.S. Attorney Rosenstein. “Federal agents and prosecutors have a duty to pursue perpetrators of such fraud schemes and try to recover money stolen from the U.S. Treasury.”
According to evidence the government would have used at trial to prove the criminal conduct, Sean and Eric Gallman established trusts and business entities and used mailboxes at numerous private commercial postal carrier stores in Maryland and North Carolina as the addresses for the trusts and business entities. The defendants, acting as trustees and agents, mailed fraudulent tax returns to the IRS in the names of the trusts and businesses requesting refunds.
For example, in January 2013, Sean Gallman mailed to the IRS a fraudulent 2012 tax return in the name of the Gallman Charitable Trust, requesting a refund of $8,218,930. Also around this time, the defendants mailed to the IRS a fraudulent 2012 tax return in the name of LEA Group Holdings Trust, requesting a refund of $8,293,562. The defendants knew that the trusts were not entitled to the tax refunds. After receiving refund checks in these amounts, on Feb. 15 and March 11, 2013, the defendants deposited the two refunds in bank accounts they controlled. To hide their receipt of these refunds, the defendants used cashier’s checks and other financial instruments to transfer a portion of the money to third parties and other bank accounts.
Altogether, the Gallman brothers filed a total of approximately 37 fraudulent tax returns seeking refunds totaling $218,094,765, for which the IRS paid two refunds totaling $16,512,492.
The government seeks the forfeiture of the two refunds paid by the IRS, including $11,529,954 seized from numerous bank accounts; foreign currency and gold and silver coins, seized from a residence in Upper Marlboro; nine residential properties located in Upper Marlboro and Laurel, Maryland; North Carolina and South Carolina; and two Mercedes-Benz vehicles and a Hyundai vehicle.
The defendants face a statutory maximum sentence of 20 years in prison for conspiring to commit mail and wire fraud, conspiring to commit money laundering and mail fraud. Sean Gallman also faces a statutory maximum sentence of 20 years in prison for an additional count for mail fraud and for money laundering; and a mandatory two years in prison consecutive to any other sentence imposed for aggravated identity theft. U.S. District Judge Paul W. Grimm has scheduled sentencing for May 17, 2016 at 10:00 a.m.
Acting Assistant Attorney General Ciraolo, U.S. Attorney Rosenstein and Special Agent in Charge Jankowski thanked special agents of IRS-Criminal Investigation, who investigated the case and Assistant U.S. Attorney Thomas P. Windom of the District of Maryland and Trial Attorney Erin Pulice of the Tax Division, who are prosecuting the case.
Two Brothers Admit Filing Fraudulent Tax Returns Seeking Refunds of over $218 MillionRead the Press Release
Greenbelt, Maryland - Sean Aude Gallman, age 39, of Upper Marlboro, Maryland, and his brother Eric Maurice Gallman, age 42, of Huntersville, North Carolina, pleaded guilty today to a conspiracy to commit mail and wire fraud, mail fraud, and conspiracy to commit money laundering, arising from a scheme in which they filed 30 fraudulent tax returns seeking refunds of over $218 million. Sean Gallman also pleaded guilty to aggravated identity theft and money laundering.
The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Acting Assistant Attorney General Caroline D. Ciraolo of the Tax Division of the Department of Justice; and Special Agent in Charge Thomas Jankowski of the Internal Revenue Service - Criminal Investigation, Washington, D.C. Field Office.
“These two criminals filed bogus tax returns claiming ‘refunds’ that were not owed, and stole over $16 million from the IRS,” said U.S. Attorney Rod J. Rosenstein. “Federal agents and prosecutors have a duty to pursue perpetrators of such fraud schemes and try to recover money stolen from the United States Treasury.”
“With the 2016 tax filing season officially underway today, taxpayers can take comfort that the Department of Justice and IRS are aggressively pursuing those who seek to defraud the government through the filing of false tax returns,” said Acting Assistant Attorney General Ciraolo.
According to court documents and evidence presented at the sentencing hearing Sean and Eric Gallman admitted that they established trusts and business entities, and used mailboxes at numerous private commercial postal carrier stores in Maryland and North Carolina as the addresses for the trusts and business entities. The defendants, acting as trustees and agents, mailed fraudulent tax returns to the IRS in the names of the trusts and businesses requesting refunds.
For example, in January 2013, Sean Gallman mailed to the IRS a fraudulent 2012 tax return in the name of the Gallman Charitable Trust, requesting a refund of $8,218,930. Also around this time, the defendants mailed to the IRS a fraudulent 2012 tax return in the name of LEA Group Holdings Trust, requesting a refund of $8,293,562. The defendants knew that the trusts were not entitled to the tax refunds. After receiving refund checks in these amounts, on February 15 and March 11, 2013, the defendants deposited the two refunds in bank accounts they controlled. To hide their receipt of these refunds, the defendants used cashier’s checks and other financial instruments to transfer a portion of the money to third parties and other bank accounts.
Altogether, the Gallman brothers filed approximately 37 fraudulent tax returns seeking refunds totaling $218,094,765, for which the IRS paid two refunds totaling $16,512,492.
The government seeks the forfeiture of the two refunds paid by the IRS, including $11,529,954 seized from numerous bank accounts; foreign currency, and gold and silver coins, seized from a residence in Upper Marlboro; nine residential properties located in Upper Marlboro and Laurel, Maryland, North Carolina and South Carolina; and two Mercedes-Benz vehicles and a Hyundai vehicle.
The defendants face a maximum sentence of 20 years in prison for conspiring to commit mail and wire fraud, conspiring to commit money laundering, and mail fraud. Sean Gallman also faces a maximum sentence of 20 years in prison for an additional count for mail fraud and for money laundering; and a mandatory minimum of two years in prison consecutive to any other sentence imposed for aggravated identity theft. U.S. District Judge Paul W. Grimm has scheduled sentencing for May 17, 2016, at 10:00 a.m.
United States Attorney Rosenstein and Acting Assistant Attorney General Ciraolo praised IRS-Criminal Investigation for its work in the investigation. Mr. Rosenstein thanked Assistant United States Attorney Thomas P. Windom and Trial Attorney Erin Pulice of the Department of Justice Tax Division, who are prosecuting the case.
Sutton Man Convicted of Attempted Extortion of Family FarmRead the Press Release
BOSTON – A former salesman for a cattle farm in Maine, was convicted by a federal jury on Friday, Jan. 15 in U.S. District Court in Worcester for attempting to extort the farm’s owners.
James P. DiDonna, 50, of Sutton, Mass., was convicted following a week-long trial on one count of attempted extortion and one count of attempted collection of an extension of credit by extortionate means. U.S. District Court Judge Timothy S. Hillman scheduled sentencing for April 8, 2016.
In 2011, DiDonna was hired by Archer Angus, a family run cattle farm in Chesterville, Maine, as an independent salesman of its beef products. Archer Angus terminated DiDonna in July 2012. Between June and October 2013, DiDonna threatened the owners that if he was not paid, he would reveal supposedly damaging information about the farm – the complete nature of which he refused to reveal. Ultimately, DiDonna demanded $40,000 for his silence.
The charges each provide for a sentence of no greater than 20 years in prison, three years of supervised release and a fine of $250,000. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Carmen M. Ortiz and Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation made the announcement today. The case is being prosecuted by Assistant U.S. Attorneys William F. Bloomer and Giselle J. Joffre of Ortiz’s Major Crimes Unit.
Springfield Man, Woman Indicted for Producing Child PornRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that two Springfield, Mo., residents were indicted by a federal grand jury today for producing and distributing child pornography.
Tracy Ann Smith, 41, and Christopher Parker Peck, 39, both of Springfield, were charged in a four-count indictment returned by a federal grand jury in Springfield.
Today’s indictment alleges that Smith used a minor, identified as Jane Doe #1, to produce child pornography between Nov. 1, 2014, and Jan. 8, 2016. Smith is also charged with receiving and distributing child pornography during that time.
Today’s indictment alleges that Peck used two minors, Jane Doe #1 and another minor identified as John Doe #1, to produce child pornography between Nov. 1, 2014, and Jan. 8, 2016. Peck is also charged with receiving and distributing child pornography during that time.
Dickinson cautioned that the charges contained in this indictment are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorney James J. Kelleher. It was investigated by the Springfield, Mo., Police Department and the FBI.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Southern District of Georgia Collects over $18.4 Million in Civil, Criminal and Asset Forfeiture Cases in 2015Read the Press Release
SAVANNAH, GA - U.S. Attorney Edward Tarver announced today that the Southern District of Georgia collected over $18.4 million in civil, criminal and asset forfeiture actions during the 2015 calendar year. Of this amount, $15,037,112.54 was collected in affirmative civil enforcement actions; $1,683,605.83 was collected in criminal actions; and, $1,763,626.79 in assets were forfeited.
U.S. Attorney Tarver stated, “The amount of money collected in criminal, civil and asset forfeiture actions by the men and women of the United States Attorney’s Office in 2015 was the second largest collection year in this District’s history. The amounts collected are enough to pay the District’s yearly budget several times over. In other words, this United States Attorney’s Office earns its keep and then some.”
The Offices of the nation’s U.S. Attorneys, along with the Department of Justice’s litigating divisions, are responsible for enforcing and collecting civil and criminal debts owed to the United States and criminal debts owed to federal crime victims. The law requires defendants to pay restitution to victims of certain federal crimes who have suffered a physical injury or financial loss. While restitution is paid to the victim, criminal fines and felony assessments are paid to the department’s Crime Victims’ Fund, which distributes the funds to state victim compensation and victim assistance programs. Forfeited assets are deposited into the Department of Justice Assets Forfeiture Fund and are used to restore funds to crime victims and for a variety of law enforcement purposes.
For additional questions, please contact First Assistant United States Attorney James D. Durham at (912) 201-2547.
Sierra National Forest Marijuana Cultivator Pleads GuiltyRead the Press Release
FRESNO, Calif. — Humberto Ceballos-Rangel (Ceballos), 37, of Mexico, pleaded guilty today in connection with his involvement in a large marijuana cultivation operation found by law enforcement last summer in the Sierra National Forest in Madera County, United States Attorney Benjamin B. Wagner announced.
Ceballos pleaded guilty to one count of conspiracy to manufacture, to distribute, and to possess with the intent to distribute 50 or more marijuana plants. According to court documents, Ceballos and his co-conspirators caused significant damage to public land and natural resources. Ceballos was found at a campsite within a marijuana cultivation site with 5,904 marijuana plants. A firearm and ammunition were recovered from a vehicle associated with the cultivation operation. The cultivation operation caused significant harm to the environmental landscape. Native vegetation was cut to accommodate the marijuana plants, foot trails, and cooking and sleeping areas. Water was also diverted from a nearby creek to irrigate the marijuana plants. Agents found and removed from the site insecticide, propane tanks, and a large quantity of trash and hose line. Ceballos has agreed to make restitution to the U.S. Forest Service for the costs of cleaning up the site.
The charges against Ceballos’ co-defendants, Francisco Javier Gomez-Rodriguez, 38, Alejandro Ramirez-Rojo, aka Alejandro Ramires, 31, also citizens of Mexico, and Anthony Isaac Santibanez, 20, of Woodlake, California, remain pending. These charges are only allegations. The defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt.
Ceballos is scheduled for sentencing before U.S. District Judge Lawrence J. O’Neill on April 18, 2016. He faces a maximum penalty of 20 years in prison and a $1 million fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
This case is the product of an investigation by the U.S. Forest Service, the U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), California Department of Justice’s Campaign Against Marijuana Planting (CAMP), California Department of Fish and Wildlife, and Madera County Narcotic Enforcement Team (MADNET). Assistant United States Attorney Karen A. Escobar is prosecuting the case.
Shenandoah Man Pleads Guilty to Heroin Trafficking ConspiracyRead the Press Release
SCRANTON—The United States Attorney’s Office for the Middle District of Pennsylvania announced that a 50-year-old Shenandoah resident connected to a large-scale heroin trafficking ring that operated in Schuylkill County during 2012 through September 2015, pleaded guilty today before Senior U.S. District Court Judge James M. Munley in Scranton.
According to United States Attorney Peter Smith, Paul Jadus pleaded guilty to conspiracy to distribute more than 100 grams of heroin. Jadus admitted to distributing heroin and allowing his residence in Shenandoah to be used as a “stash house” to store drugs and money for co-conspirators. Jadus was involved in storing and distributing more than 700 grams of heroin, which is equivalent to more than 23,000 retail bags of heroin,
Jadus was indicted by a federal grand jury in Scranton in September 2015, as a result of an investigation by agents of the Federal Bureau of Investigation, investigators from the Pennsylvania State Police, and local police in Schuylkill County.
