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18 December 2015
Peruvian Man Sentenced for Threatening and Defrauding Spanish-Speaking Consumers Through Fraudulent Call CentersRead the Press Release
A resident of Lima, Peru, charged with operating call centers that lied to and threatened Spanish-speaking victims in the United States, convincing them to pay fraudulent settlements, was sentenced today to more than four years in prison in federal district court in Miami, Florida, the Department of Justice and the U.S. Postal Inspection Service (USPIS) announced.
Cesar Luis Kou Reyna, 40, was sentenced to serve 58 months in federal prison to be followed by three years of supervised release for operating telemarketing call centers in Peru that threatened Spanish-speaking victims across the United States with phony debts and other consequences of failure to pay the alleged debts that they did not owe. On Oct. 14, Reyna pleaded guilty to conspiracy to commit mail and wire fraud.
“The threats made by the defendant’s call centers frightened and intimidated Spanish-speaking victims across the United States,” said Principal Deputy Assistant Attorney General Benjamin C. Mizer, head of the Justice Department’s Civil Division. “As this case and other recent ones show, we will track down those responsible for defrauding and threatening American consumers, no matter where the fraudsters reside, what language they speak or which populations they target.”
“The U.S. Postal Inspection Service has a long tradition of protecting postal customers from these types of fraud and bringing those responsible to justice,” said Acting Inspector in Charge Delany De Leon-Colon of the USPIS’s Miami Division. “Every day we protect our postal customers and the general public from falling victim to these scams.”
Kou Reyna owned and controlled a corporation called Fonomundo FC, which operated call centers in Peru and payment and fulfilment operations in Miami. Fonomundo FC and its affiliated call centers used Internet-based telephone calling services to place cold calls to Spanish-speaking residents in the United States. The callers falsely claimed to be attorneys and said that victims had failed to pay for or receive a delivery of products, although the victims had not ordered these products.
The callers claimed that victims would be sued and that the companies would obtain large monetary judgements against them. Some victims were also threatened with negative marks on their credit reports, imprisonment or deportation. The callers said these threatened consequences could be avoided if the victims immediately paid “settlement fees.” Many victims made monetary payments based on these threats.
Kou Reyna was originally charged by criminal complaint and was arrested by USPIS on July 30. He has remained incarcerated since his arrest and was later indicted on Aug. 27.
Principal Deputy Assistant Attorney General Mizer commended USPIS for its investigative efforts and thanked the U.S. Attorney’s Office of the Southern District of Florida for its contributions to the case. The case is being prosecuted by Trial Attorneys Phil Toomajian and Stephen T. Descano of the Civil Division’s Consumer Protection Branch.
Ohio Cardiologist Sentenced to 20 Years in Prison for Overbilling Medicare and Others of $5.7 Million for Unnecessary ProceduresRead the Press Release
A Westlake, Ohio, cardiologist was sentenced to 20 years in prison for performing unnecessary catheterizations, tests, stent insertions and causing unnecessary coronary artery bypass surgeries as part of a scheme to overbill Medicare and other insurers by $29 million, law enforcement officials said.
Dr. Harold Persaud, 56, was convicted earlier this year of one count of health care fraud, 13 counts of making false statements and one count of engaging in monetary transactions in property derived from criminal activity.
“This defendant used his medical license as a license to steal,” said First Assistant U.S. Attorney Carole S. Rendon. “He inflated Medicare billings, falsified cardiac care records and performing needless and sometimes invasive tests and procedures. This prison sentence is well deserved.”
“Dr. Persaud violated the sacred trust between doctor and patient by ordering unnecessary tests, procedures and surgeries to line his pockets,” said Special Agent in Charge Stephen D. Anthony of the FBI’s Cleveland Office. “He ripped off taxpayers and put patients’ lives at risk.”
“Dr. Persaud's systematic use of medically unnecessary tests and procedures, falsification of patient records and submission of false billings to health care insurers added up to a toxic mixture of fraud at the expense of patient safety and well-being and taxpayer dollars,” said Special Agent in Charge Lamont Pugh III of the U.S. Department of Health & Human Services, Office of Inspector General - Chicago Region. “The OIG, along with our law enforcement partners, will continue to identify, investigate and seek the criminal prosecution of those who choose to exploit federally funded health care programs and the patients these programs serve.”
Persaud had a private medical practice at 29099 Health Campus Drive in Westlake and had hospital privileges at Fairview Hospital, St. John’s Medical Center and Southwest General Hospital, according to court documents and trial testimony.
Persaud devised a scheme to defraud and obtain money from Medicare and other insurers. The scheme took place between 2006 and 2012. According to court documents and trial testimony, his activities in furtherance of the scheme included:
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Persaud selected the billing code for each customer submitted to Medicare and private insurers and used codes that reflected a service that was more costly than that which was actually performed;
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Persaud performed nuclear stress tests on patients that were not medically necessary;
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He knowingly recorded false results of patients’ nuclear stress tests to justify cardiac catheterization procedures that were not medically necessary;
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Persaud performed cardiac catheterizations on patients at the hospitals and falsely recorded the existence and extent of lesions (blockage) observed during the procedures;
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He recorded false symptoms in patient records to justify testing and procedures on patients;
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Persaud inserted cardiac stents in patients who did not have 70 percent or more blockage in the vessel that he stented and who did not have symptoms of blockage;
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He placed a stent in a stenosed artery that already had a functioning bypass, thus providing no medical benefit and increasing the risk of harm to the patient;
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He improperly referred patients for coronary artery bypass surgery when there was no medical necessity for such surgery, which benefitted Persaud by increasing the amount of follow-up testing he could perform and bill to Medicare and private insurers;
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Persaud performed medically unnecessary stent procedures, aortograms, renal angiograms and other procedures and tests.
As a result of this scheme, Persaud overbilled and caused the overbilling of Medicare and private insurers in the amount of approximately $29 million, of which Medicare and the private insurers paid approximately $5.7 million, according to court records.
A hearing is scheduled for Jan. 27, 2016, to determine restitution.
This case is being prosecuted by Assistant U.S. Attorneys Michael L. Collyer and Chelsea Rice following an investigation by the FBI and the U.S. Department of Health and Human Services – Office of Inspector General
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New York Man Sentenced to 20 years for Child Pornography OffensesRead the Press Release
CONCORD, NEW HAMPSHIRE – Acting United States Attorney Donald Feith announced today that Phillip Binder, 43, of Woodside, New York, was sentenced to twenty years in federal prison after pleading guilty to producing and transporting child pornography. Upon his release from prison he will be supervised by United States Probation for a period of ten years.
Binder was arrested in Seabrook, New Hampshire, after traveling to meet an individual he had met in an online chatroom dedicated to the exchange of sexually explicit images of children. Binder came to New Hampshire for the purpose of trading images of child pornography. The individual Binder met was actually an undercover agent with the Department of Homeland Security (HSI) who had been conducting an investigation into individuals utilizing the website. At the time of his arrest, police seized a video from Binder depicting his sexual abuse of a young child.
“Mr. Binder traveled from New York to New Hampshire for the purpose of promoting the exploitation of children by trading child pornography,” stated Acting U.S. Attorney Donald Feith. “When he was arrested, it was discovered that he not only wanted to trade child pornography, but that he was a predator who actively engaged in the sexual abuse of a child. This office will continue to work with law enforcement to identify, investigate, and prosecute those who pose such a threat to our kids. The sentence imposed in this case guarantees that a generation of children will be safe from this predator.”
“Those who sexually abuse children and use the Dark Web to promote their deplorable activity should be warned,” stated Homeland Security Investigations (HSI) Special Agent in Charge Matthew Etre. “We will use all the tools at our disposal to bring you to justice. I am proud of the HSI Special Agents, and of our law enforcement partners who devote themselves to stopping these criminals and keeping our children safe.”
The case was investigated by HSI in conjunction with the Portsmouth, Seabrook and Hinsdale Police Departments and the New Hampshire Internet Crimes Against Children Task Force. This case was prosecuted by Assistant U.S. Attorney Helen White Fitzgibbon.
New Orleans Woman Indicted for Conspiracy, Theft of Federal Funds, and Aggravated Identity TheftRead the Press Release
U.S. Attorney Kenneth A. Polite announced that DOMINIEL TRINETTE JONES, age 26, of New Orleans, was charged today in a five-count Indictment for Conspiracy to Steal Federal Funds, Theft of Federal Funds, and Aggravated Identity Theft.
According to the Indictment, on or before September 11, 2014, JONES conspired with others, known and unknown to the Grand Jury, to unlawfully acquire two United States Treasury checks that did not belong to her. The refund checks were the property of the United States and payable to two actual taxpayers who were owed tax refunds. One check was payable to S.H. for the tax year 2011, in the amount of $25,476.00. The other check was payable to S.V. and J.V., in the amount of $33,754.64.
At a time unknown, but prior to September 11, 2014, JONES, along with others, obtained two false Georgia driver’s licenses in the names of S.H., and J.V., the two taxpayers who were payees on the refund checks. JONES obtained these fake licenses for the purpose of opening bank accounts to deposit and steal the Treasury funds.
On or about September 11, 2014, using the fake driver’s license bearing the name S.H., JONES, opened a bank account at Woodforest National Bank located in Covington, in S.H.’s name, but deposited the $25,476.00 check later that day at a different branch in Gulfport. On or about September 22, 2014, JONES, traveled to the Woodforest National Bank, located in New Orleans, and withdrew $10,000 from the account bearing the name S.H. using the fake driver’s license.
According to the allegations in the Indictment, on or about September 13, 2014, JONES and a co-conspirator, opened an account in the names of S.V. and J.V. at Woodforest National Bank located in LaPlace. JONES and the co-conspirator presented fraudulent Georgia driver’s licenses in the names of S.V. and J.V. to open the account. The same day, JONES, and the co-conspirator used the Treasury check payable to S.V. and J.V., in the amount of $33,754.64, as the initial deposit to open the account at the Woodforest National Bank.
If convicted of Conspiracy to Steal Federal Funds, JONES faces a maximum of five years imprisonment, a fine of not more than $250,000.00, supervised release of three years, and a special assessment of $100.00.
If convicted of Theft of Federal Funds, JONES faces a maximum of ten years imprisonment, a fine of not more than $250,000, supervised release of three years, and a special assessment of $100.00, as to each count.
If convicted of Aggravated Identity Theft, JONES faces a mandatory minimum of two year imprisonment in addition to any penalty on Counts Two or Three, as to each count.
U.S. Attorney Polite reiterated that the Indictment is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
U.S. Attorney Polite praised the work of the Internal Revenue Service, Criminal Investigation in investigating this matter. Assistant U.S. Attorney Sharan E. Lieberman is in charge of the prosecution.
New Orleans Man Charged with Possession of Child Pornography and Failure to Register as a Sex OffenderRead the Press Release
U.S. Attorney Kenneth A. Polite announced that DWIGHT JOSEPH, JR., age 33, of New Orleans, was charged today in a two-count Indictment with possession of images and videos depicting the sexual exploitation of children under the age of twelve and failure to register as a sex offender.
Because of JOSEPH’S 2005 conviction in Lehigh County, Pennsylvania for dissemination of photo/film of child sex acts, if convicted, JOSEPH faces a mandatory minimum of ten years imprisonment and a maximum term of imprisonment of twenty years for possessing child pornography. He also faces a maximum term of ten years imprisonment for failing to register as sex offender. Additionally, JOSEPH faces up to a lifetime of supervised release and a $250,000 fine per count. He can also be required to register as a sex offender.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys= Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
U.S. Attorney Polite reiterated that the Indictment is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
U.S. Attorney Polite praised the work of the Louisiana Attorney General’s Cybercrime Unit and the United States Marshal’s Service, with assistance from the United States Department of Homeland Security – Homeland Security Investigations in investigating this matter. Assistant United States Attorney Jordan Ginsberg is in charge of the prosecution.
New Orleans Man Charged with Drug DistributionRead the Press Release
U.S. Attorney Kenneth A. Polite announced that DELRONE MOORE, age 38, of New Orleans, was charged in a four-count Indictment December 18, 2015, by a federal grand jury for charges of possession with intent to distribute methamphetamine and heroin and other drug charges.
According to the Indictment, on December 16, 2015, MOORE possessed, with intent to distribute, 50 grams or more of methamphetamine and 100 grams or more of heroin. MOORE is also charged with distribution of heroin on both October 14, 2015, and November 12, 2015. If convicted of the charge of possession with intent to distribute methamphetamine, the defendant will face a sentence of ten years to life imprisonment.
U.S. Attorney Polite reiterated that the indictment is merely an allegation and that the guilt of the defendant must be proven beyond a reasonable doubt.
U.S. Attorney Polite praised the work of the Drug Enforcement Administration and the Jefferson Parish Sheriff’s Office. Assistant United States Attorney Nicholas D. Moses is in charge of the prosecution.
Naugatuck Man Admits Defrauding Connecticut ResidentsRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that on December 16, CHRISTOPHER SCULL, 36, of Naugatuck, waived his right to indictment and pleaded guilty before U.S. District Judge Janet C. Hall in New Haven to two counts of mail fraud stemming from a scheme to defraud investors of more than $120,000.
According to court documents and statements made in court, from approximately June 2011 and continuing until approximately January 2014, SCULL, while employed as an insurance agent with Bankers Life & Casualty Company (“Bankers Life”), devised and executed a scheme to defraud victims out of money. As part of the scheme, SCULL induced one victim to make withdrawals from her annuity and give the money to SCULL by falsely representing that the victim owed certain fees in connection with the account. SCULL caused the victim to submit an annuity withdrawal form and, after the victim received a check in the mail from Bankers Life, SCULL directed the victim to deposit the money into her account and write SCULL a personal check. SCULL then used the money for his own benefit.
Judge Hall scheduled sentencing for March 10, 2016, at which time SCULL faces a maximum term of imprisonment of 20 years and a fine of up to $250,000 on each count.
This matter has been investigated by the U.S. Postal Inspection Service. The case is being prosecuted by Assistant U.S. Attorney Susan L. Wines.
Mother and Daughter Sentenced for Defrauding the United States in Health Care SchemeRead the Press Release
HOUSTON – Two Houston area women have been sentenced following their convictions related to a scheme in which Medicare and Medicaid were billed for ambulance services that were not provided, announced U.S. Attorney Kenneth Magidson. Erika Moscarro, 37, of Houston, and Maria Vasquez, 59, of Cypress, pleaded guilty on Sept. 22, 2014, and Jan. 22, 2015, respectively.
Today, U.S. District Judge Gray Miller sentenced Vasquez. At the hearing, she apologized to the court and asked for a sentence of less than a year in prison. Judge Miller ultimately imposed a 57-month sentence and further ordered her to pay $587,288 in restitution. Her daughter – Moscarro – was sentenced previously to a 12-month-term of imprisonment. Both will also serve three years of supervised release following completion of their prison terms.
Vasquez was the operator of Optimum Care EMS, a business which provided ambulance transport to patients on Medicare and Medicaid. Between January 2008 and December 2010, Optimum Care EMS received payments from Medicaid and Medicare for ambulance transport services which were not actually provided. Specifically, Vasquez and her daughter provided patients with transportation via van or car. However, they actually billed Medicare and Medicaid for ambulance transportation with basic life support, which resulted in larger payments.
As a result of the scheme, Medicare and Medicaid incurred a loss of more than $500,000.
Vasquez was permitted to remain on bond and voluntarily surrender to a U.S. Bureau of Prisons facility to be determined in the near future.
The charges were the result of an investigation conducted by the Texas Attorney General’s Medicaid Fraud Control Unit. Assistant U.S. Attorney James McAlister prosecuted the case.
Meriden Man Who Allegedly Fired Shots into Mosque Charged with Federal Hate Crime OffenseRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, and Patricia M. Ferrick, Special Agent in Charge of the New Haven Division of the Federal Bureau of Investigation, today announced that TED HAKEY, JR., 48, of Meriden, has been arrested on a federal criminal complaint charging him with intentionally damaging religious property, the Baitul Aman Mosque in Meriden.
HAKEY was arrested yesterday. He appeared today before U.S. Magistrate Judge Sarah A.L. Merriam in New Haven and was ordered detained. A detention hearing is scheduled for December 21 at 9:30 a.m.
