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18 December 2015
Connecticut Man Sentenced to 13 Years for Crack Conspiracy and DistributionRead the Press Release
Contact: Julia M. Lipez
Assistant United States Attorney
Tel: (207) 780-3257Portland, Maine: United States Attorney Thomas E. Delahanty II announced that Russell Gordon, 32, of Ansonia, Connecticut, was sentenced today in U.S. District Court by Judge George Z. Singal to 13 years in prison and five years of supervised release for conspiring to distribute cocaine base, often referred to as crack cocaine, and possession with intent to distribute crack cocaine. Gordon also was ordered to forfeit $10,706.50. He pleaded guilty to the charges on May 29, 2015.
Court records reveal that between December 2013 and January 2015, Gordon conspired with others to sell crack cocaine in Portland, Maine. Gordon would arrange for the acquisition of drugs out of state. Once the drugs were transported to Maine, they were provided to retail distributors who would sell the drugs in the Portland area, and then return the cash proceeds to Gordon. During the course of the investigation, law enforcement officers conducted controlled purchases of crack cocaine from members of the conspiracy. Gordon was arrested on January 9, 2015 at 66 Smith Street in Portland. At the time of his arrest, officers found him next to a bag containing 89 grams of crack cocaine and over $10,000 in cash.
Marco Gordon previously was sentenced to eleven years in connection with this conspiracy and Robert Joiner, Jr. and Samuel Collins each were sentenced to three years. Other defendants connected to this conspiracy have entered guilty pleas and await sentencing.
This case was investigated by the Southern Maine Gang Task Force, which is comprised of investigators from the Federal Bureau of Investigation; the Portland, South Portland, Biddeford and Lewiston Police Departments; U.S. Immigration and Customs Enforcement’s Homeland Security Investigations; the Bureau of Alcohol, Tobacco, Firearms and Explosives; and the U.S. Drug Enforcement Administration. The Maine Drug Enforcement Agency and the Maine State Police also assisted with the investigation.
The case also results from the ongoing effort of the Organized Crime Drug Enforcement Task Forces (OCDETF), a partnership between federal, state and local law enforcement agencies. The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply.
Colorado Couple Sentenced in R.I. on Firearm ChargesRead the Press Release
PROVIDENCE, R.I. – Jessica Garrett, 32, and John Baker, 39, of Wiggins, Colo., have been sentenced to federal prison for being felons in possession of a firearm. The couple, previously convicted of felony crimes, was arrested by Central Falls, R.I., police in May 2015, after an investigation resulted in the seizure of a loaded semi-automatic assault rifle from a truck the couple was traveling in.
Jessica Garrett was sentenced yesterday to 36 months in federal prison. Baker was sentenced today to 46 months in federal prison. Garrett and Baker were also ordered to serve 3 years supervised release upon completion of their prison terms. Garrett and Baker pleaded guilty in September to being a felon in possession of a firearm.
The sentences, imposed by U.S. District Court Chief Judge William E. Smith, are announced by United States Attorney Peter F. Neronha and Central Falls Police Chief Colonel James J. Mendonca.
According to court records and information presented to the court, on May 13, 2015, Central Falls Police detectives developed information that a couple that recently arrived in Central Falls from Colorado was attempting to sell a firearm. The investigation determined that the firearm, a semi-automatic assault rifle, was being stored inside a pick-up truck in which the couple was traveling.
Later that evening, detectives approached the couple as they were attempting to enter the pick-up truck. John Baker was immediately detained. Jessica Garrett was apprehended as she attempted to flee. Inside Garrett’s handbag detectives found a magazine containing 12 rounds of rifle ammunition. During a court authorized search of the truck, which had Iowa license plates and that had recently been reported stolen in Colorado, detectives seized a loaded semi-automatic assault rifle with 28 rounds of ammunition. Baker and Garrett have been detained since their arrest.
The case was prosecuted by Assistant U.S. Attorney Lee H. Vilker.
ATF assisted Central Falls Police Department detectives in the investigation of this matter.
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Contact:
Jim Martin (401) 709-5357
email: [email protected]
on Twitter @USAO_RI
Colin Chisholm Indicted for Fraudulent Scheme to Steal More Than $2 Million from Investors in Television Network StartupRead the Press Release
United States Attorney Andrew M. Luger today announced the indictment of COLIN ALEXANDER CHISHOLM, 64, for stealing more than $2 million from investors by lying to them about an investment in a purported television network startup. CHISHOLM was indicted on seven counts of wire fraud and six counts of mail fraud. The defendant is expected to make an initial appearance today before Magistrate Judge Becky Thorson in U.S. District Court in St. Paul, Minn.
“According to the indictment, Mr. Chisholm claimed to have devised a creative and exciting investment opportunity,” said Assistant U.S. Attorney Lola Velazquez-Aguilu. “However, it was built on a series of lies. Instead of providing a real possibility for a return on their investment, this defendant is charged with victimizing those who entrusted their money to him. Thanks to the hard work of investigators from the Minnesota Department of Commerce and United States Postal Inspection Service, this defendant will now have to answer for his alleged crimes.”
“As the indictment alleges, Colin Chisholm told one lie after another to steal from investors who thought they were financing a promising new business enterprise,” said Minnesota Commerce Commissioner Mike Rothman. “In reality, Chisholm was using their money for his own personal enrichment and luxurious lifestyle. This case shows the Commerce Fraud Bureau’s continuing partnership with federal authorities to bring white-collar criminals to justice.”
Craig I. Goldberg, Postal Inspector in Charge of the Denver Division, which also covers the Twin Cities, said, “When the U.S. mail is alleged to have been used for the purposes of committing fraud, it’s the job of the Postal Inspection Service to aggressively investigate and ensure America’s continued confidence in the integrity of its postal system.”
“This case is yet another example of successful cooperation between federal and local law enforcement and prosecutors,” said U.S. Attorney Luger. “I am especially grateful to my colleagues and friends in the Hennepin County Attorney’s Office who referred this case for federal prosecution.”
According to the indictment and documents filed in court, since 2004, CHISHOM used The Caribbean Television Network, Inc., (TCN) an entity he formed purportedly to broadcast satellite television throughout the Caribbean, to solicit funds from investors. As part of the solicitation, CHISHOLM told potential investors that TCN would serve as a network for a group of cable television channels, thereby allowing advertisers to obtain advertising time on multiple channels via a single network advertising buy. Throughout the scheme, CHISHOLM told investors that TCN was on the verge of securing between $20 million and $100 million in funding to begin broadcasting, and that their investment would be used as interim financing for TCN.
According to the indictment and documents filed in court, as part of his scheme to obtain money from potential investors, CHISHOLM lied to them about the progress and viability of the main funding sources for TCN. CHISHOLM lied to some investors by telling them that they were buying shares of TCN stock owned by CHISHOLM’S alleged family trust – the Comar Trust and told some investors that their investments were guaranteed by the Comar Trust. In fact, the Comar Trust did not have funds to guarantee the investments.
According to the indictment and documents filed in court, CHISHOLM also lied to investors about his personal background. He told some investors that he was the grandson of Hugh J. Chisholm, Jr., and the son of William Chisholm, of the Oxford Paper Company. In falsely claiming this family lineage, CHISHOLM gave the false impression that he came from considerable family wealth. CHISHOLM also claimed to be a Scottish Chieftain of the Clam Chisholm and claimed to have close personal ties to members of the Bush family, specifically to Prescott S. Bush, Hr., the deceased brother of former President George H.W. Bush. CHISHOLM further claimed to provide scholarships to Bowdoin College, where Hugh J. Chisholm, Jr., received an honorary degree.
According to the indictment and documents filed in court, CHISHOLM also lied about his professional background, most notably making the claim to potential investors that he had worked as Vice President for Turner Program Services, to have a relationship with Ted Turner, and to have participated in the development and launch of CNN and CNN Headline News, including writing the business plan for CNN.
According to the indictment and documents filed in court, CHISHOLM also failed to disclose his own misuse of investor funds, including funds he used to satisfy a $255,500.50 settlement with Verizon and for personal expenses, such as the purchase of a yacht, personal fitness and wellness expenses, and rent for his home on Lake Minnetonka.
CHISOLM is charged with causing the loss of more than $2 million to individual investors.
This case is the result of an investigation conducted by the Minnesota Department of Commerce Fraud Bureau and the United States Postal Inspection Service.
The U.S. Attorney’s Office thanked the Hennepin County Attorney’s Office for its substantial assistance in this case.
This case is being prosecuted by Assistant United States Attorney Lola Velazquez-Aguilu.
Defendant Information:COLIN ALEXANDER CHISHOLM, 64
Minneapolis, Minn.Charges:
- Wire fraud, 7 counts
- Mail fraud, 6 counts
Cleveland man indicted for three bank robberiesRead the Press Release
A federal grand jury indicted Keith E. Bass, 20, of Cleveland, for the robberies of three separate banks in Northeast Ohio, said Steven M. Dettelbach, U.S. Attorney for the Northern District of Ohio.