Judge Munley ordered a presentence investigation to be completed, and scheduled sentencing for April 15, 2016. Jadus faces a mandatory minimum sentence of five years in prison and a potential maximum sentence of 40 years in prison.
Assistant U.S. Attorney Francis P. Sempa is prosecuting the cases.
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.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law is 40 years in prison, 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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Selby Woman Charged with Assaulting a Federal OfficerRead the Press Release
United States Attorney Randolph J. Seiler announced that a Selby, South Dakota, woman has been indicted by a federal grand jury for three counts of Assaulting, Resisting, Opposing and Impeding a Federal Officer.
Amanda Iron Wing, age 27, was indicted on August 11, 2015. She appeared before United States Magistrate Mark A. Moreno on January 13, 2016, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 20 years in custody and/or a $250,000 fine, 3 years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The indictment alleges that on or about June 6, 2015, Iron Wing used her vehicle to forcibly assault, resist, oppose, impede, intimidate, and interfere with two law enforcement officers when they were performing their official duties. A third count alleges that Iron Wing forcibly assaulted, resisted, opposed, impeded, intimidated, and interfered with a federal officer while he was performing his official duties resulting in the infliction of bodily injury to that law enforcement officer.
The charges are merely an accusation and Iron Wing is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Federal Bureau of Investigation and the Cheyenne River Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Jay Miller is prosecuting the case.
Iron Wing was released on bond pending trial. A trial date has not been set.
Rochester Schools Employee Sentenced for Being “Money Mule”Read the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051
ROCHESTER, N.Y.-U.S. Attorney William J. Hochul Jr. announced today that Ricky Miller, Jr., 58, of Rochester, NY, who was convicted of conspiracy to commit mail fraud, was sentenced by U.S. District Judge David G. Larimer to 20 months in prison. The defendant was also ordered to pay restitution of approximately $105,000 to the victims of the fraud scheme.Assistant U.S. Attorney John J. Field, who is handling the case, stated that Miller and co-defendant Charles Hanks served as “money mules” for a Jamaican group that operated a fraudulent sweepstakes telemarketing scheme. The scheme targeted elderly individuals who received telephone calls claiming that they had won a sweepstakes prize or lottery. Victims were asked to pay an upfront fee in order to release the purported winnings. Miller, who was and is a custodian with the Rochester City School District, and Hanks acted as points of contact in the United States to receive the money from the victims which they then sent to Jamaica after taking a substantial cut.
Charles Hanks was convicted and sentenced to 12 months in prison.
Sentencing is the culmination of an investigation by the United States Postal Inspection Service, under the direction of Inspector in Charge Shelly Binkowski, Boston Division.
Rochester Man Sentenced for Selling Fake VaporizersRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051
BUFFALO, N.Y.-U.S. Attorney William J. Hochul Jr. announced today that Scott Scaccia, 34, of Rochester, NY, who was convicted of trafficking counterfeit goods, was sentenced to two years probation, including six months of home detention, by U.S. District Judge Elizabeth A. Wolford.Assistant U.S. Attorney Scott S. Allen, Jr., who handled the case, stated that in April 2015, agents with Immigration and Customs Enforcement, Homeland Security Investigations executed a search warrant at A Plus Vapes & Deals, a storefront located in Batavia, NY. The store marketed and sold counterfeit tobacco vaporizers manufactured in and distributed from China. Scaccia obtained the counterfeit vaporizers from his brother in California and through the Chinese website, AliExpress.com. In total, approximately 90 counterfeit vaporizers were seized.
The sentencing is the culmination of an investigation by Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Special Agent in Charge James C. Spero.
Rochester Man Sentenced for Enticement of A MinorRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051
ROCHESTER, N.Y.-U.S. Attorney William J. Hochul Jr. announced today that Matthew DiFlorio, 28, of Rochester, NY, who was convicted of enticement of a minor using a means and facility of interstate commerce, was sentenced to 10 years in prison and 20 years supervised release by U.S. District Judge Elizabeth A. Wolford.Assistant U.S. Attorney Tiffany H. Lee, who handled the case, stated that in June 2015, the mother of a thirteen year old minor advised the Rochester Police Department that her child had been communicating with two men. According to the mother, one of the two men, DiFlorio, was working as a Lifetouch school photographer and the mother had, at one point, attempted to contact DiFlorio to tell him to stay away from her child. According to the minor, the minor had communicated with the defendant using the application “Kik” and ended up meeting him in February 2015.
After taking over the minor’s phone, law enforcement officers received a text message from DiFlorio on June 22, 2015. An officer, assumed the minor’s identity and engaged in texts with DiFlorio. The two arranged a meeting for June 23, 2015 at a local fast food restaurant. The defendant arrived at the meeting and was confronted by law enforcement officers. DiFlorio admitted to having had sex with the minor and admitted to engaging in communications with the minor through text messages in order to meet.
The plea is the result of an investigation by the FBI’s Child Exploitation Task Force, under the direction of Special Agent in Charge Adam S. Cohen. The task force includes members of the FBI, the Rochester Police Department, the Monroe County Sheriff’s Office, Immigration and Customs Enforcement, Homeland Security Investigations, and the Monroe County District Attorney’s Office.
Registered Nurse Co-Owner of Ultimate Care Home Health Services, Inc. Sentenced to 10 Years in Federal Prison for Role in Healthcare Fraud ConspiracyRead the Press Release
DALLAS — A 52-year-old registered nurse and home health company owner from Cedar Hill, Texas, was sentenced this morning in federal court in Dallas on a health care fraud conspiracy conviction, announced U.S. Attorney John Parker of the Northern District of Texas.
Patricia Akamnonu was sentenced by U.S. District Judge Sam A. Lindsay to the statutory maximum sentence of 10 years in federal prison. She pleaded guilty in April 2015 to one count of conspiracy to commit health care fraud. Patricia Akamnonu, along with her husband, Cyprian (Cy) Akamnonu, owned Ultimate Care Home Health Services, Inc. (Ultimate). Cy Akamnonu pleaded guilty to the same offense and is currently serving a 10-year federal prison sentence. Both were ordered to pay approximately $25 million in restitution.
According to the filed factual resume, Patricia Akamnonu maintained a valid Medicare group provider number for Ultimate in order to submit Medicare claims for home health services that were medically unnecessary or that were not provided to Medicare beneficiaries.
In her capacity as co-owner and head of nursing for Ultimate, Patricia Akamnonu attended at least one meeting where she and co-defendants Dr. Jacques Roy, Teri Sivils and Cy Akamnonu discussed recruiting additional Medicare beneficiaries to Ultimate to receive home health care services for which they did not qualify and did not need. This meeting also included a discussion about illegal patient recruiting being performed by co-defendants James Veasey and Cynthia Stiger.
As part of the conspiracy, Ultimate exchanged paperwork with Medistat Group Associates, P.A. (Medistat) that was controlled by Dr. Roy for these beneficiaries. These documents were then executed under Dr. Roy’s signature, certifying the patient was under his care. Several of the documents used to certify home health care for these individuals are signed under the name of Patricia Akamnonu.
Over the course of a five-year period, from January 2006 through November 2011, more than 78% of Ultimate’s beneficiaries were certified by Dr. Roy or another Medistat physician acting at his direction. Ultimate billed more than $43 million to Medicare for skilled nursing services for these beneficiaries.
Of the seven defendants who were charged in the $375 million health care fraud scheme led by Dr. Roy, three defendants have now pleaded guilty. Teri Sivils, 47, of Midlothian, Texas, who was Medistat’s office manager, pleaded guilty in April 2015 to one count of conspiracy to commit health care fraud. She faces a maximum statutory penalty of 10 years in federal prison and a $250,000 fine; sentencing is currently set for March 7, 2016.
A March 7, 2016, trial date has also been set for the remaining defendants, Dr. Roy, Cynthia Stiger, 51, of Dallas, Wilbert James Veasey, Jr., 63, of Dallas, and Charity Eleda, R.N., 54, of Rowlett, Texas,
The case is being investigated by the FBI, the U.S. Department of Health and Human Services – Office of Inspector General and the Texas Attorney General’s Medicaid Fraud Control Unit and was brought as part of the Medicare Fraud Strike Force supervised by the Criminal Division Fraud Section and the U.S. Attorney’s Office for the Northern District of Texas.
Assistant U.S. Attorney P.J. Meitl and Special Assistant U.S. Attorney Nicole Dana are prosecuting.
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Parkersburg man pleads guilty to Federal child pornography chargeRead the Press Release
CHARLESTON, W.Va. – A Parkersburg man faces up to 20 years in prison after pleading guilty today to possessing over 600 images and videos of child pornography, announced Acting United States Attorney Carol Casto. Charles Tom Davisson, II, 55, entered his guilty plea in federal court to the child pornography crime.
Davisson admitted that on January 22, 2015, he possessed images and videos of prepubescent minors engaged in sexual acts. The images and videos were contained on his personal computer, as well as thumb drives located at his residence in Parkersburg. The investigation revealed that Davisson was using peer-to-peer file sharing programs to download, receive, and distribute child pornography. Sentencing is scheduled for April 19, 2016, in Charleston.
The West Virginia Internet Crimes Against Children Task Force and the Wood County Sheriff’s Department conducted the investigation. Assistant United States Attorney Lisa G. Johnston is in charge of the prosecution. The defendant entered his plea before United States District Judge John T. Copenhaver, Jr.
This case is being brought as part of an ongoing initiative by the United States Attorney’s Office to combat child sexual exploitation and abuse in the Southern District of West Virginia.
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Owner of Union County, New Jersey, Home Health Care Agency Admits Role in Scheme That Bilked Medicaid Out of $7 MillionRead the Press Release
NEWARK, N.J. - A Springfield, New Jersey, man today admitted his role in a scheme that used bogus records and unqualified home health aides to defraud Medicare out of $7 million, U.S. Attorney Paul J. Fishman announced.
Paul Mil, 66, pleaded guilty before U.S. District Judge Katharine S. Hayden in Newark federal court to an information charging him with conspiracy to commit health care fraud, money laundering and tax evasion.
According to documents filed in this case and statements made in court:
Mil was the owner of People Choice Home Care Inc., a home health care agency located in Elizabeth, New Jersey, that provided home health aides and health care services to New Jersey residents. Mil was also the registered agent for HHCH Health Care Inc. in Linden, New Jersey, a home health care agency owned by Irina Krutoyarsky, 61, of Springfield, New Jersey. Home health aides visit patients at their homes and provide a variety of services, such as assistance with eating, dressing and grooming. These services were subsidized under the New Jersey Medical Assistance Program (Medicaid).
Mil, Krutoyarsky and others defrauded Medicaid through a variety of ways. First, they submitted false documents to the New Jersey Board of Nursing, the state agency responsible for issuing home health aide certifications. Krutoyarsky falsely represented that prospective home health aides had attended and satisfactorily completed required training and testing. In truth, Krutoyarsky charged prospective home health aides hundreds of dollars for fraudulently obtaining their certifications.
Second, Mil, Krutoyarsky and others fraudulently billed Medicaid for services not actually rendered to patients. Numerous HHCH home health aides routinely falsified records that claimed they had visited patients and provided them health care services. In truth, these home health aides had other jobs, were on vacations overseas, or were in other parts of the state during the times they claimed they were with patients. In certain instances, home health aides gave cash kickbacks to patients who were also participating in the scheme.
Third, Mil, Krutoyarsky and others hired individuals with no home health certifications and no status in the country and then sent them to patients’ homes. They then billed Medicaid, fraudulently claiming that the services had been provided by duly certified home health aides.
In total, Mil and others defrauded Medicaid out of $7 million. After Medicaid paid the claims and transferred the funds into bank accounts controlled by Mil, he used the proceeds to purchase real estate and personal property.
Additionally, between 2007 and 2011, Mil cheated the IRS out of approximately $918,000 in taxes due and owing. As part of the scheme, home health aides were sent to the homes of patients who were not eligible for Medicaid. These patients wrote checks payable to HHCH and People Choice. Mil then cashed these checks at check cashing businesses and equally divided the cash with Krutoyarsky. On his corporate tax returns, he falsely characterized these payments as legitimate business deductions, thus reducing his business’ corporate taxes. He then filed federal individual income tax returns that concealed this income.