As alleged in the criminal complaint, in the early morning hours of November 14, 2015, shortly after learning of the terrorist attacks in Paris, HAKEY who lived next door to the Mosque used his high powered rifle to discharge several rounds at the Mosque. Four bullets hit the mosque, with three penetrating the building. No one was inside the mosque at the time of the shooting and no one was injured during the incident.
“All citizens of this earth should be free to worship without fear of violence,” said U.S. Attorney Daly. “As Americans, we must not let fear drive us away from our values and toward hateful and divisive acts against others. The core mission of the Department of Justice involves the safety of every person and their protection against racially, religiously and ethnically motivated violence and intimidation. We stand ready to prosecute individuals when rhetoric crosses the line to threats of violence or – as charged here – actual violence. I thank the FBI, ATF, Connecticut State Police and Meriden Police Department for their excellent work in this important investigation.”
“This arrest should serve as a clear message that crimes of hate against individuals of any race, creed, gender or religious background will not be tolerated,” said FBI Special Agent in Charge Ferrick. “This is the result of FBI, ATF, Connecticut State Police and the Meriden Police Department working night and day to bring some degree of comfort to a community that has been victimized by fear and hate.”
The charge of intentionally damaging religious property through use of a dangerous weapon carries a maximum term of imprisonment of 20 years and a fine of up to $250,000.
U.S. Attorney Daly stressed that a criminal complaint is only a charge and is not evidence of guilt. Charges are only allegations, and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This matter is being investigated by the Federal Bureau of investigation, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Connecticut State Police and the Meriden Police Department.
Maryland Man Sentenced to Three Years in Prison for Attacking Two Women in Northwest WashingtonRead the Press Release
WASHINGTON – Fernando Salas, 31, formerly of Gaithersburg, Md., was sentenced today to three years in prison after earlier pleading guilty to one count of kidnapping and one count of misdemeanor sexual abuse stemming from his random attack on two different women one night in May 2015, U.S. Attorney Channing D. Phillips announced.
Salas pled guilty in June 2015 in the Superior Court of the District of Columbia, in an Alford plea. Under such a plea, the defendant does not admit the allegations but agrees that the government has enough evidence to secure a conviction. He was sentenced by the Honorable Jennifer Anderson. Upon completion of his prison term, Salas will be placed on five years of supervised release.
According to the government’s evidence, early on May 7, 2015, after a night of heavy drinking and attending a strip club on M Street NW, Salas took to the nearby streets. He first accosted a college student as she was walking home on 19th Street NW, just south of M Street. He grabbed her from behind and tried to drag her into a nearby alley. She was able to get his hand off of her mouth and began screaming for help, at which point Salas fled down the alley.
A few minutes later, Salas came up from behind another young woman who was waiting for an Uber ride at 18th and M Streets NW. Again, Salas approached from behind, grabbed the woman, and tried to drag her to a secluded spot outside a nearby bank. As she struggled to get away, a Good Samaritan saw what Salas was doing and yelled at him. Salas then threw the woman to the ground and ran away.
Salas was apprehended nearby a short while later by officers of the Metropolitan Police Department (MPD), who were responding to the 911 placed by the first victim after she got away.
In announcing the sentence, U.S. Attorney Phillips praised the work of MPD’s Second District officers and detectives from the MPD Sexual Assault Unit, which investigated the case. He also acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Paralegal Specialists D’Yvonne Key and Joyce Arthur; and Victim/Witness Advocate Tracey Hawkins. Finally, U.S. Attorney Phillips commended Assistant U.S. Attorney Peter V. Taylor, who investigated and prosecuted the case.
Man Sentenced to 15 Months in Federal Prison and Ordered to Pay Nearly $150,000 in Restitution to IRS on Identity Theft ConvictionRead the Press Release
DALLAS — A man who admitted committing identity theft was sentenced this week by U.S. District Judge Sam A. Lindsay, announced U.S. Attorney John Parker of the Northern District of Texas.
Uche Victor Harrison Onyewulotu was sentenced on Monday to 15 months in federal prison and ordered to pay $141,469 in restitution to the Internal Revenue Service (IRS). He pleaded guilty in July 2015 to an indictment charging one count of identity theft – possession in and affecting interstate commerce of means of identification of another with intent to commit a crime.
According to the factual resume and complaint filed in the case, over the course of two years, an individual, identified as Chijioke Augustin Obiora, a Nigerian national, sold undercover agents 13 U.S. Treasury checks, stolen and obtained by fraud, with a total value of $115,702.
On April 28, 2014, according to the factual resume, Obiora attempted to fly to Lagos, Nigeria, from Dallas-Fort Worth airport, where he was arrested. Onyewulotu accompanied Obiora at the airport and was detained.
According to the factual resume, Onyewulotu admitted that he had assisted an individual in a scheme to file fraudulent U.S. federal income tax returns to obtain refunds. When Onyewulotu’s laptop was searched, pursuant to a federal search warrant, according to the factual resume, law enforcement found the means of identification of thousands of individuals, including names, ages, genders, dates of birth, Social Security account numbers, addresses and telephone numbers.
Obiora was prosecuted and convicted in the Eastern District of Texas, and according to the judgment filed in the case, was sentenced in October 2015 to serve 24 months in federal prison.
IRS Criminal Investigation, the U.S. Department of State Diplomatic Security Service, and the Texas Department of Public Safety and investigated. Assistant U.S. Attorney Joseph M. Revesz prosecuted.
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Man Sentenced for Selling Fraudulent ID CardsRead the Press Release
ATLANTA - Horacio Sanchez-Lopez has been sentenced to one year and two months in federal prison for conspiring to manufacture, sell, and distribute counterfeit federal Permanent Resident and Social Security cards.
“Trafficking in counterfeit immigration and Social Security documents threatens the integrity of systems which verify employment,” said U. S. Attorney John Horn. “Forged documents not only circumvent those systems, but can also be used for more nefarious activities.”
“Fraudulent identity documents pose a serious threat to public safety as they enable people to commit a broad range of criminal offenses from identity theft to financial crimes,” said Nick S. Annan, special agent in charge of ICE Homeland Security Investigations Atlanta. “HSI will continue to actively pursue individuals who engage in this type of criminal activity that threatens the safety and security of our communities.”
According to U.S. Attorney Horn, the charges and other information presented in court: In the summer of 2014, Homeland Security Investigations (HSI) agents began investigating a conspiracy that sold counterfeit identification documents in the Chamblee, Georgia, area. Working through cooperating individuals, agents bought several pairs of Permanent Resident and Social Security cards from Horacio Sanchez-Lopez and a co-conspirator, Jorge Manuel Rosado. Sanchez-Lopez or Rosado delivered the documents to customers who ordered them over the phone from another individual, and they sold the documents to confidential informants for between $80 and $120 per set.
On October 16, 2014, agents executed a search warrant at the house in Chamblee where Sanchez-Lopez, Rosado, and others lived. While the conspirators had moved the computer they had been using to make the fraudulent documents, agents found, among other things, a used printer ribbon that lab analysis later found contained 215 images of ID cards. Agents also recovered 93 fraudulent cards that had been cut in half and thrown in a trash can, and a smart phone that contained thousands of passport-style photos for ID cards.
Horacio Sanchez-Lopez, 42, of Chamblee, Georgia, was sentenced by U.S. District Judge Leigh Martin May to one year, two months in prison, followed by three years of supervised release. Sanchez-Lopez is an illegal alien from Mexico, and has been ordered to be transferred for deportation proceedings. Sanchez-Lopez was convicted on these charges on October 8, 2015, after he pleaded guilty.
Jorge Manuel Rosado, 45, of Chamblee, Georgia, pleaded guilty on September 11, 2015, to a conspiracy charge and was sentenced to prison for fifteen months by Judge May.
The conspiracy remains under investigation by the Homeland Security Investigations.
Assistant United States Attorney William G. Traynor is prosecuting the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Lorain man indicted for producing child pornography with more than a dozen childrenRead the Press Release
A grand jury returned a 15-count superseding indictment charging Robert B. Ray, 52, of Lorain, with producing visual depictions of minors engaged in sexually explicit conduct, receiving, and possessing child pornography, said Steven M. Dettelbach, U.S. Attorney for the Northern District of Ohio.
Between 2009 and 2013, Ray induced or coerced 13 different minor children into sexually explicit conduct for the purpose of creating child pornography, according the the indictment.
If convicted, the defendant’s sentence will be determined by the Court after a review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense, and the characteristics of the violation. In all cases, the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
The case is being prosecuted by Assistant U.S. Attorney Brian M. McDonough following an investigation by the FBI Cleveland Field Office, Elyria Resident Agency.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government's burden to prove guilt beyond a reasonable doubt.
Linton Indiana man faces extortion and child exploitation chargesRead the Press Release
Indianapolis – United States Attorney Josh J. Minkler today announced the arrest of a Linton, Indiana man on seven counts of sending extortionate interstate communication and two counts of sexual exploitation of a child. Kenneth J. McCarter, 20, was arrested at his Linton apartment.
“Mr. McCarter victimized children through fear and violent threats over the internet,” said Minkler. “Threatening young victims into doing unthinkable acts like Mr. McCarter did, is not a crime we take lightly in this office. He will be held fully accountable for his actions in federal court.”
In June 2015, a 19 year old victim began receiving text messages from a number she did not recognize. The text messages suggested that the sender knew the victim and stated he had seen her nude several times in the past. He further stated that if she did not send three nude photos of her to the text number, he would post sexually explicit photos of the victim on Facebook and “tag” her parents, friends and employers, etc. The text message sender sent nude photos of a female to the victim but no face was visible. The victim reported this activity to the Daviess County Sheriff’s Department, who, working with the Indiana State Police and the Indianapolis Metro Police Department identified the sender as McCarter.
Investigators soon learned that McCarter was also using Facebook to communicate with the first victim and many others. Sometime using fictitious screen names, he allegedly would threaten them by saying he had sexually explicit photos. He demanded, many times threatening violence, the victims to send more sexually explicit images to him. On several occasions the victims complied, feeling frightened by McCarter. In one exchange, McCarter told the victim, “if you don’t want your life ruined, you will do what I say...” In another exchange, he threatened to post pictures on Facebook saying “…Everyone will think you are the county whore …” demanding more nude photos of the victim.
In total, seven minor victims and two adult victims have been identified and saved from further victimization.
According to Senior Litigation Counsel Steven D DeBrota, who is prosecuting this case for the government, McCarter could face decades in prison if convicted on all counts.
A criminal complaint is only a charge and not indication of guilt. All defendants are presumed innocent until proven guilty in federal court.
This case was jointly investigated by the Indiana State Police, FBI, Indianapolis Metropolitan Police Department, Daviess County Sheriff’s Department and Barry County Michigan Sheriff’s Department.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006, by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorney’s Office 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 “resource.”
Lead Defendant Sentenced in $5.8 Million Mortgage Fraud RingRead the Press Release
ATLANTA - Chiedu “George” Chukwuka has been sentenced in connection with his lead role in a mortgage fraud ring that spanned five years and caused millions in losses. Chukwuka, along with his co-defendants and other co-conspirators, engaged in a massive property-flipping scheme resulting in over $5.8 million in actual losses to financial institutions between 2006 and 2011.
“At the height of the recent mortgage-fraud crisis, this property-flipping scheme caused scores of homes to fall into foreclosure, costing financial institutions millions of dollars in losses,” said U. S. Attorney John Horn. “Many communities in our district have been decimated by mortgage fraud during the last 15 years and even now struggle to recover from the effects of these schemes.”
“The sentencing of Mr. Chukwuka brings to a close a lengthy investigation and prosecution of a criminal enterprise that targeted the banking industry through their prolific mortgage fraud schemes. Mr. Chukwuka, considered by law enforcement and prosecution to be head of this enterprise, caused extensive damage with high loss amounts to those victim banks involved. The FBI is pleased with the role it played in bringing about this sentencing to federal prison of Mr. Chukwuka as well as the previous sentencings of his co-defendants in this matter,” said J. Britt Johnson, Special Agent in Charge, FBI Atlanta Field Office.
According to U.S. Horn, the charges and other information presented in court: Chukwuka, along with his co-defendants and co-conspirators, recruited straw buyers to purchase homes at a discounted price, typically a bank-owned or distressed property. The group then recruited a second straw buyer to purchase the same home at a dramatically inflated price. In turn, Chukwuka, his co-defendants and co-conspirators applied for an acquisition loan for the second straw buyer, supporting the loan application with false income, fake employment, and fraudulent net worth data.
The group profited from their scheme by pocketing the acquisition loan proceeds paid by the victim bank to the straw seller (who was the straw purchaser in the first transaction). The amount of profit was the difference between the price paid by the straw purchaser in the first transaction and the price paid by the straw purchaser in the second transaction, less transaction costs. Since none of the straw purchasers made any significant loan payments, the targeted properties usually went into foreclosure, resulting in over $5.8 million in actual losses to financial institutions between 2006 and 2011.
Chiedu “George” Chukwuka, 47, of Stone Mountain, Georgia, was sentenced by U.S. District Court Judge Timothy C. Batten, Sr. to serve nine years in prison to be followed by three years of supervised release, and ordered to pay restitution in the amount of $5,868,243.80. Chukwuka was convicted of conspiracy to commit wire fraud on August 10, 2015, after he pleaded guilty.
The following five defendants also pleaded guilty for their roles in the scheme, and were previously sentenced by U.S. District Court Judge Timothy C. Batten, Sr. as follows:
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Shelly Gee, a/k/a Shelly Baker, 48, of Atlanta, Georgia, was sentenced on November 10, 2015, to one year, six months in prison, to be followed by three years of supervised release, and ordered to pay restitution in the amount of $2,243,909.99. Gee was convicted after pleading guilty on June 17, 2015.
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Sandra Petgrave, 43, of Stone Mountain, Georgia, was sentenced on December 4, 2015, to one year, six months in prison, to be followed by three years of supervised release, and ordered to pay restitution in the amount of $1,051,970.77. Petgrave was convicted after pleading guilty on August 18, 2015.
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Kennedy Simmonds, 54, of Snellville, Georgia, was sentenced on December 17, 2015, to three years, ten months in prison, to be followed by three years of supervised release, and ordered to pay restitution in the amount of $5,868,243.80. Simmonds was convicted after pleading guilty on July 6, 2015.
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Marcelle Welch, 37, of Stone Mountain, Georgia, was sentenced on December 17, 2015, to two years, three months in prison, followed by three years of supervised release, and ordered to pay restitution in the amount of $2,554,189.25. Welch was convicted after pleading guilty on July 29, 2015.
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Leah Freeman, 43, of Atlanta, Georgia, was sentenced on December 17, 2015, to two years in prison, to be followed by three years of supervised release, and ordered to pay restitution in the amount of $1,828.532.94. Freeman was convicted after pleading guilty on June 19, 2015.
In a related case, Chinedum Oli, 42, of Snellville, Georgia, was sentenced on February 19, 2013, by Senior U.S. District Court Judge Marvin H. Shoob to five years in prison, followed by five years of supervised release, and ordered to pay restitution in the amount of $4,373,281.63. Oli was convicted after pleading guilty on October 9, 2012.
These cases were investigated by the Federal Bureau of Investigation.
Assistant United States Attorneys Jamie L. Mickelson and Steven D. Grimberg prosecuted the cases.
This announcement is part of efforts underway by President Obama’s Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. Attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Since fiscal year 2009, the Justice Department has filed over 18,000 financial fraud cases against more than 25,000 defendants. For more information on the task force, please visit www.StopFraud.gov.”
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
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Justice Department Announces Joint Resolution with Two Banks Under Swiss Bank ProgramRead the Press Release
The Department of Justice announced today that Edmond de Rothschild (Suisse) SA and Edmond de Rothschild (Lugano) SA (collectively EdR Switzerland) reached a joint resolution under the department’s Swiss Bank Program. EdR Switzerland will pay a penalty of more than $45 million.
