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Wednesday 18 November 2015
Two Men Charged with Distribution of HeroinRead the Press Release
Michael Hernandez, a/k/a “Jimmy,” 31, and Santo Rondo, 45, both citizens of the Dominican Republic, were charged today by indictment with distribution of 100 grams or more of heroin in Philadelphia, announced United States Attorney Zane David Memeger. Hernandez and Rondo are charged with distributing more than 100 grams of heroin. Hernandez is also charged with distribution of more than 100 grams of heroin, possession with intent to distribute more than 100 grams of heroin, possession of a firearm in furtherance of a drug trafficking felony and possession of a firearm by a convicted felon.
According to the indictment, on July 30, 2015, Michael Hernandez distributed approximately 157 grams of heroin in Philadelphia, Pennsylvania. It is further charged that on August 12, 2015, Hernandez and Santo Rondo distributed approximately 200 grams of heroin in Philadelphia. The indictment further charges that on August 13, 2015, Michael Hernandez possessed with intent to distribute approximately 600 grams of heroin in Philadelphia, and that he also possessed a loaded .40 caliber Smith & Wesson semi-automatic pistol in furtherance of a drug trafficking offense for which he could be charged federally, as well as for possession of a firearm by a convicted felon.
If convicted, Michael Hernandez faces a statutory maximum sentence of life in prison with a mandatory minimum term of 10 years, up to a lifetime of supervised release, a possible fine, and a $500 special assessment. Santo Rondo faces a statutory maximum sentence of 40 years in prison with a mandatory minimum term of five years, up to a lifetime of supervised release, a possible fine, and a $100 special assessment.
This case was investigated by the Federal Bureau of Investigation and the Philadelphia Police Department. It is being prosecuted by Assistant United States Attorney Joseph T. Labrum, III.
Tulsa Woman Sentenced to 15 Months for Possession of Counterfeit ObligationRead the Press Release
MUSKOGEE, OKLAHOMA - The United States Attorney’s Office for the Eastern District of Oklahoma, announced today that CHELBI GEORGE, age 42, of Tulsa, Oklahoma, was sentenced to 15 months imprisonment for POSSESSION OF A COUNTERFEIT OBLIGATION, in violation of Title 18, United States Code, Section 472.
The charge arose from an investigation by the Muskogee Police Department and the United States Secret Service.
The Indictment alleges that on or about May 5, 2015, in the Eastern District of Oklahoma, the defendant, CHELBI GEORGE, did with intent to defraud, possess counterfeit obligations of the United States.
The Honorable Ronald A. White, District Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, presided over the hearing.
Assistant United States Attorney Melody Nelson represented the United States.
Tulsa Man Pleads Guilty to Firearm PossessionRead the Press Release
MUSKOGEE, OKLAHOMA - The United States Attorney’s Office for the Eastern District of Oklahoma, announced that JOSHUA JOHN KILLBLANE, age 33, of Tulsa, Oklahoma, pled guilty to FELON IN POSSESSION OF FIREARM, in violation of Title 18, United States Code, Sections 922(g)(1) and 924(a)(2), punishable by not more than 10 years imprisonment, up to a $250,000.00 fine or both.
The Indictment alleged that on or about May 21, 2015, in the Eastern District of Oklahoma, the Defendant, JOSHUA JOHN KILLBLANE, having been convicted of a crime punishable by imprisonment for a term exceeding one year, did knowingly possess in and affecting commerce, firearms, which had been shipped and transported in interstate commerce.
The charges arose from an investigation by the Muskogee Police Department, the Bureau of Alcohol, Tobacco and Firearms and the Federal Bureau of Investigation.
The Honorable Steven P. Shreder, Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, accepted the guilty plea and ordered the completion of a presentence report. Sentencing will be scheduled following its completion. The defendant will remain in the custody of the United States Marshal Service pending sentencing.
Assistant United States Attorney Kristin Harrington represented the United States.
Topeka Man Sentenced to 12+ Years for Distributing Child PornographyRead the Press Release
TOPEKA, KAN. – A Topeka man who used the screen name “kansas_dad” in chat rooms was sentenced Wednesday to 150 months in federal prison for distributing child pornography, U.S. Attorney Barry Grissom said.
Tucker J. Newman, 48, Topeka, Kan., pleaded guilty to one count of distributing child pornography. In his plea he admitted he sent child pornography to an undercover investigator in California. During an online conversation in January 2014, Newman asked the investigator to send him video of a child being sexually abused. In trade, Newman sent the investigator child pornography. When investigators served a search warrant at Newman’s home in Topeka, they found 64 child pornography video files on a DVD-R. Most of the videos showed adult men engaging in sex acts with children younger than 10 years of age.
Grissom commended the Topeka Police Department, Homeland Security Investigations and Assistant U.S. Attorney Christine Kenney for their work on the case.
Topeka Jewelry Store Owner Sentenced for Purchasing Stolen JewelryRead the Press Release
TOPEKA, KAN. - The owner of a Topeka jewelry store was sentenced Wednesday to a year and a day in federal prison for knowingly buying jewelry that had been stolen in home invasions, U.S. Attorney Barry Grissom said.
In June, John O. Dasher, 54, Silver Lake, Kan., pleaded guilty in U.S. District Court in Topeka to one count of transporting stolen goods. In his plea, he admitted the crimes occurred from 2010 to 2013 while he owned The Diamond House, 1801 S.W. Gage in Topeka. He knowingly purchased stolen jewelry taken in home invasions.
Dasher paid a fraction of the actual value of the jewelry, which he melted down to form scrap gold. He mailed the gold scrap via the U.S. Postal Service to gold wholesalers Pop Gems International, Gold Empire and Coinex, Inc., in Los Angeles, Calif.
As part of his plea, Dasher agreed to a forfeiture money judgment of $130,000
Grissom commended the Topeka Police Department, the FBI, the Shawnee County District Attorney’s Office and Assistant U.S. Attorney Jared Maag for their work on the case.
Three Arrested on Charges of Conspiracy to Distribute HeroinRead the Press Release
The Office of the United States Attorney for the District of Vermont stated that Wilson Santiago, 35, of Hartford, CT, Jose Pagan, 37, of Hartford, CT, and Samantha Partlow, 29, of Barre, VT, made initial appearances today in the United States District Court in Burlington, following their arrests for conspiracy to distribute heroin. U.S. Magistrate Judge John M. Conroy temporarily detained all three people. Their detention hearings are set for next week.
According to court documents, in the spring of 2015, the ATF began an investigation into Samantha Partlow. ATF had received information that Partlow was selling heroin and crack cocaine from her apartment at 100 Summer Street in Barre and that her drug suppliers were people from the Hartford, CT area. In October and November 2015, the ATF used a confidential informant to conduct three controlled buys of heroin from Partlow at Partlow’s apartment on Summer Street. On November 17, 2015, ATF executed a search warrant at Partlow’s residence. As the ATF approached the residence, a person from inside the apartment, later identified as Wilson Santiago, threw a package of crack out one of the windows of Partlow’s apartment. Inside the residence, ATF found heroin, along with a scale and other paraphernalia used to package drugs. Santiago and Pagan (who was also inside the house during the search) were identified as two of the men from Hartford, CT, who were supplying Partlow with heroin and crack.
The United States Attorney, Eric S. Miller, emphasized that the charge against Santiago, Pagan and Partlow is merely an accusation and that the defendants are presumed innocent unless and until they are proven guilty.
If convicted, the defendants face up to twenty years of imprisonment and a fine of up to $1,000,000. The actual sentence would be determined with reference to federal sentencing guidelines.
Santiago is represented by Craig Nolan, Esq. Pagan is represented by the Federal Public Defenders Office. Partlow is represented by Richard Bothfeld, Esq. The prosecutor is Assistant U.S. Attorney Wendy G. Fuller.
Terry Resident Indicted for Aiming Laser Pointer at AricraftRead the Press Release
Jackson, Miss - Landon Albritton, age 20, of Terry, Mississippi, has been charged in a federal indictment with knowingly aiming the beam of a laser pointer at an aircraft or its flight path in the special aircraft jurisdiction of the United States, announced U.S. Attorney Gregory K. Davis and Special Agent in Charge Donald Alway with the Federal Bureau of Investigation in Mississippi.
According to the indictment in this case, the incident occurred on August 6, 2015. Albritton was arraigned today before U.S. Magistrate Judge Linda R. Anderson. The case is scheduled for trial before U.S. District Judge Henry T. Wingate on January 4, 2016. If convicted, he faces a maximum penalty of five years in prison and a $250,000 fine.
Reports of laser attacks have increased dramatically in recent years as powerful laser devices have become more affordable and widely available to the public. Lasers can completely incapacitate pilots who are trying to fly safely to their destination, endangering crew members, passengers and people on the ground. If you have information about a lasing incident or see someone pointing a laser at an aircraft, call your local FBI field office or dial 911.
The public is reminded that a criminal indictment is a formal charge against a defendant. It is merely an accusation and a defendant is presumed innocent until proven guilty in a court of law.
Tahlequah Man Sentenced to 36 Months Probation for Providing Contraband in PrisonRead the Press Release
MUSKOGEE, OKLAHOMA - The United States Attorney’s Office for the Eastern District of Oklahoma, announced today that NATHAN LEON STANLEY BENALLY-SAM, age 21, of Tahlequah, Oklahoma, was sentenced to 3 years of probation for PROVIDING CONTRABAND IN PRISON, in violation of Title 18, United States Code, Section 1791(a)(1).
The charge is a result of an investigation by the Muskogee County Sheriff’s Department and the United States Marshal Service. The defendant was indicted in June, 2015 and pled guilty in July, 2015.
The Indictment alleged that on or about February 5, 2015, in the Eastern District of Oklahoma, the Defendant, NATHAN LEON STANLEY BENALLY-SAM, did knowingly and intentionally attempt to provide marijuana, to an inmate in a prison.
The Honorable Ronald A. White, District Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, presided over the hearing.
First Assistant United States Attorney Doug Horn represented the United States.
Stephens City Woman Sentenced for Role in Fatal OverdoseRead the Press Release
HARRISONBURG, VIRGINIA – A Stephens City, Virginia woman, who previously admitted to selling heroin that led to a fatal overdose in March 2014, was sentenced today in the United States District Court for the Western District of Virginia in Harrisonburg.
Brandy Dawn Kelly, 37, of Stephens City, Va., previously pled guilty to one count of distribution of heroin to victim R.F.L. Today in District Court, Kelly was sentenced to nine years of federal incarceration and four years of supervised release thereafter.
“This case is another example of the trail of pain and sorrow that the heroin epidemic has cut across Virginia and the nation,” United States Attorney Anthony P. Giorno said today. “The only way this epidemic can be curbed is through a combination of prevention, treatment and prosecution. It is only through a comprehensive approach that we can achieve real change.”