Nine other individuals, including Krutoyarsky, have already pleaded guilty to their respective roles in the scheme.
The conspiracy and money laundering counts to which Mil pleaded guilty each carry a maximum potential penalty of 10 years in prison. The tax evasion count carries a maximum potential penalty of five years in prison. Each charge carries a potential $250,000 fine. Sentencing is scheduled for May 3, 2016. In addition, Mil will be ordered to pay a $7 million forfeiture money judgment to the United States and to forfeit six homes and properties in New Jersey and New York, as well as hundreds of thousands of dollars seized from bank accounts he controlled.
U.S. Attorney Fishman credited agents of the FBI, under the direction of Special Agent in Charge Richard M. Frankel in Newark; IRS-Criminal Investigation, under the direction of Special Agent in Charge Jonathan D. Larsen; U.S. Citizenship and Immigration Services; New Jersey Office of the State Comptroller, Medicaid Fraud Division under the direction of Director Josh Lichtblau; The Enforcement Bureau of the New Jersey Attorney General’s Office on behalf of the Board of Nursing, Acting Attorney General John Jay Hoffman; the New Jersey Department of Labor under the direction of Commissioner Hal Wirths; the Marlboro Police Department, under the direction of Chief Bruce Hall; and the U.S. Department of State-Diplomatic Security for the investigation leading to today’s plea.
The government is represented by Senior Litigation Counsel V. Grady O’Malley and Assistant U.S. Attorneys Peter Gaeta and Anthony Moscato of the New Jersey U.S. Attorney’s Office Criminal Division in Newark.
Defense Counsel: Nicholas G. Kaizer Esq., New York
Orono Man Sentenced to 41 Months for Wire and Bank Fraud ConspiraciesRead the Press Release
Contact: Chris Ruge
Assistant United States Attorney
Tel: (207) 945-0373Bangor, Maine: United States Attorney Thomas E. Delahanty II announced that Jason Robinson, 30, of Orono, Maine, was sentenced today in U.S. District Court by Judge John A. Woodcock, Jr. to 41months in prison and 5 years of supervised release for wire and bank fraud conspiracies. He was also ordered to pay over $13,000 in restitution to victims.
According to court records, from about February 2014 to May 2015, Robinson conspired with others to steal merchandise from Walmart, Hannaford, and other stores in Maine, and sell it on eBay; to return stolen merchandise to Lowe’s and Home Depot in return for store credit; and to defraud federally insured financial institutions by depositing worthless checks and withdrawing the money before those checks bounced.
The investigation was conducted by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, the Maine State Police, the Bangor Police Department, and the Penobscot County Sheriff’s Office.
Operator of Northeastern Pennsylvania Check Cashing Business Charged in Stolen Identity Tax Refund Fraud CaseRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced that Diomedes Rodriguez-Nunez, age 27, of Allentown was charged in a Criminal Information filed January 15, 2016 in federal court in Scranton with conspiracy to make false claims against the government.
According to United States Attorney Peter Smith, the Information alleges that Rodriguez-Nunez operated Dio Multiservices in Taylor, Pennsylvania, and that co-conspirators of Rodriguez-Nunez used the identities of unknowing third parties to prepare and file fraudulent federal income tax returns. The Information also alleges that Rodriguez-Nunez deposited and cashed fraudulently obtained tax refund checks totaling more than $100,000 between July and September 2013.
The government also filed a plea agreement with the defendant which is subject to the approval of the court.
The charge is the result of an ongoing investigation by the Scranton Office of the Internal Revenue Service, Criminal Investigation with assistance from the Pennsylvania State Police, the Hazelton, Taylor, Dickson, Dunmore and Olyphant Police Departments, and the Lackawanna and Luzerne County District Attorneys’ Offices. The case is assigned to Assistant United States Attorney William Houser for prosecution.
Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law is 10 years of imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Ocean County, New Jersey, Man Admits Bribing Doctor as Part of Compounding Pharmacy Fraud SchemeRead the Press Release
CAMDEN, N.J. – A Manchester, New Jersey, man today admitted paying tens of thousands of dollars in bribes to a sports medicine doctor on behalf of Prescriptions R Us, a compound pharmacy in Lakewood, New Jersey, U.S. Attorney Paul J. Fishman announced.
Howard Wertheim, 67, pleaded guilty before U.S. District Judge Joseph H. Rodriguez in Camden federal court to an information charging him with one count of paying kickbacks.
According to documents filed in this case and statements made in court:
Wertheim admitting that from February 2013 through October 2013, he worked for Vladimir Kleyman, 44, of Lakewood, New Jersey, the president and pharmacist-in-charge of Prescriptions R Us. As a compounding pharmacy, Prescriptions R Us prepared medication using different types and dosages of drugs in order to provide more personalized medications for patients. Prescriptions R Us supplied a topical cream for pain treatment that was made from ketamine (a Schedule III non-narcotic), lidocaine, diclofenac and other ingredients.
Wertheim admitted that Kleyman paid him to help recruit and pay physicians to refer their prescriptions to Prescriptions R Us. Wertheim admitted that as part of the scheme, he paid tens of thousands of dollars in cash bribes to James Morales, 45, a sports medicine doctor with a practice in Toms River, New Jersey, in exchange for referring pain cream prescriptions.
The kickback charge to which Wertheim pleaded guilty carries a maximum potential penalty of five years in prison and a $250,000 fine. Sentencing is scheduled for April 25, 2016. As part of his plea agreement, Wertheim must forfeit $25,000, representing the money he made as payment for his work as a middle-man in the scheme.
Morales, who admitted accepting more than $60,000 in cash bribes as part of the scheme, pleaded guilty to an information charging him with conspiracy to accept kickbacks and health care fraud on June 29, 2015 and awaits sentencing. Kleyman, who previously pleaded guilty to an information charging him with conspiracy to pay kickbacks and to commit health care fraud on Oct. 14, 2014, was sentenced Nov. 4, 2015 to 20 months in prison.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Richard M. Frankel; and U.S. Department of Health and Human Services, Office of Inspector General, under the direction of Special Agent in Charge Scott J. Lampert, with the ongoing investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorneys Jane H. Yoon and R. David Walk Jr. of the U.S. Attorney’s Office Health Care and Government Fraud Unit in Newark.
U.S. Attorney Paul J. Fishman reorganized the health care fraud practice at the New Jersey U.S. Attorney’s Office shortly after taking office, including creating a stand-alone Health Care and Government Fraud Unit to handle both criminal and civil investigations and prosecutions of health care fraud offenses. Since 2010, the office has recovered more than $640 million in health care fraud and government fraud settlements, judgments, fines, restitution and forfeiture under the False Claims Act, the Food, Drug and Cosmetic Act and other statutes.
Defense counsel: William Cunningham, Brick, New Jersey
Notice of Court HearingRead the Press Release
Contact Person: Beth Drake (803) 929-3000
Columbia, South Carolina ---- United States Attorney?s Office announces today that there will be a sentencing hearing Wednesday (Wednesday, January 20, 2016) in United States v. James William Lewis. The hearing will be held at 10:45 am on January 20, 2016, before Senior United States District Judge Joseph F. Anderson, Jr. (courtroom # 4) at the Matthew J. Perry Federal Courthouse in Columbia, South Carolina.
#####Muskegon Man, Adam James Fitzpatrick, Sentenced to Twenty Years in Prison for Distributing Child PornographyRead the Press Release
GRAND RAPIDS, MICHIGAN – Adam James Fitzpatrick, 26, of Muskegon, Michigan was sentenced yesterday to 20 years in federal prison for distributing child pornography via the Internet, U.S. Attorney Patrick A. Miles, Jr. announced. In addition to the prison term, U.S. District Judge Paul L. Maloney imposed a 10-year term of supervised release that will commence once Fitzpatrick is released from imprisonment. Fitzpatrick will also be required to register as a sexual offender.
Fitzpatrick pled guilty on September 22, 2015, to distributing child pornography. He came to the attention of law enforcement in early 2015, when they discovered that he was distributing child pornography via the Internet. The FBI executed a search warrant at Fitzpatrick’s residence on August 5, 2015, and seized his computer. Forensic examination of the computer revealed thousands of images and videos, including hard-core, graphic material, such as images and videos of prepubescent children, to include infants and toddlers, being raped and tortured. Investigation further revealed that Fitzpatrick had access to children, attempted to convince other adults to abuse their children for him, and attempted to webcam with children. Fitzpatrick confessed to possessing child pornography and sharing it with others on the Internet.
In its sentencing memorandum, the U.S. Attorney’s Office wrote that "[t]he possession and distribution of child pornography is a very serious offense in any case. But here, the extreme depravity of the defendant’s collection and conduct makes his offense all the more serious and calls for a severe punishment." Judge Maloney agreed, noting that this was the worst child pornography case he had seen.
This case is part of Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. The U.S. Attorney's Office, county prosecutor's offices, the Internet Crimes Against Children task force (ICAC), federal, state, and local law enforcement are working closely together to locate, apprehend, and prosecute individuals who exploit children. The partners in Project Safe Childhood work to educate local communities about the dangers of online child exploitation, and to teach children how to protect themselves. For more information about Project Safe Childhood, please visit the following web site: www.projectsafechildhood.gov. Individuals with information or concerns about possible child exploitation should contact local law enforcement officials.
The FBI and the Michigan State Police investigated the case. Assistant U.S. Attorney Sean M. Lewis prosecuted the case.
END
Montgomery County Man Sentenced to 10 Years in Prison for Possession of Child PornographyRead the Press Release
Greenbelt, Maryland – U.S. District Judge Theodore J. Chuang sentenced Robert Michael Busching, age 26, of Clarksburg, Maryland, today to 10 years in prison, followed by 15 years of supervised release, for possession of and access with intent to view child pornography. Judge Chuang ordered that Busching must pay restitution of $5,000, to be apportioned among three victims whose sexual abuse was documented in some of the child pornography Busching possessed. Judge Chuang also ordered that upon his release from prison, Busching must register as a sex offender in the place where he resides, where he is an employee, and where he is a student, under the Sex Offender Registration and Notification Act (SORNA).
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein and Special Agent in Charge Kevin Perkins of the Federal Bureau of Investigation.
According to Busching’s plea agreement, between February 13, 2014 and August 26, 2014, Busching used an internet-based cloud storage system to possess, and to access with intent to view, child pornography. On March 7, 2014, the National Center for Missing and Exploited Children received a CyberTipline report from the cloud storage system in reference to suspected files of child pornography being uploaded to one of their accounts. The account was being accessed from an IP address assigned to Busching’s residence in Clarksburg.
On September 9, 2014, agents from the FBI executed a search warrant at Busching’s residence and seized his desktop computer. Agents also interviewed Busching, who advised that he had been communicating with someone in an online chat site who provided Busching with the username and password to access various cloud storage accounts containing child pornography. Busching further admitted the he created two additional accounts, added videos of children engaged in sexually explicit conduct to both accounts, and shared links to the accounts he created with other people he met in the online chat site. Investigation showed that Busching accessed the cloud storage accounts, which contained more than 600 images of child pornography, on a number of occasions between February 12, 2014 and August 26, 2014.
Judge Chuang ordered that the federal sentence be served concurrent to the sentence imposed for violating his probation in Maryland v. Robert Busching, Montgomery County Circuit Court, Case No. 117672C. In that case, Busching was convicted of distribution of child pornography and on March 17, 2011, was sentenced to seven years in prison, with all but five days suspended, followed by five years of supervised probation.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc. For more information about internet safety education, please visit www.justice.gov/psc and click on the "resources" tab on the left of the page.
United States Attorney Rod J. Rosenstein commended the FBI for its work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorneys Lindsay Eyler Kaplan and Kristi N. O’Malley, who prosecuted the case.
Moncks Corner Man Pleads Guilty to Money LaunderingRead the Press Release
Contact Person: Nick Bianchi (843) 727-4381
Charleston, South Carolina ---- United States Attorney Bill Nettles stated today that Keith Scott, age 41, of Moncks Corner, South Carolina, has entered a guilty plea in federal court in Charleston, to conspiracy to conduct financial transactions involving proceeds of narcotics trafficking, a violation of 18 U.S.C. § 1956(h). United States District Judge David C. Norton of Charleston accepted the guilty plea and will impose sentence after he has reviewed the presentence report which will be prepared by the U.S. Probation Office.