The indictment alleges that on September 1, 2015, Bass entered the PNC Bank at 7101 Broadway Avenue, in Cleveland, and robbed the bank of $3,119. On September 9, 2015, Bass entered the First Merit Bank at 22595 Lakeshore Boulevard, in Euclid, and robbed the bank of $1,250. On November 9, 2015, Bass entered the Citizens Bank at 23300 Lakeshore Boulevard, in Euclid, and robbed the bank of $5,140, according to the indictment.
The Federal Bureau of Investigation conducted the investigation in conjunction with the Cleveland Police Department and the Euclid Police Department. The case is being prosecuted by Assistant United States Attorney Kevin R. Filiatraut.
If convicted, the defendant’s sentence will be determined by the court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense, and the characteristics of the violation. In all cases, the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
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.
Charlotte Man Sentenced to 12 Years in Prison for Bank Fraud SchemeRead the Press Release
CHARLOTTE, N.C. – Today, U.S. District Judge Robert J. Conrad, Jr. sentenced Jerry Lee Grier, Jr., 38, of Charlotte to 12 years in prison in connection with his scheme to defraud Wells Fargo Bank, N.A. (Wells Fargo) and for violating the terms of his supervised release, announced Jill Westmoreland Rose, U.S. Attorney for the Western District of North Carolina. Grier, who pleaded guilty in June 2015 to one count of bank fraud, was also ordered to pay $100,800 in restitution to Wells Fargo and to serve five years of supervised release following his release from prison.
U.S. Attorney Rose is joined in making today’s announcement by John A. Strong, Special Agent in Charge of the Federal Bureau of Investigation (FBI), Charlotte Division.
According to filed court documents and court proceedings, from December 2014 through April 2015, Grier engaged in a scheme to defraud Wells Fargo by fraudulently obtaining customer account information and using such information to conduct unlawful cash withdrawals and transactions. According to court documents, after obtaining the customer account information, Grier would contact Wells Fargo bank tellers and other employees located in Charlotte and elsewhere via cell phone and use the sensitive customer account information to impersonate legitimate Wells Fargo customers, often falsely claiming to be seeking assistance in accessing and transferring cash to various accounts. Grier used a variety of lies to induce the unlawful transfer of monies, for example, by telling Wells Fargo employees that he was in urgent need for cash because of an emergency. According to court documents Grier was arrested after conducting one such fraudulent withdrawal of $22,000 at a Wells Fargo branch in Norfolk, Virginia.
In handing down the 12 year sentence, Judge Conrad noted that Grier’s criminal fraud history was “unmatched by any fraud defendant” seen by the Court and that such history reflected an “extraordinary pattern of fraudulent activity” that had been undeterred by prior prison sentences. Judge Conrad found that Grier’s three prior federal bank fraud convictions, in addition to today’s federal bank fraud conviction, coupled with the multitude of his other state fraud convictions, caused significant harm to victims and demonstrated Grier’s complete and utter disregard for the law. Judge Conrad stressed that a paramount consideration in determining the sentence was the need to protect the public from Grier’s further criminal activity.
Grier has been in federal custody since April 2015, when he was arrested for violating the terms of his supervised release arising from his 2011 federal bank fraud conviction. He will be transferred to the custody of the Federal Bureau of Prisons upon designation of a federal facility. All federal sentences are served without the possibility of parole.
U.S. Attorney Rose credited the FBI for the investigation leading to today’s sentence.
Assistant U.S. Attorney Mark T. Odulio of the U.S. Attorney’s Office in Charlotte prosecuted the case.
Catahoula Parish man sentenced to 117 months in prison for explosives, firearms possession chargesRead the Press Release
ALEXANDRIA, La. – United States Attorney Stephanie A. Finley announced today that a Catahoula Parish man was sentenced to 117 months in prison for possessing unregistered explosives and illegally possessing firearms.
Bill W. Womack, 56, of Manifest, La., was sentenced by U.S. District Judge Dee D. Drell on one count of possessing unregistered explosive devices and one count of possessing a firearm in furtherance of drug trafficking. He was also sentenced to three years of supervised release, fined $50,000 and forfeited the weapons seized during the arrest. According to information presented at the September 24, 2015 guilty plea, agents seized machine guns, destructive devices, silencers, a short barreled rifle and more than a kilogram of marijuana. The weapons were not registered as required by law. In addition, law enforcement destroyed improvised explosive devices at the scene over a five-day period.
The ATF, FBI, Louisiana State Police and Catahoula Parish Sheriff’s Office investigated the case. Assistant U.S. Attorneys Seth D. Reeg and William J. Flanagan prosecuted the case.
Cartel Leader Extradited from Mexico to the Eastern District of New York to Face International Cocaine Trafficking ChargesRead the Press Release
Later today, Tirso Martinez-Sanchez will be arraigned at the federal courthouse in Brooklyn, New York, on charges that he was the head of an international drug cartel that imported tens of thousands of kilograms of cocaine into the United States from Mexico. Martinez-Sanchez was arrested in Mexico on February 2, 2014, based on a provisional arrest warrant issued from the Eastern District of New York. He was extradited from Mexico to the United States on December 17, 2015.
The charges were announced by Robert L. Capers, United States Attorney for the Eastern District of New York and Acting Special Agent in Charge, Glenn Sorge, U.S. Immigration and Customs Enforcement’s (ICE), Homeland Security Investigations (HSI), New York.
As alleged in the indictment and other court documents, Martinez-Sanchez was the leader of an extensive transnational narcotics importation, distribution, and transportation organization that is responsible for the importation and distribution of tens of thousands of kilograms of cocaine. In particular, the organization obtained multi-ton shipments of cocaine from Colombian sources of supply. Martinez-Sanchez then organized the importation of that cocaine from outside of the United States, into the United States, by using an elaborate transportation network of trains, tractor trailers, and other vehicles. Once the cocaine was in the United States, Martinez-Sanchez directed organization members to transport the cocaine overland to large distribution centers, including some areas located in the Los Angeles, New York, and Chicago metropolitan areas. Martinez-Sanchez directed organization members to coordinate the logistics of storing the cocaine in the organization’s stash warehouses and transporting the cocaine to the organization’s distributors and customers throughout New York and elsewhere in the United States, including California and Illinois.
The investigation further revealed that Martinez-Sanchez used a network of large warehouses to store and distribute the cocaine in the United States. Martinez-Sanchez directed members of the organization to establish and maintain numerous front companies to purchase or lease these stash warehouses and vehicles to transport cocaine, and to purchase “cover loads,” or legitimate goods that were stored and transported with the cocaine to mask the cocaine shipment.
Martinez-Sanchez also oversaw the collection of the organization’s proceeds from the sale of cocaine in the United States. After the cocaine was sold, the proceeds were collected and stored in the organization’s stash warehouses. At Martinez-Sanchez’s direction, the organization’s couriers smuggled some of the drug proceeds to organization members outside of the United States using the same transportation network of tractor trailers and trains that had been used to smuggle the cocaine into the United States. The investigation further revealed that Martinez-Sanchez invested a considerable amount of narcotics proceeds in money laundering ventures, such as the purchase of professional soccer teams, and a chain of high-end clothing boutiques. Martinez-Sanchez also invested the narcotics proceeds back into the instrumentalities of the organization itself, such as purchasing or leasing stash warehouses, vehicles, and front businesses.
Martinez-Sanchez had been designated a Consolidated Priority Organization Target or CPOT by the Organized Crime Drug Enforcement Task Force (OCDETF). In addition to coordinating the distribution of his own organization’s cocaine, Martinez-Sanchez also transported and distributed narcotics for members of other Mexican Drug Cartels, including the Sinaloa Cartel, led by CPOTs Joaquin “El Chapo” Guzman and Ismael “Mayo” Zambada; the Juarez Cartel, led by CPOT Vicente Carillo-Fuentes and the Beltran-Leyva Cartel, led by brothers Arturo, Hector and Alfredo Beltran-Leyva.
During the course of the investigation, law enforcement agents seized approximately 500 kilograms of cocaine from a residence in Deer Park, New York; approximately 2,000 kilograms of cocaine from a warehouse in Brooklyn, New York; approximately 2,000 kilograms of cocaine hidden inside a railroad car in Queens, New York; approximately 1,100 kilograms of cocaine from a warehouse in El Paso, Texas; and approximately 1,900 kilograms of cocaine from a warehouse in Chicago, Illinois.
“The charges announced today reflect our ongoing efforts to target and dismantle the largest drug trafficking organizations in the world, whose multi-billion dollar criminal networks funnel drugs onto our streets and spread violence into our communities,” said U.S. Attorney Capers. “We will continue to work together with our law enforcement partners in Mexico to root out the leaders of these insidious cartels wherever they may be found and bring them to justice.” Mr. Capers extended his grateful appreciation to the Department of Homeland Security, Homeland Security Investigations (HSI) New York Office, the agency responsible for leading the investigation, and to the invaluable assistance provided by the HSI Mexico Country Office, the Drug Enforcement Administration Task Force, the DEA Mexico Country Office and the Department of Justice’s Office of International Affairs.