According to evidence presented at pervious hearings by Assistant United States Attorney Elizabeth G. Wright, Kelly admitted to buying heroin from Scott Pierce, who previously traveled to Baltimore, Maryland and purchased that heroin from Christopher Giles. Kelly set the price, arranged the transaction and met with the victim, R.F.L. on March 19-20, 2014. R.F.L. used the heroin purchased from Kelly, overdosed and died as a result. Pierce and Giles have both been charged federally for their roles in the overdose death.
The investigation of these cases was conducted by the Drug Enforcement Administration and the Northwest Virginia Regional Drug Task Force. The Task Force includes law enforcement from the counties of Frederick, Clarke, Shenandoah, Warren and Page as well as the cities and towns of Winchester, Front Royal and Strasburg, and the Virginia State Police. Assistant United States Attorney Elizabeth G. Wright prosecuted the cases for the United States.
St. Petersburg Woman Sentenced to Nine Years for Conspiracy to Possess and Distribute CocaineRead the Press Release
Tampa, Florida – U.S. District Judge Charlene Edwards Honeywell has sentenced Nicole Caudill (28, St. Petersburg) to nine years in federal prison for conspiracy to possess and distribute crack and powder cocaine. She pleaded guilty on December 29, 2014.
According to court documents, from March 2013 to October 2014, Caudill and a another individual sold a variety of illegal narcotics, including crack and powder cocaine, to a confidential informant. A search warrant executed at her residence revealed, among other items, two firearms, crack and powder cocaine, and prescription pills. Law enforcement officers also seized more than $100,000 in unlawful drug proceeds (in the form of cash and jewelry) from various safe deposit boxes belonging to Caudill and a co-conspirator.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives. It was prosecuted by Assistant United States Attorney Rachel Jones.
St. Croix Man Arrested for Possessing a Firearm and AmmunitionRead the Press Release
St. Croix, USVI – Curtis Winston Venner, 34, of St. Croix, was arrested today on a criminal complaint charging him with possession of a firearm by convicted felon, possession of ammunition by a convicted felon, unauthorized possession of a firearm, and unauthorized possession of ammunition, United States Attorney Ronald W. Sharpe announced today. Venner made his initial appearance before U.S. Magistrate Judge George Cannon in District Court and was ordered detained pending a hearing scheduled for November 23, 2015 at 9:00 a.m.
According to the complaint, Venner was the driver and sole occupant of a vehicle that was stopped on Rattan Road on July 12, 2015. Inside the vehicle, next to Venner on the floor of the front passenger seat, law enforcement found a bag containing a Cobray, model M 12, .380 caliber handgun and a magazine containing 17 bullets.
If convicted of possessing a firearm and/or ammunition by a convicted felon, Venner faces a maximum sentence of 10 years’ imprisonment and a $250,000.00 fine for each count. If convicted of unauthorized possession of a firearm, Venner faces a mandatory minimum sentence of one year imprisonment and a maximum of five years. If convicted of unauthorized possession of ammunition, Venner faces a maximum sentence of seven years’ imprisonment.
The complaint is the result of investigative work conducted by the Virgin Islands Police Department and the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF). The case is being prosecuted by Assistant U.S. Attorney Rami. S. Badawy.
United States Attorney Sharpe reminds the public that a complaint is merely a formal charging document and is not evidence of guilt. Every defendant is presumed innocent until and unless found guilty.
Seven Defendants Arrested for Narcotics Trafficking in the Far Rockaway Neighborhood of Queens, New YorkRead the Press Release
A twelve-count indictment was unsealed today in the United States District Court in Brooklyn charging seven defendants with crimes including conspiracy to distribute of heroin, crack cocaine, powder cocaine and marijuana, use and possession of firearms in furtherance of a drug crime, and firearms trafficking. The defendants were arraigned today before United States Magistrate Judge Robert M. Levy, at the U.S. Courthouse, 225 Cadman Plaza East, Brooklyn, New York.
The charges and arrests were announced by Robert L. Capers, United States Attorney for the Eastern District of New York; Diego G. Rodriguez, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI); Delano A. Reid, Special Agent-in-Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives, New York Field Division (ATF); William J. Bratton, Commissioner, New York City Police Department (NYPD) and Thomas C. Krumpter, Acting Commissioner, Nassau County Police Department (NCPD).
In response to rising violence in the area, the FBI, ATF, NYPD and NCPD conducted a joint investigation resulting in today’s charges against members of a Far Rockaway-based narcotics and firearms trafficking organization. As detailed in the detention memorandum filed today by the government, during the course of the investigation law enforcement agents monitored a court-ordered wiretap on a cellular telephone used by a leader of the organization which documented the defendants’ distribution of heroin and other narcotics. In one call, organization members discussed packaging a quantity of heroin for resale representing more than 1,500 individual doses with a retail value of more than $15,000. As part of the investigation, law enforcement agents and officers purchased from the defendants heroin representing some 2,500 individual doses and more than a dozen firearms, including two assault rifles. Today, in conjunction with the arrests, agents executed search warrants at three locations in Far Rockaway resulting in the seizure of heroin, firearms, scales and other narcotics paraphernalia.
The intercepted telephone calls also demonstrate the organization’s possession and sale of firearms and willingness to resort to violence to resolve drug disputes. For example, in a call intercepted on September 29, 2015, between a coconspirator and a narcotics customer, the customer recounted a previous incident in which the defendant Jose Perez threatened to shoot the customer over money owed to the organization. The coconspirator told the customer “I know he pulled a gun, but you played yourself, that’s why. . . . He did that because you owed me money. That’s why I told him not to shoot you.” In a call intercepted on September 30, 2015, in which defendant Jose Crespo and a coconspirator discussed their concerns about law enforcement activity in the area, Crespo confirmed that defendant Jermaine Stephenson was holding the organization’s firearms. Stephenson’s role as the holder of the organization’s firearms was corroborated in a separate recording made by a cooperating witness on September 11, 2015, in which a coconspirator described Stephenson as the organization’s “holster.” Most recently, in a recording made by a cooperating witness on November 11, 2015, a coconspirator informed the cooperating witness that he keeps a firearm “on standby” at his house and would be willing to use it to resolve a dispute the cooperating witness claimed to be having.
“This prosecution deals a fatal blow to a group allegedly responsible for funneling illegal guns and drugs into Far Rockaway,” stated United States Attorney Capers. “We are committed to dismantling such criminal organizations and removing the scourge of illegal guns and drugs – and the violence that ensues – from our neighborhoods and making our communities safe for their residents.”
FBI Assistant Director-in-Charge Rodriguez stated, “Engaging in the illegal distribution of firearms and drugs is an extremely dangerous combination, one that promotes violent activity and degrades the core of our communities. The defendants’ alleged actions highlight the looming danger that’s imminent when criminals bring guns and drugs into our neighborhoods. The FBI will continue to aggressively investigate these cases, work with our partners to disrupt and dismantle such activity, and minimize the threat these criminals pose to the innocent members of our community.”
ATF Special Agent-in-Charge Reid stated, “Just as important as making these arrests and virtually dismantling this alleged criminal organization is the fact that the ATF and its law enforcement partners have drastically improved the quality of life in the Far Rockaway area. I am extremely thankful for the inter agency cooperation during the course of this investigation and am confident that the prosecution of these defendants will be swift and comprehensive. This group’s days of illegally dealing in heroin have come to an end.”
“Today’s arrests and indictments are the result of the coordinated efforts of law enforcement to stop the flow of illegal firearms and narcotics into Far Rockaway. I commend the hard work of the investigators involved in the case whose efforts resulted in these individuals being brought to justice,” said NYPD Commissioner Bratton.
“Crime has no boundaries and this case is an example of how partners in law enforcement utilized talented personnel and resources to bring these seven defendants to justice,” said Acting NCPD Police Commissioner Krumpter. “Today’s arrests should serve as a deterrent to criminals as we at the Nassau County Police Department are committed to working with our fellow law enforcement partners to ensure public safety.”
The charges in the indictment are allegations, and the defendants are presumed innocent unless and until proven guilty. If convicted of the most serious offense, six of the defendants face maximum sentences of life imprisonment, and one defendant faces up to 20 years of imprisonment.
The government’s case is being prosecuted by The Office’s Organized Crime & Gangs Section. Assistant United States Attorney Kevin Trowel is in charge of the prosecution.
The Defendants:
JOSE CRESPO, also known as “Santana” and “San”
Age: 54
Bronx, NYRAY JOHNSON, also known as “Moreno” and “Spoon”
Age: 30
Queens, NYJERMAINE STEPHENSON, also known as “Half”
Age: 34
Queens, NYJOSE PEREZ
Age: 39
Queens, NYISMAEL DEVALLE, also known as “Ish”
Age: 40
Queens, NYMIRIAM GAITHER
Age: 34
Queens, NYGRACE JAEN, also known as “Gracie” and “Graciela”
Age: 31
Queens, NYSandusky man charged for false billing schemeRead the Press Release
A Sandusky man was charged with wire fraud and conspiracy to commit wire fraud related to a billing scheme to defraud his employer, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
Anthony K. Jones, 59, worked at Kyklos Bearing International LLC (KBI), where he had authority to make purchases for KBI using an acquisition credit card and the company’s purchase order process. Scott C. Wagner was the owner of Construction Equipment and Supply (CES), which sold and rented industrial machinery, according to the criminal information.
Beginning in 2001 and continuing through 2013, Wagner submitted invoices to Jones for goods that were never delivered and purchases of goods far in excess of what was actually delivered. Jones in turn arranged for KBI to pay the invoices, according to the information.
Wagner made large sums of money through the false billing scheme and compensated Jones with cash kickbacks, according to the information
If convicted, the defendant’s sentence will be determined by the court after reviewing factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violation. In all cases the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
The investigating agency in this case is the Federal Bureau of Investigation, Sandusky, Ohio, with the assistance of the Ohio Bureau of Criminal Investigation and the Erie County Sheriff’s Office. The case is being handled by Assistant United States Attorney Gene Crawford.
An information is only a charge and is not evidence of guilt. Defendants are entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
San Francisco Tax Preparer Indicted for Wire Fraud, Money LaunderingRead the Press Release
SAN FRANCISCO - A federal grand jury indicted Cary S. Collins on charges of wire fraud, money laundering, and preparing a false tax return, announced Acting United States Attorney Brian J. Stretch and Internal Revenue Service, Criminal Investigation, Acting Special Agent in Charge Thomas McMahon.
According to the indictment, unsealed today, Collins, 53, of San Francisco, is alleged to have engaged in a scheme to defraud clients of more than $1.3 million, and used those funds for personal expenditures. For this scheme, the indictment alleges four counts each of wire fraud, in violation of 18 U.S.C. § 1343, and money laundering, in violation of 18 U.S.C. § 1957. The indictment also alleges that Collins assisted in preparing a false tax return for a client, in violation of 26 U.S.C. § 7206(2).
Collins was arrested at his San Francisco home and made his initial appearance in federal court in San Francisco on November 18, 2015. The Honorable Laurel Beeler, U.S. Magistrate Judge, ordered Collins released on a $250,000 secured bond. Collins’ next scheduled appearance is at 2:30 p.m. on December 8, 2015, for an initial appearance before the Honorable Richard Seeborg, U.S. District Court Judge.