Evidence presented at the change of plea hearing established that during a time period spanning from May 2011 until November 2012, Scott, owner of Main Street Motors auto dealership in Moncks Corner, South Carolina, allowed a known drug dealer to purchase multiple vehicles using proceeds from drug trafficking. Scott also allowed the purchaser to have other individuals sign paperwork as if they were purchasing the vehicle.
Mr. Nettles stated the maximum penalty is imprisonment for 20 years and/or a fine of $500,000.
The case was investigated by agents of the Internal Revenue Service and the Federal Bureau of Investigations. Assistant United States Attorney Nick Bianchi of the Charleston is prosecuting the case.
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Mississippi Man Sentenced for Tampering with a Consumer ProductRead the Press Release
Jackson, Miss - Alfred Thornhill, 42, of Sontag, Mississippi, was sentenced today by U.S. District Judge Daniel P. Jordan III, to 18 months in federal prison followed by one year of supervised release for tampering with a consumer product, announced U.S. Attorney Gregory K. Davis. Thornhill was also ordered to pay restitution in the amount of $1,000.
Thornhill was employed at a dairy farm near Crystal Springs, Mississippi, when he poured chlorine, acid and bleach into a stainless steel container of milk right after the milk had been collected from the cows on March 28, 2014. The toxic chemicals were discovered in the milk by the farm’s owner just before the milk was to be picked up for transportation to a distribution center in New Orleans. The contents of the caustic agents were confirmed by a lab analysis conducted at Mississippi State University.
According to evidence disclosed during the guilty plea hearing, Thornhill confessed to USDA-OIG Special Agents that he poisoned the milk because he was angry at the dairy farm owner and intended to ruin the milk in order to financially harm the dairy farmer.
This case was investigated by the USDA- OIG and the Mississippi Agriculture Theft Bureau. It was prosecuted by Assistant United States Attorney Scott Gilbert.
Lubbock, Texas, Woman Sentenced to 6 Months in Federal Prison for Making False Statements to U.S. MarshalsRead the Press Release
LUBBOCK, Texas — Maria Guadalupe Baltazar, 37, of Lubbock, Texas, was sentenced today by U.S. District Judge Sam R. Cummings to 6 months in federal prison, following her guilty plea in September 2015 to one count of making a false statement to a government agency, announced U.S. Attorney John Parker of the Northern District of Texas.
According to documents filed in the case, Baltazar admitted to lying to U.S. Marshals about the whereabouts of a multi-time convicted felon. On June 26, 2015 federal agents learned of a felon sentenced to a term of incarceration of 235 months who was mistakenly released from custody and who had fled the area. Baltazar was subsequently questioned about the whereabouts of this man, and was untruthful with U.S. Marshals about her knowledge as to the man’s whereabouts and about her involvement. Baltazar must surrender to the Bureau of Prisons on February 19, 2016.
United States Marshals investigated the case. Assistant U.S. Attorney Myria Boehm of the U.S. Attorney’s Office in Lubbock, Texas, prosecuted.
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Local Man Gets More Than Five Years for Illegally Possessing a FirearmRead the Press Release
CORPUS CHRISTI, Texas - A local man has been ordered to federal prison following his conviction of being a felon in possession of a firearm, announced U.S. Attorney Kenneth Magidson announced. Eloy Silva, 38, of Corpus Christi, pleaded guilty Oct. 19, 2015.
Today, Senior U.S. District Judge John Rainey ordered he serve a sentenced of 64 months imprisonment to be followed by three years of supervised release. At the hearing today, a deputy U.S. Marshal testified about statements Silva made at the time of his arrest. Testimony revealed that Silva was upset at a local news reporter about a story he had aired about Silva. According to that testimony, Silva stated that he was “going to get even” with the reporter and his family.
In March 2015, authorities Silva with a state parole violators warrant and several state warrants for impersonating a peace officer at a residence in Skidmore. At the time of the arrest, deputies searched the location and discovered a 12-gauge shotgun, several boxes of ammunition and body armor underneath the bed. Silva, who has 12 prior felony convictions, is prohibited from possessing firearms and ammunition.
In federal custody since his arrest, Silva will remain in custody and serve his sentence at a U.S. Bureau of Prisons facility to be designated in the near future.
The charge stems from an investigation by Bureau of Alcohol, Tobacco, Firearms, and Explosives and the U.S. Marshals Service.
Assistant U.S. Attorney Lance Watt prosecuted the case.
Lieutenant in the Jenifer Drug Trafficking Organization Sentenced to 16 Years in PrisonRead the Press Release
Baltimore, Maryland – U.S. District Judge Richard D. Bennett sentenced Tyrone Allen, age 44, of Bowie, Maryland, today to 16 years in prison, followed by five years of supervised release, for conspiring to distribute cocaine. Judge Bennett entered an order requiring Allen to forfeit the proceeds of the drug trafficking, including cash, vehicles, jewelry, and his interest in property held in the name of New Millenium Investors, LLC and/or Tyrone Allen, including five properties in Baltimore.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Assistant Special Agent in Charge Don A. Hibbert of the Drug Enforcement Administration, Baltimore District Office; Special Agent in Charge Thomas Jankowski of the Internal Revenue Service - Criminal Investigation, Washington, D.C. Field Office; Commissioner Kevin Davis of the Baltimore Police Department; and Chief James W. Johnson of the Baltimore County Police Department.
According to his plea agreement and court documents, from September 2012 until his arrest in October 2014, Kedrick Jenifer was the head of a drug organization that transported cocaine and cash between Baltimore and Houston, Texas. Allen was Jenifer’s lieutenant in the organization, assisting Jenifer with the day to day operations, including the collection of money for and the distribution of cocaine to the organization’s customers while Jenifer was out of town. The Jenifer DTO obtained its cocaine from sources of supply in and around Houston. The Jenifer DTO would hide money in secret compartments in “courier vehicles” that were transported from Baltimore to Houston. The cocaine was then transported from Houston to Baltimore hidden in the courier vehicles.
In September 2012, Texas State Police stopped a courier vehicle in Chambers County, Texas. Law enforcement officers discovered approximately 30 kilograms of cocaine hidden in secret compartments within the vehicle. In July 2013, a courier vehicle for the Jenifer DTO loaded on a car-carrier was intercepted in Arkansas. The vehicle contained approximately 23 kilograms of cocaine hidden in a secret compartment.
Between August 2013 and October 2014, approximately 30 shipments of cocaine concealed in secret compartments in the courier vehicles were made to the Jenifer DTO. During this time, Allen was seen on numerous occasions providing kilogram quantities of cocaine to members of the organization. For example, on June 12, 2014, law enforcement intercepted calls Jenifer made to other members of the organization indicating that Allen would meet with them to distribute kilograms of cocaine. On June 14 and 16, 2014, law enforcement observed Allen meeting with members of the Jenifer DTO to supply them with cocaine. On July 11, 2014, Allen and Jenifer were seen removing kilogram-sized packages from hidden compartments in one of the courier vehicles that had recently returned from Houston.
Allen admitted that he was responsible for the distribution of at least 450 kilograms of cocaine between August 2013 and October 2014.
Kedrick Arnold Jenifer, a/k/a “Ricky Jenifer,” “James Howard Collier, Jr.” and “Rick,” age 44, of Bowie, Maryland, pleaded guilty to conspiring to distribute cocaine and is scheduled to be sentenced on January 26, 2016. Eight other co-conspirators have pleaded guilty. Brooke Renee Lunn, a/k/a “Brooke Thomas” and “Brooke Renee,” age 49; William Hegie, age 55; Kermit Clark, age 45; and Elroy Johnson, age 49, all of Baltimore, and Thomas Simmons, age 38, of Hampton, Virginia, were sentenced to between 10 and 12 years in prison. The other three defendants are awaiting sentencing.
United States Attorney Rod J. Rosenstein praised the DEA, IRS Criminal Investigation and Baltimore City and County Police Departments for their work in the investigation, and expressed his appreciation to the United States Attorney’s Offices for the Southern District of Texas and the Southern District of New York for their assistance. Mr. Rosenstein thanked Assistant United States Attorney John W. Sippel, Jr. and Special Assistant United States Attorney Matthew Hoff, a cross-designated Baltimore City Assistant State’s Attorney, who are prosecuting this Organized Crime Drug Enforcement Task Force case.
Justice Department Releases Human Trafficking Resources to Raise Awareness and Serve VictimsRead the Press Release
Attorney General Loretta E. Lynch announced today the release of a video series and resource guide to raise awareness about the many forms of human trafficking in the United States and to provide information on how to identify and serve its victims. She also spoke with a group 20 survivors of human trafficking at a forum hosted by the Justice Department’s Office for Victims of Crime (OVC) to seek survivors’ input about how federal agencies can most effectively address the crime of human trafficking.
“In an effort to bring human trafficking survivors’ voices to as many people as we can, we are proud to announce today the release of The Faces of Human Trafficking, a new video series sponsored by OVC,” said Attorney General Lynch. “I applaud OVC and the producers for their work to present the strength and resilience of the survivors who were interviewed for the film, which will serve as an informative training, outreach and awareness tool for years to come.”
Created by OVC, the Faces of Human Trafficking multidisciplinary resource includes:
• Nine videos with Spanish subtitled versions;
• Public Service Announcements (PSAs) offered in Spanish, Thai, Hindi and Tagalog;
• Discussion guide;
• Four fact sheets; and
• Four posters
“Through heightened awareness, victim-centered services, and effective investigations and prosecutions, we can work together to fight the horrific crime of human trafficking and support survivors,” said Director Joye Frost of OVC. “A crucial first step is to help everyone recognize the reality of trafficking in the United States, and we hope our new resource will do just that.”
The resource features voices of survivors of trafficking and is intended to educate service providers, law enforcement, prosecutors and others in the community about multidisciplinary approaches to serving victims of human trafficking, effective victim services and victims' legal needs. It addresses the special considerations and needs of youth victims and describes promising practices for building effective collaborations among federal agencies to address human trafficking. The posters are available for download and can be customized with information about training opportunities or local service providers.
For more information about OVC’s anti-human trafficking programs, please visit http://www.ovc.gov/trafficking.
Justice Department Reaches Settlement with Evolve Bank & Trust to Resolve Allegations of Discrimination Against Recipients of Disability IncomeRead the Press Release
Settlement Provides Compensation to Victims Identified by the Department of Justice and Establishes Fair Procedures for Treating Borrowers Who Receive Disability Income
The Justice Department announced today that Evolve Bank & Trust has agreed to maintain revised policies, conduct employee training and compensate victims to resolve allegations that it engaged in a pattern or practice of discrimination on the basis of disability and receipt of public assistance in violation of the Fair Housing Act (FHA) and the Equal Credit Opportunity Act (ECOA). The FHA prohibits lenders from discriminating on the basis of disability, and the ECOA prohibits lenders from discriminating on the basis of receipt of public assistance.
The settlement, which is subject to court approval, was filed today in federal court in Memphis, Tennessee, where Evolve is headquartered. The terms of the settlement require Evolve to establish a settlement fund of $86,000 to compensate eligible mortgage loan applicants who were asked to provide a letter from their doctor to document their disability income. Under the settlement, Evolve will conduct training of its underwriters and loan officers and will monitor loan applications to insure that applicants with disabilities are not asked for a letter from a doctor.
“Loan applicants who rely on disability income should not be treated differently than other applicants,” said Principal Deputy Assistant Attorney General Vanita Gupta, head of the Justice Department’s Civil Rights Division. “This settlement will provide relief to victims of a discriminatory practice that illegally and unnecessarily burdens individuals with disabilities in violation the Fair Housing Act and the Equal Credit Opportunity Act.”
The lawsuit originated with a referral from the Board of Governors of the Federal Reserve System to the Civil Rights Division. Evolve is a member of the Federal Reserve System.
“Illegal discrimination on the basis of disability is unacceptable,” said Federal Reserve Governor Lael Brainard. “This settlement not only provides restitution for mortgage applicants that were harmed by the bank’s discriminatory practices, but ensures that the bank institutes new, fair policies and trains its staff to implement them.”
“Every individual is entitled to equal and fair treatment when applying for a loan,” said U.S. Attorney Edward L. Stanton III of the Western District of Tennessee. “This settlement underscores the Department of Justice’s unwavering commitment to holding financial institutions accountable when they engage in unlawful discriminatory practices.”