“This is yet another example of HSI and its partners relentlessly pursuing and dismantling drug trafficking organizations from top to bottom,” said Glenn Sorge, acting special agent in charge HSI New York. “This team of agents and prosecutors are committed to stopping the flow of prohibited drugs into the United States, and accomplishing one of HSI's priorities to ensure public safety.”
The government’s case is being prosecuted by the Office’s International Narcotics and Money Laundering Section. Assistant United States Attorneys Steven L. Tiscione and Erik D. Paulsen are in charge of the prosecution.
The Defendants:
TIRSO MARTINEZ-SANCHEZ
Age: 51
MexicoE.D.N.Y. Docket No. 04-CR-874 (ERK)
Billy J. Williams Appointed to Serve as U.S. AttorneyRead the Press Release
PORTLAND, Ore. – Attorney General Loretta Lynch appointed Billy J. Williams as United States Attorney for the District of Oregon, effective on December 12, 2015. U.S. Attorney Williams will serve in an interim capacity pursuant to the Attorney General's authority to appoint under 28 U.S.C. Section 546.
Billy Williams has served as the Acting United States Attorney, for the District of Oregon since May of 2015. He has been with the U.S. Attorney’s Office since October of 2000. Prior to his role as Acting United States Attorney, he served as the First Assistant, Chief of the Criminal Division, Chief of the Violent Crimes Unit, and as the Indian Country AUSA/Tribal Liaison.
Prior to his federal service, Williams served as a Sr. Deputy District Attorney in Multnomah County, where he supervised the Career Criminal Unit, and over his career prosecuted major crimes of violence, including aggravated murder, adult and child sex offenses, domestic violence, narcotics trafficking, vehicular homicide crimes, as well as investigations of officer-involved shootings.
Williams received his law degree in 1989 at the Willamette University College of Law.
Baltimore Man Indicted for Insurance Fraud Scheme Involving Arson and for His Efforts to Cover up the Scheme, Including Attempted Witness TamperingRead the Press Release
Baltimore, Maryland – A federal grand jury indicted Greg Ramsey, age 54, of Baltimore, with conspiracy to commit wire fraud, use of a fire to commit a federal felony, malicious destruction of property by fire, attempted witness tampering, and related gun charges. Ramsey and his niece, Tyesha Towanda Roberts, age 37, also of Baltimore, are charged with attempting to obstruct a federal investigation. The indictment was returned late on December 17, 2015.
The indictment was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge William P. McMullan of the Bureau of Alcohol, Tobacco, Firearms and Explosives - Baltimore Field Division; Commissioner Kevin Davis of the Baltimore Police Department; Maryland State Fire Marshal Brian Geraci; and Anne Arundel County Fire Department Deputy Chief Scott Hoglander.
According to the 12-count indictment, Ramsey and a co-conspirator, J.R., agreed to commit a series of arsons. On October 28, 2012, Ramsey and J.R. traveled to the Pennsylvania residence of J.R.’s business associate, with whom J.R. was having a dispute, and set the residence on fire. At the time, the residence was occupied. The fire caused extensive damage to the residence.
Further, the indictment alleges that Ramsey agreed to set fire to residences on Clifton Avenue and Walbrook Avenue, as well as two vehicles, all of which were owned by J.R., in order to obtain money on the insurance policies. The indictment alleges that on February 17, 2013, Ramsey deliberately set the Clifton Avenue residence on fire. At the time the fire was set, the residence was occupied by tenants. The fire caused extensive damage to the residence.
On August 26, 2013, after Ramsey and J.R. moved the vehicles to the 2700 block of Walbrook Avenue, Ramsey and J.R. allegedly set the Walbrook Avenue property and the vehicles on fire. The fire at the Walbrook Avenue property not only caused extensive damage to the building, but spread to the neighboring homes. Both vehicles were completely destroyed and those fires spread to a nearby church, located at 1925 N. Dukeland Street in Baltimore, causing extensive damage to that building.
On February 19, 2013, J.R. reported the loss due to fire damage at the Clifton Avenue residence to the insurance company, which issued a check for $50,000 to J.R. and the mortgage holder. After the mortgage and other debts were paid off, the mortgage holder wrote J.R. a check for the balance, approximately $10,000. After the fires on August 26, 2013, J.R. contacted the insurance companies for the vehicles and the Walbrook Avenue property to begin the insurance claims process, which continued by telephone and email, although neither insurer paid the claims.
Unbeknownst to Ramsey, on May 29, 2015, J.R. pleaded guilty to the insurance fraud scheme and the arsons. According to the indictment, on September 14, 2015, Ramsey and J.R. had a detailed discussion about certain evidence at the co-conspirator’s upcoming trial. Ramsey offered to have his “sister,” Roberts, falsely testify that J.R. was visiting her at her house in the vicinity of Walbrook Avenue as an explanation for why J.R. was in the area near the date and time the fires were set. During that discussion, Ramsey also allegedly offered to have someone to kill a witness who would testify for the prosecution. Ramsey and J.R. had additional discussions regarding Ramsey’s offer for Roberts to falsely testify on behalf of J.R. The indictment alleges that Roberts confirmed that she was willing to offer false testimony, and took $1,000 from a confidential source as an initial payment. After that meeting Ramsey again brought up with the confidential source the possibility of getting money to pay an individual who was willing to murder a witness who was prepared to testify for the prosecution. On November 2, 2015, Ramsey and Roberts met with J.R. to discuss the particulars of Roberts’ false testimony. During a discussion about possibly killing any witness testifying for the prosecution, Roberts offered that she knew people who would be willing to commit such a murder.
The indictment alleges that on November 6, 2015, the confidential source introduced Ramsey to an undercover law enforcement officer (UC) to discuss Ramsey’s offer involving murdering a witness for a fee. On November 13, 2014, Ramsey allegedly met with the UC and accepted $2,000 towards the $10,000 total fee that had been agreed upon for murdering a witness. Ramsey then directed the UC to his residence where he retrieved a loaded .357 revolver, to be used to murder the witness.
Ramsey faces a maximum of 20 years in prison for the wire fraud conspiracy; a maximum of 10 years in prison for one count of use of a fire to commit a federal felony and 20 years in prison, consecutive to any other sentence, for each of the two other counts; a mandatory minimum sentence of five years and up to 20 years in prison for each of four counts of malicious destruction of property by fire; a maximum of 30 years in prison for attempted witness tampering; a mandatory minimum of five years and up to life in prison for possession of a firearm in furtherance of a crime of violence; and a maximum of 10 years in prison for being a felon in possession of a firearm and ammunition. Ramsey and Roberts each face a maximum sentence of 20 years in prison for attempting to obstruct a federal investigation. Ramsey and Roberts were both arrested on related charges on November 13 and November 18, 2015, respectively. Ramsey remains detained. Roberts is under the supervision of U.S. Pretrial Services. An initial appearance on this indictment has not been scheduled.
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
United States Attorney Rod J. Rosenstein praised the ATF, Baltimore Police Department, Maryland State Fire Marshal’s Office and Anne Arundel County Fire Department for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorneys Judson T. Mihok and Zachary A. Myers, who are prosecuting the case.
Aurora Gangster Found Guilty of Being a Felon in Possession of a FirearmRead the Press Release
DENVER – David Scott, age 24, of Aurora, Colorado, a known member of the Crenshaw Mafia Gangster 104th Park Hill Blood gang, was found guilty today of being a felon in possession of a firearm, following a four-day jury trial before Chief U.S. District Court Judge Marcia S. Krieger, U.S. Attorney John Walsh and Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Special Agent in Charge Ken Croke announced. Scott was indicted by a federal grand jury in Denver on January 27, 2015. He is scheduled to be sentenced on March 28, 2016. The defendant, who appeared at the trial in custody, was remanded at the conclusion.
According to the facts presented at trial, Scott, a known felon, was one of three known gang members inside a vehicle on December 31, 2012, that was stopped by the Aurora Police Department after multiple traffic violations were observed. After a search of the vehicle, a .45 caliber semi-automatic handgun was found under Scott’s seat wrapped in a red bandana. Scott is a Blood gang member. During the trial, a DNA expert testified that Scott’s DNA was found on the weapon. Scott had multiple prior convictions in Colorado for felony crimes, including a 2010 Denver District Court conviction for possession of a weapon by a previous offender, a 2009 Arapahoe County District Court conviction for felony menacing, and a 2013 conviction in U.S. District Court in Colorado for being a felon in possession of a firearm.