An indictment merely alleges that crimes have been committed, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt. If convicted of wire fraud, the defendant faces a maximum sentence per count of 20 years’ imprisonment, a $250,000 fine, 3 years of supervised release, a $100 special assessment, restitution, and criminal forfeiture. If convicted of money laundering, the defendant faces a maximum sentence per count of 10 years’ imprisonment, a $250,000 fine, 3 years of supervised release, a $100 special assessment, restitution, and criminal forfeiture. If convicted of assisting in the preparation of a false tax return, the defendant faces a maximum sentence of 3 years’ imprisonment, a $100,000 fine; 3 years of supervised release, a $100 special assessment, and restitution. However, any sentence following conviction would be imposed by the court after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Assistant U.S. Attorney Hartley M. K. West is prosecuting the case with the assistance of Hayden Leadford and Trina Khadoo. The prosecution is the result of an investigation by the Internal Revenue Service, Criminal Investigation.
Prior Felon from Artesia Sentenced to Ten Years in Prison for Violating Federal Narcotics and Firearms LawsRead the Press Release
ALBUQUERQUE – Enrique Hernandez, 44, of Artesia, N.M., was sentenced today in federal court in Las Cruces, N.M., to 120 months in prison for his conviction on federal firearms and methamphetamine trafficking charges. Hernandez will be on supervised release for five years following his term of incarceration.
Hernandez was arrested on June 5, 2014, by the DEA and the HIDTA Region VI Pecos Valley Drug Task Force (PVDTF) based on a criminal complaint charging him with violating the federal firearms and narcotics laws in Eddy County, N.M. According to the criminal complaint, Hernandez distributed approximately 20.9 grams of methamphetamine to an individual who was working with law enforcement in Artesia on April 16, 2014 and June 4, 2014.
Court filings also reflect that the DEA and PVDTF found approximately 293 grams of methamphetamine, drug paraphernalia, firearms, ammunition and $1,908.00 in cash during the execution of a search warrant on Hernandez’s place of business. At the time Hernandez was prohibited from possessing firearms and ammunition because he previously had been convicted of possession of methamphetamine with intent to distribute.
On Oct. 17, 2014, Hernandez pled guilty to a felony information charging him with possession of methamphetamine with intent to distribute and being a felon in possession of firearms and ammunition. Hernandez admitted possessing ten ounces of methamphetamine and several firearms and ammunition in Eddy County on June 5, 2014. In entering the guilty plea, Hernandez admitted that he intended to provide the methamphetamine to another individual and that he knew it was illegal for him to possess firearms and ammunition because of his status as a convicted felon.
This case was investigated by the Las Cruces office of the DEA and the HITDA Region VI Pecos Valley Drug Task Force and was prosecuted by Assistant U.S. Attorney Renee L. Camacho of the U.S. Attorney’s Las Cruces Branch Office.
The HITDA Region VI Pecos Valley Drug Task Force is comprised of officers from the Eddy County Sheriff’s Office, Carlsbad Police Department, Artesia Police Department, New Mexico Probation and Parole, and the 5th Judicial District Attorney’s Office. The High Intensity Drug Trafficking Areas (HIDTA) program was created by Congress with the Anti-Drug Abuse Act of 1988. HIDTA is a program of the White House Office of National Drug Control Policy (ONDCP) which provides assistance to federal, state, local and tribal law enforcement agencies operating in areas determined to be critical drug-trafficking regions of the United States and seeks to reduce drug trafficking and production by facilitating coordinated law enforcement activities and information sharing.
President of Local Defense Contractor Sentenced to One Year and a Day in Federal Prison for Bribery ConspiracyRead the Press Release
Oklahoma City, Oklahoma – CHRISTOPHER HOUSTON HENSLEY, 57, of Yukon, Oklahoma, was sentenced today to serve one year and one day in federal prison for his role in a conspiracy to bribe a public official at the Corpus Christi Army Depot, announced Sanford C. Coats, United States Attorney for the Western District of Oklahoma.
Hensley is the founder and president of Aerochem, Inc., based in Oklahoma City. Aerochem manufactures paint remover ("depaint") products, and it sold these products to Tinker Air Force Base ("Tinker") and other military bases for several years. On June 9, 2015, Hensley was charged by information with conspiracy to bribe a public official at the Corpus Christi Army Depot ("CCAD") in Corpus Christi, Texas. The information alleged that Aerochem started selling paint remover products in 2010 to CCAD. According to the information, Hensley and Soney E. Beesley, a former Aerochem officer, developed a relationship at CCAD with Richard Balderas, Jr., a supervisor of a CCAD division that stripped paint off military helicopter parts. The information alleged that Hensley and Beesley provided entertainment, $5,000 in wire transfers, and more than $3,000 in cash to Balderas in exchange for his favorable treatment of Aerochem’s business interests at CCAD. At a plea hearing on June 23, 2015, Hensley admitted that he approved of Beesley taking Balderas out to gentlemen’s clubs in Corpus Christi and using Aerochem money to buy a $2,600 football helmet for the football team of Balderas’ son.
Today, United States District Judge Joe Heaton sentenced Hensley to one year and one day in federal prison. Judge Heaton ruled that Hensley was responsible for bribery payments by Aerochem to officials at Tinker and CCAD. Judge Heaton ordered Hensley to pay $24,316.06 in restitution to the U.S. Department of Defense, to forfeit an additional $24,316.06 to the federal government as criminal proceeds, and to pay a fine of $25,000. Following his term of imprisonment, Hensley must serve three years of supervised release. Judge Heaton ordered Hensley to report on January 4, 2016, to a facility designated by the Bureau of Prisons.
Hensley is the fourth defendant to plead guilty and to be sentenced for an Aerochem bribery scheme involving Tinker and CCAD. In October 2013, SHELVIE RAYMOND TABB, 51, of Canadian, Oklahoma, pled guilty to accepting cash from an Aerochem employee in exchange for Tabb’s favorable treatment of Aerochem’s business interests in federal contracting. Tabb is a former depaint section chief at Tinker. In February 2014, SONEY E. BEESLEY, 41, of Oklahoma City, plead guilty to offering a bribe to a public official. Beesley admitted at a plea hearing that he made cash payments to Tabb in exchange for Tabb’s favorable treatment of Aerochem’s interests in federal contracts at Tinker. In June 2014, RICHARD BALDERAS, JR., 47, of Ingleside, Texas, pled guilty to accepting a bribe as a public official. At a plea hearing, Balderas admitted that as a CCAD supervisor, he helped to decide when CCAD needed to replace its paint stripper. Balderas further admitted that in 2011 and 2012, he accepted cash from Beesley on behalf of Aerochem, and Beesley represented that the cash payments were based on how much paint stripper CCAD bought from Aerochem. In August 2015, Judge Heaton sentenced Tabb, Beesley, and Balderas each to a term of 36 months’ probation. Beesley was also ordered to serve 30 days of home confinement and to pay a fine of $30,000.
These cases are the result of an investigation by the U.S. Air Force Office of Special Investigations, Federal Bureau of Investigation, and U.S. Army Criminal Investigation Command. The case was prosecuted by Assistant U.S. Attorney Chris M. Stephens.
Reference is made to court filings for further information.
Portland Man Pleads Guilty to Embezzlement and Making False Entries in Credit Union RecordsRead the Press Release
Contact: Donald E. Clark
Assistant United States Attorney
Tel: (207) 780-3257Portland, Maine: United States Attorney Thomas E. Delahanty II announced that John C. Barry, 69, of Portland, pled guilty today in U.S. District Court to embezzlement and making false entries in credit union records.
According to court records, the defendant was the manager of the Portland Police Department Federal Credit Union (“PPDFCU”), a federal credit union whose deposits were federally insured. In that capacity, the defendant had access to PPDFCU bank accounts and was responsible for managing the activities of the credit union. Between 2009 and December 2013, the defendant embezzled more than $400,000 from credit union accounts by transferring the funds into his and his family members’ accounts for his and their personal use. Over that period of time, the defendant was also responsible for preparing and submitting certified quarterly call reports to the National Credit Union Administration (“NCUA”). The defendant caused false quarterly call reports to be filed that overstated the PPDFCU’s net worth to make it appear that PPDFCU was sufficiently capitalized, when in truth and in fact, as he well knew, the PPDFCU was not sufficiently capitalized. As a result, on December 1, 2014, the NCUA facilitated the acquisition of the PPDFCU by a much larger federal credit union.
Barry faces up to 30 years in prison, five years of supervised release and a $1,000,000 fine on each charge. He will be sentenced after the completion of a presentence investigation report by the U.S. Probation Office.The investigation was conducted by the Federal Bureau of Investigation.
Pittsburgh Man Sentenced for Possessing Videos and Images of Child PornographyRead the Press Release
PITTSBURGH – An Allegheny County resident pled guilty and has been sentenced in federal court to one year and one day imprisonment, followed by 10 years supervised release, on his conviction of possession of material depicting the sexual exploitation of a minor, United States Attorney David J. Hickton announced today.
Senior United States District Judge Gustave Diamond imposed the sentence on Matthew Jankowski, 24, formerly of Pittsburgh, Pennsylvania.
According to information presented to the court, on or about June 24, 2014, Jankowski knowingly possessed videos and images in computer graphic files, the production of which involved the use of minors engaging in sexually explicit conduct, some of whom had not yet attained 12 years of age.
Assistant United States Attorney Jessica Lieber Smolar prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the Federal Bureau of Investigation, Allegheny County District Attorney’s Office, and Indiana County District Attorney’s Office for conducting the investigation leading to the successful prosecution of Jankowski.
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.
Pensacola Man Convicted of Child Exploitation CrimesRead the Press Release
PENSACOLA, FLORIDA – Late yesterday, a federal jury convicted Pensacola resident Robert M. Grafton Jr., 29, of attempted enticement of a minor for sex. Additionally, Grafton pled guilty to possession of child pornography just prior to jury selection. The verdict was announced by Christopher P. Canova, Acting United States Attorney for the Northern District of Florida.
At trial, the government presented evidence that, in May 2015, Grafton communicated online with an undercover law enforcement officer for the purpose of meeting a 12-year-old special needs child for sexual activity. Grafton was arrested when he arrived at the arranged meeting location in Pensacola. A search of his cellular telephone and digital media at his residence revealed numerous images and videos of child pornography.
For the attempted enticement of a minor charge, Grafton faces a minimum of 10 years in prison and a maximum of life in prison. For the possession of child pornography charge, Grafton faces a maximum of 20 years in prison. The sentencing hearing is scheduled for January 27, 2016.
The case was investigated by the United States Immigration and Customs Enforcement Homeland Security Investigations, Pensacola Police Department, Gulf Breeze Police Department, and other agencies that are part of the North Florida Internet Crimes Against Children Task Force. The case was prosecuted by Assistant United States Attorney David L. Goldberg.