The Civil Rights Division, the Board of Governors of the Federal Reserve System and the U.S. Attorney’s Office of the Western District of Tennessee are members of the Financial Fraud Enforcement Task Force. The task force was established to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. Attorneys’ Offices, and state and local partners, it is the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets; and conducting outreach to the public, victims, financial institutions and other organizations. Since fiscal year 2009, the Justice Department has filed over 18,000 financial fraud cases against more than 25,000 defendants. For more information about the task force, please visit www.StopFraud.gov.
The department’s enforcement of fair lending laws is conducted by the Housing and Civil Enforcement Section’s Fair Lending Unit in the Civil Rights Division. Since the Fair Lending Unit was established in February 2010, it has filed or resolved 44 lending matters under the Fair Housing Act, ECOA and the Servicemembers Civil Relief Act. The settlements in these matters provide for a total of over $1.4 billion in monetary relief for impacted communities. The Attorney General’s annual reports to Congress on ECOA enforcement highlight the department’s accomplishments in fair lending and are available at www.justice.gov/crt/publications.
A copy of the complaint, as well as additional information about fair lending enforcement by the Justice Department, can be obtained from the Justice Department’s website at www.justice.gov/fairhousing.
Evolve Bank & Trust Complaint
Evolve Bank & Trust Consent Order
Jury Convicts Schenectady Man on Crack and Gun ChargesRead the Press Release
ALBANY, NEW YORK – A federal jury today convicted Steven Ray Morgan, age 48, of Schenectady, New York, of five felony charges including conspiracy to distribute crack cocaine and possession of a firearm by a felon.
The announcement was made by United States Attorney Richard S. Hartunian and Special Agent in Charge James J. Hunt, New York Division, Drug Enforcement Administration.
The jury convicted Morgan of four counts relating to crack cocaine and one count of possession of a firearm by a felon. The jury acquitted Morgan on a sixth charge, of possessing a firearm in furtherance of a drug trafficking offense.
Morgan faces at least 10 years and up to life in prison, as well as at least 8 years of post-imprisonment supervised release, when he is sentenced on May 18, 2016 by Senior United States District Judge Thomas J. McAvoy. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a judge based on the U.S. Sentencing Guidelines and other statutory factors.
The jury convicted Morgan following a four-day trial. The evidence at trial demonstrated that Morgan worked with others to distribute crack cocaine in and around Schenectady, that he and others stored drugs in a Schenectady stash house for purposes of distribution, and that the amount of crack cocaine involved was 28 grams or more. The evidence also demonstrated that Morgan illegally possessed a loaded 9 mm handgun that was stored with the drugs.
A prior jury trial in 2009 resulted in convictions on all six charges. However, in 2015, the United States Court of Appeals for the Second Circuit reversed those convictions and remanded the case for a new trial.
This case was investigated by the Drug Enforcement Administration, and was prosecuted on retrial by Assistant United States Attorney Sean O’Dowd.Joplin Man Pleads Guilty to Money Laundering in $5.6 Million Cooking Oil SchemeRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Joplin, Mo., man pleaded guilty in federal court today to money laundering, the third defendant to plead guilty to charges related to a conspiracy to sell more than $5.6 million worth of spent cooking oil – stolen from restaurants across five states – to a recycling facility in Oklahoma.
Neal Sawyer Robbins, 29, of Joplin, Mo., pleaded guilty today before U.S. Magistrate Judge David P. Rush to money laundering.
Co-defendant Virgil Orin Bird, Jr., 52, of Joplin, pleaded guilty to the same charge on Thursday, Jan. 14, 2016. Co-defendant Brian Dale Fleming, 49, of Mountain Grove, Mo., pleaded guilty on Nov. 19, 2015, to his role in a conspiracy to transport stolen property across state lines and to money laundering.
Brian Fleming admitted that he utilized his business, Tri-State Grease in Cabool, Mo., to transport spent cooking oil that had been stolen from restaurants from Nov. 1, 2010, to Sept. 30, 2011.
Spent cooking oil is the by-product of cooking oil that restaurants use for frying food. Restaurants have on-site collection tanks in which their spent cooking oil was stored. Many restaurants establish contracts with various companies for the collection and removal of spent cooking oil. Brian Fleming and his co-conspirators trained, encouraged and aided others to steal spent cooking oil in order to sell it to others for recycling.
On July 11, 2011, Brian Fleming assisted undercover law enforcement officers in what he believed was the theft of approximately 32,000 pounds of spent cooking oil with a value of approximately $9,000 from a tanker truck. Fleming paid an undercover officer $4,650 for the purported stolen spent cooking oil. Brian Fleming told undercover agents that he sent his drivers to Memphis, Tenn., and other areas to steal spent cooking oil.
Brian Fleming has agreed to forfeit any interest he may have to $595,429 that was seized by law enforcement officers as proceeds of the illegal scheme.
By pleading guilty today, Robbins admitted that he participated with undercover law enforcement agents to obtain spent cooking oil, which he believed had been stolen. Robbins delivered the spent cooking oil to a recycling facility, for which he was paid $1,400. Robbins paid $7,076 to individuals whom he assisted in stealing the spent cooking oil.
Bird admitted that he conducted a financial transaction on Sept. 20, 2011. Bird paid $6,720 to undercover agents for spent cooking oil he believed had been stolen from a tanker truck in Kansas and transported to Missouri. Under the terms of his plea agreement, Bird must forfeit to the government the $6,720 that was paid to the undercover agents.
Brian Fleming also pleaded guilty, in a separate case, to being a felon in possession of a firearm. Brian Fleming admitted that he was in possession of a Smith and Wesson 9mm pistol and ammunition on Feb. 9, 2015. Under federal law, it is illegal for anyone who has been convicted of a felony to be in possession of any firearm or ammunition. Brian Fleming has a prior felony conviction for distributing a controlled substance.
Under federal statutes, Robbins and Bird are each subject to a sentence of up to 20 years in federal prison without parole, plus a fine up to $500,000 (or twice the value of the funds involved) and an order of restitution. Brian Fleming is subject to a sentence of up to 35 years in federal prison without parole plus a fine up to $1 million (or twice the value of the funds involved) and an order of restitution. Brian Fleming is scheduled to be sentenced on March 3, 2016. Sentencing hearings for Robbins and Bird will be scheduled after the completion of presentence investigations by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorneys Abram McGull and Patrick Carney. It was investigated by IRS-Criminal Investigation, the Missouri State Highway Patrol and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Investment Adviser Sentenced in Manhattan Federal CourtRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced today that STEVEN WESSEL, a/k/a “Wes Wessels,” was sentenced today in Manhattan federal court to 55 months in prison for securities fraud, wire fraud, and aggravated identity theft. WESSEL engaged in a scheme to defraud two investors and unlawfully use the identity of another person in furtherance of that scheme to defraud. WESSEL pled guilty on April 23, 2015, and was sentenced today by Chief United States District Judge Loretta A. Preska.
Manhattan U.S. Attorney Preet Bharara said: “Steven Wessel lied to investors who trusted him with their money, spending almost all of it to pay for his own personal expenditures.”
According to the allegations contained in the Superseding Indictment, the underlying criminal Complaint unsealed on June 24, 2014, and statements made during court proceedings:
From at least June 2013 through April 2014, WESSEL ran a fraudulent investment scheme. WESSEL, who claimed to be the Chairman and Executive Managing Member of Steeplechase USA, LLC (“Steeplechase USA”), located in New York, New York, represented to an investor (“Investor A”) that Steeplechase USA was in the business of trading securities. WESSEL personally solicited $200,000 from Investor A on the understanding that the funds would be solely invested in securities.
Contrary to WESSEL’s promise to invest Investor A’s funds in securities, WESSEL used substantially all of Investor A’s money for his own personal benefit, including for cash withdrawals and personal expenses, such as the payment of $25,000 toward a restitution obligation from a prior judgment of conviction. WESSEL did not tell Investor A about this misappropriation. Instead, WESSEL falsely represented to Investor A that his $200,000 investment had gained tens of thousands of dollars and that Steeplechase USA’s portfolio had gained approximately 167% in 2013. Furthermore, in connection with this fraudulent scheme, WESSEL sent Investor A multiple emails that purported to come from Steeplechase USA’s accountant (“Accountant 1”). In those emails, WESSEL, pretending to be Accountant 1 without Accountant 1’s knowledge or permission, made multiple false statements concerning Investor A’s investment with Steeplechase USA.
When Investor A requested to withdraw his funds from Steeplechase USA, WESSEL solicited a $550,000 loan from a second investor (“Investor B”). WESSEL falsely represented that he would use Investor B’s money to provide financing for a commercial real estate project. To induce Investor B to lend him money, WESSEL, among other things, created and sent a fabricated email to Investor B. The fabricated email purported to be from a bank and made it appear as if the real estate project were legitimate.
Contrary to WESSEL’s promise to Investor B, WESSEL used substantially all of Investor B’s money for his own benefit, including to pay $251,000 to Investor A – money that, according to WESSEL, represented Investor A’s initial $200,000 investment and $51,000 in trading profits.
* * *
In addition to the prison sentence, WESSEL, 58, of New York, New York, was sentenced to three years of supervised release. The Court further ordered WESSEL to pay $499,000 in restitution.
Mr. Bharara praised the work of the Criminal Investigators of the United States Attorney’s Office, who investigated this case.
The charges were brought in connection with the President’s Financial Fraud Enforcement Task Force. The task force was established to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices, and state and local partners, it is the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets; and conducting outreach to the public, victims, financial institutions and other organizations. Since fiscal year 2009, the Justice Department has filed over 18,000 financial fraud cases against more than 25,000 defendants. For more information on the task force, please visit www.StopFraud.gov.
This case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant U.S. Attorney Damian Williams is in charge of the prosecution.
Human Smuggler Sentenced in Conspiracy that Resulted in Death of TwoRead the Press Release
CORPUS CHRISTI, Texas – A 22 year-old undocumented alien from Mexico has been sentenced for his conviction of conspiracy to transport undocumented aliens, announced U.S. Attorney Kenneth Magidson. Amurabi Medina-Cruz pleaded guilty Oct. 19, 2015.
Today, U.S. District Judge John D. Rainey handed Medina-Cruz a total of 71 months in prison for the alien smuggling conviction. Not a U.S. citizen, he is expected to face deportation proceedings following his release from prison. At the hearing, the court noted the need to impose a sentence that would deter not only the defendant, but others considering engaging in similar conduct to include evading law enforcement.
On Dec. 3, 2014, Border Patrol (BP) agents learned of several individuals running from the brush and entering a green Tahoe on U.S. Highway 285. A witness told the agents the Tahoe was headed eastbound on Highway 285 towards Highway 77. A BP unit located the vehicle and attempted to conduct a traffic stop. Median-Cruz pulled to the shoulder of the road, as though attempting to stop, but suddenly accelerated northbound onto Highway 77.
A second BP unit appeared on the scene. Medina-Cruz noticed it and once again attempted to pull off onto the shoulder of the highway. Due to his excessive speed, the vehicle rolled over several times and ejecting several of the occupants.
A total of eight individuals were transported to a nearby hospital for observation and treatment, two of whom later died as a result of their injuries.
Medina-Cruz will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The charges are the result of an investigation conducted by Homeland Security Investigations with the assistance of BP. Assistant U.S. Attorney (AUSA) Justin Martin prosecuted the case. AUSA Elsa Salinas handled the sentencing.
Hobbs Woman Arrested on Federal Production and Distribution of Child Pornography ChargesRead the Press Release
ALBUQUERQUE – Kyla Norby, 27, of Hobbs, N.M., made her initial appearance in federal court in Las Cruces, N.M., this morning on a criminal complaint charging her with production and distribution of child pornography. Norby remains in federal custody pending a preliminary hearing and detention hearing, which have yet to be scheduled.
The criminal complaint alleges that Norby produced and distributed child pornography between May 1, 2015 and Dec. 30, 2015, in Lea County, N.M. According to the criminal complaint, the investigation into Norby was initiated after Homeland Security Investigations (HSI) agents from Laredo, Tex., arrested a man in Odessa, Tex., who revealed that Norby made a two-year old child sexually available to him. The criminal complaint further alleges that a search of the man’s smartphone revealed photos of Norby that included images consistent with child pornography. The man alleged that Norby sent the images to him from her smartphone.
Norby was arrested on Jan. 14, 2016, in Odessa, Tex., and was transferred to New Mexico to face the charges against her.