“Today’s guilty verdict against a violent gang member, a felon caught with a firearm, is a victory for the citizens of Metro Denver,” said U.S. Attorney John Walsh. “Thanks to the hard work of the jury in this case, who made a thorough review of the evidence, Defendant Scott will be off the streets and our community will be safer.”
“Scott is an extremely dangerous felon with a long criminal history,” said ATF Denver Field Division Special Agent in Charge Ken Croke. “Working with the U.S. Attorney’s Office, the government is going to advocate for the longest possible sentence possible for his relentless violence.”
Scott faces up to 10 years in federal prison, and not more than a $250,000 fine for being a felon in possession of a firearm.
This case was investigated by the Aurora Police Department and the ATF Denver Field Division.
The defendant was prosecuted by Assistant U.S. Attorneys Jeremy Sibert and Rebecca Weber.
Audubon County Man Sentenced to Prison for Role in Conspiracy to Distribute MethamphetamineRead the Press Release
COUNCIL BLUFFS, IA – On December 17, 2015, Brock Daniel Knapp, 27, of Exira, Iowa, was sentenced by Chief United States District Court Judge John A. Jarvey to 12 months and a day in prison for conspiring to distribute methamphetamine, announced Acting United States Attorney Kevin E. VanderSchel. Knapp was also ordered to serve three years of supervised release following his prison term.
According to the plea agreement, beginning in June of 2014, Knapp assisted in the distribution of methamphetamine by delivering money from the sale of methamphetamine to methamphetamine suppliers involved in the conspiracy.
This matter was investigated by the Iowa Department of Public Safety, Division of Narcotics Enforcement, and the case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
Anne Arundel County Man Sentenced to 188 Months in Prison for Production of Child PornographyRead the Press Release
Baltimore, Maryland – Chief U.S. District Judge Catherine C. Blake sentenced Jason Carpenski, age 28, of Brooklyn, Maryland, today to 188 months in prison, followed by lifetime supervised release, for production of child pornography. Chief Judge Blake ordered that upon his release from prison, Carpenski must register as a sex offender in the place where he resides, where he is an employee, and where he is a student, under the Sex Offender Registration and Notification Act (SORNA).
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Kevin Perkins of the Federal Bureau of Investigation - Baltimore; Assistant Director in Charge Paul M. Abbate of the Federal Bureau of Investigation - Washington Field Office; and Anne Arundel County Police Chief Tim Altomare.
According to Carpenski’s plea agreement, on July 28, 2014, Carpenski responded to an internet advertisement placed by an undercover FBI Task Force Officer in Washington, D.C.. Over the next two days Carpenski discussed with the undercover officer in on-line and telephone communications his interest in images and activities involving sexual contact between adult males and their young, prepubescent daughters. Carpenski told the undercover officer that he had access to two prepubescent girls and described sexual contact he had with both of them. Carpenski sent the undercover officer a sexually explicit image that Carpenski had taken documenting his sexual abuse of one of the girls.
On August 5, 2015, a search warrant was executed at Carpenski’s residence. Carpenski admitted that he utilized his cell phone to access the internet and communicate online. Carpenski admitted taking sexually explicit images and inappropriately touching Victim One, who was younger than eight years old at the time of the conduct. Carpenski also admitted sending some of the images he had taken of Victim One to individuals in other states and countries. A search of Carpenski’s email account and forensic examination of his phone recovered over 500 images and four video files depicting prepubescent children engaged in sexually explicit conduct. Some of those images had also been emailed to others.
The case was investigated by the FBI-led Maryland Child Exploitation Task Force (MCETF), created in 2010 to combat child prostitution, with members from10 state and federal law enforcement agencies. The Task Force coordinates with the National Center for Missing and Exploited Children and the Maryland State Police Child Recovery Unit to identify children who are being sexually exploited, and missing children being advertised online for prostitution.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc. For more information about internet safety education, please visit www.justice.gov/psc and click on the "resources" tab on the left of the page.
United States Attorney Rod J. Rosenstein commended the FBI’s Baltimore and Washington Field Offices, and the Anne Arundel County Police Department for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Tamera L. Fine, who prosecuted the case.
Amherst Man Pleads Guilty to Child Pornography ChargesRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051
BUFFALO, N.Y. – U.S. Attorney William J. Hochul, Jr. announced today that Matthew Bordonard, 26, of Amherst, NY, pleaded guilty before Chief U.S. District Frank P. Geraci to possession of child pornography. The charge carries a maximum penalty of 10 years in prison and a fine of $250,000.Assistant U.S. Attorney Marie P. Grisanti, who is handling the case, stated that on June 4, 2013, a search warrant was executed at the defendant’s residence. Law enforcement officers seized computers, hard drives and other electronic items. A forensic analysis determined that Bordonard’s laptop computer contained more than 340 images and video files containing child pornography including graphic images and videos of children under the age of 12 years old.
The plea is the culmination of an investigation by the Federal Bureau of Investigation Child Exploitation Task Force, under the direction of Special Agent in Charge Adam S. Cohen. The task force includes the Buffalo Police Department, Cheektowaga Police Department, and Niagara County Sheriff’s Office.
Sentencing is scheduled for March 18, 2015, at 2:30 p.m. before Judge Geraci.
32 Hospitals to Pay U.S. More Than $28 Million to Resolve False Claims Act Allegations Related to Kyphoplasty BillingRead the Press Release
Thirty-two hospitals located throughout 15 states have agreed to pay the United States a total of more than $28 million to settle allegations that the health care facilities submitted false claims to Medicare for minimally-invasive kyphoplasty procedures, the Justice Department announced today. The Justice Department has now reached settlements with more than 130 hospitals totaling approximately $105 million to resolve allegations that they mischarged Medicare for kyphoplasty procedures.
Kyphoplasty is a minimally-invasive procedure used to treat certain spinal fractures that often are due to osteoporosis. In many cases, the procedure can be performed safely and effectively as an outpatient procedure without any need for a more costly inpatient hospital admission. The settlements announced today resolve allegations that the 32 settling hospitals frequently billed Medicare for kyphoplasty procedures on a more costly inpatient basis, rather than an outpatient basis, in order to increase their Medicare billings.
“Charging the government for higher cost inpatient services that patients do not need wastes the country’s vital health care dollars,” said Principal Deputy Assistant Attorney General Benjamin C. Mizer, head of the Justice Department’s Civil Division. “The Department of Justice is committed to ensuring that Medicare funds are expended appropriately, based on the medical needs of patients rather than the desire to maximize hospital profits.”
The settling facilities and the amounts they have agreed to pay, include the following:
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The Cleveland Clinic in Cleveland, Ohio, has agreed to pay $1.74 million.
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Citrus Memorial Health System in Inverness, Florida, has agreed to pay $2.6 million.
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Cullman Regional Medical Center in Cullman, Alabama, has agreed to pay $350,000.
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Martin Memorial Medical Center in Stuart, Florida, has agreed to pay $2 million.
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MultiCare Tacoma General Hospital in Tacoma, Washington, has agreed to pay $983,000.
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Norwalk Hospital in Norwalk, Connecticut, has agreed to pay $920,000.
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Princeton Community Hospital Association in Princeton, West Virginia, has agreed to pay $1,513,500.
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Sacred Heart Medical Center in Spokane, Washington, has agreed to pay $906,000.
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Sarasota Memorial Hospital in Sarasota, Florida, has agreed to pay $972,000.
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Spartanburg Regional Health Services District Inc. in Spartanburg, South Carolina, has agreed to pay $1.725 million.
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St. Cloud Hospital in St. Cloud, Minnesota, has agreed to pay $500,000.
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Tampa General Hospital in Tampa, Florida, has agreed to pay $2 million.
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Five hospitals affiliated with Community Health Systems Inc., in Franklin, Tennessee, have agreed to pay a total of $3.5 million.These include:Crestwood Medical Center in Huntsville, Alabama; St. Joseph’s Hospital in Fort Wayne, Indiana; Carolinas Hospital System in Florence, South Carolina; Mary Black Health System in Spartanburg, South Carolina; and Trinity Medical Center in Birmingham, Alabama.
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Five hospitals affiliated with Tenet Health Care Corporation in Dallas, Texas, have agreed to pay a total of $2.2 million. These include:East Cooper Medical Center in Mt. Pleasant, South Carolina; North Fulton Hospital in Roswell, Georgia; Providence Memorial Hospital in El Paso, Texas; St. Francis Hospital in Memphis, Tennessee; and Sierra Medical Center in El Paso.
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Five hospitals formerly owned and operated by Health Management Associates Inc., in Naples, Florida, have agreed to pay a total of $2 million.These include:Biloxi Regional Medical Center in Biloxi, Mississippi; Davis Regional Medical Center in Statesville, North Carolina; Lancaster Regional Medical Center in Lancaster, Pennsylvania; Physicians Regional Medical Center in Naples, Florida; and Riley Hospital in Meridian, Mississippi.