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]Pennsylvania teacher sentenced for traveling to engage in sexual conduct with minorRead the Press Release
CLARKSBURG, WEST VIRGINIA – Daniel S. McGarvey, 45, a teacher from Uniontown, Pennsylvania, was sentenced today to 46 months in prison after he traveled to West Virginia with the intent to engage in sexual conduct with a minor, United States Attorney William J. Ihlenfeld, II, announced.
McGarvey used internet-based websites and text messaging to communicate with a minor female who he believed to be 15 years old. In October 2014, he traveled to Bridgeport, West Virginia for the purpose of engaging in sexual conduct with the aforementioned minor female.
McGarvey pled guilty in April 2015 to one count of “Travel with Intent to Engage in Illicit Sexual Conduct” following an investigation by the Bridgeport Police Department and the West Virginia Internet Crimes Against Children Task Force.
Assistant U.S. Attorney Stephen Vogrin prosecuted the case on behalf of the government.
U.S. District Judge Irene M. Keeley presided.
Partner at New York Accounting Firm Pleads Guilty in Manhattan Federal Court to Multimillion-Dollar Accounting Fraud SchemeRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, and Diego Rodriguez, the Assistant Director in Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), announced that MARC WIESELTHIER, a certified public accountant and partner at a New York accounting firm (the “Firm”), pled guilty today to participating in a scheme to obtain millions of dollars in loans by making false statements and providing false and fraudulent documents to two commercial banks based in New York (the “Banks”) concerning the financial condition of a Florida-based cosmetics company (the “Company”) that was a client of WIESELTHIER. WIESELTHIER pled guilty before United States Magistrate Judge Debra Freeman.
Manhattan U.S. Attorney Preet Bharara said: “Marc Wieselthier has admitted to lying about the financial condition of a company to induce banks to lend the company millions of dollars. Relying on false information, the banks made loans that ended up defaulting with nearly $5 million still owed. Wieselthier now joins his co-conspirators in awaiting sentencing for his crime.”
FBI Assistant Director in Charge Diego Rodriguez said: “Wieselthier, with the knowledge of his co-conspirators, convinced lenders of his client’s affluence in an effort to mask the true nature of the company’s financial situation. In the end, the banks incurred a significant financial loss as a result of this type of fraud. Today’s plea serves as a reminder that engaging in illegal activity of this sort poses a significant risk to one’s personal freedom.”
According to the allegations contained in the information to which WIESELTHIER pled guilty and statements made during WIESELTHIER’s plea proceeding:
WIESELTHIER was a licensed certified public accountant at the Firm. Since 2009, WIESELTHIER has been a partner at the Firm. The Company and its chief executive officer (“CEO”) were clients of WIESELTHIER, who performed, among other things, year-end audits of financial statements for the Company.
From 2007 through 2014, the Company, through its officers, fraudulently induced the Banks into lending the Company millions of dollars by repeatedly making, and causing to be made, materially false and misleading statements about the Company’s financial condition. Specifically, the Company falsely inflated its sales and accounts receivable on “borrowing base certificates” and in financial statements audited by WIESELTHIER, which were provided to the Banks pursuant to loan agreements between the Banks and the Company. The Company used those falsely inflated sales and accounts receivable to mislead the Banks about the Company’s true financial performance so that the Company could secure and draw down millions of dollars in revolving loans from the Banks that the Company would not otherwise have been entitled to receive.
As a part of the scheme, on an annual basis, WIESELTHIER knowingly issued unqualified audit reports known as “clean opinions” falsely certifying that the Company’s financial statements fairly, and in all material respects, reflected the true financial condition of the Company and were in conformity with generally accepted accounting principles (“GAAP”). In truth and in fact, at the time that WIESELTHIER issued those “clean opinions,” WIESELTHIER knew that the Company’s financial statements falsely overstated the Company’s accounts receivable and understood that the Banks would rely upon those false financial statements in loaning money to the Company. WIESELTHIER hid his accounting work for the Company from his own partners and associates in an apparent effort to conceal the fraud.
In March 2014, the Company defaulted on the loans at issue. At that time, the Company’s outstanding balance on the loans was more than $4.8 million.
* * *
WIESELTHIER, 57, of Plainview, New York, pled guilty to one count of conspiracy to commit bank fraud, which carries a maximum sentence of 30 years in prison. The maximum potential sentence in this case is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
WIESELTHIER is scheduled to be sentenced on March 23, 2016, at 2:30 p.m., before U.S. District Judge Lewis A. Kaplan.
Emanuel Cohen, 71, of Boca Raton, Florida, the former CEO of the Company, and Thomas Thompson, 42, of Coral Springs, Florida, the former sales manager of the Company, previously pled guilty for their roles in the scheme. Cohen and Thompson are scheduled to be sentenced by Judge Kaplan on March 2, 2016 and February 17, 2016, respectively.
Mr. Bharara praised the outstanding investigative work of the FBI.
The case is being prosecuted by the Office’s Complex Frauds and Cybercrime Unit. Assistant U.S. Attorney Edward A. Imperatore is in charge of the prosecution.
Oregon Attorney Indicted for Employment Tax FraudRead the Press Release
A federal grand jury sitting in Portland, Oregon, returned an indictment yesterday charging a resident of Lake Oswego, Oregon, with 10 counts of willfully failing to collect, truthfully account for and pay over federal employment taxes to the United States, announced Acting Assistant Attorney General Caroline D. Ciraolo of the Justice Department’s Tax Division.
According to the allegations in the indictment, Gary B. Bertoni, had the responsibility to collect, truthfully account for and pay over to the Internal Revenue Service (IRS) federal employment taxes withheld from the wages of the employees of his law firm, Bertoni & Associates LLC. Beginning in approximately the first quarter of 2009 and continuing through 2011, Bertoni failed to pay over to the IRS employment taxes withheld from his employees’ wages as they became due. The indictment further alleges that Bertoni failed to remit monies withheld from employees’ wages for various employee benefits, including health insurance and retirement account contributions. Instead, Bertoni caused his law firm to make thousands of dollars of expenditures for his personal benefit during the 2009 through 2011 calendar years, including payments to his personal bank account totaling more than $300,000.
If convicted, Bertoni faces a statutory maximum sentence of 50 years in prison, a maximum fine of $2.5 million and restitution to the IRS.
An indictment is not a finding of guilt. Individuals charged in indictments are presumed innocent until proven guilty beyond a reasonable doubt.
Acting Assistant Attorney General Ciraolo thanked agents of IRS-Criminal Investigation, who are investigating the case and Trial Attorneys Stuart A. Wexler and Quinn P. Harrington of the Tax Division, who are prosecuting the case.
Ohio man convicted of failure to update sex offender registrationRead the Press Release
CLARKSBURG, WEST VIRGINIA – Convicted sex offender Richard Doman, 46, of Lorain, Ohio, was convicted in federal court today after he failed to properly update his registration status, United States Attorney William J. Ihlenfeld, II, announced.
Doman was convicted in 2003 of “Statutory Sexual Assault” and “Indecent Assault” in the Court of Common Pleas of York County, Pennsylvania. As a result of that conviction, he is required to register as a sex offender. Doman moved from Ohio to West Virginia in 2014 without updating his sex offender registration.
Doman pled guilty today to one count of “Failure to Update Sex Offender Registration.” He faces up to 10 years in prison and a fine of up to $250,000.00. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Sarah Montoro and former Assistant U.S. Attorney Shawn Morgan prosecuted the case on behalf of the government. The United States Marshals Service investigated.
U.S. District Judge Irene M. Keeley presided.
Nottingham Woman Sentenced to Three Years in Prison for Workers’ Compensation FraudRead the Press Release
Barbara Stanley, 62, of Nottingham, PA, was sentenced yesterday to three years in prison after conviction at trial of five counts of wire fraud, two counts of theft of government funds, one count of making false statements, and two counts of making false statements regarding workers' compensation benefits, announced United States Attorney Zane David Memeger.
At trial, in August 2015, the defendant had been convicted of scheming to defraud the Department of Labor out of workers’ compensation benefits between July 2006 and December 2010 by concealing the fact that she had recovered from her work-related injury. She was also convicted of stealing the approximately $164,000 in workers’ compensation benefits that she received during that time period, and making false statements about her medical condition to the Department of Labor. The defendant was further convicted of stealing approximately $35,000 in Office of Personnel Management (OPM) disability retirement benefits that she received at the same time that she was receiving workers’ compensation benefits, and falsely denying her receipt of the OPM disability retirement benefits, resulting in total losses to the government of approximately $199,000.
In addition to the prison sentence, the Honorable Paul S. Diamond also imposed three years of supervised release to follow incarceration. A hearing to determine the exact amount of restitution is scheduled to take place on December 1, 2015.
The case was investigated by the United States Postal Service Office of the Inspector General, the Department of Labor Office of the Inspector General, and the Office of Personnel Management Office of the Inspector General and was prosecuted by Assistant United States Attorneys MaryTeresa Soltis and Mary E. Crawley.
North Port Man Sentenced for Possessing and Making Counterfeit CurrencyRead the Press Release
Tampa, Florida – U.S. District Judge Mary S. Scriven today sentenced Peter Bonfiglio (28, North Port) to two years and one month in federal prison for making and possessing counterfeit Federal Reserve notes. He pleaded guilty on August 19, 2015.
According to court documents, Bonfiglio, together with his co-defendant, Jaret Santa, was arrested by deputies from the Sarasota County Sherriff’s Office after Bonfiglio tried to pay for merchandise at a retail store using a counterfeit $100 bill. Santa had supplied the note to Bonfiglio, who then tried to pass it at another store before deputies arrested them both. Following their arrests, the deputies located approximately $4,600 in counterfeit $100 bills in their car. Further investigation revealed that between January 5, 2015, and February 2, 2015, the pair had passed approximately $5,500 in counterfeit $100 bills at various stores and businesses.
Santa has previously pleaded guilty for his role in this case. His sentencing hearing is scheduled for January 6, 2016.
This case was investigated by the United States Secret Service with assistance from the Sarasota County Sherriff’s Office. It is being prosecuted by Assistant United States Attorney Jay Hoffer.
Non-Indian Man from Albuquerque Pleads Guilty to Burglarizing Two Isleta Pueblo HomesRead the Press Release
ALBUQUERQUE – Roman I. Trujillo, 28, a non-Indian man residing in Albuquerque, N.M., pleaded guilty today in federal court to burglarizing two homes in Isleta Pueblo, N.M., under a plea agreement with the U.S. Attorney’s Office.
Trujillo and his co-defendant, Danielle Bercier, 34, a non-Indian woman also residing in Albuquerque, were arrested on Jan. 29, 2015, and charged in a criminal complaint with burglary occurring in Indian Country on the Isleta Pueblo Indian Reservation. According to the complaint, on Jan. 29, 2015, officers of the Isleta Pueblo Tribal Police Department responded to calls regarding burglaries at two residences in the Pueblo. At the second residence that was burglarized, officers came upon Trujillo who was fleeing from the residence in a vehicle in which Bercier was a passenger. Trujillo led the officers on a chase which ended when Trujillo crashed his vehicle.