If convicted on the production charge, Norby faces a statutory mandatory minimum of 15 years and a maximum of 30 years in federal prison. If convicted on the distribution charge, she faces a statutory mandatory minimum of five years and a maximum of 20 years in federal prison. Charges in criminal complaints are merely accusations and defendants are presumed innocent unless found guilty in a court of law.
This case was investigated by the Las Cruces office of HSI and the Lea Country Sheriff’s Office, both members of the New Mexico Internet Crimes Against Children (ICAC) Task Force, with assistance from HSI in Laredo, Texas. The case is being prosecuted by Assistant U.S. Attorney Marisa A. Lizarraga of the U.S. Attorney’s Las Cruces Branch Office.
This case is being prosecuted as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice (DOJ) to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices and DOJ’s Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/.
The case was brought as a part of the New Mexico ICAC Task Force’s mission, which is to locate, track, and capture Internet child sexual predators and Internet child pornographers in New Mexico. There are 82 federal, state and local law enforcement agencies associated with the New Mexico ICAC Task Force, which is funded by a grant administered by the Office of the New Mexico Attorney General. Anyone with information relating to suspected child predators and suspected child abuse is encouraged to contact federal or local law enforcement.
Hartford Man Sentenced to 66 Months in Federal Prison for Trafficking HeroinRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that ROBINSON CRUCETTS, also known as “Robi,” 50, of Hartford, was sentenced today by U.S. District Judge Michael P. Shea in Hartford to 66 months of imprisonment, followed by four years of supervised release, for his role in a heroin trafficking ring.
According to court documents and statements made in court, in March 2013, the DEA New Haven Task Force began investigating a heroin trafficking organization headed by members of the Estevez family who lived in New York and the Dominican Republic. The investigation revealed that William Suarez, 41, of New Haven, and Ivan Estrada, 43, of Wallingford, were street-level dealers in New Haven who regularly obtained heroin from CRUCETTS and Martin Rodriguez, 50, in Hartford. The investigation further revealed that CRUCETTS was receiving kilogram quantities of heroin from Carlos Gabriel Estevez, 23, of Ozone Park, N.Y.; Jimmy Estevez, 25, of Brooklyn, N.Y.; Miguel Estevez, also known as “Domi,” 27, of the Bronx, N.Y.; and Josue Ortiz, 27, of East Hartford.
On December 31, 2013, in response to court-authorized intercepts of calls and texts, investigators surveilled Ortiz as he drove from Connecticut to a parking lot in New Rochelle, N.Y., where he met Carlos Gabriel Estevez. After Estevez provided Ortiz with two brick-like packages, Ortiz drove back to Connecticut. A Connecticut State Police trooper conducted a motor vehicle stop of Ortiz as he was driving on I-95 in Milford and seized two bricks of heroin, each weighing approximately 500 grams, from a natural cavity in the vehicle’s wall. Subsequent investigation revealed that one of the bricks of heroin was to be delivered to CRUCETTS.
CRUCETTS was arrested at his Hartford residence on September 3, 2014. When investigators entered the residence, they found CRUCETTS attempting to swallow several bags of heroin. Investigators also found and seized $18,985 in cash.
On September 17, 2014, a federal grand jury returned a 13-count indictment charging CRUCETTS and his seven co-defendant with heroin trafficking and money laundering offenses.
On September 17, 2015, CRUCETTS pleaded guilty to one count of conspiracy to distribute and to possess with intent to distribute 100 grams or more of heroin.
On December 8, 2015, a jury found Carlos Gabriel Estevez guilty of one count of conspiracy to distribute and to possess with intent to distribute one kilogram or more of heroin, and one count of possession with intent to distribute, and distribution of, one kilogram or more of heroin. He is scheduled to be sentenced on March 3, 2016.
The other six defendants previously pleaded guilty and await sentencing.
This matter was investigated by the DEA New Haven Task Force, with the assistance of the DEA Hartford Task Force and the DEA in New York. The DEA New Haven Task Force includes participants from the New Haven, Hamden, West Haven, North Haven, East Haven, Branford, Ansonia, Meriden and Derby Police Departments, and the U.S. Marshals Service. The case is being prosecuted by Assistant U.S. Attorneys Geoffrey M. Stone and Brian P. Leaming.
Guatemalan Pleads Guilty to Immigration and SORNA ChargesRead the Press Release
PITTSBURGH - A citizen of Guatemala pleaded guilty in federal court to charges of illegal re-entry after deportation and failing to register as a sex offender, United States Attorney David J. Hickton announced today.
Edward Jacinto Garcia, 30, of Guatemala, pleaded guilty to two counts before United States Senior District Judge Gustave Diamond.
In connection with the guilty plea, the court was advised that on July 6, 2015, Jacinto Garcia, an alien who, on October 6, 2011, had been deported and removed from the United States, and having reentered the United States without permission, was found in Butler County, Pennsylvania, after being arrested and charged with Driving Under the Influence by the Butler Township Police Department. Jacinto Garcia had been deported following conviction in the State of Nebraska of Sexual Assault of a Minor, 1st degree, and serving a period of imprisonment. By reason of this sex offense, Jacinto Garcia was required to register as a sex offender under the provisions of the Sex Offender Registration and Notification Act. Jacinto Garcia had failed, as required, to register in the State of Pennsylvania, the state in which he was employed during the period June 2015 through July 6, 2015.
Judge Diamond scheduled sentencing for May 11, 2016, at 10 a.m. The law provides for a maximum total sentence of 30 years in prison, a fine of $500,000, or both. Jacinto Garcia remains in custody pending the sentencing hearing. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Carolyn J. Bloch is prosecuting this case on behalf of the government.
The Department of Homeland Security, Immigration and Customs Enforcement, and the United States Marshals Service conducted the investigation leading to the prosecution of Jacinto Garcia.
Guatemalan Deported Four Times Pleads Guilty to Illegal Re-EntryRead the Press Release
ALBANY, NEW YORK – William Heriberto Reyes-Morales, age 42, of Guatemala, pled guilty on Friday to illegally re-entering the United States.
The announcement was made by United States Attorney Richard S. Hartunian and Michael T. Phillips, Buffalo Field Office Director of Enforcement & Removal Operations for U.S. Immigration and Customs Enforcement (ICE).
Reyes-Morales pled guilty to violating the Immigration and Nationality Act (INA), which prohibits previously removed aliens from being found in the United States without permission.
ICE officers first encountered Reyes-Morales in the Montgomery County Jail on July 8, 2015. A check of Reyes-Morales’s fingerprints indicated that he had been deported and removed from the United States to Guatemala a total of four times, the most recent removal being on July 19, 2012.
Reyes-Morales faces up to 20 years in prison and a maximum $250,000 fine when he is sentenced on May 11, 2016 by Senior United States District Judge Thomas J. McAvoy. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a judge based on the U.S. Sentencing Guidelines and other statutory factors. Following his term of imprisonment, Reyes-Morales will be processed for removal from the United States.
This case was investigated by U.S. Immigration and Customs Enforcement and is being prosecuted by Edward P. Grogan.
Grady Memorial Hospital Agrees to Resolve Alleged Violations of the Americans with Disabilities ActRead the Press Release
ATLANTA - The U.S. Attorney’s Office for the Northern District of Georgia has reached a settlement agreement with Grady Memorial Hospital (Grady), the largest hospital in the State of Georgia and located in Atlanta, Georgia, to resolve an investigation into allegations that it violated Title III of the Americans with Disabilities Act (ADA) by failing to ensure effective communication with individuals who are deaf and hard of hearing.
“When a deaf patient or caregiver is unable to understand what is happening during a medical visit or procedure, it can be a terrifying experience and adversely affect the quality of care,” said U.S. Attorney John Horn. “I am encouraged that Grady has demonstrated an ongoing commitment to ensure that people who are deaf or hard of hearing have equal access to quality medical care.”
The U.S. Attorney’s Office initiated an investigation after receiving a complaint alleging that Grady failed to provide appropriate auxiliary aids and services when necessary to ensure effective communication. The complainant, who is deaf and relies on American Sign Language as his primary means of communication, was treated in the Emergency Care Center at Grady after falling from a ladder. The complainant alleged that he was in a lot of pain during his six hour stay in the Emergency Care Center. Complainant did not understand most of what was being communicated because he was not provided a sign language interpreter or other auxiliary aid or service.
Under the settlement agreement, Grady has agreed to ensure effective communication to patients who are deaf and hard of hearing. Among other things, Grady has agreed to provide mandatory in-service training to all its Emergency Care Center personnel and provide reports to the U.S. Attorney’s Office regarding its compliance with the settlement agreement. The training will address the needs of deaf and hard of hearing patients and companions. Grady also agreed to pay $5,000 to the complainant.
The ADA prohibits discrimination against individuals with disabilities by health care professionals. Under the ADA, health care providers are required to provide effective communication to individuals who are deaf and hard of hearing. When complex, lengthy communication is involved, the ADA generally requires health care professionals to provide qualified sign language interpreters for the person who is deaf or hard of hearing.
This agreement is part of the Department of Justice’s Barrier-Free Health Care Initiative, which is a partnership between the Civil Rights Division and U.S. Attorneys’ offices across the nation designed to target enforcement efforts on a critical area for individuals with disabilities. The initiative, launched on the 22nd anniversary of the ADA in July 2012, includes the participation of more than 40 U.S. Attorneys’ offices, including the U.S. Attorney’s Office for the Northern District of Georgia. Information about the initiative can be found at www.ada.gov/usao-agreements.htm.
Assistant United States Attorney Aileen Bell Hughes and Assistant United States Attorney Neeli Ben-David are representing the United States in this matter.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the home page for the U.S. Attorney’s Office for the Northern District of Georgia Atlanta Division is http://www.justice.gov/usao-ndga.
Glastonbury Man Sentenced to 3 Years in Prison for Distributing Heroin to a MinorRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that RYAN POULIN, 25, formerly of Glastonbury, was sentenced today by U.S. District Judge Alvin W. Thompson in Hartford to 36 months of imprisonment, followed by six years of supervised release, for distributing heroin to a minor.
“This is truly tragic story and one that is playing out in our state at an alarming rate,” said U.S. Attorney Daly. “There were nearly 400 heroin-related overdose deaths in Connecticut in 2015, which is an increase of approximately 50 percent since 2013. This epidemic is deeply disturbing and must be addressed from a number of perspectives. From the law enforcement perspective, together with the DEA and local police departments, we will continue to prioritize investigations of heroin overdoses and prosecutions of traffickers responsible for overdoses.”
According to court documents and statements made in court, a long-term Drug Enforcement Administration Hartford Task Force investigation has focused on the distribution of Fentanyl-laced heroin that contributed to several heroin overdoses in the Hartford area. Fentanyl is a powerful opioid analgesic used to treat moderate to severe chronic pain that cannot be controlled with other medicines. It is approximately 80 times more potent than morphine, and is potentially lethal, even at very low levels.
On February 15, 2014, East Windsor Police and other emergency personnel responded to a residence in East Windsor on a report of a possible drug overdose. A 14-year-old female victim was transported to Connecticut Children’s Medical Center in Hartford and died the following day. The Office of the Chief Medical Examiner subsequently determined the manner of death was an accident and the cause of death was heroin and fentanyl intoxication.
The investigation revealed that POULIN was involved in a relationship with a 16-year-old girl from East Windsor. On February 12, 2014, POULIN drove his minor girlfriend to Hartford to purchase heroin. POULIN and his minor girlfriend thereafter used the heroin together.
The investigation further revealed that on February 14, 2014, POULIN and an acquaintance traveled to a heroin dealer in the Hartford area where POULIN’s acquaintance brokered a deal for two bundles (20 dose bags) of heroin for $80. The heroin was stamped “New World.” POULIN and his acquaintance then traveled to Portland, Connecticut, where the acquaintance injected himself with three bags of the “New World” heroin and passed out. POULIN immediately left. Later that afternoon, POULIN arrived at his 16-year-old girlfriend’s house and injected a quantity of the “New World” heroin before he and his girlfriend went out to dinner for Valentine’s Day. When they returned from dinner, POULIN injected more of the “New World” heroin.
The next thing POULIN remembered from that evening is that someone put him in the shower to revive him.