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Three hospitals affiliated with BayCare Health System in Clearwater, Florida, have agreed to pay a total of $1.5 million.These include:Winter Haven Hospital in Winter Haven, Florida; St. Joseph’s Hospital in Tampa, Florida; and St. Anthony’s Hospital in St. Petersburg, Florida.
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Two hospitals affiliated with Banner Health in Phoenix, Arizona, have agreed to pay a total of $2.685 million.These include Banner Boswell Medical Center in Sun City, Arizona, and Banner Thunderbird Medical Center in Glendale, Arizona.
“As has been shown throughout this successful investigation, we will never allow hospitals to put profits ahead of patients,” said U.S. Attorney William J. Hochul Jr. of the Western District of New York. “Decisions regarding potential procedures should be made using sound medical judgment only, not with an eye toward increasing Medicare reimbursements. The public should be assured that any hospital involved in improper kyphoplasty billing will be held accountable for its actions.”
In addition to settlements with over 130 hospitals, the government previously settled with Medtronic Spine LLC, the corporate successor to Kyphon Inc., for $75 million to settle allegations that the company caused false claims to be submitted to Medicare by counseling hospital providers to perform kyphoplasty procedures as inpatient rather than outpatient procedures.
All but three of the settling facilities announced today were named as defendants in a qui tam, or whistleblower, lawsuit brought under the False Claims Act, which permits private citizens to bring lawsuits on behalf of the United States and receive a portion of the proceeds of any settlement or judgment awarded against a defendant. The lawsuit was filed in federal district court in Buffalo, New York, by Craig Patrick and Charles Bates. Patrick is a former reimbursement manager for Kyphon, and Bates was formerly a regional sales manager for Kyphon in Birmingham. The whistleblowers will receive a total of approximately $4.75 million from the settlements announced today.
This settlement illustrates the government’s emphasis on combating health care fraud and marks another achievement for the Health Care Fraud Prevention and Enforcement Action Team (HEAT) initiative, which was announced in May 2009 by the Attorney General and the Secretary of Health and Human Services. The partnership between the two departments has focused efforts to reduce and prevent Medicare and Medicaid financial fraud through enhanced cooperation. One of the most powerful tools in this effort is the False Claims Act. Since January 2009, the Justice Department has recovered a total of more than $26.7 billion through False Claims Act cases, with more than $16.8 billion of that amount recovered in cases involving fraud against federal health care programs.
The settlements were the result of a coordinated effort among the U.S. Attorney’s Office for the Western District of New York, the Civil Division’s Commercial Litigation Branch and the Department of Health and Human Services’ Office of Inspector General and Office of Counsel to the Inspector General.
The claims resolved by these settlements are allegations only, and there have been no determinations of liability.
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32 Hospitals to Pay U.S. More Than $28 Million to Resolve False Claims Act Allegations Related to Kyphoplasty BillingRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO – Thirty-two hospitals located throughout 15 states have agreed to pay the United States a total of more than $28 million to settle allegations that the health care facilities submitted false claims to Medicare for minimally-invasive kyphoplasty procedures, the Justice Department announced today. The Justice Department has now reached settlements with more than 130 hospitals totaling approximately $105 million to resolve allegations that they mischarged Medicare for kyphoplasty procedures.
Kyphoplasty is a minimally-invasive procedure used to treat certain spinal fractures that often are due to osteoporosis. In many cases, the procedure can be performed safely and effectively as an outpatient procedure without any need for a more costly inpatient hospital admission. The settlements announced today resolve allegations that the 32 settling hospitals frequently billed Medicare for kyphoplasty procedures on a more costly inpatient basis, rather than an outpatient basis, in order to increase their Medicare billings.
“As has been shown throughout this successful investigation, we will never allow hospitals to put profits ahead of patients,” said U.S. Attorney William J. Hochul Jr. of the Western District of New York. “Decisions regarding potential procedures should be made using sound medical judgment only, not with an eye toward increasing Medicare reimbursements. The public should be assured that any hospital involved in improper kyphoplasty billing will be held accountable for its actions.”
“Charging the government for higher cost inpatient services that patients do not need wastes the country’s vital health care dollars,” said Principal Deputy Assistant Attorney General Benjamin C. Mizer, head of the Justice Department’s Civil Division. “The Department of Justice is committed to ensuring that Medicare funds are expended appropriately, based on the medical needs of patients rather than the desire to maximize hospital profits.”
The settling facilities and the amounts they have agreed to pay, include the following:
• The Cleveland Clinic in Cleveland, Ohio, has agreed to pay $1.74 million.
• Citrus Memorial Health System in Inverness, Florida, has agreed to pay $2.6 million.
• Cullman Regional Medical Center in Cullman, Alabama, has agreed to pay $350,000.
• Martin Memorial Medical Center in Stuart, Florida, has agreed to pay $2 million.
• MultiCare Tacoma General Hospital in Tacoma, Washington, has agreed to pay $983,000.
• Norwalk Hospital in Norwalk, Connecticut, has agreed to pay $920,000.
• Princeton Community Hospital Association in Princeton, West Virginia, has agreed to pay $1,513,500.
• Sacred Heart Medical Center in Spokane, Washington, has agreed to pay $906,000.
• Sarasota Memorial Hospital in Sarasota, Florida, has agreed to pay $972,000.
• Spartanburg Regional Health Services District Inc. in Spartanburg, South Carolina, has agreed to pay $1.725 million.
• St. Cloud Hospital in St. Cloud, Minnesota, has agreed to pay $500,000.
• Tampa General Hospital in Tampa, Florida, has agreed to pay $2 million.
• Five hospitals affiliated with Community Health Systems Inc., in Franklin, Tennessee, have agreed to pay a total of $3.5 million. These include: Crestwood Medical Center in Huntsville, Alabama; St. Joseph’s Hospital in Fort Wayne, Indiana; Carolinas Hospital System in Florence, South Carolina; Mary Black Health System in Spartanburg, South Carolina; and Trinity Medical Center in Birmingham, Alabama.
• Five hospitals affiliated with Tenet Health Care Corporation in Dallas, Texas, have agreed to pay a total of $2.2 million. These include: East Cooper Medical Center in Mt. Pleasant, South Carolina; North Fulton Hospital in Roswell, Georgia; Providence Memorial Hospital in El Paso, Texas; St. Francis Hospital in Memphis, Tennessee; and Sierra Medical Center in El Paso.
• Five hospitals formerly owned and operated by Health Management Associates Inc., in Naples, Florida, have agreed to pay a total of $2 million. These include: Biloxi Regional Medical Center in Biloxi, Mississippi; Davis Regional Medical Center in Statesville, North Carolina; Lancaster Regional Medical Center in Lancaster, Pennsylvania; Physicians Regional Medical Center in Naples, Florida; and Riley Hospital in Meridian, Mississippi.
• Three hospitals affiliated with BayCare Health System in Clearwater, Florida, have agreed to pay a total of $1.5 million. These include: Winter Haven Hospital in Winter Haven, Florida; St. Joseph’s Hospital in Tampa, Florida; and St. Anthony’s Hospital in St. Petersburg, Florida.
• Two hospitals affiliated with Banner Health in Phoenix, Arizona, have agreed to pay a total of $2.685 million. These include Banner Boswell Medical Center in Sun City, Arizona, and Banner Thunderbird Medical Center in Glendale, Arizona.In addition to settlements with over 130 hospitals, the government previously settled with Medtronic Spine LLC, the corporate successor to Kyphon Inc., for $75 million to settle allegations that the company caused false claims to be submitted to Medicare by counseling hospital providers to perform kyphoplasty procedures as inpatient rather than outpatient procedures.
All but three of the settling facilities announced today were named as defendants in a qui tam, or whistleblower, lawsuit brought under the False Claims Act, which permits private citizens to bring lawsuits on behalf of the United States and receive a portion of the proceeds of any settlement or judgment awarded against a defendant. The lawsuit was filed in federal district court in Buffalo, New York, by Craig Patrick and Charles Bates. Patrick is a former reimbursement manager for Kyphon, and Bates was formerly a regional sales manager for Kyphon in Birmingham. The whistleblowers will receive a total of approximately $4.75 million from the settlements announced today.This settlement illustrates the government’s emphasis on combating health care fraud and marks another achievement for the Health Care Fraud Prevention and Enforcement Action Team (HEAT) initiative, which was announced in May 2009 by the Attorney General and the Secretary of Health and Human Services. The partnership between the two departments has focused efforts to reduce and prevent Medicare and Medicaid financial fraud through enhanced cooperation. One of the most powerful tools in this effort is the False Claims Act. Since January 2009, the Justice Department has recovered a total of more than $26.7 billion through False Claims Act cases, with more than $16.8 billion of that amount recovered in cases involving fraud against federal health care programs.
The settlements were the result of a coordinated effort among the U.S. Attorney’s Office for the Western District of New York, the Civil Division’s Commercial Litigation Branch and the Department of Health and Human Services’ Office of Inspector General and Office of Counsel to the Inspector General.