The Swiss Bank Program, which was announced on Aug. 29, 2013, provides a path for Swiss banks to resolve potential criminal liabilities in the United States. Swiss banks eligible to enter the program were required to advise the department by Dec. 31, 2013, that they had reason to believe that they had committed tax-related criminal offenses in connection with undeclared U.S.-related accounts. Banks already under criminal investigation related to their Swiss-banking activities and all individuals were expressly excluded from the program.
Under the program, banks are required to:
- Make a complete disclosure of their cross-border activities;
- Provide detailed information on an account-by-account basis for accounts in which U.S. taxpayers have a direct or indirect interest;
- Cooperate in treaty requests for account information;
- Provide detailed information as to other banks that transferred funds into secret accounts or that accepted funds when secret accounts were closed;
- Agree to close accounts of accountholders who fail to come into compliance with U.S. reporting obligations; and
- Pay appropriate penalties.
Swiss banks meeting all of the above requirements are eligible for a non-prosecution agreement.
According to the terms of the joint non-prosecution agreement signed today, EdR Switzerland agrees to cooperate in any related criminal or civil proceedings, demonstrate its implementation of controls to stop misconduct involving undeclared U.S. accounts and pay a penalty in return for the department’s agreement not to prosecute EdR Switzerland for tax-related criminal offenses.
Edmond de Rothschild (Suisse) SA is a corporation organized under the laws of Switzerland with its headquarters in Geneva, Switzerland, and it operates a subsidiary called Edmond de Rothschild (Lugano) SA (collectively EdR Switzerland). EdR Switzerland, one of the largest private banks in Switzerland, also operates a financial services business in Geneva, Lausanne, Fribourg and Lugano, Switzerland. It offers private banking and wealth management services for individual clients around the world, including U.S. citizens, legal permanent residents and resident aliens.
EdR Switzerland is affiliated with the Edmond de Rothschild Group, an independent, family-controlled financial group focused on high-net-worth individual clients. The Edmond de Rothschild Group was founded in 1953 and currently operates in 19 countries worldwide. In 2012, EdR Switzerland agreed to acquire the Lugano-based Sella Bank AG, which became part of Edmond de Rothschild (Lugano) SA in 2013.
For decades prior to and through 2013, EdR Switzerland aided and assisted U.S. clients in opening and maintaining undeclared accounts in Switzerland and concealing the assets and income they held in these accounts. EdR used a variety of means to assist U.S. clients in concealing their undeclared accounts, including by:
- Providing traditional Swiss banking products such as hold mail, code name and numbered account services;
- Assisting clients in using sham entities, such as structures as nominee beneficial owners of the undeclared accounts;
- Providing offshore credit cards, cash cards and debit cards to repatriate funds from the undeclared accounts;
- Structuring transfers of funds from undeclared accounts to evade currency transaction reporting requirements;
- Facilitating the covert repatriation of undeclared accounts via cash withdrawals, the purchase of luxury goods and transfers to the foreign bank accounts of non-U.S. friends, family and business associates;
- Accepting and suggesting the use of Internal Revenue Service (IRS) forms that falsely stated under penalties of perjury that the sham entities beneficially owned the assets in the undeclared accounts; and
- Divesting U.S. securities from its undeclared U.S. accounts for the purpose of subverting its Qualified Intermediary (QI) Agreement with the IRS.
EdR Switzerland relationship managers assisted numerous U.S. clients in covertly repatriating undeclared account funds by structuring transfers in amounts under $10,000 to avoid detection by U.S. authorities. For example, after numerous discussions with one U.S. client regarding his intent to covertly repatriate his undeclared account funds, an EdR Switzerland relationship manager issued a series of checks in the amount of $8,500 made out to the U.S. client drawn on EdR Switzerland’s bank account at UBS in Switzerland. The same relationship manager also assisted this U.S. client in withdrawing $11,000 in cash before re-depositing $2,000 based on “customs limitations.” In another instance, an EdR Switzerland relationship manager assisted a U.S. client in transferring 145,000 Swiss francs to the Swiss UBS account of a luxury watch maker.
Several EdR Switzerland employees notated the advice they provided regarding the repatriation of undeclared U.S. client funds. One relationship manager noted the following about his discussion with a U.S. client: “Telephonic contact with the account holder. Explained to him the situation with respect to U.S. citizen account holders. Asked what to do. Suggested to him to make a donation to his wife.” An assistant to a different relationship manager made this note in an account file: “Explained to [the niece] our need to close the account (client residing in USA) and only possible solution transfer of account to a person not resident in the USA.”
Certain relationship managers assisted or otherwise facilitated some U.S. individual taxpayers in establishing and maintaining undeclared accounts in a manner that concealed the U.S. taxpayers’ ownership or beneficial interest in said accounts. At least one EdR Switzerland relationship manager coordinated with an external trust company to create and administer an offshore structure incorporated in Singapore. EdR Switzerland relationship managers also knew or had reason to know that U.S. clients used external trust companies and attorneys to create and administer structures incorporated or based in offshore locations such as the British Virgin Islands, Panama and Liechtenstein. For certain U.S. client accounts, EdR Switzerland relationship managers and other employees knowingly accepted and included in EdR Switzerland’s account records IRS Forms W-8BEN (or EdR Switzerland’s substitute forms) provided by the directors of the offshore companies that falsely represented under penalty of perjury that such companies were the beneficial owners.
At least one relationship manager assisted two U.S. clients in closing their undeclared accounts at EdR Switzerland by briefly opening up new individual accounts at EdR Switzerland, into which EdR Switzerland transferred the funds from the undeclared accounts, and then transferred the funds from the new accounts to insurance wrapper accounts in Liechtenstein. Insurance wrappers were marketed to U.S. clients by third-party providers in the wake of the UBS investigation as a means of disguising the beneficial ownership of U.S. clients.
Throughout its participation in the Swiss Bank Program, EdR Switzerland has made comprehensive disclosures regarding its U.S.-related accounts. Among other things, EdR Switzerland provided actionable information concerning numerous U.S. client accounts held at EdR Switzerland since August of 2008 permitting the department to make treaty requests to the Swiss competent authority for U.S. client account records. EdR Switzerland also described in detail its U.S. cross-border business, including the policies or lack of policies that contributed to misconduct committed by relationship managers, supervisory relationship managers and EdR Switzerland management; the supervisory chain overseeing relationship managers; and the names of senior management and legal and compliance officials.
Since Aug. 1, 2008, EdR Switzerland held and managed approximately 950 U.S. client accounts, which included both declared and undeclared accounts, with aggregate peak of assets under management of $2.16 billion. EdR Switzerland will pay a penalty of $45.245 million.
In accordance with the terms of the Swiss Bank Program, EdR Switzerland mitigated its penalty by encouraging U.S. accountholders to come into compliance with their U.S. tax and disclosure obligations. While U.S. accountholders at EdR Switzerland who have not yet declared their accounts to the IRS may still be eligible to participate in the IRS Offshore Voluntary Disclosure Program, the price of such disclosure has increased.
Most U.S. taxpayers who enter the IRS Offshore Voluntary Disclosure Program to resolve undeclared offshore accounts will pay a penalty equal to 27.5 percent of the high value of the accounts. On Aug. 4, 2014, the IRS increased the penalty to 50 percent if, at the time the taxpayer initiated their disclosure, either a foreign financial institution at which the taxpayer had an account or a facilitator who helped the taxpayer establish or maintain an offshore arrangement had been publicly identified as being under investigation, the recipient of a John Doe summons or cooperating with a government investigation, including the execution of a deferred prosecution agreement or non-prosecution agreement. With today’s announcement of this non-prosecution agreement, noncompliant U.S. accountholders at EdR Switzerland must now pay that 50 percent penalty to the IRS if they wish to enter the IRS Offshore Voluntary Disclosure Program.
Acting Assistant Attorney General Caroline D. Ciraolo of the Justice Department’s Tax Division thanked the IRS and in particular, IRS-Criminal Investigation and the IRS Large Business & International Division for their substantial assistance. Acting Assistant Attorney General Ciraolo also thanked Kevin F. Sweeney, who served as counsel on this matter, as well as Senior Counsel for International Tax Matters and Coordinator of the Swiss Bank Program Thomas J. Sawyer, Senior Litigation Counsel Nanette L. Davis and Attorney Kimberle E. Dodd of the Tax Division.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Jury Finds Storeowner and Felon Dealer Guilty of Conspiring to Distribute HeroinRead the Press Release
PITTSBURGH - After deliberating for three hours, a federal jury of four men and eight women found two Pittsburgh-area men guilty of five counts of drug and firearms related offenses, United States Attorney David J. Hickton announced today.
Richard Bush, 52, and Mayank Mishra, 35, were tried before United States District Judge Cathy Bissoon in Pittsburgh over the course of three weeks.
According to Assistant United States Attorney Brendan T. Conway and Donovan Cocas, who prosecuted the case, the evidence presented at trial established that Richard Bush supplied heroin to members of a violent street gang called the East Hills Bloods, who operated out of the East Hills section of Pittsburgh. A search warrant executed at his home on March 14, 2012, led to the seizure of more than 9,000 stamp bags of heroin and a cache of firearms, including a sawed-off shotgun, secreted throughout his home. Mishra participated in the heroin distribution conspiracy by supplying stamp bags and material used to dilute heroin to Bush and numerous other Pittsburgh area heroin dealers for more than a decade at his Rock America store, which was operated out of the Northway Mall. Search warrants executed at Rock America and at Mishra’s home on Feb. 26, 2013, led to the seizure of more than two million stamp bags, which, if filled with heroin, would have amounted to more than 75 kilograms of heroin. Federal agents also seized a vast inventory of materials used to dilute heroin and more than $900,000 in cash, which the jury forfeited to the United States as proceeds of his crimes.
Judge Bissoon scheduled sentencing hearings for both defendants on April 6, 2016. The law provides for a total sentence of life in prison for both defendants. Under the Federal Sentencing Guidelines, the actual sentence imposed is based on the seriousness of the offenses and the prior criminal history, if any, of the defendant.
The Greater Pittsburgh Safe Streets Task Force conducted the investigation that led to the prosecution of Bush and Mishra. The Greater Pittsburgh Safe Streets Task Force consists of Pittsburgh Bureau of Police, Allegheny County Sheriff's Office, Wilkinsburg Police Department, Allegheny County Police Department, Oakdale Police Department, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Drug Enforcement Administration and the Federal Bureau of Investigation. The Greater Pittsburgh Safe Streets Task Force also received assistance in this case from the Pennsylvania State Police.
Jury Convicts Utica Woman of Marriage FraudRead the Press Release
SYRACUSE, NEW YORK – Yesterday, a federal court jury convicted Zubeda Kalume, 42, of Utica, of entering into a fraudulent marriage for the purpose of allowing a Gambian man to unlawfully remain in the United States, announced United States Attorney Richard S. Hartunian and Brian Devine, Resident Agent in Charge, Homeland Security Investigations, Syracuse Office. Kalume is a naturalized U.S. citizen originally from the Congo. The jury reached its verdict following a four day trial.
United States Attorney Richard S. Hartunian said: "United States citizenship is not for sale. People who commit marriage fraud damage the integrity of our immigration system. We are committed to enforcing these laws to ensure that those who abuse the process do not cause harm or jeopardize the opportunities for lawful immigration."
"Marriage fraud is a federal crime and unfortunately one that is all too common," said Brian Devine, resident agent in charge for Homeland Security Investigations in Syracuse. "Schemes like this not only damage the integrity of America’s legal immigration system, but they could also be exploited by individuals who pose a significant risk to our nation's security. We applaud the U.S. Attorney's office for pursuing these violations vigorously and thank our federal partners at the U.S. Department of Agriculture for their instrumental efforts throughout the course of this investigation."
The evidence at trial that established Kalume and Alieu Jaiteh, 32, a citizen of The Gambia, were married in Dewitt, New York in October 2009. Jaiteh, who had entered the country on an F-1 student visa, violated its terms and was in the United States illegally at the time of the marriage. Kalume agreed to marry Jaiteh for $10,000 and later assisted him in getting temporary legal immigration status. Jaiteh, who resides in Syracuse, was himself convicted for conspiring from 2009 to 2012 to commit more than $1.7 million in federal food stamp fraud and was sentenced to 18 months in prison in April 2015.
Zubeda Kalume faces a maximum of 5 years in prison, a 3 year term of supervised release, and a fine of up to $250,000 for her conviction for marriage fraud. Chief United States District Judge Glenn T. Suddaby has scheduled her sentencing for April 28, 2016 in Syracuse.
These convictions are the culmination of a joint investigation conducted by Special Agents from Homeland Security Investigations (HSI) and the U.S. Department of Agriculture’s Office of the Inspector General and the investigative component of U.S. Immigration and Customs Enforcement, and prosecuted by the U.S. Attorney’s Office for the Northern District of New York in Syracuse. Substantial assistance was also provided throughout the investigation by the Onondaga County Department of Social Services’ Welfare Fraud Unit, Oneida County Social Services, and the New York State Police. The case was prosecuted by Assistant U. S. Attorney Geoffrey Brown.
Joplin Couple Pleads Guilty to Stealing Mail, Passing Forged ChecksRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that two Joplin, Mo., residents have pleaded guilty in federal court, in separate but related cases, to possessing stolen mail and passing forged checks.
Larissa A. Brady, 32, and her boyfriend, Sheldon Michael Hunt, 32, both of Joplin, pleaded guilty before U.S. Magistrate Judge David P. Rush to the charges contained in Dec. 8, 2015, federal indictments. Brady pleaded guilty today and Hunt pleaded guilty on Tuesday, Dec. 15, 2015.
Brady admitted she had been driving around southwest Missouri between March and June 2015, stealing mail from the mail boxes of businesses and residences to obtain personal information and checks. Brady was gathering information in order to eventually start printing checks but had not progressed to that point. She admitted to cashing the forged checks at various businesses, including Wal-Mart, in order to purchase items that would later be returned to obtain a cash refund. Brady admitted that she had written between $30,000 and $40,000 in stolen checks. Brady also admitted she had gone through approximately 12 check books, each containing 25 checks, which were forged and fraudulently passed at numerous businesses throughout the Joplin area.
Brady was confronted by law enforcement officers at a Joplin Wal-Mart store on June 8, 2015, after she attempted to make an $850 purchase using two different forged checks, which was denied, then returned later the same afternoon to make the same purchase using another forged check. Officers recovered numerous stolen checks, Missouri driver’s licenses, a Social Security card, and other forms of identification belonging to other individuals from Brady’s purse. Officers also searched Brady’s vehicle, where Hunt was waiting for her to return, and recovered numerous checks, credit cards, cash cards, and numerous forms of identification that had been stolen from 66 different individuals in the Joplin area.
Hunt admitted that he was aware Brady was using stolen checks that she would forge and use to make purchases of merchandise so the items could be returned for cash. Hunt admitted that he was involved in stealing mail at various locations in Newton and Jasper Counties, Mo. Hunt had not passed any of the stolen checks, but was well aware of Brady’s actions in passing the checks that he helped steal.
On June 11, 2015, Joplin police officers conducted a traffic stop of Hunt’s vehicle and Hunt was arrested for possession of illegal narcotics. During a search of the vehicle, officers located checkbooks and passports that were in the names of other individuals.
Under federal statutes, Brady and Hunt are each subject to a sentence of up to 15 years in federal prison without parole, plus a fine up to $500,000. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
These cases are being prosecuted by Assistant U.S. Attorney Patrick Carney. They were investigated by the U.S. Postal Inspection Service and the Joplin, Mo., Police Department.
Jefferson County Chosen as One of Seven National Pilot Sites for DOJ Program to Strengthen the Justice System’s Response to Sexual AssaultRead the Press Release
BIRMINGHAM -- Jefferson County has been selected as one of seven pilot sites nationwide to receive funding through the Department of Justice’s Office on Violence Against Women to improve how the justice system in general, and prosecution in particular, handles sexual assault cases, announced U.S. Attorney Joyce White Vance, Jefferson County District Attorney Brandon Falls, Sheriff Mike Hale and Crisis Center Executive Director Meg McGlamery.