The following morning, POULIN gave a bag of the “New World” heroin to his girlfriend. After seeing the heroin’s effect on POULIN and believing that it was too strong, POULIN’s girlfriend traded the heroin to her 14-year-old friend in exchange for a different bag of heroin. On the morning of February 15, 2014, POULIN’s girlfriend and her 14-year-old friend injected heroin. The 14-year-old showered and went to sleep. She never woke up.
POULIN was arrested on a federal criminal complaint on July 31, 2014, and was released into a substance abuse and counseling program. He has been detained since September 26, 2014, when his bond was revoked for violating the conditions of his release. On September 21, 2015, he pleaded guilty to one count of distributing a controlled substance to a minor.
This matter was investigated by the DEA Hartford Task Force and the East Windsor Police Department. The Task force includes participants from the Bristol, East Hartford, Hartford, Manchester, Newington, New Britain, Wethersfield and Willimantic Police Departments.
The case was prosecuted by Assistant U.S. Attorney Brian P. Leaming.
Ft. Walton Man Sentenced to 480 Months for Child Pornography OffensesRead the Press Release
PENSACOLA, FLORIDA – Samuel J. Johnson, 42, a registered sex offender who resides in Ft. Walton Beach, Florida, was sentenced today to 480 months in prison for production and receipt of child pornography, and the transfer of obscene matter to a minor. The sentence was announced by Christopher P. Canova, Acting United States Attorney for the Northern District of Florida.
At his guilty plea on September 14, 2015, Johnson admitted that, between April 2013 and April 2015, he knowingly used a minor to engage in sexually explicit conduct to produce visual depictions, and that he committed this offense while required to register as a sex offender. During an undercover operation, law enforcement officers discovered that Johnson possessed child pornography videos and images on his cellular telephone and computers. Additionally, detectives recovered thousands of text messages between Johnson and an underage female, including those persuading the minor to produce and send videos of child pornography.
“I commend our prosecutors and law enforcement professionals for their hard work to bring child predators to justice,” said Acting United States Attorney Christopher P. Canova. “This prison sentence is a reminder that those who seek to harm our children face serious consequences under federal law.”
“This criminal stole the innocence of a young victim,” said Susan L. McCormick, special agent in charge of HSI Tampa. “The work of HSI special agents, along with our local and state partners, has ensured he cannot hurt another child.”
The case was investigated by the United States Immigration and Customs Enforcement (ICE) Homeland Security Investigations (HSI), Pensacola Police Department, and the other agencies that are part of the North Florida Internet Crimes Against Children Task Force, whose joint investigation led to the charges in this case. The case was prosecuted by Assistant United States Attorney Jeffrey M. Tharp.
The United States Attorney's Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. The office strives to protect and serve the citizens of the Northern District of Florida through the ethical, vigorous, and impartial enforcement of the laws of the United States, to defend the national security, to improve the safety and quality of life in our communities through the protection of civil rights, and to protect the public funds and financial assets of the United States. To access public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
For more information, contact: Amy Alexander, Public Information Officer
(850) 216-3854, [email protected]Fresno Man Sentenced for Striking Police Helicopter with Powerful LaserRead the Press Release
FRESNO, Calif. — Johnny Alexander Quenga, 29, of Fresno, was sentenced today to six months in prison, to be followed by three years of supervised release for aiming the beam of a laser pointer at Air 1, a Fresno Police helicopter, United States Attorney Benjamin B. Wagner announced.
According to court documents, Quenga repeatedly struck Air 1 with a powerful green laser attached to an airsoft rifle. As a result, the airmen experienced visual interference, flash blindness, after-imaging, a persistent headache lasting several hours, and dizziness. On October 26, 2015, Quenga pleaded guilty to aiming a laser pointer at an aircraft.
“Our continued partnership with the Fresno Police Department helps us address laser strikes in the area in an effort to protect both law enforcement and the public from the significant danger this activity presents,” said Supervisory Special Agent Robert Guyton of the Fresno resident agency of the FBI’s Sacramento Field Office. “We encourage the public to immediately report any individual who shines a laser on aircraft or motor vehicles to stop this dangerous behavior.”
Two Fresno police officers, who were responding to calls to assist in the investigation of the laser incident, collided with a civilian motorist at a busy intersection in northeast Fresno. The officers and civilian were seriously hurt or suffered significant property damage as a result of the accident, which Quenga was monitoring via a police scanner application on his iPhone.
According to the Federal Aviation Administration (FAA), reports of laser attacks have increased dramatically in recent years as powerful laser devices have become more affordable and widely available to the public. In 2015, the FAA received 7,702 reports of incidents involving laser strikes on aircraft in the United States. In the Eastern District of California, which encompasses 34 counties in the eastern portion of California, there were 214 reported incidents in 2015, with the majority in Fresno. Lasers can completely incapacitate pilots who are trying to fly safely to their destination, endangering their crew members, passengers and people on the ground.
The case against Quenga was investigated by the Federal Bureau of Investigation and the Fresno Police Department. Assistant U.S. Attorney Karen A. Escobar prosecuted the case.
Former High School Photographer Indicted for Lying to A Federal Agent and Internet StalkingRead the Press Release
LITTLE ROCK, Ark.—Christopher R. Thyer, United States Attorney for the Eastern District of Arkansas, and Raymond R. Parmer, Jr., special agent in charge of Homeland Security Investigations (HIS) New Orleans, announced today the indictment of Christian Trey Ashcraft, the owner of Ashven photography and former photographer of high school students and activities in the Pine Bluff, Arkansas area.
The two-count Indictment, returned by a federal Grand Jury on January 5, 2016, charges Ashcraft, 40, of Pine Bluff, with one count of lying to a federal agent and one count of internet stalking.
Ashcraft appeared before United States Magistrate Judge Beth Deere today. A trial is scheduled for February 22, 2016, in front of United States District Judge Kristine G. Baker.
The charges in the Indictment are based on an investigation that began in August 2014, when a minor disclosed to the Maumelle Police Department that Seth Ganahl had previously asked her to engage in illicit sexual activity on multiple occasions. Execution of a search warrant on Ganahl’s email account revealed that he was emailing with the user of [email protected], who was purporting to be a 15-year-old minor female. During the email exchange, Ganahl repeatedly asked the user of [email protected] to send him sexually explicit photographs.
Ganahl was indicted by a federal Grand Jury in the Eastern District of Arkansas on February 4, 2015, and is currently scheduled for trial on June 27, 2016.
During the investigation, agents developed information that led them to believe that Ashcraft was the real user of [email protected]. Agents interviewed Ashcraft on December 30, 2014, and he denied being the user of [email protected].
On January 13, 2015, agents obtained a federal search warrant for [email protected]. Law enforcement analysis of the contents of this account indicated that Ashcraft communicated with multiple individuals while posing as young teenage girls.
Agents also observed that Ashcraft, using [email protected], sent sexually explicit photographs of an adult female—while posing as this female—to at least two individuals over a significant period of time.
Agents again interviewed Ashcraft on April 1, 2015, at which time he admitted that he was the user of email account [email protected].
"The internet continues to be the weapon of choice for many individuals because they believe it provides them anonymity," Thyer said. "This case demonstrates that law enforcement and the United States Attorney’s Office will track down individuals who abuse the internet for their own deviant purposes, and that these people will be prosecuted to the fullest extent of the law."
"Lying to a federal agent is a serious crime that carries significant penalties," said Parmer Jr. "While revenge porn legislation is under debate in many states, the facts of this particular case are already covered under federal stalking laws. Not only were these actions distasteful, they were criminal, and HSI will continue to investigate and seek prosecution of cyber crimes as one of its highest priorities. "
Lying to a federal agent, a violation of 18 U.S.C.§ 1001(a)(2), carries a penalty of not more than five years imprisonment, not more than three years of supervised release, and a fine of up to $250,000.
Internet stalking, a violation of 18 U.S.C. § 2261A(2)(B), carries a penalty of not more than five years imprisonment, not more than three years of supervised release, and a fine of up to $250,000. This investigation was conducted by the Arkansas State Police and HSI. It is being prosecuted by Assistant United States Attorney Kristin Bryant.
An indictment contains only allegations. A defendant is presumed innocent unless and until proven guilty.
Former City of Garwin Clerk Pleads Guilty to Theft of City FundsRead the Press Release
A woman who used her position as the city clerk for the City of Garwin to steal public funds pled guilty today in federal court in Cedar Rapids.
Anna Leytham from Garwin, Iowa, was convicted of Theft Concerning a Program Receiving Public Funds.
In a plea agreement, Leytham admitted that she held a position of public trust as the city clerk and that her position of trust contributed significantly to the commission and concealment of her crime. By using city funds to pay her personal credit cards or by causing the city to issue her unauthorized checks, Leytham admitted to stealing at least $70,000 from January 2001 to October 2013.
Sentencing before United States District Court Chief Judge Linda R. Reade will be set after a presentence report is prepared. Leytham remains free on bond previously set. She faces a possible maximum sentence of 10 years’ imprisonment; a fine equal to the greater of twice the gross gain to defendant resulting from the offense, twice the gross loss resulting from the offense, or $250,000; $100 in special assessments, and 3 years of supervised release following any imprisonment.
The case is being prosecuted by Assistant United States Attorney Jacob Schunk and was investigated by the Federal Bureau of Investigation.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 16-CR-7.
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Former Bernalillo County Firefighter Pleads Guilty to Federal Child Pornography ChargesRead the Press Release
ALBUQUERQUE – Patrick M. Lopez, 48, of Albuquerque, N.M., pleaded guilty today in federal court to child pornography charges. The guilty plea was entered without the benefit of a plea agreement.
Lopez was arrested in July 2015, on a criminal complaint charging him with possession of visual depictions of minors engaged in sexually explicit conduct. At the time of his arrest, Lopez was employed as a paramedic/firefighter with the Bernalillo County Fire Department.
The charges against Lopez arose from an investigation by the FBI and the Bernalillo County Sheriff’s Office (BCSO). On July 10, 2015, the FBI and BCSO executed a federal search warrant at Lopez’s residence. During the search, forensic examiners found a laptop computer that contained videos consistent with child pornography.
During today’s proceedings, Lopez pled guilty to a felony information charging him with possession of child pornography. According to the information, Lopez possessed the child pornography in Bernalillo County, N.M., between Jan. 19, 2015 and July 10, 2015.
At sentencing Lopez faces a statutory maximum sentence of ten years in federal prison followed by not less than five years of supervised release. Lopez will also be required to register as a sex offender. Lopez remains in custody pending a sentencing hearing which has yet to be scheduled.
This case was investigated by the Albuquerque office of the FBI and BCSO, both members of the New Mexico Internet Crimes Against Children (ICAC) Task Force.
The case is being prosecuted by Assistant U.S. Attorney Shammara H. Henderson as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice (DOJ) to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices and DOJ’s Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/.
The case also was brought as a part of the New Mexico ICAC Task Force’s mission, which is to locate, track, and capture Internet child sexual predators and Internet child pornographers in New Mexico. There are 82 federal, state and local law enforcement agencies associated with the New Mexico ICAC Task Force, which is funded by a grant administered by the New Mexico Office of the Attorney General. Anyone with information relating to suspected child predators and suspected child abuse is encouraged to contact federal or local law enforcement.
Five Defendants Sentenced for Their Involvement in A Scheme to Defraud XeroxRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051
ROCHESTER, N.Y. - U.S. Attorney William J. Hochul Jr. announced today that five defendants convicted in a scheme to defraud the Xerox corporation by submitting fictitious bills for work never performed on equipment, were sentenced by Chief U.S. District Judge Frank P. Geraci. Sentenced were:• Anthony Fretto, of Webster, NY, who was convicted of conspiracy to commit mail fraud and conspiracy to engage in monetary transactions involving the proceeds of unlawful activity, was sentenced to 12 months in prison and ordered to pay restitution to Xerox totaling $4,061,000.
• Daniel Streff, of Webster, NY, who was convicted of conspiracy to commit mail fraud, was sentenced to five years probation and ordered to pay restitution to Xerox totaling $850,000.
• Thomas Randall, of Marion, NY, who was convicted of conspiracy to commit mail fraud, was sentenced to five years probation and ordered to pay restitution to Xerox totaling $298,000.
• Edward Hawkins, of Marion, NY, who was convicted of conspiracy to commit mail fraud, was sentenced to five years probation and ordered to pay restitution to Xerox totaling $185,000.