The claims resolved by these settlements are allegations only, and there have been no determinations of liability.
21st Century Oncology to Pay $19.75 Million to Settle Alleged False Claims for Unnecessary Laboratory TestsRead the Press Release
21st Century Oncology LLC, has agreed to pay $19.75 million to the government to resolve allegations that it violated the False Claims Act by billing federal health care programs for laboratory tests that were not medically necessary, the Justice Department announced today. 21st Century is a nationwide provider of integrated cancer care services that is headquartered in Fort Myers, Florida.
“Today’s settlement demonstrates our unwavering commitment to protect the Medicare trust fund against unscrupulous providers,” said Principal Deputy Assistant Attorney General Benjamin C. Mizer, head of the Justice Department’s Civil Division. “Providers who waste taxpayer dollars by billing for unnecessary services will face serious consequences.”
The settlement announced today resolves allegations that 21st Century submitted claims to Medicare and Tricare for fluorescence in situ hybridization, or “FISH,” tests that were not medically necessary. FISH tests are laboratory tests performed on urine that can detect genetic abnormalities associated with bladder cancer. The government alleged that 21st Century submitted claims for unnecessary FISH tests that were ordered by four of its urologists, Dr. Meir Daller, Dr. Steven Paletsky, Dr. David Spellberg and Dr. Robert Scappa, all of whom practiced in the Fort Myers area. The government also alleged that 21st Century encouraged these physicians to order unnecessary FISH tests by offering bonuses that were based in part on the number of tests referred to 21st Century’s laboratory. Today’s settlement resolves the civil liability of 21st Century only.
“Charging the government for clearly unnecessary medical services squanders taxpayer dollars,” said U.S. Attorney A. Lee Bentley, III of the Middle District of Florida. “Our office will continue to pursue health care providers who defraud the United States, thereby threatening the viability of government health care programs, such as Medicare.”
“These tests were ordered to increase profits, not improve the healthcare of patients,” said Special Agent in Charge Shimon Richmond of the Department of Health and Human Services Office of Inspector General (HHS-OIG). “This kind of unvarnished fraud is an attack on Medicare by unscrupulous providers and the OIG and its federal partners will take whatever steps are necessary to stop them.”
“This settlement demonstrates the commitment of the Defense Criminal Investigative Service (DCIS) and its law enforcement partners to protect the integrity of the U.S. military health care program (TRICARE) against fraudulent claims for medical services, said Special Agent in Charge John F. Khin of DCIS’s Southeast Field Office.”
The settlement resolves allegations originally brought in a lawsuit filed by a whistleblower under the qui tam provisions of the False Claims Act, which allow private parties to bring suit on behalf of the government and to share in any recovery. The whistleblower, a former 21st Century Oncology LLC medical assistant, will receive $3.2 million as her share of the recovery in this case.
The investigation was handled by the Civil Division’s Commercial Litigation Branch and the Fort Myers Division of the U.S. Attorney’s Office of the Middle District of Florida with assistance from HHS-OIG, DCIS and the FBI.
This settlement illustrates the government’s emphasis on combating health care fraud and marks another achievement for the Health Care Fraud Prevention and Enforcement Action Team (HEAT) initiative, which was announced in May 2009 by the Attorney General and the Secretary of Health and Human Services. The partnership between the two departments has focused efforts to reduce and prevent Medicare and Medicaid financial fraud through enhanced cooperation. One of the most powerful tools in this effort is the False Claims Act. Since January 2009, the Justice Department has recovered a total of more than $26.7 billion through False Claims Act cases, with more than $16.8 billion of that amount recovered in cases involving fraud against federal health care programs.
The lawsuit is captioned United States, State of Florida, ex rel. Mariela Barnes v. Dr. David Spellberg, 21st Century Oncology and Naples Urology Associates, Civil Action No. 2:13-cv-228-FtM-38DNF (M.D. Fla.). The claims resolved by the settlement are allegations only, and there has been no determination of liability.
21st Century Oncology to Pay $19.75 Million to Settle Alleged False Claims for Unnecessary Laboratory TestsRead the Press Release
Fort Myers, FL – 21st Century Oncology LLC, has agreed to pay $19.75 million to the government to resolve allegations that it violated the False Claims Act by billing federal health care programs for laboratory tests that were not medically necessary, the Justice Department announced today. 21st Century is a nationwide provider of integrated cancer care services that is headquartered in Fort Myers, Florida.
“Today’s settlement demonstrates our unwavering commitment to protect the Medicare trust fund against unscrupulous providers,” said Principal Deputy Assistant Attorney General Benjamin C. Mizer, head of the Justice Department’s Civil Division. “Providers who waste taxpayer dollars by billing for unnecessary services will face serious consequences.”
The settlement announced today resolves allegations that 21st Century submitted claims to Medicare and Tricare for fluorescence in situ hybridization, or “FISH,” tests that were not medically necessary. FISH tests are laboratory tests performed on urine that can detect genetic abnormalities associated with bladder cancer. The government alleged that 21st Century submitted claims for unnecessary FISH tests that were ordered by four of its urologists, Dr. Meir Daller, Dr. Steven Paletsky, Dr. David Spellberg and Dr. Robert Scappa, all of whom practiced in the Fort Myers area. The government also alleged that 21st Century encouraged these physicians to order unnecessary FISH tests by offering bonuses that were based in part on the number of tests referred to 21st Century’s laboratory. Today’s settlement resolves the civil liability of 21st Century only.
“Charging the government for clearly unnecessary medical services squanders taxpayer dollars,” said U.S. Attorney A. Lee Bentley, III of the Middle District of Florida. “Our office will continue to pursue health care providers who defraud the United States, thereby threatening the viability of government health care programs, such as Medicare.”
“These tests were ordered to increase profits, not improve the healthcare of patients,” said Special Agent in Charge Shimon Richmond of the Department of Health and Human Services Office of Inspector General (HHS-OIG). “This kind of unvarnished fraud is an attack on Medicare by unscrupulous providers and the OIG and its federal partners will take whatever steps are necessary to stop them.”
“This settlement demonstrates the commitment of the Defense Criminal Investigative Service (DCIS) and its law enforcement partners to protect the integrity of the U.S. military health care program (TRICARE) against fraudulent claims for medical services, said Special Agent in Charge John F. Khin of DCIS’s Southeast Field Office.”
The settlement resolves allegations originally brought in a lawsuit filed by a whistleblower under the qui tam provisions of the False Claims Act, which allow private parties to bring suit on behalf of the government and to share in any recovery. The whistleblower, a former 21st Century Oncology LLC medical assistant, will receive $3.2 million as her share of the recovery in this case.
The investigation was handled by Trial Attorney Arthur Di Dio from the Civil Division’s Commercial Litigation Branch and Assistant U.S. Attorney Kyle S. Cohen from the Fort Myers Division of the U.S. Attorney’s Office for the Middle District of Florida with assistance from HHS-OIG, DCIS and the FBI.
This settlement illustrates the government’s emphasis on combating health care fraud and marks another achievement for the Health Care Fraud Prevention and Enforcement Action Team (HEAT) initiative, which was announced in May 2009 by the Attorney General and the Secretary of Health and Human Services. The partnership between the two departments has focused efforts to reduce and prevent Medicare and Medicaid financial fraud through enhanced cooperation. One of the most powerful tools in this effort is the False Claims Act. Since January 2009, the Justice Department has recovered a total of more than $26.7 billion through False Claims Act cases, with more than $16.8 billion of that amount recovered in cases involving fraud against federal health care programs.
The lawsuit is captioned United States, State of Florida, ex rel. Mariela Barnes v. Dr. David Spellberg, 21st Century Oncology and Naples Urology Associates, Civil Action No. 2:13-cv-228-FtM-38DNF (M.D. Fla.). The claims resolved by the settlement are allegations only, and there has been no determination of liability.
17 December 2015
York County Man Charged with Using Skimming Device to Commit Bank Fraud and Identity TheftRead the Press Release
HARRISBURG – The United States Attorney’s Office for the Middle District of Pennsylvania announced that yesterday a federal Grand Jury in Harrisburg charged Jeshua Paonessa-Velez, age 24, a York City resident with bank fraud and identity theft. Paonessa-Velez is not in custody.
According to U.S. Attorney Peter Smith, the indictment charges that between November 1 and November 7, 2014, Paonessa-Velez devised a scheme to obtain money from Adams County National Bank by placing a “skimming” device on one of the bank’s ATMs, capturing identification information of bank customers using that ATM, loading that information onto access devices, and making purchases with those access devices.
The indictment also charges Paonessa-Velez with 12 counts of aggravated identity theft for stealing the means of identification of 12 of the bank’s customers.
This matter was investigated by the Harrisburg Resident Office of the United States Secret Service and the Southwestern Regional (York County) Police Department. Prosecution has been assigned to Assistant U.S. Attorney James T. Clancy.