Through OVW’s Sexual Assault Justice Initiative, the Jefferson County Commission will receive $400,000 to implement performance measures that reflect promising practices for prosecuting sexual assault cases and promoting justice for victims. U.S. Attorney General Loretta Lynch announced the seven pilot sites this week. Jefferson County joins the city of Los Angeles, Cobb County, Ga., the city and county of Honolulu, the New Hampshire Department of Justice in Concord, the Cherokee Nation in Tahlequah, Okla., and Sauk County, Wis.
“Sexual and domestic violence is a heinous crime, inflicting physical and emotional trauma that can linger for years, with grave consequences for survivors and their loved ones; for neighborhoods and communities and for our country as a whole,” Lynch said. “The Department of Justice is committed to doing everything it can to help prevent, investigate and prosecute these horrendous crimes – including working to ensure that our greatest partners in this effort, the state and local law enforcement officers on whom we all rely, have the tools, training and resources they need to fairly and effectively address allegations of sexual assault and domestic violence.”
“Sexual assault, domestic violence, dating violence and stalking are serious crimes that require a robust criminal justice system response in coordination with community-based organizations and victim service providers,” Vance said. “I am proud of leaders in our community for putting together this outstanding program, which has earned a pilot site designation from the Department of Justice. This program will strengthen prosecutions and promote justice for victims.”
The Jefferson County District Attorney’s Office, the Jefferson County Sheriff’s Office and the non-profit Crisis Center will collaborate on the goals of the initiative. Specifically, funds awarded to Jefferson County will support the development of a specialized unit within the DA’s Office to coordinate investigation and prosecution of sexual assault crimes. The unit will include a bilingual investigator, rape response advocate and special prosecutor. In addition to coordinating investigation and prosecution of sexual assault crimes across the jurisdiction, the special unit will develop and implement a training program for prosecutors and law enforcement, and establish a vertical prosecution program for sexual assaults in Jefferson County, whereby one prosecutor would be assigned to handle a case from start to finish.
The grant award also will support development of enhanced response protocols for the county-wide criminal justice system, and will address reporting barriers for immigrant victims of sexual violence.
“Next year will be a great year for the expansion of services and training of law enforcement, thanks to this Sexual Assault Justice Initiative and the coordinated efforts aimed at combatting sexual assault crimes,” Falls said. “Already this year, my office has worked with the Crisis Center, the YWCA, and the City of Birmingham to launch a Family Justice Center with a focus on assisting victims of sexual assault and domestic violence across Jefferson County. Now, this grant will complement those efforts as a force multiplier aimed at developing best practices in investigation and prosecution, while providing direct training for law enforcement across the county,” he said. “I am thrilled that our efforts in securing this grant have come to fruition, and I look forward to the results we can achieve.”
“I am excited about the possibilities that participation in the Sexual Assault Justice Initiative will offer to victims in Jefferson County,” Hale said. “My office is committed to the success of this project. Every effort will be made to ensure that our deputies participate in the training, support the initiative, and influence other law enforcement agencies to participate.”
“The Department of Justice’s Office on Violence Against Women’s Sexual Assault Justice Initiative will empower survivors of sexual violence to have increased support with and through the criminal justice system,” McGlamery said. “The Crisis Center is excited to deepen our partnership with the Jefferson County District Attorney’s Office and the Sheriff’s Office to provide advocacy and support for those affected by this terrible and prevalent crime.”
The Crisis Center asks that anyone who needs assistance related to sexual violence, or knows of someone who needs help, please call its Rape Response hotline at (205) 323-7273. All services are free and confidential.
The Sexual Assault Justice Initiative grants are part of the Justice Department’s ongoing commitment to protecting women from violence and strengthening the capacity of communities to respond to domestic and sexual violence.
The pilot initiative is designed to strengthen the justice system’s response to sexual violence and enhance collaborations among sexual assault victim services providers, law enforcement agencies and sexual assault medical forensic services providers. With funding from the Grants to Encourage Arrest Policies and Enforcement of Protection Orders Program, the Rural Sexual Assault, Domestic Violence, Dating Violence and Stalking Grant Program and the Tribal Governments Grant Program, SAJI sites will be able to use the funds to strengthen services in their communities that support sexual assault victims.
For more information on OVW and its programs, please visit: www.justice.gov/ovw.
Iowa Hospice to Pay More than $1 Million to Resolve False Claims Act AllegationsRead the Press Release
Iowa Hospice, LLC, has agreed to pay $1,088,244.02 to resolve civil allegations that it violated the federal False Claims Act by submitting false bills to Medicare for hospice services.
The Medicare hospice benefit is only available to patients who elect palliative care (medical care focused on providing patients with relief from pain, symptoms, or stress) for a terminal illness and who have a life expectancy of six months or less if their illness runs the normal course. The government alleged that Iowa Hospice knowingly submitted false claims to the government for payment of these services because, during some or all of the period that certain patients were receiving hospice care, the patients did not have a medical prognosis of six months or less if their illnesses ran their normal course. The claims settled by the agreement are allegations only; there has been no admission or judicial determination of liability.
“The Medicare hospice benefit is only intended for terminally ill Medicare beneficiaries who need end of life care,” said United States Attorney Kevin W. Techau. “We will continue to diligently investigate and pursue all instances of misconduct in federal health care programs to ensure that no federal monies are misspent, all providers play by the rules, and patients receive the care to which they are entitled.”
“Being a hospice provider in the Medicare program is a privilege, not a right. Hospice providers that try to boost their profits by providing hospice care to Medicare beneficiaries who are not terminally ill compromise both the health of those patients as well as the financial integrity of Medicare,” said Special Agent in Charge Gerald T. Roy of the U.S. Department of Health and Human Services, Office of Inspector General. “Our agency will continue to hold such hospice providers accountable for their actions.”
The allegations resolved by the settlement arose from work performed by NCI Advancemed, and an investigation led by the Department of Health and Human Services, Office of Inspector General. False Claims Act cases also arise under the qui tam, or whistleblower, provisions of the False Claims Act. Under those provisions, a private party may file suit on behalf of the United States for false claims and share in any recovery.
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Information: Federal Court ArraignmentsRead the Press Release
The United States Attorney’s Office announced that those persons listed below were arraigned before the U.S. Magistrate and the indictments handed down by the Grand Jury unsealed.
Appearing before U.S. Magistrate Ostby in Billings, on December 17, 2015 and entering pleas of Not Guilty were:
- CHERYL LAVONN HILARIO, a 65-year-old resident of Billings, appeared on charges of conspiracy to possess with intent to distribute and to distribute methamphetamine, and possession with intent to distribute methamphetamine. If convicted of the most serious charges contained in the indictment, HILARIO faces life in prison, $10,000,000 in fines and 5 years supervised release. The case was investigated by the Federal Bureau of Investigation. PACER Case Reference. 15-138
Appearing before U.S. Magistrate Johnston in Great Falls, on December 15, 2015 and entering pleas of Not Guilty were:
- PAIGE LARANN DEMARCE, a 26-year-old resident of Fort Kipp, appeared on charges of bank employee fraud and aggravated identity theft. If convicted of the most serious charges contained in the indictment, DEMARCE faces 30 years in prison, $1,000,000 in fines and 5 years supervised release. The case was investigated by the Federal Bureau of Investigation and Fort Peck Tribes Department of Law and Justice. PACER Case Reference. 15-82
- SARAH RAE LARSON, a 32-year-old resident of Trout Creek, appeared on charges of uttering counterfeit obligations. If convicted of the most serious charges contained in the indictment, LARSON faces 20 years in prison, $250,000 in fines and 3 years supervised release. The case was investigated by the United States Secret Service. PACER Case Reference. 15-81
- AMANDA MIKHA CHERI ST. MARKS, a 21-year-old resident of Wolf Point, appeared on charges of bank employee fraud and aggravated identity theft. If convicted of the most serious charges contained in the indictment, ST. MARKS faces 30 years in prison, $1,000,000 in fines and 5 years supervised release. The case was investigated by the Federal Bureau of Investigation and Fort Peck Tribes Department of Law and Justice. PACER Case Reference. 15-82
Appearing before U.S. Magistrate Johnston in Great Falls, on December 7, 2015 and entering pleas of Not Guilty were:
- MARIO JESUS PARRA CETINA, a 25-year-old resident of Seattle, Washington, appeared on charges of possession with intent to distribute methamphetamine, possession of a firearm in furtherance of a drug trafficking crime, and felon in possession of a firearm. If convicted of the most serious charges contained in the indictment, CETINA faces life in prison, $1,000,000 in fines and 5 years supervised release. The case was investigated by the Federal Bureau of Investigation. PACER Case Reference. 15-86
Appearing before U.S. Magistrate Johnston in Great Falls, on December 4, 2015 and entering pleas of Not Guilty were:
- SILAS JOHN DRUM, a 48-year-old resident of Brockton, appeared on charges of aggravated sexual abuse and abusive sexual contact. If convicted of the most serious charges contained in the indictment, DRUM faces life in prison, $250,000 in fines and lifetime supervised release. The case was investigated by the Federal Bureau of Investigation. PACER Case Reference. 15-84
- TY ROBERT GRAY, a 22-year-old resident of Browning, appeared on charges of conspiracy to possess with intent to distribute methamphetamine, possession with intent to distribute methamphetamine, and distribution of methamphetamine. If convicted of the most serious charges contained in the indictment, GRAY faces life in prison, $10,000,000 in fines and 5 years supervised release. The case was investigated by the Bureau of Indian Affairs. PACER Case Reference. 15-83
- LATONNA MARIE SPOTTED EAGLE, a 43-year-old resident of Browning, appeared on charges of conspiracy to possess with intent to distribute methamphetamine, possession with intent to distribute methamphetamine, and distribution of methamphetamine. If convicted of the most serious charges contained in the indictment, SPOTTED EAGLE faces life in prison, $10,000,000 in fines and 5 years supervised release. The case was investigated by the Bureau of Indian Affairs. PACER Case Reference. 15-83
Appearing before U.S. Magistrate Lynch in Missoula, on December 2, 2015 and entering pleas of Not Guilty were:
- JAY WILLIAM ISLES, SR., a 52-year-old resident of Kalispell, appeared on charges of illegal export/attempted illegal export, and mailing firearms. If convicted of the most serious charges contained in the indictment, ISLES faces 10 years in prison, $250,000 in fines and 3 years supervised release. The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, U.S. Postal Inspection Service, and Immigration and Customs Enforcement. PACER Case Reference. 15-32
- TANNA LEE MEAGHER, a 25-year-old resident of Kalispell, appeared on charges of illegal export/attempted illegal export, felon in possession of firearms, straw purchase/false statement in connection with a firearms transaction, and mailing firearms. If convicted of the most serious charges contained in the indictment, MEAGHER faces 10 years in prison, $250,000 in fines and 3 years supervised release. The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, U.S. Postal Inspection Service, and Immigration and Customs Enforcement. PACER Case Reference. 15-32
- BRIAN SPAIN., a 29-year-old resident of Kalispell, appeared on charges of illegal export/attempted illegal export, felon in possession of firearms, transferring firearms to a prohibited person, dealing firearms without a license, unlawful transfer of firearms to an out-of-state resident, possession of firearms with obliterated serial numbers, and mailing firearms. If convicted of the most serious charges contained in the indictment, SPAIN faces 10 years in prison, $250,000 in fines and 3 years supervised release. The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, U.S. Postal Inspection Service, and Immigration and Customs Enforcement. PACER Case Reference. 15-32
If any of the above cases are of interest to your media organization and the community it serves, we encourage you to monitor the progress of the case regularly through the U.S. District Court calendar and the PACER system so that you stay current and not miss any important developments in the case.
To establish a PACER account, which will allow you to review documents filed in the case, please go to, http://www.pacer.gov/register.html. To access the district court’s calendar, please go to https://ecf.mtd.uscourts.gov/cgi-bin/PublicCalendar.pl.
Illinois Woman Convicted for Kidnapping and Transportation of a Minor with Intent to Engage in Sexual ActivityRead the Press Release
WASHINGTON – A federal jury in Peoria, Illinois, found Nicole Eason guilty on two counts of kidnapping and one count of transportation with intent to engage in criminal sexual activity with a minor, announced Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney James A. Lewis of the Central District of Illinois and Special Agent in Charge Sean Cox of the FBI’s Springfield, Illinois, Division.
“The Easons took advantage of adopted children at their most vulnerable state and caused them to suffer irreparable abuse,” said Assistant Attorney General Caldwell. “Every child in American deserves a safe home, and this conviction should send a clear message that we will go after anyone who seeks to exploit children and risk their safety.”
“Those who wish to harm children often go to great lengths to deceive and manipulate in order to gain access to them,” said U.S. Attorney Lewis. “Citizen jurors, however, rendered their decision in this case based on the facts and evidence gathered and presented by law enforcement and prosecutors, to hold this defendant accountable.”
“Children are our most precious and vulnerable resource and protecting them from individuals like Mr. & Mrs. Eason who seek to exploit them sexually remains one of this office’s priorities,” said Special Agent in Charge Cox. “Today, the jury sent a clear message that this kind of reprehensible conduct will not be tolerated. We will continue to actively pursue anyone who would destroy a child’s innocence by violating federal child exploitation laws.”
Nicole Eason, 37, and her husband Calvin Eason, 46, both formerly of Danville and Westville, Illinois, were charged in connection with their sexual abuse of a child. The couple has remained in custody since their arrest in April 2015. On Nov. 6, 2015, Calvin Eason pleaded guilty to all three counts in the indictment. Nicole and Calvin Eason are scheduled to be sentenced on March 11, 2016.
Evidence at trial established that in 2006 through 2008, the Easons sought to adopt through an informal process, sometimes referred to as private “re-homing,” in which the legal adoptive family can no longer care for the child and transfer the child to another’s custody. In 2007, the Easons communicated with Minor Victim 1’s parents both through online discussion boards and directly and misrepresented material facts about their background to gain the parents’ trust, including, among other things, that they had a home study “waiver,” which the parents believed was needed to transfer custody of their child and which was used to verify the Easons as fit caregivers. Based on these misrepresentations, one of Minor Victim 1’s parents transported their child across state lines in 2007. The minor testified that while in the Easons’ custody for nearly a month, both Nicole and Calvin Eason sexually abused her.
Evidence at trial also established that in 2008, Nicole and Calvin Eason kidnapped a second minor, Minor Victim 2, in the same manner, and the minor was with them for a few days.
The FBI’s Springfield Division investigated the case in cooperation with the Vermilion County, Illinois, Sheriff’s Department, and Trial Attorney Jennifer Toritto Leonardo of the Criminal Division’s Child Exploitation and Obscenity Section (CEOS) and Assistant U.S. Attorney Elly Peirson of the Central District of Illinois prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ offices and CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Illinois Woman Convicted for Kidnapping and Transportation of a Minor with Intent to Engage in Sexual ActivityRead the Press Release
A federal jury in Peoria, Illinois, found Nicole Eason guilty on two counts of kidnapping and one count of transportation with intent to engage in criminal sexual activity with a minor, announced Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney James A. Lewis of the Central District of Illinois and Special Agent in Charge Sean Cox of the FBI’s Springfield, Illinois, Division.
“The Easons took advantage of adopted children at their most vulnerable state and caused them to suffer irreparable abuse,” said Assistant Attorney General Caldwell. “Every child in American deserves a safe home, and this conviction should send a clear message that we will go after anyone who seeks to exploit children and risk their safety.”
“Those who wish to harm children often go to great lengths to deceive and manipulate in order to gain access to them,” said U.S. Attorney Lewis. “Citizen jurors, however, rendered their decision in this case based on the facts and evidence gathered and presented by law enforcement and prosecutors, to hold this defendant accountable.”
“Children are our most precious and vulnerable resource and protecting them from individuals like Mr. & Mrs. Eason who seek to exploit them sexually remains one of this office’s priorities,” said Special Agent in Charge Cox. “Today, the jury sent a clear message that this kind of reprehensible conduct will not be tolerated. We will continue to actively pursue anyone who would destroy a child’s innocence by violating federal child exploitation laws.”
Nicole Eason, 37, and her husband Calvin Eason, 46, both formerly of Danville and Westville, Illinois, were charged in connection with their sexual abuse of a child. The couple has remained in custody since their arrest in April 2015. On Nov. 6, 2015, Calvin Eason pleaded guilty to all three counts in the indictment. Nicole and Calvin Eason are scheduled to be sentenced on March 11, 2016.