Trujillo and Bercier were subsequently charged in a four-count indictment filed on Feb. 25, 2015. The indictment charged both Trujillo and Bercier with two counts of burglary of a dwelling. It also charged Trujillo alone with driving a vehicle in such a manner that endangered the life of another person and receiving stolen property, a 2006 Toyota Tacoma truck, on Jan. 28, 2014, in Indian Country in Valencia County, N.M.
During today’s proceedings, Trujillo pled guilty to the two burglary counts and admitted that on Jan. 29, 2015, he forced his way into two homes in Isleta Pueblo while Bercier stayed outside as a lookout. Trujillo admitted that in the first home he stole property worth $1,500.00, and at the second home he stole two cellphones. Trujillo acknowledged that he knew or should have known that the truck he was driving as he attempted to evade arrest was a stolen vehicle.
At sentencing, Trujillo faces a statutory maximum penalty of three years in prison on each of the two burglary counts. Trujillo has been in federal custody since his arrest and remains detained pending his sentencing hearing which has yet to be scheduled.
Bercier has entered a not guilty plea and is in custody pending trial which is currently scheduled for Jan. 25, 2016. Charges in indictments are merely accusations and criminal defendants are presumed innocent unless found guilty beyond a reasonable doubt.
This case was investigated by the Southern Pueblos Agency of the BIA’s Office of Justice Services and the Isleta Pueblo Tribal Police Department. Assistant U.S. Attorney Kyle T. Nayback is prosecuting the case.
New York Doctor Sentenced to More Than Three and A Half Years in Prison for Taking Bribes in Test-Referral Scheme with New Jersey Clinical LabRead the Press Release
NEWARK, N.J. – A doctor with a practice in Rockville Centre, New York, was sentenced today to 46 months in prison for accepting bribes in exchange for test referrals as part of a long-running and elaborate scheme operated by Biodiagnostic Laboratory Services LLC (BLS), of Parsippany, New Jersey, its president and numerous associates, U.S. Attorney Paul J. Fishman announced.
Brett Halper, 41, of Glen Head, New York, previously pleaded guilty before U.S. District Judge Stanley R. Chesler to an information charging him with one count of accepting bribes. Judge Chesler imposed the sentence today in Newark federal court.
Including Halper, 38 people – 26 of them doctors – have pleaded guilty in connection with the bribery scheme, which its organizers have admitted involved millions of dollars in bribes and resulted in more than $100 million in payments to BLS from Medicare and various private insurance companies. The investigation has so far recovered more than $11.5 million to date through forfeiture.
According to documents filed in this and related cases and statements made in court:
Halper admitted that from January 2011 through April 2013, he accepted bribes in return for referring patient blood specimens to BLS and was often paid in excess of $5,000 per month. Halper’s referrals generated approximately $2,900,000 in lab business for BLS.
In addition to the prison term, Judge Chesler sentenced Halper to serve two years of supervised release and fined him $100,000. Halper must also forfeit $325,000.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Richard M. Frankel; the U.S. Department of Health and Human Services, Office of Inspector General, under the direction of Special Agent in Charge Scott J. Lampert; IRS–Criminal Investigation, under the direction of Special Agent in Charge Jonathan D. Larsen; and inspectors of the U.S. Postal Inspection Service, under the direction of Inspector in Charge Maria L. Kelokates, with the investigation leading to today’s sentence.
The government is represented by Assistant U.S. Attorney Joseph N. Minish, Senior Litigation Counsel Andrew Leven, and Jacob T. Elberg, Chief of the U.S. Attorney’s Office Health Care and Government Fraud Unit in Newark, as well as Assistant U.S. Attorney Barbara Ward, Acting Chief of the office’s Asset Forfeiture and Money Laundering Unit.
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 $635 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: Marc Agnifilo Esq., New York
New Orleans Office Manager Sentenced for Role in $50 Million Fraud SchemeRead the Press Release
WASHINGTON – The office manager of a home health company at the center of a $50 million fraud scheme in New Orleans was sentenced to prison today for participating in the scheme.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Kenneth A. Polite of the Eastern District of Louisiana, Special Agent in Charge Jeffrey S. Sallet of the FBI’s New Orleans Field Office, Special Agent in Charge CJ Porter of the U.S. Department of Health and Human Services-Office of Inspector General (HHS-OIG) Dallas Regional Office and the Louisiana Attorney General's Medicaid Fraud Control Unit made the announcement.
Joe Ann Murthil, 58, of New Orleans, was sentenced by Chief U.S. District Judge Sarah S. Vance of the Eastern District of Louisiana to serve 48 months in prison. In addition to the prison term, Murthil was ordered to pay $14,147,275 in restitution.
Murthil, Memorial Home Health Inc.’s (Memorial’s) office manager, assisted with the payment of illegal kickbacks to patient recruiters and submitted claims to Medicare falsely stating that patients were homebound and had received services. From 2007 through 2014, Memorial and the other companies in this scheme submitted more than $56 million in claims to Medicare, the vast majority of which were fraudulent. Medicare paid approximately $50.7 million on these claims.
This case was investigated by the FBI, HHS-OIG and the Louisiana Attorney General's Medicaid Fraud Control Unit and was brought as part of the Medicare Fraud Strike Force, under the supervision of the Criminal Division’s Fraud Section and the U.S. Attorney’s Office of the Eastern District of Louisiana. This case was prosecuted by Trial Attorneys William Kanellis and Antonio Pozos of the Fraud Section.
Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged nearly 2,300 defendants who have collectively billed the Medicare program for more than $7 billion. In addition, HHS’ Centers for Medicare & Medicaid Services, working in conjunction with HHS-OIG, is taking steps to increase accountability and decrease the presence of fraudulent providers.
To learn more about the Health Care Fraud Prevention and Enforcement Action Team (HEAT), go to www.justice.gov/criminal-fraud/health-care-fraud-unit.
New Orleans Office Manager Sentenced for Role in $50 Million Fraud SchemeRead the Press Release
The office manager of a home health company at the center of a $50 million fraud scheme in New Orleans was sentenced to prison today for participating in the scheme.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Kenneth A. Polite of the Eastern District of Louisiana, Special Agent in Charge Jeffrey S. Sallet of the FBI’s New Orleans Field Office, Special Agent in Charge CJ Porter of the U.S. Department of Health and Human Services-Office of Inspector General (HHS-OIG) Dallas Regional Office and the Louisiana Attorney General's Medicaid Fraud Control Unit made the announcement.
Joe Ann Murthil, 58, of New Orleans, was sentenced by Chief U.S. District Judge Sarah S. Vance of the Eastern District of Louisiana to serve 48 months in prison. In addition to the prison term, Murthil was ordered to pay $14,147,275 in restitution.
Murthil, Memorial Home Health Inc.’s (Memorial’s) office manager, assisted with the payment of illegal kickbacks to patient recruiters and submitted claims to Medicare falsely stating that patients were homebound and had received services. From 2007 through 2014, Memorial and the other companies in this scheme submitted more than $56 million in claims to Medicare, the vast majority of which were fraudulent. Medicare paid approximately $50.7 million on these claims.
This case was investigated by the FBI, HHS-OIG and the Louisiana Attorney General's Medicaid Fraud Control Unit and was brought as part of the Medicare Fraud Strike Force, under the supervision of the Criminal Division’s Fraud Section and the U.S. Attorney’s Office of the Eastern District of Louisiana. This case was prosecuted by Trial Attorneys William Kanellis and Antonio Pozos of the Fraud Section.
Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged nearly 2,300 defendants who have collectively billed the Medicare program for more than $7 billion. In addition, HHS’ Centers for Medicare & Medicaid Services, working in conjunction with HHS-OIG, is taking steps to increase accountability and decrease the presence of fraudulent providers.
To learn more about the Health Care Fraud Prevention and Enforcement Action Team (HEAT), go to www.stopmedicarefraud.gov.
New Orleans Man Sentenced for Conspiracy Related to Falsifying Records for Gun PurchaseRead the Press Release
U.S. Attorney Kenneth A. Polite announced that ORONDE GABRIEL, age 31, of New Orleans, was sentenced today after previously pleading guilty to one count of conspiring to falsify ATF records related to the purchase of a firearm.
U.S. District Judge Sarah S. Vance sentenced GABRIEL to 50 months in prison, to be followed by three years of supervised release and a $100 special assessment.
According to court documents, GABRIEL conspired to assist two other individuals in the purchase of a firearm from Academy Sports in Elmwood on June 9, 2013. GABRIEL was a previously convicted felon and prohibited from buying a firearm. The individual who purchased the firearm falsified an ATF form regarding the true ownership of the firearm, which is a federal offense.
U.S. Attorney Polite praised the work of the United States Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) led the investigation along with assistance from the St. Bernard Sheriff’s Office. Assistant United States Attorney Edward J. Rivera was in charge of the prosecution.
Morris County, New Jersey, Plastic Surgeon Found Guilty of Evading Taxes on More Than $5 Million in IncomeRead the Press Release
NEWARK, N.J. – A plastic surgeon with a practice in Basking Ridge, New Jersey, was convicted today by a federal jury of fraudulently diverting millions in corporate earnings for his personal use, costing the United States nearly $3 million in tax revenue between 2006 and 2010, U.S Attorney Paul Fishman announced.
David Evdokimow, 55, of Harding Township, New Jersey, was convicted of all eight counts of a superseding indictment charging him with one count of conspiring to defraud the United States, four counts of personal income tax evasion and three counts of corporate tax evasion. He was convicted following three-week trial before U.S. District Judge Noel L. Hillman in Camden federal court. The jury deliberated for a day before returning the verdict.
According to the superseding indictment and evidence at trial:
Evdokimow ran his medical practice through a corporation called De’Omilia Plastic Surgery P.C. (De’Omilia). He conspired with others to conceal millions of dollars of taxable income from the IRS by forming shell corporations and then having trusted associates open bank accounts for those corporations. Evdokimow then convinced these trusted associates to give him their signatures or signature stamps so that he had full access to the shell company bank accounts while at the same time being able to conceal his connection to those accounts. He and the other conspirators then funneled millions of dollars in De’Omilia income into the bank accounts of the shell corporations and falsely claimed that these transfers were legitimate business expenses. Evdokimow also used bank accounts in the name of De’Omilia to pay his personal expenses, and falsely claimed those were business expenses too.
Evdokimow used the shell corporation and De’Omilia bank accounts to pay for more than $5.8 million in personal expenses, including designer apparel, jewelry, vacations, artwork, and multiple residences, all of which he falsely claimed as business expenses.
Evdokimow also opened accounts at several banks in order to cash checks received directly from patients for professional medical services. Between 2009 and 2011, Evdokimow cashed over $360,000 in checks from patients, which he failed to report on his federal income tax returns.
Evdokimow was convicted of concealing over $5.8 million in income from tax years 2006 to 2010. By concealing this income, Evdokimow evaded paying almost $3 million in taxes during that period.
Each of the counts with which Evdokimow is charged carries a maximum potential penalty of five years in prison and a $250,000 fine. Sentencing is scheduled for Feb. 24, 2016.