The Adams County National Bank and the retail establishments where Paonessa-Velez allegedly made the purchases using the stolen identities cooperated in the investigation. The bank reimbursed all of the affected customers for the losses to their accounts.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law for the bank fraud offense is 30 years of imprisonment, a term of supervised release following imprisonment, and a fine. The penalty for aggravated identity theft is 2 years of imprisonment consecutive to any sentence imposed for the underlying bank fraud offense. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Western U.P. Crystal Meth Conspiracy Shut DownRead the Press Release
Las Vegas Connection Uncovered by Joint GIANT-DEA Investigation
MARQUETTE, MICHIGAN — Richard Jon Hill, age 39 known in the Ironwood, Michigan area as "Rock Star Rick," was sentenced to 180 months in federal prison for his conviction on federal drug charges. The sentence represents the culmination of a two-year investigation by the Gogebic-Iron Area Narcotics Team (GIANT) and the U.S. Drug Enforcement Administration (DEA). The joint investigation led to seven federal convictions, sentences measured by years and even decades, and the complete dismantling of a major criminal drug trafficking operation.
Hill, a 1994 graduate of Luther L. Wright High School in Ironwood, moved to Las Vegas in about 2000 and became a heavy methamphetamine user. He returned to Ironwood in 2012, but maintained his connections in Las Vegas. Soon he was traveling back to Las Vegas to pick up drugs that he would sell in Ironwood. To minimize the risk of traveling with large amounts of methamphetamine, he enlisted friends and associates to receive packages that he had shipped from Las Vegas. Hill would collect these packages, use some of the methamphetamine himself, and sell the rest in order to finance his next trip to Las Vegas. This became a lucrative cycle driven by Hill and his friends and associates that helped spread a methamphetamine epidemic across the Western Upper Peninsula.
By the fall of 2013, GIANT – a multi-agency task force fighting drug trafficking in the western part of the Upper Peninsula and the Hurley, Wisconsin area – had identified Hill as a significant supplier of methamphetamine. Officers assigned to GIANT arranged for several undercover purchases of methamphetamine from Hill. These undercover buys gave the officers the evidence they needed to get a search warrant for the residence Hill shared with Rebecca Jean Suzik. There, GIANT officers found more than 400 grams of crystal methamphetamine that was 99.9% pure and more than $20,000 in cash. Methamphetamine is commonly sold on the street in quarter and half gram quantities, so the amount seized from Hill and Suzik’s residence alone represented more than a thousand units and had an estimated street value of $40,000. As a whole, the conspiracy involved at least $200,000 worth of methamphetamine.
GIANT officers then partnered with DEA agents in Marquette in order to investigate and pursue appropriate charges against the people working with Hill. An extensive investigation of travel records, text messages and shipping records led to the identification of several co-conspirators in the Upper Peninsula of Michigan and Hurley, Wisconsin, as well as Hill’s source in Las Vegas. A series of federal charges followed over the next year and a half.
The following individuals were ultimately convicted of drug trafficking charges and sentenced in federal court in Marquette:
• Richard Jon Hill, a/k/a "Rock Star Rick," age 39, sentenced to 180 months in federal prison.
• Joshua Aaron Anderson, age 32, of Ironwood, sentenced to 151 months in federal prison.
• David Anthony Tristan, age 46, of Bullhead City, Arizona, sentenced to 87 months in federal prison.
• Anthony Peter Giovanoni, age 37, of Hurley, Wisconsin, sentenced to 120 months in federal prison.
• Vickie Marie Sporleder, age 48, of Rockland, Michigan, sentenced to 63 months in federal prison.
• Jack Michael Ribich, age 33, of Ironwood, sentenced to 97 months in federal prison.
• Rebecca Jean Suzik, age 39, of Ironwood, sentenced to 24 months in federal prison.
U.S. Attorney Patrick A. Miles, Jr. said "This dismantling of a destructive drug trafficking operation and the significant convictions and sentences are a credit to the joint law enforcement operation undertaken by GIANT and the DEA. Richard Hill and his coconspirators preyed on the citizens of the U.P. Methamphetamine is highly addictive, and drug addiction not only ravages the addict but tears at the fabric of families and communities. Trips to Las Vegas and a catchy nickname sound glamorous, but Richard Hill’s next destination is far from glamorous and he will now have to answer to the number the Bureau of Prisons assigns to him."
DEA Special Agent in Charge Joseph P. Reagan, who is responsible for DEA operations in all of Michigan, Ohio and Kentucky, said "Methamphetamine is a major threat to communities across the nation, and northern Michigan is no exception. Meth use and addiction is a threat to every community, and the dismantling of this drug distribution conspiracy is a victory for the safety and well-being of the people of the Upper Peninsula and northern Wisconsin. This investigation was successful thanks to solid police work and strong cooperation between local, state, and federal law enforcement."
Chris Colassaco, the current head of GIANT, and a Sergeant with the Hurley Police Department noted that addiction is a problem that affects all cities, towns, villages and townships. "Addiction is a community problem. Addiction not only destroys homes, breaks up families, and ruins lives; it also lowers property values, increases crime rates, and makes communities less desirable places to raise families. The battle to control addiction requires involvement from federal, state, and local government, community leaders, and residents. We encourage residents to get involved and help save your communities from the perils of addiction. Contact your local law enforcement agency with any information no matter how insignificant you feel it may be; it could be the information that makes a difference. With that being said, we would like to thank the residents of Gogebic County and also Iron County, Wisconsin, for their assistance in this case. We would also like to thank all law enforcement, including the officers assigned to the GIANT team, for their dedication and extraordinary effort in the battle against addiction."
END
Washington Man Charged with Sending Death ThreatsRead the Press Release
SACRAMENTO, Calif. — A federal grand jury returned a one-count indictment today against Scott Anthony Orton, 57, of Puyallup, Washington, charging him with transmitting interstate threats, United States Attorney Benjamin B. Wagner announced.
According to court documents, Orton posted several threatening statements on a popular news website in which he expressed his intent to travel to Placerville, California to kill the target of the threats who was an officer of StemExpress.
According to the indictment, on July 16, 2015, among other threats, Orton wrote, “The management of StemExpress should be taken by force and killed in the streets today. Kill StemExpress employees. I'll pay you for it.”
“Terrorizing others through threats of violence, whether communicated in person or through media websites, is cruel, dangerous and disruptive, and is also a federal crime,” said U.S. Attorney Wagner. “Those who seek to terrorize others online should not assume that they will be protected by the anonymity of the Internet. We will identify and prosecute them.”
“The FBI will identify and investigate threats and those who solicit violence on the Internet,” said Special Agent in Charge Monica M. Miller of the Federal Bureau of Investigation’s Sacramento field office. “While we all have a right to state our opinions, anonymously terrorizing others with threats of significant harm will not be tolerated.”
This case is the product of an investigation by the Federal Bureau of Investigation. Assistant United States Attorney Brian A. Fogerty is prosecuting the case.
Orton is scheduled to be arraigned before United States Magistrate Judge Kendall J. Newman on December 29, 2015, at 2:00 p.m.
If convicted, Orton faces a maximum statutory penalty of 5 years in prison and a $250,000 fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Virginia Beach Man Sentenced to 126 Months for Drug CrimesRead the Press Release
NORFOLK, Va. – Alonzo Diangelo Bell, 32, of Virginia Beach, was sentenced today to 126 months in prison for manufacturing marijuana and maintaining drug-involved premises.
Bell pleaded guilty on Sept. 17, 2015. According to court documents, in February of 2015, Virginia Beach Police conducted surveillance of a storage facility located at the corner of Maxey Drive and Virginia Beach Boulevard after an officer who had been patrolling the area detected a strong odor of marijuana. Bell who had been observed exiting one of the units of the storage facility was stopped for speeding. During the stop, officers detected the odor of marijuana and searched Bell’s vehicle, but no contraband was found. Later, when the police contacted the manager of the storage facility to inquire about Bell, they were informed that several complaints had been made about the smell of marijuana coming from the units that Bell was renting. The manager consented to a search of units adjacent to the units Bell was renting. When police determined that the marijuana odor was coming from the two storage units being rented by Bell, search warrants were executed. In one unit, the police found approximately 1883 grams of marijuana. In the second unit, police discovered a marijuana grow operation consisting of approximately 30 mature plants, a carbon dioxide generator and grow lights. The total weight of the marijuana seized was approximately 4.665 kilograms. Latent fingerprints belonging to Bell were found on various items in both units.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; and Clark E. Settles, Special Agent in Charge of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations Washington, D.C. Field Office, made the announcement after sentencing by U.S. District Judge Raymond A. Jackson. Assistant U.S. Attorney Darryl Mitchell 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-99.