Evidence at trial established that in 2006 through 2008, the Easons sought to adopt through an informal process, sometimes referred to as private “re-homing,” in which the legal adoptive family can no longer care for the child and transfer the child to another’s custody. In 2007, the Easons communicated with Minor Victim 1’s parents both through online discussion boards and directly and misrepresented material facts about their background to gain the parents’ trust, including, among other things, that they had a home study “waiver,” which the parents believed was needed to transfer custody of their child and which was used to verify the Easons as fit caregivers. Based on these misrepresentations, one of Minor Victim 1’s parents transported their child across state lines in 2007. The minor testified that while in the Easons’ custody for nearly a month, both Nicole and Calvin Eason sexually abused her.
Evidence at trial also established that in 2008, Nicole and Calvin Eason kidnapped a second minor, Minor Victim 2, in the same manner, and the minor was with them for a few days.
The FBI’s Springfield Division investigated the case in cooperation with the Vermilion County, Illinois, Sheriff’s Department, and Trial Attorney Jennifer Toritto Leonardo of the Criminal Division’s Child Exploitation and Obscenity Section (CEOS) and Assistant U.S. Attorney Elly Peirson of the Central District of Illinois prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ offices and CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Granite City Man Sentenced for Possession of Methamphetamine with Intent to DistributeRead the Press Release
James L. Porter, Acting United States Attorney for the Southern District of Illinois, announced today that Billy Joe Merchant, age 43, of Granite City was sentenced on Thursday, December 17, 2015 to 70 months in federal prison for possession with intent to distribute methamphetamine.
Merchant pled guilty to the federal charge on May 8, 2015 in U.S. District Court in East St. Louis, Illinois. At the time when he pled guilty, Merchant admitted that he had possessed approximately 30 grams of unusually pure crystal "ICE" methamphetamine at his Granite City mobile home on February 6, 2015. Merchant also admitted that he had intended to sell the methamphetamine which he possessed. ICE often sells for as much as $100 per gram.
Merchant has been continuously confined in federal custody since March 3, 2015. When he is released from his federal prison sentence, Merchant will also have to complete a term of three years of supervised release.
Merchant’s arrest and prosecution was one part of a joint federal/state law enforcement initiative to address the problem of methamphetamine distribution in the Granite City, Illinois area. Evidence in support of this prosecution was obtained in an investigation which was conducted under the auspices of the Organized Crime Drug Enforcement Task Force (OCDETF). The OCDETF initiative is designed to bring federal, state, and local law enforcement agencies and resources together to identify, target and dismantle large national and international drug trafficking organizations.
The investigation which led to Merchant’s arrest and conviction was conducted by the Drug Enforcement Administration (DEA), and the Metropolitan Enforcement Group of Southwestern Illinois (MEGSI), and the Granite City Police Department.
The case is assigned to Assistant United States Attorney Robert L. Garrison.
Former president of Toledo Metro Federal Credit Union charged with embezzlementRead the Press Release
The former president of the Toledo Metro Federal Credit Union was charged in federal court related to using his corporate credit card for personal gain of more than $233,000, said Steven M. Dettelbach, U.S. Attorney for the Northern District of Ohio.
Charles Robert Poore, 45, formerly of Toledo, now residing in Pittsburgh, was charged in a criminal information with one count of embezzlement.
Poore was president of the Toledo Metro Federal Credit Union and, as such, has a credit card for business expenses. Poore used that credit card to purchase goods from third-party vendors through an Amazon account. He then sold those items to the credit union using his corporate credit card at a signifcantly inflated cost. This conduct occurred between 2011 and 2014 and realized profits for Poore of approximately $233,933, 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. The case is being handled by Assistant United States Attorney Michael J. Freeman.
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.
Former Vancouver, Washington Men Sentenced for ‘Pump and Dump’ Stock Fraud SchemeRead the Press Release
A former Vancouver, Washington resident was sentenced today in U.S. District Court in Tacoma to 51 months in prison for a ‘pump and dump’ stock scheme he undertook even after narrowly avoiding prosecution in an earlier scheme, announced U.S. Attorney Annette L. Hayes. TOVY PUSTOVIT, 21, of Gladstone, Oregon is the fifth and final defendant to be sentenced in the stock fraud schemes. At sentencing U.S. District Judge Ronald B. Leighton said “this is a serious offense that corrodes confidence in our markets.”
“The people damaged by these “pump and dump” schemes not only lose money, they lose trust in our financial markets,” said U.S. Attorney Annette L. Hayes. “This defendant was warned that what he was doing was wrong and yet he kept right on cheating and defrauding investors. He will now pay the price for that decision.”
According to the facts set out in the plea agreement, PUSTOVIT participated in a 2012 scheme with Alexander Hawatmeh, Mikhail Galas and Christopher Mrowca to manipulate the stock of ISM International, Inc. PUSTOVIT was not originally charged criminally in that stock manipulation scheme, but following the arrest of the other defendants, investigators uncovered additional information about PUSTOVIT’s participation and about his continuing to scheme to manipulate penny stocks.
In August 2014, Judge Leighton entered a preliminary injunction barring PUSTOVIT and the other defendants from engaging in stock fraud in a civil enforcement action brought by the U.S. Securities and Exchange Commission. Despite that warning, in November 2014 PUSTOVIT conspired with another individual, MARIUS MORARIU, 21, of Beaverton, Oregon in a ‘pump and dump’ scheme involving three companies in the over-the-counter market. PUSTOVIT and MORARIU sought to manipulate the value of Brightech, Inc. (ticker symbol BRTE), General Environmental Management, Inc. (ticker symbol GEVI), and Green Street Capital Corp. (ticker symbol JAGR). MORARIU lined up various apparently unrelated accounts and took cash from PUSTOVIT to purchase the penny stocks. After substantial amounts of stock had been purchased, the two sent out email blasts from various stock promotion websites they controlled: Infinity Stock Picks, Zeus Alerts and Hulk Alerts urging others to buy the stocks. When the price rose further, the two dumped their shares making a significant profit.
Specifically, they manipulated GEVI in early 2015, accumulating some 2.7 million shares. On February 5, 2015 they sent out email blasts from the three different companies touting the stock as being “ready to soar” in value. The stock price rose sharply on the promotion, and the men sold their stock reaping $83,096 in net profits. In the days that followed the price of the shares collapsed harming numerous investors who had been defrauded.
PUSTOVIT has agreed to forfeit to the U.S. $266,373 as criminal proceeds from the overall scheme.
MARIUS MORARIU was sentenced today to three years of probation with ten months of house arrest.
The original coconspirators in the trading of ISM International, Inc., have all been sentenced. Alexander Hawatmeh was sentenced to five years in prison, and Christopher Mrowca was sentenced to three years in prison and Mikhail Galas was sentenced to time served.
The case was investigated by the FBI. The Securities and Exchange Commission (SEC) is conducting a parallel civil investigation. The case is being prosecuted by Assistant United States Attorneys Justin Arnold and Katheryn Kim Frierson.
Former U.S. State Department Employee Indicted in $2 Million Government Contract ConspiracyRead the Press Release
ALEXANDRIA, Va. – Kenneth Apple, 65, of Beaverton, Oregon, was indicted by a federal grand jury yesterday on charges related to his role in awarding $2 million in micro-dairy contracts from the U.S. government for use in Iraq.
According to the indictment, Apple, a former employee with the U.S. Department of State, helped to steer the sole-sourcing of $2 million in micro-dairy contracts to a company in which his son, Jonathan Apple, owned a 50 percent interest. However, Jonathan Apple and his partner had no technical experience in the industry. Kenneth Apple conspired to use his official position to pass on non-public information to his son in order to fraudulently award and administer government contracts. The conspirators further provided false information to, and concealed material details from the U.S. government.
According to the indictment, Kenneth Apple provided templates and technical specifications used in the proposal submitted by Jonathan Apple and his partner to the U.S. government. In addition, Kenneth Apple caused false and misleading statements to be made to the U.S. government regarding his experience, ownership interest, and the status of the projects. For example, Kenneth Apple directed a conspirator to keep Jonathan Apple’s name off the company’s website and any ownership documents. When federal law enforcement agents confronted Kenneth Apple about the scheme, he made false statements, including that he could not recall the owner of the company that won the micro-dairy contracts and that he did not receive any money from the contracts.
Kenneth Apple faces a maximum penalty of 20 years in prison if convicted of wire fraud or obstruction of an official proceeding, and five years in prison if convicted of conspiracy or false statements. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Paul M. Abbate, Assistant Director in Charge of the FBI’s Washington Field Office; Frank Robey, Director of the U.S. Army Criminal Investigation Command’s Major Procurement Fraud Unit (MPFU); and Robert E. Craig, Special Agent in Charge for the Defense Criminal Investigative Service’s (DCIS) Mid-Atlantic Field Office, made the announcement. Assistant U.S. Attorneys Uzo Asonye and Katherine Wong are prosecuting the case.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:15-cr-363.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed to be innocent until and unless proven guilty in court.
Former Philadelphia Sheriff and One Other Charged in Fraud ConspiracyRead the Press Release
PHILADELPHIA – A superseding indictment, unsealed today, charges former Philadelphia Sheriff John Green, 68, of Kissimmee, Florida, and James Davis, 65, of Wyncote, Pennsylvania, with conspiracy and four counts of honest services fraud involving the Philadelphia Sheriff’s Office (“PSO”), announced United States Attorney Zane David Memeger. Davis is also charged with two counts of filing a false tax return and three counts of willful failure to file a tax return.
The indictment alleges that as Sheriff of Philadelphia, John Green was responsible for the execution of all the duties of the PSO, including the PSO’s sale of real property subject to mortgage foreclosure and tax sales at Sheriff’s sales. James Davis was co-owner of an advertising and public relations company, Reach Communications Specialists, and a title search and settlement company, RCS Searchers, Inc. John Green and James Davis enriched each other through their abuse of the public trust placed in the Sheriff to conduct his duties honestly in the best interest of the citizens of Philadelphia and the distressed owners who lost their properties at Sheriff’s sales. Green agreed to Davis’ companies receiving contracts, business, and fees from the PSO in the sale of the real estate, which they hid from the public, in exchange for Davis providing Green extensive personal benefits, which they also hid. From 2002 through 2010, Davis and his companies developed near exclusive control of much of the work connected to the PSO court-ordered sales of properties. Davis and his companies also handled the advertising for Green’s reelection campaigns, including for Green’s 2007 reelection campaign. According to the indictment, Davis provided Green with a stream of personal benefits that included: buying and renovating a home for Green which was then sold to Green at a loss; providing more than $210,000 in hidden payments to Green’s 2007 reelection campaign; and giving more than $320,000 as gifts and interest-free loans to Green for Green’s retirement home in Florida. It is further alleged that in exchange for these benefits, no other vendors were allowed to bid and compete against Davis’ companies for the services that they provided to the PSO related to the sale of properties at Sheriff’s sales; Green expanded the amount of services provided by Davis’ companies and paid for out of the proceeds of the Sheriff’s sales; and Green allowed Davis’ companies to add and increase fees that were paid for out of the proceeds from the Sheriff’s sales. Each dollar that went to Davis and his companies from the property sales was a dollar that would never make it to the distressed property owners who were entitled to the remainder of the proceeds after the satisfaction of liens and necessary costs. Also, Davis was permitted to place friends and family members on the staff at the PSO who were assigned responsibilities connected to the Sheriff’s sales.
It is further alleged that Davis willfully filed a false U.S. income tax return for Reach Communications for tax year 2007 by falsely reporting a business loss of approximately $146,669, which he knew was not true. Davis allegedly filed a false individual 2007 U.S. income tax return, by falsely reporting a taxable income of $408,072, which Davis knew was not true. Davis is also charged with willfully failing to file tax returns for tax years 2008, 2009, and 2010.
If convicted of all charges, Davis faces a statutory maximum sentence of 94 years in prison, a $775 special assessment, a possible fine, and supervised release; and Green faces a statutory maximum sentence of 85 years, a $500 special assessment, a possible fine, and supervised release. The indictment also includes a notice of forfeiture seeking $7,000,000 and property from Davis and Green.
The case was investigated by the Federal Bureau of Investigation, the Internal Revenue Service Criminal Investigation Division, and the Philadelphia Office of the Inspector General, and is being prosecuted by Assistant United States Attorneys Sarah Grieb and Christopher Diviny.
An Indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Former HSI Special Agent Pleads Guilty to Taking Bribes from Korean Businessman Being Investigated for Human TraffickingRead the Press Release
LOS ANGELES – A former special agent with U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) pleaded guilty this afternoon to accepting thousands of dollars in bribes from a man who had been accused of trafficking a woman into the United States to be a sex slave.
Joohoon David Lee, 43, who currently resides in Las Vegas, Nevada, pleaded guilty to one count of bribery before United States District Judge Michael W. Fitzgerald.
“Corrupt officials who abuse their positions of power to line their pockets compromise our entire system of government,” said United States Attorney Eileen M. Decker. “In this case, a federal law enforcement officer thwarted justice in exchange for just a few thousand dollars and hindered the ability of a possible trafficking victim to seek justice.”
Lee accepted money from a Korean man identified in court documents at “H.S.” According to a plea agreement filed in this case, Lee, who was assigned to HSI’s Human Trafficking unit in Los Angeles, interviewed a woman in March 2012 who claimed that she was entering the United States to be a slave for a Korean businessman named H.S.
About a year later, according to the plea agreement, Lee met with an attorney representing H.S. and told the lawyer that Lee could fly to Korea, interview H.S. and submit a favorable report – if H.S. would finance the trip. H.S. agreed, and Lee accepted $3,000 in cash.
Approximately 10 days after receiving the money, Lee travelled to Seoul, where H.S. paid for Lee’s hotel and entertainment expenses. While in Korea, Lee asked for “a large sum of money, “according to the plea agreement, in which Lee admits accepting between $6,000 and $7,000.”
Upon returning to the United States, Lee prepared a report related to the investigation of H.S. that read: “Subject was suspected of human trafficking. No evidence found and victim statement contradicts. Case closed. No further action required.”
“There will be zero tolerance for public officials who abuse their authority and violate the public’s trust,” said Joe Jeronimo, special agent in charge for ICE’s Office of Professional Responsibility. “Guarding against illegal or unethical behavior by those in positions of public trust is not an option – it is an obligation we have to the people we serve. ICE’s Office of Professional Responsibility conducted the investigation in this case and we’ll continue to hold our employees to the highest standards of professional conduct.”
Lee is scheduled to be sentenced by Judge Fitzgerald on May 23, at which time he faces a statutory maximum sentence of 15 years in federal prison.
Former Frisch's Employee Pleads Guilty in Scheme to Embezzle Nearly $4MRead the Press Release
CINCINNATI – Michael Hudson, 53, of Cincinnati, Ohio pleaded guilty in U.S. District Court today to one count of wire fraud and one count of filing a false federal income tax return with the Internal Revenue Service (IRS) relative to a scheme to defraud Frisch’s Restaurants, Inc. (“Frisch’s”) by embezzling funds in excess of his authorized pay and compensation.
Carter M. Stewart, United States Attorney for the Southern District of Ohio, Guy A. Ficco, Acting Special Agent in Charge, Internal Revenue Service Criminal Investigation, Cincinnati Field Office, and Angela L. Byers, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Field Division, announced the plea entered into today before U.S. District Judge Michael R. Barrett.
According to court documents, between 1992 and 2014 Hudson was employed at Frisch’s and between 2004 and December 2014 Hudson was the assistant treasurer for Frisch’s. While serving as assistant treasurer, Hudson made unauthorized wire or ACH transfers of funds from the Frisch’s bank accounts for his own benefit. For example, on one occasion, Hudson transferred money from Frisch’s bank account to a bank account in the name of WPMH Properties, LLC, which was a business owned and controlled by Hudson.
In total, between 2008 and 2014 Hudson embezzled $3,905,930.11 from Frisch’s as a result of this fraud scheme.