U.S. Attorney Fishman credited special agents of IRS-Criminal Investigation, under the direction of Acting Special Agent in Charge Jonathan D. Larsen, with the investigation leading to today’s verdict.
The government is represented by Assistant U.S. Attorneys Paul Murphy and Justin Herring of the U.S. Attorney’s Office Criminal Division in Newark.
Defense counsel: James Kridel Esq., Clifton, New Jersey
Monongalia County man sentenced for possession of child pornographyRead the Press Release
CLARKSBURG, WEST VIRGINIA – Daniel Frohnhofer, 44, of Bruceton Mills, West Virginia, was sentenced today to 70 months in prison for possession of child pornography, United States Attorney William J. Ihlenfeld, II, announced.
Frohnhofer was previously convicted of “Criminal Sexual Penetration” in 1996 in New Mexico, “Felony Menacing – Real/Simulated Weapon” in 2008 in Colorado, “Failure to Comply with Sex Offender Registration Requirements” in 2008 in Texas, and “False Imprisonment” in 2009 in New Mexico.
Through an investigation by the West Virginia State Police Internet Crimes Against Children Unit, Frohnhofer was discovered in possession of various images of child pornography. He pled guilty in August 2015 to one count of “Possession of Child Pornography.”
Assistant U.S. Attorney Stephen Vogrin and former Assistant U.S. Attorney Shawn Morgan prosecuted the case on behalf of the government.
U.S. District Judge Irene M. Keeley presided.
Monmouth County, New Jersey, Man Sentenced to 14 Months in Prison for Possessing Explicit Images of 12-Year Old Pennsylvania GirlRead the Press Release
TRENTON, N.J. – A Monmouth County, New Jersey, man was sentenced today to 14 months in prison for possessing sexually explicit images of a 12-year old Pennsylvania girl with whom he had an online relationship, U.S. Attorney Paul J. Fishman announced.
Chad Weber, 23, of Colt’s Neck, New Jersey, previously pleaded guilty before U.S. District Judge Anne E. Thompson to an information charging him with one count of possessing images of child pornography. Judge Thompson imposed the sentence today in Trenton federal court.
According to documents filed in the case and statements made in court:
In April 2013, law enforcement agents learned Weber had been communicating with a 12-year-old girl from Pennsylvania. The agents obtained and reviewed copies of various chat logs and other internet-based messages, which reflect Weber’s online communications with the victim between February 2013 and April 2013. Many of these communications were sexually explicit. Weber and the victim also traded sexually explicit photographs of each other through the internet and discussed the photographs in online chats. During some of these communications, Weber acknowledged that the victim was 12 years old. Weber admitted possessing these sexually explicit photographs of the minor victim on his cell phone and computer.
In addition to the prison term, Judge Thompson sentenced Weber to 10 years of supervised release. As part of his guilty plea, Weber must pay restitution of $5,570, forfeit the computer and cell phone he used to commit the offense and register as a sex offender.
U.S. Attorney Fishman credited special agents of the U.S. Department of Homeland Security Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Special Agent in Charge Kevin Kelly in Newark, for the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorney Molly Lorber of the U.S. Attorney’s Office Criminal Division in Trenton.
Defense counsel: Brian P. Reilly Esq., Assistant Federal Public Defender, Trenton
Mobile County Man Sentenced to 8 Months for Possession of Counterfeit CurrencyRead the Press Release
The United States Attorney Kenyen Brown announces that Ronald C. Howard, Jr, a 45 year old resident of Theodore, Alabama was sentenced today to 8 months incarceration followed by three years of supervised release for possession of counterfeit currency.
On July 21, 2015, Mr. Howard pled guilty pursuant to a plea agreement that noted he was found in the possession of approximately $2000 worth of counterfeit currency and a laser jet printer used to manufacture the counterfeit currency and for attempting to pass counterfeit $20 bills in the area along with a cohort. Mr. Howard agreed to and did forfeit the printer as a facility of his illegal activity.
Special agents of the United States Secret Service investigated the case and presented it to the U.S. Attorney's Office for prosecution. The prosecutor assigned to the case is Assistant United States Attorney, Gina S. Vann.
Mobile County Man Sentenced to 15 Months for Conspiring to Pass and Utter Counterfeit CurrencyRead the Press Release
The United States Attorney Kenyen Brown announces that Brian Little, a 36 year old resident of Theodore, Alabama was sentenced today to 15 months incarceration followed by three years of supervised release for conspiring to pass and utter counterfeit currency at local businesses.
On July 31, 2015, Mr. Little pled guilty pursuant to a plea agreement that noted he was attempting to pass counterfeit $20 bills in the area along with a cohort.
Special agents of the United States Secret Service investigated the case and presented it to the U.S. Attorney's Office for prosecution. The prosecutor assigned to the case is Assistant United States Attorney, Gina S. Vann.
Mexican national pleads guilty to reentering the United States multiple times illegallyRead the Press Release
SHREVEPORT, La. – United States Attorney Stephanie A. Finley announced that a Mexican national pleaded guilty Tuesday to re-entering the United States after removal.
Saul Abundis Cordova, 39, of Mexico, pleaded guilty before U.S. District Judge Elizabeth E. Foote to one count of re-entry of a removed alien. According to evidence presented at the guilty plea, Shreveport Police arrested Cordova on January 15, 2015 for driving while intoxicated, and on July 22, 2015, was convicted of driving while intoxicated for the fourth time. Cordova had been removed from the United States to Mexico on at least three previous occasions in 2008, 2009 and 2014. The removal on June 12, 2014 occurred after Cordova was convicted of felony possession of Schedule II control substances, cocaine, which results in a sentencing enhancement of a convicted felon.
Cordova faces 10 years in prison, one to three years of supervised release and a $250,000 fine. A sentencing date of March 8, 2016 was set.
Homeland Security Investigations-Immigrations and Customs Enforcement and the Shreveport Police Department conducted the investigation. Assistant U.S. Attorney Michael O’Mara is prosecuting the case.
Mexican national pleads guilty to Federal drug chargeRead the Press Release
CHARLESTON, W.Va. – United States Attorney Booth Goodwin announced that a Mexican national residing in Madison, West Virginia, pleaded guilty today to a drug charge in federal court in Charleston. Leonel Vivian Castellanos, 28, from Vera Cruz, Mexico, pleaded guilty to distribution of methamphetamine, admitting that between May 12 and May 19, 2015, he distributed approximately 500 grams of methamphetamine to informants in Kanawha and Boone Counties.
In addition to the drugs Castellanos distributed to informants, law enforcement later found more methamphetamine during the course of the investigation. On May 21, 2015, police arrested Castellanos and found him in possession of another 50 grams of methamphetamine at his home in Madison. That same day, during the execution of a search warrant in Nitro, law enforcement seized approximately 500 grams of additional methamphetamine that Castellanos admitted to distributing.
Castellanos faces up to 20 years in federal prison and a $1,000,000 fine when he is sentenced on February 23, 2016.
The Metropolitan Drug Enforcement Network Team, Homeland Security Investigations, the Kanawha Bureau of Investigation, and the South Charleston Police Department conducted the investigation in this matter. Assistant United States Attorney Jennifer Rada Herrald is handling the prosecution.
This case is being prosecuted as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat illegal drugs in our communities, including the illicit sale and misuse of prescription drugs and heroin. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal pill trafficking, eliminating open air drug markets, and curtailing the spread of opiate painkillers and other drugs in communities across the Southern District.
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Mexican National Pleads Guilty to Marijuana Cultivation Operation in Sierra National ForestRead the Press Release
FRESNO, Calif. —Juan Pedro Jimenez, 39, of Ensenada, Mexico, entered a guilty plea today to conspiring to manufacture, distribute and possess with intent to distribute, manufacturing, and possessing with intent to distribute marijuana in connection with a large-scale cultivation operation on Chowchilla Mountain in Mariposa County in the Sierra National Forest in Mariposa County, United States Attorney Benjamin B. Wagner announced.
According to court documents, Jimenez was found at the cultivation site on public land in July. Agents removed 6,919 marijuana plants from the site and found fertilizer, trash, water lines, and propane tanks. The cultivation activities caused extensive damage to the land and natural resources. Native trees and plants were cut down and steep hillsides were terraced to plant the marijuana. Water was diverted from a nearby creek to irrigate the plants. In pleading guilty, Jimenez agreed to reimburse the U.S. Forest Service for the cost of cleaning up the site.
Jimenez is scheduled for sentencing on February 1, 2016, before U.S. District Judge Lawrence J. O’Neill. He faces a mandatory minimum statutory penalty of five years in prison, a maximum of 40 years in prison and a $5 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 and Mariposa County Sheriff’s Office. Assistant U.S. Attorney Karen Escobar is prosecuting the case.
Meth Conspirator Sentenced in Federal CourtRead the Press Release
United States Attorney Kenyen R. Brown of the Southern District of Alabama announced that Thomas Jefferson Bentley, IV, 34, of Mobile, was sentenced today in federal court on charges involving his participation in conspiracies to manufacture methamphetamine and to possess a Schedule I chemical, pseudoephedrine, with knowledge it would be used to manufacture a controlled substance. Bentley pled guilty to the two charges in December of 2014.
United States District Court William H. Steele imposed a sentence of time served, which amounted to 20 months on each charge, and ordered that the sentences run concurrently. He also ordered that Bentley will commence a three-year term of supervised release when he is discharged from incarceration. As conditions of his supervision, Bentley will be subject to testing and treatment for drug abuse. Judge Steele also ordered that Bentley pay $200 in special mandatory assessments, but he did not impose a fine.
The case was investigated by the Mobile County Sheriff’s Office. It was prosecuted in the United States Attorney’s Office by Assistant United States Attorney Gloria Bedwell.
Member of Sinaloa Cartel Sentenced to 19 Years in Prison for Distributing Cocaine and Heroin Shipped to Chicago from MexicoRead the Press Release
CHICAGO — A high-ranking member of the Sinaloa Cartel in Mexico was sentenced today to 19 years in federal prison for his role in a conspiracy to transport large amounts of narcotics to the Chicago area.
TOMAS AREVALO-RENTERIA directed a portion of the cartel’s U.S.-based couriers, who distributed large quantities of cocaine and heroin in Chicago and throughout the United States. He also coordinated logistics for the cartel and served as a broker in its efforts to ship the narcotics from Mexico.
Arevalo-Renteria, 46, pleaded guilty last year to one count of conspiracy to possess with the intent to distribute cocaine and heroin. U.S. District Chief Judge Ruben Castillo imposed the 19-year sentence in federal court in Chicago.
“The defendant was a full functioning member of one of the most dangerous criminal organizations in existence,” Assistant U.S. Attorney Michael J. Ferrara argued in the government’s sentencing memorandum. “The direct and indirect damage that those drugs have caused to communities in Chicago and elsewhere is immeasurable.”