• And David Dailey, of Bloomfield, NY, who was convicted of conspiracy to commit mail, was sentenced five years probation and ordered to pay restitution to Xerox totaling $175,000.Assistant U.S. Attorney Bradley E. Tyler, who handled the case, stated that between 2002 and 2007, the defendants, along with five other individuals, perpetrated a scheme through Clarkson Auto Electric to defraud the Xerox Corporation. The scheme involved the submission of false invoices for parts and repair services related to the maintenance of the forklift fleet at the Xerox facilities in Webster. The defendants, through Clarkson Auto Electric, issued approximately $4,100.000 in false invoices to Xerox which was charged for new forklift parts and repair services that were ordered by the defendants but never provided to Xerox.
Five other defendants, John Jarnot, Mathew Lavilla, Gerald Fretto, James Noto, and Randy Vansteen have all been convicted.
The sentencings are the culmination of a joint investigation on the part of the Internal Revenue Service, under the direction of Shantelle P. Kitchen, Special Agent in Charge, New York Field Office, and the United States Postal Inspection Service, under the direction of Shelly Binkowski, Inspector in Charge, Boston Division, United States Postal Inspection Service.
Final Two Defendants Plead Guilty to Marijuana Cultivation Scheme in Sacramento and Elk Grove ResidencesRead the Press Release
SACRAMENTO, Calif. —Jun Mou Peng, 42, and Shihong Chen, 50, both of Elk Grove, pleaded guilty today to manufacturing marijuana inside homes in Elk Grove and Sacramento, United States Attorney Benjamin B. Wagner announced.
According to court documents, from April 2012 to January 2013, law enforcement observed Peng and Chen and others traveling between five residences in Elk Grove and Sacramento. On January 30, 2013, investigators executed search warrants, and found sophisticated marijuana grows inside each residence. Agents seized 417 growing marijuana plants and processed marijuana at 8270 Cliffcrest Way; 152 growing marijuana plants, multiple kilograms of processed marijuana, and $4,240 in U.S. currency at 9761 McKenna Drive; 251 growing marijuana plants at 8108 Gwerder Court; 282 growing marijuana plants and nearly 10 kilograms of processed marijuana at 3713 45th Avenue; and inside 8646 Everidge Court, agents found 867 growing marijuana plants, approximately 31 kilograms of cultivated marijuana, and $7,070 in U.S. currency.
Peng and Chen are scheduled to be sentenced on March 30, 2016, by United States District Judge Kimberly J. Mueller. Each faces a maximum statutory penalty of 20 years in prison and a $1 million fine. Co-defendant Zhiqiang Liu pleaded guilty to manufacturing marijuana on December 16, 2015. He is scheduled to be sentenced on March 9, 2016. The actual sentences, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
On September 30, 2015, co-defendant Huanhao Chen pleaded guilty to concealing a felony, and on December 17, 2015, he was sentenced to one year of probation. On October 28, 2015, co-defendant Qinghong Li pleaded guilty to conspiracy to manufacture marijuana and manufacturing marijuana, and she was sentenced to one year in prison.
This case is the product of an investigation by the Drug Enforcement Administration and the Elk Grove Police Department. Assistant United States Attorney Christiaan Highsmith is prosecuting the case.
Fairbanks Soldier Sentenced to 72 Months in Prison for Child PornographyRead the Press Release
Fairbanks, Alaska — Stephen Michael St. Hilaire, 28, a soldier stationed at Ft. Wainwright, Alaska, was sentenced today by U.S. District Judge Ralph R. Beistline to 72 months in prison to be followed by a 15-year term of supervised release for possession of child pornography, U.S. Attorney Karen L. Loeffler announced.
According to documents filed in the case, St. Hilaire was identified by law enforcement using an Internet file-sharing network to trade images of child pornography. A search of St. Hilaire’s computer located in his barracks room at Ft. Wainwright found hundreds of files of child pornography, including images and videos of toddlers and infants being sexually molested by adult males.
At sentencing, Judge Beistline emphasized the fact that while the defendant’s activities may have occurred online, his crime involved images and videos of actual victims of molestation. “The problem is, when you are viewing these kinds of things, [you are] viewing real people,” said Judge Beistline, “[t]hat victimization stays with them their entire life.” Judge Beistline also noted that his sentence was intended to “discourage people from looking at this stuff, so there is no market [for it].” “We as a society are trying to protect young children,” said Judge Beistline.
This case was investigated by the FBI, with assistance from the United States Army, Criminal Investigation Division, and was prosecuted by Assistant U.S. Attorney Kyle Reardon.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Executives of Panamanian Corporation and Aviation Company Plead Guilty in Multi Million Dollar Money Laundering StingRead the Press Release
BROOKLYN, N.Y. – Earlier today, Michael J. Dodd and James Robert Shipman, Jr. pleaded guilty to charges that they conspired to launder more than two million dollars, which they believed to be proceeds of a penny stock fraud scheme. The money was, in fact, provided to the defendants by an undercover law enforcement agent who posed as a criminal stock promoter as part of an FBI sting operation. A third defendant, Kenneth Landgaard, pleaded guilty to the same charges on January 15, 2016. Defendants Landgaard and Shipman were arrested after flying to an airport in New York on a private jet to take possession of $2,200,000 in cash, which they had agreed to launder through banks in Panama and Belize. Dodd was arrested a few hours later at a Manhattan restaurant where he had expected to meet with the undercover agent. Prior to their arrests, the defendants had already laundered $400,000 in cash previously provided by the undercover agent.
The guilty pleas were announced by Robert L. Capers, United States Attorney for the Eastern District of New York.
“The defendants agreed to transport millions of dollars represented to be stock fraud proceeds on private jets to Panama and then engage in a series of financial transactions designed to conceal the illegal source of the funds. They did so with the intention of lining their own pockets without regard for the law,” stated United States Attorney Capers. “We are committed to stopping the laundering of money through offshore safe havens and prosecuting those who would abuse the financial markets to enrich themselves.” Mr. Capers thanked the Federal Bureau of Investigation (FBI), the Internal Revenue Service, Criminal Investigation (IRS-CI) and the U.S. Immigration and Customs Enforcement’s (ICE), Homeland Security Investigations (HSI) for their hard work and dedication through the course of the investigation and prosecution.
In his dealings with the defendants, the undercover agent represented himself to be a middleman working with corrupt stock brokers who artificially inflated prices for worthless stocks in exchange for high commissions. Despite being made aware this, the defendants agreed to launder $2,600,000 in exchange for a 13% to 15% fee. Immediately prior to their arrest, Landgaard and Shipman accepted $2,200,000 from the undercover agent, which they believed to be proceeds from the penny stock fraud. In conversations which were recorded by the FBI, the defendants explained in detail the measures they took to avoid detection of their money laundering scheme by law enforcement – Dodd insisted that the undercover agent download and use encryption software for online chats and voice communications, Landgaard insisted that the cash be provided in expensive Louis Vuitton duffel bags, and Shipman explained their reasoning, “You know why they do that? Because cops can’t get the authority to buy a Louis Vuitton bag, it’s too expensive ….” Landgaard and Shipman also insisted that the undercover agent buy a “throwaway” or “burner” phone on which to speak to them about the scheme.
The guilty pleas took place before United States District Judge John Gleeson at the United States Courthouse in Brooklyn, New York. When sentenced, the defendants each face a maximum sentence of 20 years’ imprisonment.
The government’s case is being prosecuted by the Office’s Business and Securities Fraud Section. Assistant United States Attorney Jack Dennehy is in charge of the prosecution. Assistant United States Attorneys Brian Morris and Karin Orenstein of the Office’s Civil Division are responsible for the forfeiture of assets.
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This prosecution was the result of efforts by President Obama's Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. Attorneys’ Offices, and state and local partners, it’s the broadest coalition of law enforcement, investigatory, and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state, and local authorities; addressing discrimination in the lending and financial markets, and conducting outreach to the public, victims, financial institutions, and other organizations. Since fiscal year 2009, the Justice Department has filed over 18,000 financial fraud cases against more than 25,000 defendants. For more information on the task force, visit http://www.StopFraud.gov.
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The Defendants:
Name: Michael Dodd, also known as "Michael Stanley"
Age: 65
Panama City, PanamaName: Kenneth Landgaard
Age: 46
Alexandria, MinnesotaName: James Robert Shipman, Jr.
Age: 64
Hollywood, FloridaE.D.N.Y. Docket No. 15-CR-552 (JG)
Essex County, New Jersey, Man Charged with Two Bank Robberies and Using Firearm in Connection with Crime of ViolenceRead the Press Release
NEWARK, N.J. – An Essex County, New Jersey, man charged with robbing Capital One Bank in Newark twice, including once in an armed robbery, will make his initial court appearance today, U.S. Attorney Paul J. Fishman announced.
Gregory A. Jones, 59, of Newark, is charged by complaint with two counts of bank robbery and one count of using a firearm during the commission of a crime of violence. Jones is expected to make his initial appearance this afternoon before U.S. Magistrate Judge Joseph A. Dickson in Newark federal court.
According to the complaint and statements made in court:
On May 6, 2014, Jones entered the Capital One Bank wearing dark glasses and a scarf and presented the teller a note demanding cash. After Jones left the bank with stolen money, including a dye pack, law enforcement recovered a pair of dark glasses and a scarf near the bank next to currency, saturated with ink from the dye pack. DNA recovered from the glasses and the scarf matched a DNA sample that previously was lawfully obtained from Jones. He was later identified based on surveillance video and witness statements.
On Sept. 19, 2014, Jones entered the bank again, brandished a firearm from underneath his sweater, and told a teller to give him money, stating that he had a gun and would shoot. Jones fired the weapon into the ceiling. He was later identified using surveillance video and witness statements.
Jones has been detained in the Essex County Jail on state charges related to the May 6, 2014 robbery.
The bank robbery counts each carry a maximum potential penalty of up to 20 years in prison and a fine of up to $250,000 or twice the gross pecuniary gain or loss. The discharging a firearm during the bank robbery count carries a mandatory minimum sentence of 10 years in prison and a maximum sentence of life in prison, which must be served consecutive to the other counts.
U.S. Attorney Fishman credited special agents with the FBI, under the direction of Special Agent in Charge Richard M. Frankel in Newark, New Jersey; N.J. State Police, under the direction of Col. Rick Fuentes; the Essex County Prosecutor’s Office, under the direction of Acting Prosecutor Carolyn A. Murray; and the Newark Police Department, under the direction of Public Safety Director Anthony Ambrose, with the investigation leading to the charges.
The government is represented by Assistant U.S. Attorney Svetlana M. Eisenberg of the U.S. Attorney’s Office General Crimes Unit in Newark.
The charges and allegations contained in the complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
District Heights Man Convicted for Involuntary Manslaughter in Fatal Baltimore-Washington Parkway Car CrashRead the Press Release
Greenbelt, Maryland – A federal jury convicted Anthony Lamont Payne, age 27, of District Heights, Maryland, today for involuntary manslaughter in connection with a fatal car crash that occurred on the Baltimore-Washington Parkway on March 20, 2015. The jury acquitted Payne of second degree murder.
“The evidence showed that Anthony Lamont Payne threatened the victim with a gun, then chased his car on the Baltimore-Washington Parkway at speeds of up to 115 miles per hour,” said U.S. Attorney Rod J. Rosenstein. “Payne’s atrocious criminal conduct caused the tragic death of Terrance Terrelle Lagrue, a 19 year old man.”
The conviction was announced by United States Attorney for the District of Maryland Rod J. Rosenstein and Chief of Police Robert D. MacLean of the U.S. Park Police.
According to evidence presented at the four day trial, Payne caused the death of the victim on March 20, 2015, following a high-speed chase on the Baltimore-Washington Parkway. Two eyewitnesses testified that Payne pointed a gun at the victim both before and during the chase on the Parkway. According to trial testimony, the victim’s car was hit by Payne’s vehicle, causing the victim’s vehicle to roll over and burst into flame. Scientific evidence presented at trial from the airbag module in Payne’s vehicle showed that Payne was driving 115 miles per hour at the time of the collision. The victim died at the scene.
Payne faces a maximum sentence eight years in prison. U.S. District Judge Theodore J. Chuang has scheduled sentencing for April 25, 2016 at 2:00 p.m. Payne has been detained since his arrest on April 28, 2015.
United States Attorney Rod J. Rosenstein praised the U.S. Park Police for its work in the investigation. Mr. Rosenstein thanked Assistant United States Attorney Hollis Raphael Weisman and Special Assistant United States Attorney Conor Mulroe, who are prosecuting the case.