In addition, Hudson filed a false 2009 income tax return with the IRS. Specifically, Hudson embezzled $323,936.19 from Frisch’s in 2009, but failed to report it as income on his 2009 income tax return.
Also, for the 2010 through 2013 income tax years, Hudson failed to file an income tax return with the IRS in an effort to evade the payment of income taxes related to the embezzlement scheme.
The total amount of income taxes due and owing for the 2009 through 2013 income tax years was $969,697.81.
For the fraud count, Hudson faces a maximum of 20 years in prison and a $250,000 fine or two times the loss. For the tax count, Hudson faces a maximum of 3 years in prison and a $100,000 fine.
“No matter what the source of income, all income is taxable,” said Guy A. Ficco, Acting Special Agent in Charge, IRS Criminal Investigation, Cincinnati Field Office. “The prosecution of individuals who intentionally conceal income and evade taxes is a vital element of the IRS’s enforcement strategy.”
U.S. Attorney Stewart commended the investigation by IRS-Criminal Investigation and the FBI, as well as Assistant United States Attorney Timothy S. Mangan, who is prosecuting the case.
Former Brockport Fireman Pleads Guilty to Witness Tampering While Awaiting Sentencing for Mail Fraud and Forging Treasury ChecksRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051
ROCHESTER, N.Y. - U.S. Attorney William J. Hochul, Jr. announced today that Steven Ray, 50 of Brockport, NY, pleaded guilty to obstructing justice before U.S. District Judge David G. Larimer. The charge carries a maximum penalty of 20 years in prison, a $250,000 fine or both.Assistant U.S. Attorney Craig R. Gestring, who is handling the case, stated that federal law enforcement first encountered Ray because of his role in a mail fraud scheme involving forged United States treasury checks. In February 2015, the defendant was convicted of mail fraud and forging treasury checks. At that time, Ray admitted to cashing more than 120 forged United States Treasury checks worth more than $400,000. The checks were stolen from the New York City Area as well as from other parts of the United States. Ray got the checks mailed to him via the United States Postal Service at his Brockport home.
During that investigation, federal agents identified at least 13 area bank accounts controlled by the defendant under various names. Ray deposited the stolen Treasury checks across these accounts. Many of the checks belonged to people who received Social Security payments, tax refunds, and other money drawn from the United States Treasury to help the intended recipients. As a result of the defendant’s scheme to defraud, Ray obtained more than $400,000 to which he was not otherwise entitled.
While out of custody awaiting sentencing on that case, Ray filed a sentencing statement with the Court in May 2015. Among the items submitted to the Court was a character letter from a local resident who was attesting to the defendant’s character and truthfulness. However, it turned out that this letter was actually forged by Ray. Federal agents met with the witness who confirmed that he never wrote a letter in support of Ray, did not say the things written in the letter, and pointed out that many of the statements in the letter, including the spelling of the witnesses own name was wrong. Based on this, the United States filed a notice with the Court pointing out that the defendant submitted false material to the Court for sentencing. Ray received a copy of that statement the day it was filed.
Within hours of receiving that statement by the government, the defendant went out to the home of that witness, who is wheelchair bound and lives in an assisted living facility, and coerced him into submitting a false affidavit saying that he had actually written the letter to the Court. When Ray did this, he knew that the witness never wrote the original letter, and knew that he was submitting another false document to the Court.
By doing this, Ray obstructed and impeded an official proceeding pending in the United States District for the Western District of New York. Further, the defendant’s actions resulted in the unnecessary expenditure of substantial governmental and Court resources. Ray did all this while he was on pre-trial release pending sentencing in the original fraud case. He was indicted in August, and was taken into federal custody where he has remained.
Ray was a former Officer with the Brockport Fire Department when he was originally arrested for the mail fraud case involving the forged treasury checks.
The plea is the culmination of an investigation on the part of Inspectors from the United States Postal Inspection Service, under the direction of Acting Inspector in Charge James Buthorn, Boston Division, and Special Agents of the Internal Revenue Service, Criminal Investigation Division, under the Direction of Special Agent in Charge of the New York Field Office, Shantelle P. Kitchen.
Sentencing for both cases has been scheduled for January 21, 2016 at 10:00 a.m. before Judge Larimer.
Former Bank Vice President Sentenced in Connection with Rothstein CaseRead the Press Release
A former bank vice president was sentenced to 30 months in prison, in connection with the Rothstein case.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Kelly R. Jackson, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), and George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, made the announcement.
Frank Spinosa, 54, of Ft. Lauderdale was sentenced today in Miami by United States District Judge Beth Bloom to 30 months in prison, to be followed by one year of supervised release. On October 8, 2015, Spinosa pled guilty to conspiracy to commit wire fraud, in violation of Title 18, United States Code, Section 371, in connection with the operation of the former Fort Lauderdale law firm of Rothstein, Rosenfeldt and Adler, P.A. (RRA).
According to court records, including a stipulated statement of facts filed in connection with Spinosa’s guilty plea, in 2009 it was discovered that RRA was being utilized by its Chairman and Chief Executive Officer, Scott W. Rothstein, to commit a massive Ponzi scheme stemming from the sale of fictitious confidential settlements. Spinosa, who, at the time, was a Regional Vice President with TD Bank, admitted that he conspired with Rothstein to induce certain persons into investing money in the confidential settlements through material misstatements by defendant Spinosa. Specifically, Spinosa and Rothstein agreed to utilize the prestige and legitimacy of TD Bank, and Spinosa’s position as Regional Vice President, to give investors in the scheme a false sense of security and induce them into investing in the confidential settlements by fraudulently creating documents that made it appear that certain investment funds were being held in restricted accounts at TD Bank when, in fact, they were not.
Mr. Ferrer commended the investigative efforts of IRS-CI and the FBI. This case is being prosecuted by Assistant U.S. Attorneys Lawrence D. LaVecchio, Paul F. Schwartz, and Jeffrey N. Kaplan.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov
Firearms Traffickers Sentenced to Federal PrisonRead the Press Release
PROVIDENCE, R.I. – Kinmonte Markell Brown, 28, and Dennis Wells, 24, of Greenville, North Carolina, were sentenced in U.S. District Court in Providence today for trafficking more than a dozen firearms from North Carolina into Providence between November 2014 and January 2015.
Kinmonte Brown was sentenced to 84 months in federal prison, and Dennis Wells was sentenced to 78 months in federal prison. Both defendants have also been ordered to serve 3 years supervised release upon completion of their prison terms. Brown and Wells pleaded guilty on September 18, 2015, to conspiracy to deal firearms without a license, dealing firearms without a license, being felons in possession of a firearm and possession of a firearm with an obliterated serial number.
The sentences, imposed by U.S. District Court Chief Judge William E. Smith, are announced by United States Attorney Peter F. Neronha, Rhode Island Attorney General Peter F. Kilmartin, Michael J. Ferguson, Special Agent in Charge of the DEA’s New England Field Division, Daniel J. Kumor, Special Agent in Charge of the Boston Field Division of ATF, and Providence Police Chief Colonel Hugh T. Clements, Jr.
Information that led to the arrest of Brown and Wells in February 2015, and the interruption of the flow of firearms from North Carolina to an apartment in the Hartford Park neighborhood was developed as a result of the Rhode Island Urban Violent Crime Initiative - a wide-ranging collaboration of local, state and federal law enforcement, and federal and state prosecutors who are targeting violent crime and violent criminals in urban neighborhoods of Rhode Island.
In late 2013, the Initiative began targeting the distribution of heroin and crack cocaine in Providence, and the importation of firearms onto the streets of Providence. Simultaneously, and in close coordination, the FBI’s Safe Street Task Force and Providence Police began targeting gang members and associates engaged in violent crime, including gun crimes, in Providence.
Information gathered during these investigations led to a separate investigation by DEA, ATF, Providence Police, and state and federal prosecutors, which resulted in the interruption of the flow of illegal firearms into Providence from Greenville, North Carolina, and the arrest of Kinmonte Brown and Dennis Wells.
According to information presented to the court, beginning in late November 2014, and continuing through January 2015, a person working at the direction of DEA began a series of negotiations with Brown and Wells for a shipment and purchase of illegal firearms. The ongoing negotiations led to a series of sales and the delivery of a total of 15 illegal firearms and ammunition shipped from North Carolina to Providence by Brown and Wells. Each time firearms were delivered they were quickly secured by law enforcement.
On January 31, 2015, as previously arranged by a person working at the direction of DEA, Brown and Wells drove to Rhode Island from North Carolina to sell and deliver seven firearms, including a .357 magnum revolver with an obliterated serial number, a .38 caliber handgun and several shotguns and rifles. Browns and Wells were detained moments after they delivered the firearms.
The case was prosecuted in federal court by Assistant U.S. Attorney Paul F. Daly, Jr. and Joseph J. McBurney, Special Assistant R.I. Attorney General.
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Contact:
Jim Martin (401) 709-5357
email: [email protected]
on Twitter @USAO_RI
Final Defendant in Massive Heroin Trafficking Group SentencedRead the Press Release
NORFOLK, Va. – Jerald Outten, 26, of Portsmouth, was sentenced today to 264 months in prison for his involvement in a heroin trafficking operation that was responsible for the distribution of between 30 and 90 kilograms of heroin with an estimated street value between $1.5 and $4.5 million dollars.
“The excellent coordination between federal, state, and local law enforcement agencies was critical in dismantling this group and so many others like them in 2015,” said Dana J. Boente, U.S. Attorney for the Eastern District of Virginia. “This case, and the resources and collaborative efforts used to investigate and prosecute it, is a prime example of the level of commitment and determination we have to combat the heroin crisis in the Commonwealth of Virginia.”
“This case demonstrates the severity and degree to which sophisticated drug operations try to profit off of the addiction, despair, and pain of others and threaten the safety of the communities where they operate,” said Mark R. Herring, Attorney General of Virginia. “This outcome demonstrates the power of collaboration and our combined resolve to fight the heroin epidemic that has affected so many people in our Commonwealth and throughout the country.”
Outten, along with six co-conspirators, were collectively sentenced to over 136 years in prison for their crimes. According to court documents, in the early morning hours of July 14, 2015, search warrants were executed simultaneously on 14 properties in Portsmouth, Chesapeake, and Suffolk, by more than 250 law enforcement officials from three states and the District of Columbia. When Jerald Outten was arrested, police recovered a loaded handgun with a bullet in the chamber, $1,700 in cash, 135 grams of raw heroin, marijuana, and a cutting agent used to increase the volume and profitability of heroin.
According to court documents, Jerald Outten, brother of ring-leader Alonzo Outten, personally managed the wholesale distribution of over 24 kilograms of heroin during the course of the conspiracy. He was often observed with a firearm during drug transactions. Jerald and Alonzo were responsible for supplying drugs to two violent Bloods gangs, Gorilla Mafira Piru and Imperial Gangsta Bloods (IGB), both of which have been dismantled, prosecuted, and sentenced. The IGB in particular was responsible for a number of violent acts in Portsmouth in 2014, including at least two shooting incidents with a rival drug trafficking organization that left homes of innocent citizens riddled with bullets. The IGB’s leader, Chris Smith, aka Killa, was sentenced to life in prison plus five years on Oct. 30, 2015. Gorilla Mafia Piru’s leader, Theodore Vann, aka Flatline, was sentenced to 16 years in prison Nov. 16, 2015.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Mark R. Herring, Attorney General of Virginia; and John S. Adams, Special Agent in Charge of the FBI’s Norfolk Field Office, made the announcement after sentencing by U.S. District Judge Mark S. Davis.
This case was investigated by the FBI’s Norfolk Field Office and the Chesapeake Police Department with the assistance of the Portsmouth Police Department, the Virginia State Police, and NCIS. Special Assistant U.S. Attorney John F. Butler, and Assistant U.S. Attorneys Joseph E. DePadilla and Andrew C. Bosse prosecuted the case.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:15-cr-80 (Outten, et. al.); 2:15-cr-93 (Jackson); 2:15cr7 (Smith); and 2:15cr60 (Vann).
Name
Age, Hometown
Charges
Status
Alonzo Outten
35, Portsmouth
Conspiracy to Manufacture, Distribute, and Possess with Intent to Distribute Over One Kilogram of Heroin
Pleaded guilty July 30, 2015. Sentenced to 30 years on Nov. 4, 2015.
Jerald Outten
26, Portsmouth
Conspiracy to Manufacture, Distribute, and Possess with Intent to Distribute Over One Kilogram of Heroin
Pleaded guilty August 10, 2015. Sentenced to 22 years today.
Sherita Nicks
41, Brooklyn, New York
Conspiracy to Manufacture, Distribute, and Possess with Intent to Distribute Over One Hundred Grams of Heroin
Pleaded guilty Aug. 10, 2015. Sentenced to 18 years on Nov. 17, 2015.
Deyonta Hinton
31, Portsmouth
Conspiracy to Manufacture, Distribute, and Possess with Intent to Distribute Over One Kilogram of Heroin
Pleaded guilty Sept. 4, 2015. Sentenced to 22 years on Dec. 10, 2015.
Jermaine Jones
38, Portsmouth
Conspiracy to Manufacture, Distribute, and Possess with Intent to Distribute Over One Kilogram of Heroin
Pleaded guilty July 29, 2015. Sentenced to 22 years on Oct. 29, 2015.
Garnett Brown
34, Portsmouth
Conspiracy to Manufacture, Distribute, and Possess with Intent to Distribute Over One Kilogram of Heroin
Pleaded guilty July 29, 2015. Sentenced to 14 years on Nov. 10, 2015.
Latina Jackson
27, Portsmouth
Maintaining a Drug-Involved Premises
Pleaded guilty on July 27, 2015. Sentenced to 70 months on Nov. 5, 2015.
Troy Gay
24, Portsmouth
Conspiracy to Manufacture, Distribute, and Possess with Intent to Distribute Over One Hundred Grams of Heroin
Pleaded guilty on Aug. 6, 2015. Sentenced to 68 months on Nov. 5, 2015.
Ferriday woman sentenced to five months in prison for stealing Veterans Affairs benefitsRead the Press Release
ALEXANDRIA, La. – United States Attorney Stephanie A. Finley announced that a Ferriday woman was sentenced Thursday to five months in prison and five months of home confinement for stealing more than $100,000 of Veterans Affairs (VA) Death and Indemnity funds which were meant for her deceased aunt.
Linda Sue Bourgeois, 45, of Ferriday, La., was sentenced by U.S. District Judge Dee D. Drell on one count of theft of government property or funds. She was also sentenced to three years of supervised release and ordered to pay $107,452.33 restitution. According to evidence presented at her September 8, 2015 guilty plea, Bourgeois’ aunt was entitled to Death and Indemnity Compensation from the Department of Veterans Affairs because of her husband’s service in the military. Bourgeois’ aunt died in July of 2007, and Bourgeois did not inform Veterans Affairs of the death. Bourgeois and her aunt shared a bank account where the funds were deposited electronically, and Bourgeois took the funds until March 2015 when the payments terminated by the VA. Bourgeois stole $107,452.33 during the scheme.
Veterans Affairs, Office of Inspector General, conducted the investigation. Assistant U.S. Attorney Michael O’Mara prosecuted the case.
FCI Berlin Inmate Sentenced on Federal Weapon Possession ChargeRead the Press Release
CONCORD, N.H. – Randy Bragg, 45, an inmate at the Federal Correctional Institution in Berlin, New Hampshire, was sentenced in United States District Court for the District of New Hampshire on federal weapon possession charges, announced Acting United States Attorney Donald Feith. The Court imposed a term of nine months’ imprisonment, to be served consecutive to Bragg’s current prison sentence.
During a routine search in October 2014, correctional officers discovered on Bragg’s person a tooth-brush sharpened into a stabbing weapon. Acting United States Attorney Donald Feith stated, “We will continue to work with the Bureau of Prisons and the FBI to ensure the safety of BOP staff and the safety of inmates who we have been entrusted to its custody. Prosecutions such as this one should send a clear message that inmates found in possession of weapons can expect to be prosecuted and to serve additional time in prison.”
This prosecution arose from an investigation by the Federal Correctional Institution in Berlin, New Hampshire, in collaboration with the Federal Bureau of Investigation.