The U.S. Attorney’s Office in Chicago has worked closely with federal and local law enforcement agencies to target senior leadership of the Sinaloa Cartel. Arevalo-Renteria is one of more than 20 alleged members of the cartel to be indicted in federal court in Chicago. The indictments include charges against the cartel’s alleged leader, JOAQUIN “CHAPO” GUZMAN. The Chicago-based investigation has resulted in seizures of approximately $30.8 million, approximately eleven tons of cocaine, 265 kilograms of methamphetamine and 78 kilograms of heroin.
Arevalo-Renteria has been in U.S. custody since his arrest in his native Mexico in 2010. In his plea declaration, he admitted that he conspired with twin brothers from Chicago to distribute heroin and cocaine from 2005 to 2008. The twins, PEDRO FLORES and MARGARITO FLORES, operated a Chicago-based wholesale distribution network for both the Sinaloa Cartel and a rival organization.
In two separate transactions brokered by Arevalo-Renteria, the Flores brothers agreed in 2008 to purchase 27 kilograms of heroin from the Sinaloa Cartel, according to Arevalo-Renteria’s plea declaration. Unbeknownst to Arevalo-Renteria, the Flores brothers had begun cooperating with U.S. law enforcement and had provided information about the deals to investigators. The information allowed agents to seize the 27 kilograms of heroin.
The Flores brothers pleaded guilty to federal drug charges in 2012 and were each sentenced to 14 years in prison.
Arevalo-Renteria’s sentence was announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois; Dennis A. Wichern, Special Agent-in-Charge of the Chicago Field Division of the Drug Enforcement Administration; Stephen Boyd, Special Agent-in-Charge of the Internal Revenue Service Criminal Investigation Division in Chicago; and Chicago Police Superintendent Garry F. McCarthy.
The government is represented by Mr. Ferrara and Assistant U.S. Attorneys Erika Csicsila, Georgia Alexakis, Kathryn Malizia, and Sean Franzblau.
Member of Cherry Hill Group ‘UDH’ Sentenced to 70 Months in Prison for Racketeering ConspiracyRead the Press Release
Baltimore, Maryland – U.S. District Judge George L. Russell III sentenced Clarence Shipley, age 27, of Baltimore, to 70 months in prison, followed by three years of supervised release, for a racketeering conspiracy in connection with Shipley’s participation in the UDH organization, which operates in the Cherry Hill section of Baltimore.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge William P. McMullan of the Bureau of Alcohol, Tobacco, Firearms and Explosives - Baltimore Field Division; Commissioner Kevin Davis of the Baltimore Police Department; and Baltimore City State’s Attorney Marilyn Mosby.
According to his plea agreement, Shipley is a member of the UDH organization, which operates in the area of Cherry Hill known as “Up the Hill” or “Up da Hill.” UDH members and associates have been in a long-running dispute with members of an organization known as “Coppin Court” that is involved in criminal activity in the part of Cherry Hill known as “Down the Hill,” and since at least January 2011, have been in a dispute with members of “Little Spelman,” another organization that is involved in criminal activity in the Down the Hill section of Cherry Hill. UDH members and associates used violence and intimidation to protect themselves, the organization, and their control of the drug trade in part of Cherry Hill.
Shipley admitted that as a UDH member he distributed heroin in the Giles/Fisk/Slater area of the UDH section of Cherry Hill. During his participation in the UDH drug conspiracy Shipley was responsible for distributing between 700 grams and one kilogram of heroin.
In addition, Shipley participated in two bank robberies with fellow UDH members. On July 19, 2011, Shipley and other UDH members robbed the Chesapeake Bank of Maryland branch located in the2200 block of Eastern Avenue in Baltimore. On August 5, 2011, Shipley, Bryan Turner, and other UDH member robbed the Chesapeake Bank of Maryland branch in Arbutus. In each robbery Shipley served as the getaway driver, while other gang members went into the bank and presented the teller with a note demanding money. Shipley and his associates stole a total of $11,405, in the two robberies, which was later divided between Shipley and the other UDH members who participated in the robberies, including Bryan Turner.
Defendants charged in the racketeering conspiracy - including others who are alleged to have participated in these bank robberies - are scheduled to go to trial on April 4, 2016.
Bryan Turner, age 29, of Baltimore, previously pleaded guilty to his role in the conspiracy and was sentenced to 15 years in prison.
United States Attorney Rod J. Rosenstein praised the ATF, Baltimore Police Department, and Baltimore City State’s Attorney’s Office for their work in the investigation and thanked the FBI, Baltimore County Police Department, Anne Arundel County Police Department, and Baltimore City Sheriff’s Office for their assistance. Mr. Rosenstein thanked Assistant United States Attorneys Andrea L. Smith, Seema Mittal, and Patricia C. McLane, who are prosecuting this Organized Crime Drug Enforcement Task Force case.
Louisiana Business Owners Plead Guilty to Filing False Individual Income Tax ReturnsRead the Press Release
Two owners of a Metairie, Louisiana, business each pleaded guilty to one count of willfully filing false 2011 income tax returns today, announced Acting Assistant Attorney General Caroline D. Ciraolo of the Justice Department’s Tax Division and U.S. Attorney Kenneth A. Polite of the Eastern District of Louisiana.
Rommel Cordova, 35, of Luling, Louisiana, and Saul Ramirez, 43, of Kenner, Louisiana, pleaded guilty before U.S. District Court Judge Mary Ann Vial Lemmon. They were both charged on Nov. 4, in a single Bill of Information with willfully filing false 2011 individual income tax returns. According to court documents, Cordova and Ramirez owned and operated Skill Labor Provider Inc. a Metairie labor services business. Cordova and Ramirez each owned 50 percent of the business and shared equally in its net income.
As part of their guilty pleas, Cordova and Ramirez admitted that during calendar years 2010 and 2011, they cashed and caused to be cashed, checks made payable to Skill Labor Provider Inc. and other business checks at a check cashing business in Kenner. Cordova and Ramirez caused false corporate income tax returns for Skill Labor Provider Inc. for the years 2010, 2011 and 2012 to be prepared that did not accurately report the gross receipts, labor expenses deductions, or net income of the business. During this period, the corporate tax returns underreported the business’s gross receipts by more than $6 million. Cordova and Ramirez also separately filed their respective individual income tax returns for tax years 2010, 2011 and 2012, on which they failed to accurately report the amounts of business income they received from Skill Labor Provider Inc.
At sentencing, each defendant faces a statutory maximum sentence of three years in prison, one year of supervised release, a fine of $250,000, or twice the gross gain or loss caused by the offense, a $100 special assessment and restitution to the Internal Revenue Service (IRS).
Acting Assistant Attorney General Ciraolo and U. S. Attorney Polite commended special agents of the IRS—Criminal Investigations and Homeland Security Investigations, who investigated the case and Assistant U.S. Attorney Hayden Brockett and Tax Division Trial Attorney Michael P. Hatzimichalis, who are prosecuting the case.
Louisiana Business Owners Plead Guilty to Filing False Individual Income Tax ReturnsRead the Press Release
WASHINGTON – Two owners of a Metairie, Louisiana, business each pleaded guilty to one count of willfully filing false 2011 income tax returns today, announced Acting Assistant Attorney General Caroline D. Ciraolo of the Justice Department’s Tax Division and U.S. Attorney Kenneth A. Polite of the Eastern District of Louisiana.
Rommel Cordova, 35, of Luling, Louisiana, and Saul Ramirez, 43, of Kenner, Louisiana, pleaded guilty before U.S. District Court Judge Mary Ann Vial Lemmon. They were both charged on Nov. 4, in a single Bill of Information with willfully filing false 2011 individual income tax returns. According to court documents, Cordova and Ramirez owned and operated Skill Labor Provider Inc. a Metairie labor services business. Cordova and Ramirez each owned 50 percent of the business and shared equally in its net income.
As part of their guilty pleas, Cordova and Ramirez admitted that during calendar years 2010 and 2011, they cashed and caused to be cashed, checks made payable to Skill Labor Provider Inc. and other business checks at a check cashing business in Kenner. Cordova and Ramirez caused false corporate income tax returns for Skill Labor Provider Inc. for the years 2010, 2011 and 2012 to be prepared that did not accurately report the gross receipts, labor expenses deductions, or net income of the business. During this period, the corporate tax returns underreported the business’s gross receipts by more than $6 million. Cordova and Ramirez also separately filed their respective individual income tax returns for tax years 2010, 2011 and 2012, on which they failed to accurately report the amounts of business income they received from Skill Labor Provider Inc.
At sentencing, each defendant faces a statutory maximum sentence of three years in prison, one year of supervised release, a fine of $250,000, or twice the gross gain or loss caused by the offense, a $100 special assessment and restitution to the Internal Revenue Service (IRS).
Acting Assistant Attorney General Ciraolo and U. S. Attorney Polite commended special agents of the IRS—Criminal Investigations and Homeland Security Investigations, who investigated the case and Assistant U.S. Attorney Hayden Brockett and Tax Division Trial Attorney Michael P. Hatzimichalis, who are prosecuting the case.
Local Man Charged in Federal Indictment Involving an Armed Assault on Arch PropertyRead the Press Release
St. Louis, MO – KILWA JONES was indicted on multiple charges involving the September 25, 2015, shooting of Christopher Sanna, as well as the robberies of both Sanna and his companion, Lisa Simpson. The robberies and the assault occurred near the Old Cathedral in the northbound lanes of Memorial Drive, which is a part of the Jefferson National Expansion Memorial.
Jones, St. Louis, Missouri, was indicted on one felony count of assault with a dangerous weapon while on federal property, two felony counts of robbery while on federal property, three felony counts of possession of a firearm in furtherance of a crime of violence and one felony count of being a felon in possession of a firearm.
If convicted, these various charges carry penalties up to life in prison and/or fines up to $250,000 on each count. In determining the actual sentences, a judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.
This case was investigated by the detective bureau of the St. Louis Metropolitan Police Department. Assistant United States Attorney John Bird is handling the case for the U.S. Attorney’s Office.
As is always the case, charges set forth in an indictment are merely accusations and do not constitute proof of guilt. Every defendant is presumed to be innocent unless and until proven guilty.
Lewis County Man Indicted on Child Pornography ChargesRead the Press Release
St. Louis, MO – MICHAEL PRISNER, Ewing, Missouri, was indicted for his alleged possession of child pornography between April and June 2015.
If convicted, each count of possession of child pornography carries a maximum penalty of 20 years in prison and/or fines up to $250,000. In determining the actual sentences, a Judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.
This case was investigated by the Federal Bureau of Investigation, the St. Charles County ICAC (Internet Crimes Against Children) and Kirksville Police Department. Assistant United States Attorney Colleen Lang is handling the case for the U.S. Attorney's Office.
As is always the case, charges set forth in an indictment are merely accusations and do not constitute proof of guilt. Every defendant is presumed to be innocent unless and until proven guilty.
L.A. Man Pleads Guilty in $17 Million Scheme to Defraud Verizon by Reselling over 30,000 iPhones Obtained at Deeply Discounted PriceRead the Press Release
SAN DIEGO – The owner of a Glendale-based ride-sharing business pleaded guilty this afternoon to federal wire fraud charges, admitting that he illegally generated over $13 million in profits by selling more than 30,000 Apple iPhones fraudulently obtained from Verizon Wireless at substantially discounted prices.