Extradited Chinese National Guilty of Supplying Iran with Goods Used to Make Nuclear Weapons-Grade UraniumRead the Press Release
BOSTON – A Chinese national pleaded guilty today in U.S. District Court in Boston in connection with supplying Iran with pressure transducers which could be used to make nuclear weapons-grade uranium.
Sihai Cheng, a/k/a Chun Hai Cheng, a/k/a Alex Cheng, 35, a citizen of the People’s Republic of China (PRC), pleaded guilty to two counts of conspiring to commit export violations and smuggle goods from the United States to Iran and four counts of illegally exporting U.S. manufactured pressure transducers to Iran. U.S. District Court Chief Judge Patti B. Saris scheduled sentencing for Jan. 27, 2016.
In 2013, Cheng was charged in an indictment along with Seyed Abolfazl Shahab Jamili, an Iranian national, and two Iranian companies, Nicaro Eng. Co., Ltd. (Nicaro) and Eyvaz Technic Manufacturing Company (Eyvaz), with conspiring to export, and exporting, highly sensitive U.S. manufactured goods with nuclear applications to Iran from at least 2009 to 2012. In December 2014, Cheng was extradited from the United Kingdom to this county and has remained in U.S. custody since then. Jamili remains a fugitive, and the U.S. government, through Interpol, has requested his arrest to face prosecution in the United States.
From February 2009 through at least 2011, Cheng, Jamili, and a third individual conspired with each other and others in the PRC and Iran to illegally obtain hundreds of U.S. manufactured pressure transducers manufactured by MKS Instruments, Inc., a company headquartered in Massachusetts, and export them to Iran. Pressure transducers can be used in gas centrifuges to enrich uranium and produce weapons-grade uranium and are therefore subject to strict export controls. They cannot be shipped from the United States to China without an export license or shipped from the United States to Iran at all. Today, Cheng admitted to causing the export of 185 pressure transducers from the United States to Iran in 2009.
Initially, the parts were exported to the PRC using fraudulently obtained U.S. Department of Commerce export licenses. When they arrived in the PRC, Cheng inspected them in the Shanghai Free Trade Zone and removed their U.S./MKS serial numbers to conceal the fact that he was violating U.S. law. Cheng then caused the MKS pressure transducers to be exported to Iran knowing that the parts were being supplied to the Government of Iran. Jamili advised Cheng that the Iranian end-user was Kalaye Electronic Company, which the U.S. Government designated as a proliferator of weapons of mass destruction in 2007 for its work with Iran’s nuclear centrifuge program.
MKS Instruments, Inc., is not a target of this investigation and has been cooperating in this matter.
The charging statutes provide a sentence of no greater than 20 years in prison on the charge of conspiracy to commit export violations and on each of the four counts of illegally exporting U.S. goods to Iran; and no greater than five years in prison on the charge of conspiracy to smuggle U.S. goods to Iran, in addition to five years of supervised release and a fine of $4 million. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Carmen M. Ortiz; Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Matthew Etre, Special Agent in Charge of Homeland Security Investigations in Boston; and John J. McKenna, Special Agent in Charge of the Department of Commerce, Office of Export Enforcement, Boston Field Office, made the announcement today. The case is being prosecuted by Assistant U.S. Attorney B. Stephanie Siegmann of Ortiz’s National Security Unit.
Eighty Four, Pa., Man Charged with Receipt and Possession of Child PornographyRead the Press Release
PITTSBURGH - A Washington County resident has been indicted by a federal grand jury in Pittsburgh on a charge of receipt of material depicting the sexual exploitation of a minor, and a charge of possession of material depicting the sexual exploitation of a minor, United States Attorney David J. Hickton announced today.
The two-count indictment, returned on Dec. 16, named Michael G. Williams, 47, of Eighty Four, Pennsylvania, as the sole defendant.
According to the indictment, from on or about June 18, 2015, and continuing thereafter to on or about June 25, 2015, Williams knowingly received visual depictions, namely, videos and images in computer graphics and digital files, the production of which involved the use of a minor engaging in sexually explicit conduct. The indictment further charges that Williams, on July 15, 2015, unlawfully possessed in computer graphics files photographs and videos depicting minors engaged in sexually explicit conduct.
The law provides for a maximum total sentence of 30 years in prison, a fine of $500,000.00, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Jessica Lieber Smolar is prosecuting this case on behalf of the government.
The Office of the Pennsylvania Attorney General and the Federal Bureau of Investigation conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
East Bay CEO and Corporation Plead Guilty to $5.4 Million Wire Fraud ConspiracyRead the Press Release
OAKLAND – David Tung and Concord Farms, Inc. pleaded guilty in federal court in Oakland today to conspiracy to commit wire fraud and wire fraud, announced Acting United States Attorney Brian J. Stretch and U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) Special Agent in Charge Ryan Spradlin.
In pleading guilty, Tung, 73, formerly of Hillsborough, admitted that while serving as Concord Farms’ Chief Executive Officer, he conspired to carry out a scheme to defraud the United States out of approximately $5.4 million of duties owed on imported items, namely produce items such as gourmet mushrooms. On its website, Concord Farms, based in Union City, once claimed to be one of the largest importers and growers of gourmet mushrooms in the United States, with multiple business locations operating in California and New York.
Duties are taxes assessed on the value of imported items. The duties accrue when the items arrive at a United States port of entry.
Tung and Concord Farms carried out the scheme by creating fraudulent invoices that undervalued Concord Farms’ imports and then caused those fraudulent invoices to be transmitted through unknowing customs brokers to the U.S. Customs and Border Protection (CBP), who relied on the invoices in assessing the amount of import duties owed by the defendants. In order to carry out part of the scheme, Tung conspired with a Concord Farms employee to use computer file templates and photocopy machines to create some of the fraudulent undervalued invoices that were transmitted to CBP. Through the scheme, Tung and Concord Farms were able to avoid the full payment of duties actually owed on the imported items since approximately 2001.
Tung and Concord Farms were indicted by a federal Grand Jury on January 29, 2015. They were charged with one count of conspiracy to commit wire fraud, in violation of 18 U.S.C. § 1349, and with ten counts of wire fraud, in violation of 18 U.S.C. § 1342. Under the plea agreement, Tung and Concord Farms pleaded guilty to conspiracy to commit wire fraud and to one substantive count of wire fraud.
Tung is currently released on a bond in the amount of $250,000.
The defendants’ sentencing hearing is scheduled for May 6, 2016, at 9:30 a.m. before the Honorable Jon S. Tigar, U.S. District Judge, in Oakland. Tung faces a maximum statutory penalty of 20 years in prison, and a fine of $250,000, plus restitution for each alleged violation of 18 U.S.C. § 1349 (conspiracy to commit wire fraud) and 18 U.S.C. § 1343 (wire fraud). Concord Farms faces a fine of $500,000 and five years of probation for each alleged violation. However, any sentence will be imposed by the court only 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 Wade M. Rhyne is prosecuting the case with the assistance of Katie Turner and Noble Hughes. The prosecution is the result of an investigation by the Department of Homeland Security, Homeland Security Investigations.
District of Maine Selected as Phase II Anti-Trafficking Coordination TeamRead the Press Release
Contact: Julia M. Lipez
Assistant United States Attorney
Tel: (207) 780-3257Portland, Maine: United States Attorney Thomas E. Delahanty II announced the selection of the District of Maine as one of only six federal Districts designated to participate in the Anti-Trafficking Coordination Team (ACTeam) Initiative, an interagency federal law enforcement initiative aimed at streamlining the investigation and prosecution of federal human trafficking offenses.
“Maine is a relatively small and rural state, but it is not immune from human trafficking issues,” said U.S. Attorney Delahanty. “They are a priority for our office and the District of Maine.” The ACTeam will consist of agents from the Federal Bureau of Investigation (“FBI”), the Department of Homeland Security’s Immigration and Customs Enforcement (“HSI”), the Department of Labor’s (“DOL”) Wage and Hour Division and Office of the Inspector General and two Assistant United States Attorneys (“AUSA”), one of whom will be Human Trafficking Coordinator, Julia M. Lipez. In 2014, HSI formed the Human Trafficking Task Force (“HTTF”) in Maine which consists of agents from federal, state and local law enforcement agencies. The ACTeam will enhance the efforts of the HTTF in Maine.
U.S. Attorney Delahanty’s announcement follows the joint announcement of Attorney General Loretta E. Lynch, Secretary of Homeland Security Jeh Johnson, and Secretary of Labor Thomas E. Perez yesterday designating the following cities as Phase II ACTeam sites: Cleveland, Ohio; Minneapolis, Minnesota; Newark, New Jersey; Portland, Maine; Portland, Oregon; and Sacramento, California. The sites were selected by unanimous interagency consensus of the Federal Enforcement Working Group, comprised of national anti-trafficking experts of the Department of Justice (“DOJ”), Civil Rights Division’s Human Trafficking Prosecution Unit, the Executive Office of United States Attorneys, the FBI, HSI, and DOL’s
Wage and Hour Division and Office of the Inspector General.ACTeams are aimed at developing high-impact human trafficking investigations and prosecutions involving forced labor, international sex trafficking, and sex trafficking of adults by force, fraud, and coercion, complementing Project Safe Childhood and related efforts aimed at combating child sexual exploitation, including child sex trafficking. ACTeams bring together federal prosecutors and federal agents from multiple federal investigative agencies to develop and implement proactive anti-trafficking case identification, investigation, and prosecution strategies in close coordination with one another and with national anti-trafficking subject matter experts.
During Phase I of the ACTeam Initiative, Phase I Pilot ACTeams were convened in Atlanta, Georgia; El Paso, Texas; Kansas City, Missouri; Los Angeles, California; Memphis, Tennessee; and Miami, Florida. Phase I proved highly successful, with ACTeam Districts collectively increasing prosecutions by 119%, compared to 35% nationwide during the same two-year period.
Based on the outstanding results of Phase I, Attorney General Lynch, Secretary of Homeland Security Johnson, and Secretary of Labor Perez launched Phase II on June 25, 2015 by soliciting joint applications from United States Attorneys’ Offices and their federal law enforcement partners nationwide.
“Human trafficking robs victims of their liberty, exploits them for labor and for sex, and infringes not only on their rights, but on their essential humanity,” said Attorney General Loretta Lynch. “Through the ACTeam Initiative, we are harnessing resources across the federal government to ensure that our multi-agency fight against human trafficking is as comprehensive and effective as possible. In the days and months ahead, the DOJ will continue to work alongside our federal partners to prosecute wrongdoing, support survivors, and bring this devastating crime to an end.”
“The ACTeam Initiative is an important tool in our collective ability to combat sex trafficking, forced labor and domestic servitude here in the United States,” said Secretary Jeh C. Johnson of Homeland Security. “It highlights our commitment to increase capacity to rescue victims and bring perpetrators of these terrible crimes to justice. Our collective efforts are amplified when we work together in furtherance of shared missions like this. And, through DHS’s Blue Campaign, we will remain focused on ending human trafficking in the United States.”
“A trafficking victim shouldn’t have to spend time trying to determine whether they have a DOL issue or a DOJ issue,” said Secretary Thomas Perez of the DOL. “Their basic rights are being violated, and we can accomplish so much more to redress those crimes when we work together. The Anti-Trafficking Coordination Team Initiative, by bringing our respective departments’ collective resources and expertise to bear, is helping us build a whole even greater than the sum of our individual parts.”
“Human trafficking is a modern day form of slavery that destroys lives and exploits the most vulnerable in our society,” said Director James B. Comey of the FBI. “These ACTeams are the most effective way to investigate human trafficking by allowing us to work in a collaborative, victim-oriented manner.”The Attorney General has declared efforts to bring human traffickers to justice and to restore the lives of human trafficking survivors be among the highest priorities of the DOJ.
District Man Sentenced to 39 Months in Prison for Improper Touching of 16-Year-Old GirlRead the Press Release
WASHINGTON – James Leroy Burney, 33, of Washington, D.C., was sentenced today to 39 months in prison after earlier pleading guilty to one count of sexual abuse of a minor, stemming from his fondling of a 16-year-old girl while she slept at her mother’s home, U.S. Attorney Channing D. Phillips announced.
Burney pled guilty in October 2015 in the Superior Court of the District of Columbia. He was sentenced by the Honorable Rhonda Reid Winston. After his prison term, he will be placed on 10 years of supervised release and will be required to register as a sex offender for 10 years.
According to the government’s evidence, on Aug. 13, 2015, the girl was spending the night with her mother, who she was visiting in Southeast Washington. Twice during the night, Burney slipped into a bedroom and fondled the girl. The Metropolitan Police Department (MPD) got a warrant for Burney’s arrest, and arrested him on Sept. 16, 2015.
In announcing the sentence, U.S. Attorney Phillips praised the work of MPD’s Youth Services Division, which investigated the case. He also acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Paralegal Specialists D’Yvonne Key and Joyce Arthur; Victim/Witness Advocate Veronica Vaughan; and La June Thames and Katina Adams-Washington, both of the Victim Witness Assistance Unit. Finally, U.S. Attorney Phillips commended Assistant U.S. Attorney Peter V. Taylor, who investigated and prosecuted this case.
District Man Sentenced to 18 Years in Prison for Attacking Woman at Her HomeRead the Press Release
WASHINGTON – Levi Ruffin, 37, of Washington, D.C., was sentenced today to 18 years in prison on charges stemming from a nighttime attack on a woman as she tried to enter her home in Northwest Washington, announced U.S. Attorney Channing D. Phillips.
Ruffin was found guilty in October 2015 by a jury of six counts: kidnapping while armed; third-degree sexual abuse while armed; first-degree burglary while armed; attempted robbery while armed; assault with a dangerous weapon, and assault causing significant bodily injury. The verdict was returned following a trial in the Superior Court of the District of Columbia. He was sentenced by the Honorable Rhonda Reid Winston. Upon completion of his prison term, Ruffin will be placed on 10 years of supervised release. He also will be required to register as a sex offender for 10 years and complete a mental health evaluation, sex offender treatment and therapy, and drug and alcohol treatment.
According to the government’s evidence, on Sept. 14, 2013, at about 9 p.m., the victim was entering the door to her home in the 6900 block of Georgia Avenue NW after an outing with her friends. As she entered the residence, she was rushed from behind by Ruffin, who placed his hand over her mouth. Ruffin pulled out a knife, placed it next to the woman’s face, and demanded she drop her belongings. Ruffin then forced her inside her home and demanded money. When the woman told Ruffin she had no money and attempted to give him her credit cards, Ruffin slapped the credit cards away and began to sexually assault her. The woman fought Ruffin when he touched her. During the fight, Ruffin cut the woman on both her hands and bit her face and back.
The bite marks on the woman’s face were swabbed for potential DNA. DNA was recovered from those bite marks and was traced to Ruffin. A warrant for Ruffin’s arrest was issued, and when Ruffin was arrested on Aug. 6, 2014, he was found to have generally matched the description the woman gave of the attacker. Ruffin also had a knife that matched the description provided by the woman of the knife used during the attack.
In announcing the sentence, U.S. Attorney Phillips commended the work of those who investigated the case from the Metropolitan Police Department. He also expressed appreciation for the assistance provided by the District of Columbia Department of Forensic Sciences and Bode Technologies. In addition, he acknowledged the efforts of those who handled the case for the U.S. Attorney’s Office, including Paralegal Specialists Mark Morse and Wanda Trice; Victim/Witness Advocate Veronica Vaughan; Litigation Technology Specialist Karen McColman; Criminal Investigators Nelson Rhone and Melissa Matthews; Legal Interns Emma McArthur and Meghan Monahan, and Michael Ambrosino, Special Counsel for DNA and Forensic Evidence Litigation. Finally, he commended the work of Assistant U.S. Attorneys Kenechukwu Okocha and Akhi Johnson, who prosecuted the matter, and Assistant U.S. Attorney Jodi Lazarus, who indicted the case.
District Man Pleads Guilty to Federal Charge for Series of Threats Against Metro Transit SystemRead the Press Release
WASHINGTON – Jerez Nehemiah Coleman, 20, of Washington, D.C., pled guilty today to a federal charge stemming from an investigation into a series of calls he made falsely warning of various threats to the Metro transit system, announced U.S. Attorney Channing D. Phillips and Ron Pavlik, Chief of the Metro Transit Police.