Karen “Kevin” Galstian, 37, of Chatsworth, pleaded guilty today in United States District Court in San Diego to one count of wire fraud, and he admitted committing the offense while on pre-trial release in another case filed by prosecutors in San Diego.
Galstian pleaded guilty today in San Diego, where federal prosecutors in the United States Attorney’s office previously obtained a guilty plea in a bank fraud case. Pursuant to a plea agreement in the iPhone case, Galstian will be sentenced in both cases by United States District Judge Barry Ted Moskowitz. Today, Judge Moskowitz scheduled a sentencing hearing for January 11, 2016.
The plea agreement calls for a 100-month sentence on the combined cases.
As part of the scheme involving the iPhones, Galstian admitted that he used his company, Toro Ride, Inc., to induce Verizon Wireless to provide the business with more than 30,000 iPhones at a substantial discount. He purchased most of the mobile phones that usually sell for more than $500 for only 99 cents each – in connection with a two-year contract. Galstian claimed that the phones would be used by drivers for Toro Ride’s ride-sharing service (a service similar to Uber and Lyft) and that Toro Ride, which had only been operating in the Los Angeles area, was poised to expand nationwide. Galstian falsely told Verizon that Toro Ride had received $20 million from investors. When he brokered the deal with Verizon last year, Galstian failed to disclose the he was awaiting sentencing in the bank fraud case and thus would be incarcerated and unavailable to lead the company in the expansion.
As Verizon provided the iPhones that supposedly would be used by Toro Ride’s drivers, Galstian sold the vast majority of the devices to companies engaged in the international re-sale of consumer electronics. Thousands of the iPhones that Verizon shipped to Toro Ride were never used on its network and instead were activated in countries such as Vietnam, Iraq, China and Saudi Arabia.
Galstian fraudulently convinced Verizon to provide him with iPhones worth more than $19.4 million. In less than six months, Galstian generated illegal proceeds of more than $13 million by re-selling the iPhones. Toro Ride used some of the illicit proceeds derived from iPhone sales to make required monthly payments to Verizon, which enabled Galstian to continue to order thousands of additional iPhones. The plea agreement calls for the defendant to pay $17 million in restitution to Verizon.
Galstian used approximately $2.5 million of the fraud proceeds to purchase several properties, including a penthouse condominium in the Palms Casino in Las Vegas, and a Mercedes S550. In conjunction with today’s guilty plea, Galstian agreed to forfeit assets related to and obtained through the fraud scheme, including real properties in Northridge, Sherman Oaks, Tujunga and Las Vegas, as well as more than $200,000 seized from bank accounts and a number of vehicles.
The investigation into Galstian’s wire scheme was conducted by the Federal Bureau of Investigation.
Kenner Man Sentenced for Possessing Child PornographyRead the Press Release
U.S. Attorney Kenneth A. Polite announced that STEVEN GAETA, age 41, of Kenner, was sentenced today for crimes involving the possession of child pornography.
According to court records, on November 25, 2014, special agents with the U.S. Department of Homeland Security, Homeland Security Investigations (“HSI”) executed a federal search warrant at GAETA’s Kenner home. HSI agents determined Gaeta used Peer to Peer file sharing programs to possess approximately 120 videos and 500 images depicting the sexual victimization of children. GAETA pled guilty to the charge on August 19, 2015.
U.S. District Judge Kurt D. Engelhardt sentenced GAETA to 78 months incarceration, to be followed by five years of supervised release. GAETA is also required to register as a sex offender pursuant to the Sex Offender Registration Notification Act.
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."
U.S. Attorney Polite praised the work of the U.S. Department of Homeland Security, Homeland Security Investigations in investigating this matter. Project Safe Childhood Coordinator and Fraud Unit Chief, Assistant U.S. Attorney Brian M. Klebba was in charge of the prosecution.
Jury Finds Redding Interstate Marijuana Trafficker Guilty on All CountsRead the Press Release
SACRAMENTO, Calif. — After a five–day trial, a federal jury today found John James Kash, 52, of Redding, guilty of three counts of conspiracy to distribute marijuana, manufacturing marijuana, and conspiracy to launder money, United States Attorney Benjamin B. Wagner announced. The trial was held before United States District Judge Kimberly J. Mueller.
According to evidence presented at trial, in May 2013, Kash and his three business partners shipped approximately $700,000 worth of marijuana from Benicia, California to the Pittsburgh, Pennsylvania area. Law enforcement authorities tracked the shipment from California to Pennsylvania and watched Kash and his business partners collect the shipment from the freight company and deliver it to a warehouse outside of Pittsburgh. Authorities arrested Kash and his three co-conspirators at the warehouse. That same day, authorities executed search warrants at six separate locations associated with Kash and his business partners seizing over $1 million worth of marijuana and more than $150,000 in cash.
Three months later, after Kash and his business partners had been released from custody in Pennsylvania, law enforcement authorities executed multiple search warrants at a warehouse and residences in and around Redding. Authorities found Kash living inside a warehouse that had been converted into an active marijuana cultivation operation. Authorities seized approximately 468 growing marijuana plants from the warehouse. Meanwhile, authorities searched the residence of Kash’s co-conspirators and found processed, packaged marijuana ready for distribution as well as pay/owe ledgers reflecting marijuana cultivation and sales and several firearms.
This case was the product of an investigation by the Internal Revenue Service – Criminal Investigation, Sacramento Police Department, Pennsylvania State Police, Utah Highway Patrol, and the U.S. Drug Enforcement Administration. Assistant United States Attorneys Michele Beckwith, Justin Lee, and Christiaan Highsmith are prosecuting the case.
Kash is in custody pending sentencing. Co-defendants Glen Meyers, Aimee Burgess, and James Massery have all pleaded guilty and are in custody.
Kash is scheduled to be sentenced by Judge Mueller on February 3, 2016. Kash faces a maximum sentence of 40 years in prison and a $5 million fine on the conspiracy to distribute marijuana charge and on the manufacture of marijuana change, and 20 years in prison and a $500,000 fine or twice the value of the funds involved in the money laundering offense. 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.
Jury Convicts Member of San Diego Counterfeiting OperationRead the Press Release
Special Assistant U. S. Attorney Stephanie G. Chau (619) 546-9174 and Assistant U.S. Attorney Michael G. Wheat (619) 546-8437
NEWS RELEASE SUMMARY – November 18, 2015
SAN DIEGO – Jermaine Harris of San Diego was convicted by a federal jury yesterday of manufacturing and passing counterfeit currency following a one-week trial before U.S. District Judge Cathy Ann Bencivengo.
A federal jury deliberated less than one day and found Harris guilty of one count of Counterfeiting and Forging Obligations of the United States, in violation of 18 U.S.C. Section 471 and one count of Passing Counterfeit Obligations, in violation of 18 U.S.C. Section 472.
At trial, the government presented evidence that Harris, along with co-defendants Alexander Eibeck, Sopeap Muk, Meghan Ripley, Nicole Cortes and Ashley Contreras, operated a counterfeit currency manufacturing plant from a hotel room in Mission Valley.
On November 15, 2014, the San Diego Police Department arrested one of the six individuals for passing counterfeit United States Federal Reserve Notes at the Fashion Valley Mall. On November 16, 2014, the San Diego Police Department and the United States Secret Service, Regional Task Force, discovered the manufacturing plant.
According to the evidence presented at trial, the six defendants manufactured counterfeit U.S. currency by “bleaching” or “washing” the ink off of genuine small-denomination bills and then using a printer to print images of higher-denomination bills on the washed currency paper. A search of the hotel room yielded a wide variety of physical evidence, including completed and partially completed counterfeit currency, printers, bleaching solution, and various tools used to replicate the security features of legitimate U.S. currency. U.S. Secret Service agents discovered that the defendants had been using electronic devices to view and manipulate images of legitimate U.S. currency features to produce counterfeit $100 bills.
Subsequent investigation revealed that the group victimized numerous businesses in the San Diego area by passing the counterfeit $100 bills. According to the plea agreement for Eibeck, the face value of the counterfeit bills manufactured and passed by the group exceeded $16,000.
Eibeck, Muk, Ripley, Cortes and Contreras were previously sentenced after pleading guilty. Judge Bencivengo will sentence Harris on February 19, 2016.
This case was investigated by United States Secret Service.
“The United States Secret Service would like to thank the San Diego Police Department, as well as our other state and local law enforcement partners in the San Diego Regional Fraud Task Force for all their efforts and assistance with this investigation,” said Special Agent in Charge David Murray.
DEFENDANT Case Number: 14CR3488-CAB
Jermaine Harris Age: 34
Alexander Eibeck Age: 27
Sopeap Muk Age: 28
Nicole Cortes Age: 29
Meghan Ripley Age: 35
Ashley Contreras Age: 22
SUMMARY OF CHARGES
Counterfeiting and Forging Obligations, in violation of Title 18, United States Code, Section 471
Maximum penalty: 20 years
Passing Counterfeit Obligations, in violation of Title 18, United States Code, Section 472
Maximum penalty: 20 years
AGENCIES
United States Secret Service, San Diego Regional Task Force
San Diego Police Department
Insurance Broker Sentenced to 3 Years in Federal Prison for Stealing Millions from AetnaRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that BONNEY J. HEBERT, 60, of Killington, Vermont, was sentenced today by Senior U.S. District Judge Alfred V. Covello in Hartford to 36 months of imprisonment, followed by three years of supervised release, for stealing more than $10 million from Hartford-based Aetna Life Insurance Company.
According to court documents and statements made in court, HEBERT was the sole owner and president of Academic Risk Resources and Insurance, LLC (“ARRI”), a risk management and insurance brokerage agency based in Boston. ARRI’s business included brokering insurance contracts between health insurance providers and colleges or universities in order to provide health insurance for students and other individuals affiliated with the college or university. In July 2007, HEBERT and ARRI began serving as the broker for a student health insurance contract entered into between Aetna and Rutgers, the State University of New Jersey. The contract between Aetna and Rutgers provided that premiums would be paid by Rutgers to ARRI and then transmitted by ARRI to Aetna.
Between 2009 and 2012, HEBERT failed to pass along to Aetna $10,358,728 in premiums paid by Rutgers. She used the stolen funds on personal expenses and to cover the business expenses of ARRI.
On June 2, 2015, HEBERT pleaded guilty to one count of wire fraud and one count of engaging in monetary transactions in property derived from specified unlawful activity.
HEBERT disclosed her fraudulent scheme to Aetna representatives in June 2012. She subsequently sold ARRI to another business and directed that payments related to the sale be made directly to Aetna. Through these payments, HEBERT has repaid Aetna approximately $1.59 million. HEBERT also has not collected more than $900,000 in commissions owed to her by Aetna. As a result, HEBERT currently owes Aetna $7,846,305.45 in restitution.
This matter was investigated by the Federal Bureau of Investigation and the Internal Revenue Service – Criminal Investigation Division. The case was prosecuted by Assistant U.S. Attorney Avi M. Perry.