Coleman, also known as Kidd Cole and Jerez Nehemiah Stone-Coleman, was arrested on May 27, 2015 and has been in custody ever since. He pled guilty this afternoon in the U.S. District Court for the District of Columbia to a charge of making threats involving explosive materials. The Honorable Amit P. Mehta scheduled sentencing for Feb. 26, 2016. The charge carries a statutory maximum of 10 years in prison and potential financial penalties. The plea, which is subject to the Court’s approval, calls for a sentence of up to 27 months in prison, to be followed by two years of supervised release.
According to a statement of offense, signed by the defendant as well as the government, Coleman placed over 300 calls to 911 from December 2014 to May 2015. Multiple law enforcement agencies – including the Metro Transit Police, the Metropolitan Police Department (MPD), the FBI Joint Terrorism Task Force, the U.S. Capitol Police, and the U.S. Secret Service - responded to these calls and provided security at the various scenes. These threat and/or hoax calls caused law enforcement to spend hundreds of hours ensuring the public was safe.
In one such call, for example, made on Dec. 12, 2014, Coleman called 911 to report that he and his friends had bombs and were on a Metrobus at the Potomac Avenue Metro station in Southeast Washington. During the call, Coleman stated, “We are going to blow the entire whole bus…everybody is going to die in ten minutes…” This call prompted an immediate emergency response. MPD and Metro Transit Police were diverted from other duties and dispatched, emergency lights on and sirens blaring, to the scene. MPD arrived first and established a perimeter around the bus. There were about 20 passengers on board. When Metro Transit Police officers arrived, they evacuated the passengers. They searched each seat of the bus, the wheel wells, the undercarriage, and the exhaust pipes. Throughout this search, the bus was out of service. After the thorough investigation, police determined that the 911 call was a hoax.
“Jerez Nehemiah Coleman repeatedly disrupted our transit system and put people on edge by calling 911 with false threats of imminent attacks,” said U.S. Attorney Phillips. “Federal and local law enforcement immediately responded to these calls, putting aside other important responsibilities to investigate what turned out to be a hoax. Ultimately, the investigation led to this defendant, and now he is being held accountable for this series of senseless acts.”
“In today’s world, we must take every threat seriously,” said Metro Transit Police Chief Pavlik. “Over a period of several months, the defendant’s actions had the effect of putting at risk many Metro riders and responding police officers. I want to express my sincere gratitude for the efforts of our law enforcement partners on the Joint Terrorism Task Force, as well as the prosecutors who successfully handled this case.”
Coleman earlier was indicted by a federal grand jury on a total of 13 felony counts. In return for his guilty plea, the other charges will be dismissed at sentencing. In his plea today, he admitted to all of the conduct as alleged in the 13 charges.
In announcing the plea, U.S. Attorney Phillips and Metro Transit Police Chief Pavlik commended the work of those who investigated the case for the Metro Transit Police. They also expressed appreciation for the assistance provided by the Metropolitan Police Department, the 911 Office of Unified Communications, the FBI’s Washington Field Office, and other law enforcement agencies. They acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Paralegal Specialists Jorge Casillas, Jessica Moffatt, and Todd McClelland and Criminal Investigator John Marsh. Finally, they commended Assistant U.S. Attorneys Deborah A. Curtis, John L. Hill and John Marston, who investigated and prosecuted the case.
Distributor for Large-Scale Drug Trafficking Organization Sentenced to 12 Years in PrisonRead the Press Release
TRENTON, N.J. – A Monmouth County, New Jersey, man was sentenced today to 144 months in prison for his role in a large-scale drug trafficking organization that distributed heroin in Ocean and Monmouth Counties, U.S. Attorney Paul J. Fishman announced.
Jason O’Neal, a/k/a “Born,” 43, of Farmingdale, New Jersey, previously pleaded guilty before U.S. District Judge Peter G. Sheridan to an information charging him with one count of conspiracy to distribute heroin. Judge Sheridan imposed the sentence today in Trenton federal court.
To date, 19 other alleged members or affiliates of the “Britt-Young Drug Trafficking Organization” – so named after its leaders, Rufus Young, a/k/a “Equan,” a/k/a “E-Money, and Robert Britt, a/k/a “True,” in the criminal complaint – have pleaded guilty to narcotics offenses.
According to documents filed in this case and statements made in court:
Between February 2013 and March 2014, O’Neal conspired with Rufus Young and others to distribute heroin in Ocean and Monmouth counties as part of the Britt-Young Drug Trafficking Organization. O’Neal admitted that he served as a supervisor and distributed between 100 and 400 grams of heroin in furtherance of the conspiracy.
In addition to the prison term, Judge Sheridan sentenced O’Neal to serve three years of supervised release.
U.S. Attorney Fishman credited special agents of the FBI, Red Bank Resident Office, under the direction of Special Agent in Charge Richard M. Frankel, with the investigation.
The government is represented by Assistant U.S. Attorney Nicholas Grippo of the U.S. Attorney’s Office Criminal Division in Newark.
Defense counsel: Aidan P. O’Connor Esq., Hackensack, New Jersey
Detroit Resident Indicted for Planting Manufactured Explosive Devices in Yard to Protect Marijuana Grow OperationRead the Press Release
UPDATED: On March 3, 2021 the government moved, and the court ordered, that the indictment against Joshua Ragland be dismissed as a result of Mr. Ragland entering into the pre-trial diversion program.
A Detroit man was indicted on December 15, 2015, on charges of manufacturing and possessing destructive devices, which he strategically placed in his yard to protect his marijuana plants, United States Attorney Barbara L. McQuade announced today. Joining McQuade in the announcement was Special Agent in Charge Robin Shoemaker, Bureau of Alcohol, Tobacco, Firearms and Explosives. Joshua Ragland, 25, was indicted following a search that was conducted at his home in southwest Detroit. In September, law enforcement was called to investigate an explosion with injuries at the premises. The victim, a 29-year-old male, was walking across a vacant lot next to Ragland’s residence when he heard several explosions and felt pain in his foot. The victim was hospitalized, and released following treatment for his injuries. Upon searching the location, officers recovered five manufactured destructive devices, marijuana and marijuana plants and other materials, including a black gun powder substitute, which were used in the manufacture of the explosive bombs. Several firearms and ammunition were also recovered from the premises. The four-count indictment charges Ragland with Manufacture of Destructive Devices, Possession of Destructive Devices; Possession of Destructive Devices by Prohibited Person and Possession of Explosive Materials by Prohibited Person. An indictment is only a charge, and a defendant is presumed not guilty unless he is convicted at trial by a jury. If convicted on the charges in the indictment, Ragland faces penalties of up to 10 years’ imprisonment, a $250,000 fine, or both, as well as a 7-40 year term of imprisonment for manufacturing destructive devices causing physical injury to another. The case is being prosecuted by Assistant United States Attorney Susan Gillooly with the assistance of ATF, Detroit Field Division, the Detroit Police Department and Detroit Police Bomb Squad, the Michigan State Police Bomb Squad and the Dearborn Police Bomb Squad.
Defendant Receives 12 Month Sentence for Steroids ConspiracyRead the Press Release
United States Attorney Kenyen R. Brown of the Southern District of Alabama announced that Thomas Daniel Williams, 44, of Orange Beach, Alabama was sentenced today by U.S. District Judge Kristi K. DuBose to 6 months imprisonment followed by 6 months home confinement for conspiring to distribute steroids. The judge ordered that Williams undergo 3 years of supervised release upon completing his term of imprisonment, that he receive drug and anger management treatment while incarcerated, and that he pay a $100 mandatory special assessment.
On July 1, 2015, Williams was arrested on a federal criminal complaint alleging that Williams had unlawfully bought, used, and sold anabolic steroids, human growth hormone, and cocaine. The complaint’s affidavit alleged that Williams imported certain substances from China and that he was previously recorded selling steroids to a confidential human source. The affidavit also noted that in September 2014, the government had executed a search warrant at Williams’s home and found steroids and other incriminating evidence. On July 30, 2015, Williams was indicted by a federal grand jury on 17 counts of various drug-related offenses. On September 22, 2015, Williams pled guilty to 1 count of conspiring to distribute steroids.
The case was investigated by the Federal Bureau of Investigation. The case was prosecuted by Assistant United States Attorneys Gregory Bordenkircher and Sinan Kalayoglu.
Dania Beach Businessman Convicted in Illegal Ivory Trafficking OperationRead the Press Release
A Dania Beach businessman pled guilty to trafficking in elephant ivory.
Wilfredo A. Ferrer, United States Attorney for the Southern District of Florida, Ed Grace, Deputy Assistant Director, U.S. Fish and Wildlife Service (FWS), Robert C. Hutchinson, Acting Special Agent in Charge, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI), Miami Field Office, and Delany E. De Leon-Colon, Acting Inspector in Charge, U.S. Postal Inspection Service (USPIS), made the announcement.
Raymond J. Reppert, Jr., 54, of Dania Beach, Florida, pled guilty today in U.S. District Court in Miami to knowingly making and causing to be made false records, accounts, labels for, and false identifications of wildlife, that is elephant ivory, by creating and causing to be created documents falsely identifying elephant ivory as resin carvings and wood samples, said elephant ivory having been and intended to be transported in interstate and foreign commerce, in violation of Title 16, United States Code, Sections 3372(d)(2) and 3373(d)(3)(A)(i), and Title 18, United States Code, Section 2. Reppert faces a maximum statutory sentence of 5 years’ imprisonment, up to three years of supervised release and a fine of up to $250,000. The defendant is scheduled to be sentenced in Miami before U.S. District Judge Kathleen M. Williams February 25, 2016.
According to court documents, including a joint factual proffer, Reppert was doing business as Raymie’s Commercial & Residential Moving (Raymies), a packing and shipping company specializing in antiques and located in Dania Beach, Florida,.
On February 14, 2014, U.S. Customs and Border Protection (CBP) officers at the Miami International Mail Facility identified a parcel being exported from the United States, which was referred to the Fish and Wildlife Service for inspection. An FWS Wildlife Inspector determined that the package, being mailed to Guangdong, China, contained elephant ivory. The sender listed a Dania, FL address. The accompanying Customs Declaration and Dispatch Note (Postal Service Form 2976-A) completed by the sender described the contents as “resin carvings” with a declared value of $60. The investigation revealed that the return address was invalid.
A search of a CBP database located over 245 matching records, including shipments from a post office in Pompano Beach, Florida. USPIS inspectors verified that the name and return addresses for those shipments were also false. The investigation revealed that a postal clerk knew the sender as “Raymie,” a regular customer who shipped parcels for other people as part of his business.
On February 20, 2014, CBP detained a second parcel consigned to the address in Guangdong, China. The customs declaration form described the item as a “resin carving” with a declared value of $60, however, FWS personnel identified and photographed the elephant ivory carving found in the parcel. The credit card sales receipt for the parcel was signed by Reppert and video footage captured the defendant dropping off the parcel at the post office.
Thereafter, between March 25 and April 22, 2014, the inter-agency team identified and inspected six additional export shipments originated by Reppert, each consigned to an address in China that was falsely labelled and documented as wood or resin carvings, when in fact they contained undeclared elephant ivory carvings.
Trade in elephant ivory is regulated under the Convention on International Trade in Endangered Species of Wild Fauna and Flora (“CITES”). CITES is a treaty providing protection to fish, wildlife and plants that are or could become imperiled due to the demands of international markets. CITES has been signed by over 170 countries including the United States. CITES is implemented in the United States through the Endangered Species Act (“ESA”). 16 U.S.C. § 1538(c); 50 C.F.R. §§ 14 and 23. An animal species listed as protected under CITES cannot be exported from the United States without prior notification to, and approval from, U.S. Fish and Wildlife Service. 50 C.F.R. §§ 20.13 and 20.20. Species protected under CITES are listed in a series of appendices (Appendices I, II and III), designating the level of protection afforded each species. Under Appendix II of CITES, a species can be exported from the United States to a foreign country only if, prior to exportation, the exporter possesses a valid CITES export permit issued by the United States. Under Appendix I of CITES, a species can only be exported from the United States if, prior to exportation, the exporter possesses a valid foreign import permit issued by the country of import and a valid export permit issued by the United States. The Asian elephant (Elephas maximus) is a species of elephant native to south-central and southeastern Asia. The Asian elephant is listed on Appendix I of CITES, and was listed as an endangered species in June 1976. 41 Fed. Reg. 24064. The African elephant (Loxodonta africana) is a species of elephant native to eastern and central Africa. The African elephant is listed in Appendix I of CITES, though certain populations of African elephants (specifically those from South Africa, Namibia, Botswana, and Zimbabwe) are listed in Appendix II, accompanied by a special annotation allowing only non-commercial international trade in specimens of those populations. The African elephant was listed as a threatened species under the ESA in May 1978. 43 Fed. Reg. 20504.
Mr. Ferrer commended the investigative efforts of the FWS, ICE-HSI, USPIS and CBP for their assistance with the investigation. This matter is being prosecuted by Assistant U.S. Attorney Thomas Watts-FitzGerald of the Economic & Environmental Crimes Section.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Dallas Man Sentenced to 20 Years in Federal Prison on Child Pornography ConvictionRead the Press Release
DALLAS — A 38-year-old Dallas resident, Rex Sistos, was sentenced this morning by U.S. District Judge Sidney A. Fitzwater to 240 months in federal prison following his guilty plea to one count of transportation of child pornography, announced U.S. Attorney John Parker of the Northern District of Texas.
According to documents filed in the case, the Dallas Police Department’s Internet Crimes Against Children (ICAC) unit received information from the National Center for Missing and Exploited Children (NCMEC) in September 2013 that Facebook had advised that a particular Facebook user, later identified as Sistos, had uploaded content that Facebook considered child pornography. The investigation led to the execution of a search warrant at Sistos’s home in Dallas on October 23, 2013.
During the execution of that warrant, Sistos was home and agreed to speak with an ICAC detective. Sistos admitted he used his cell phone to send an image of child pornography to an adult female located in the Philippines. A forensic analysis of the cell phone confirmed that Sistos had Facebook accounts associated with the image Sistos transported on two different occasions. Other images and videos of child pornography were also located on his phone.
The case was brought as part of Project Safe Childhood, a nationwide initiative, which was launched in May 2006 by the Department of Justice, to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals, who sexually exploit children, and identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/. For more information about Internet safety education, please visit http://www.justice.gov/psc/ and click on the tab “resources.”
The Dallas Police Department’s ICAC and U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) investigated. Assistant U.S. Attorney Camille Sparks prosecuted.
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Corpus Christi Man Pleads Guilty to Distributing Child PornographyRead the Press Release
CORPUS CHRISTI, Texas – Billy Joe Moreno, 43, of Corpus Christi, has pleaded guilty to distribution of child pornography, announced U.S. Attorney Kenneth Magidson.
Today, the court heard that officers with the Corpus Christi Police Department (CCPD), while using peer-to-peer software, were able to successfully download various files containing child pornography from an IP address that was associated with Moreno. As a result of this information, Homeland Security Investigations (HSI) was contacted to assist in the investigation.
In July 2015, agents executed a search warrant at Moreno’s residence and seized a laptop computer. Forensic analysis on the computer revealed a total of 280 videos of child pornography. Moreno admitted to having downloaded child pornography for several years.
Senior U.S. District Judge Janis Graham Jack accepted the guilty plea today and set sentencing for Feb. 26, 2016. At that time, Moreno faces a minimum of five and up to 20 years in federal prison and a possible $250,000 maximum fine. Upon completion of any prison term imposed, Moreno also faces a maximum of life on supervised release during which time the court can impose a number of special conditions designed to protect children and prohibit the use of the Internet.
Moreno was arrested on the federal charges in October 2015 and has been in custody since that time where he will remain pending his sentencing.
The charges against Moreno were the result of an investigation conducted by the CCPD - Internet Crimes Against Children Task Force with the assistance of HSI.
This case, prosecuted by Assistant U.S. Attorney Hugo R. Martinez, 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."