Upstate New York Man Sentenced for Providing Material Support to TerroristsRead the Press Release
ALBANY, NEW YORK - Eric J. Feight, 55, of Hudson, New York, was sentenced yesterday to serve 97 months in prison followed by a term of 3 years of supervised release, announced United States Attorney Richard S. Hartunian of the Northern District of New York, Assistant Attorney General for National Security John P. Carlin, and Special Agent in Charge Andrew W. Vale of the FBI’s Albany, New York Division. The sentence imposed today follows Feight’s January 22, 2014 plea of guilty to Providing Material Support to Terrorists, in violation of Title 18, United States Code, Section 2339A(a), during which he admitted to helping Glendon Scott Crawford modify an industrial-grade radiation device intended to be used to kill Muslims in the Albany, New York area. Feight admitted he had assisted Crawford by designing and building a remote initiation unit to allow the radiation device to be activated from a distance1. Both men were arrested following an extensive federal investigation. Crawford, a self-proclaimed Ku Klux Klan ("KKK") member, sought financial support for his plot from the KKK, and he and Feight later met with individuals they believed to be KKK financiers to advance their scheme to kill innocent human targets. Those individuals were FBI Agents posing as businessmen connected to the KKK who were willing to support the scheme.
United States Attorney Richard S. Hartunian said: "This sentence highlights both the dangers we face when hatred and bigotry beget domestic terrorism and violent extremism, and our commitment to holding those who commit such crimes accountable. No American – of any background – should have to live in fear of this kind of attack. This case illustrates the importance of vigilance by community members and an immediate, comprehensive investigation by our Albany FBI Joint Terrorism Task Force, which thwarted the diabolical plan Feight supported. We must continue to counter messages of hate by empowering communities and emphasizing the inclusion on which our nation was founded – with local, state, and federal law enforcement ready to stop any who refuse to heed that call."
"Eric Feight aided Glendon Scott Crawford in altering a dispersal device to target unsuspecting Muslim Americans with lethal doses of radiation," said Assistant Attorney General Carlin. "Feight and Crawford’s abominable plot to harm innocent Americans was thwarted thanks to the tireless efforts of law enforcement. The National Security Division’s highest priority continues
to be combatting terrorism, and we remain ready to identify, disrupt and prevent terrorist threats, both domestically and internationally," said Assistant Attorney General Carlin.
"This sentencing is the result of the incredible efforts of our Joint Terrorism Task Force and the U.S. Attorney’s Office," said Special Agent in Charge Andrew W. Vale. "While we enjoy today’s success, it is important that we continue to gain the strongest possible understanding to allow us to better assess the terrorism threat and identify those who would go beyond hateful rhetoric and extremist views to commit violent, criminal acts."
This case resulted from a long term investigation conducted by the Albany FBI Joint Terrorism Task Force, which includes the Department of Homeland Security, New York State Police, Albany Police Department, Troy Police Department, and New York City Police Department. The United States Attorney’s Office also appreciates the assistance of the Criminal Division and National Security Division of the United States Department of Justice. The case is being prosecuted by Assistant United States Attorneys Stephen C. Green and Richard Belliss, and Counterterrorism Section Trial Attorney Joseph Kaster.
1 Glendon Scott Crawford was convicted after trial in federal court on August 21, 2015 of Conspiracy to Use a Weapon of Mass Destruction and two additional terrorism offenses. Crawford is scheduled to be sentenced on March 16, 2016 in Albany, New York and faces a maximum sentence of life imprisonment.
Questions or inquiries may be directed to Assistant United States Attorney Richard R. Southwick at 315-448-0672.
United States Forfeits $40 Million Through Court-Ordered Sale of Montauk ResortRead the Press Release
Yesterday, United States Judge Arthur D. Spatt of the Eastern District of New York entered a decree ordering the forfeiture of approximately $40 million in net proceeds from the sale of a Montauk beachfront property. The sale of approximately 9,606 shares of 93 Old Montauk Owners, Inc., the sole owner of the Panoramic View Resort & Residences, a 117-unit resort and residence development in Montauk, New York, closed on December 7, 2015. The shares were sold to Panoramic Partners LLC, an affiliate of BLDG Management Co., Inc., for $63.9 million.
Distinctive Ventures, LLC had purchased the Panoramic View in 2007 using proceeds of a $96 million Ponzi scheme orchestrated by former investment fund manager Brian R. Callahan. Distinctive Ventures is wholly owned by Distinctive Investments, which in turn is owned by Callahan’s brother in-law, Adam Manson. After Callahan fraudulently diverted money from investment funds he managed to the Panoramic View, Manson helped Callahan hide the fraud from the funds’ independent auditors.
In April 2012, the United States filed a civil forfeiture action against Distinctive Venture’s shares in the Panoramic View and other assets traceable to Callahan and Manson’s fraud. Judge Spatt directed the sale of the Panoramic View shares to preserve their potential value for the government and, in turn, for the victims of the fraud.
The sale of the Panoramic View and forfeiture of the net proceeds were announced by Robert L. Capers, United States Attorney for the Eastern District of New York, Diego Rodriguez, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office, and Shantelle P. Kitchen, Special Agent-in Charge, Internal Revenue Service, New York Field Office.
“Brian Callahan, assisted by Adam Manson, orchestrated one of the largest Ponzi schemes in Long Island history. Today we announce the liquidation of the proceeds of that scheme,” stated United States Attorney Capers. “This unprecedented sale exemplifies the importance of using civil forfeiture to ensure that assets will be available to repay fraud victims. Due to the hard work of prosecutors in this Office, assisted by the investigating agencies and the U.S. Marshals Service, we were able to maximize the pool of funds potentially available for distribution to victims of this fraud.” Mr. Capers thanked the Securities and Exchange Commission and the British Virgin Islands Financial Investigation Agency for their cooperation and assistance in the investigation and prosecution of this case.
“Instead of investing victim funds as intended, Callahan and Manson entered into a quid-pro-quo arrangement that served to advance each other’s interests. We have a responsibility to uphold the public’s confidence in the integrity of our financial markets. Today’s court order brings us one step closer to restoring assets to the victims of this fraud,” said FBI Assistant Director-in-Charge Rodriguez.
“Victims of Ponzi schemes are seldom made whole, both emotionally and financially,” said IRS Special Agent-in-Charge Kitchen. “It is our hope, however, that the proceeds from this forfeiture bring some financial relief to the victims, along with a measure of closure.”
In January 2007, Distinctive Ventures purchased the Panoramic View for $38 million. To acquire the resort, Callahan diverted more than $12.1 million from investment funds he operated to Distinctive Investments. In addition, Distinctive obtained a $35 million acquisition loan and $10 million construction loan from a commercial lender secured by Distinctive’s shares and proprietary leases on unsold units (together, “Loan #1”). From May 2008 through November 2011, Callahan diverted at least $17 million of investors’ money to make payments on Loan #1.
In March 2011, Callahan and his wife acquired shares from Distinctive Ventures in connection with entering into a proprietary lease for a newly renovated Panoramic View unit (the “Callahan Shares”). To complete the purchase, Callahan used approximately $450,000 of investors’ money as a downpayment on the Callahan Shares and obtained a $2.3 million mortgage from a second lender (“Loan #2”).
On April 17, 2012, the United States filed a civil forfeiture action against Distinctive Venture’s shares and the Callahan Shares and other assets traceable to Callahan and Manson’s fraud, ensuring that these assets would be available for forfeiture. In July 2012, however, Distinctive Ventures defaulted on Loan #1 and began accruing interest in the amount of over $2.2 million annually. On February 22, 2014, Judge Spatt granted the government’s motion to sell Distinctive’s shares, ruling that a sale on commercially reasonable terms was necessary and appropriate to preserve the value of the Panoramic View. On March 27, 2014, Judge Spatt accepted the government’s proposal to maximize the sale price of Distinctive’s shares through a bidding process. Pursuant to the government’s proposal, a bid package and contract of sale was distributed to interested parties. The final bid deadline was August 12, 2015. After review of the bids received, Panoramic Partners, LLC was selected as the winning bid.
Callahan and Manson, who were charged in July 2013 with securities fraud and wire fraud offenses, consented to the forfeiture of the Panoramic View as part of their guilty pleas in April and May 2014, respectively. Pursuant to his plea, Callahan conveyed the Callahan Shares back to Distinctive Ventures so they could be included in the interlocutory sale.
The sale of Distinctive’s shares to Panoramic Partners, LLC closed on Monday, December 7, 2015. At the closing, the lenders for Loan #1 and Loan #2 were paid pursuant to the terms of a court-ordered stipulation. Pursuant to the decree of forfeiture issued by Judge Spatt today, the net proceeds of the sale, or approximately $40.3 million, were forfeited to the government, ensuring their availability to repay victims of Callahan and Manson’s fraud through the Department of Justice’s remission procedures.
This prosecution was the result of efforts by President Obama's Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated, and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. Attorneys’ Offices, and state and local partners, it’s the broadest coalition of law enforcement, investigatory, and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state, and local authorities; addressing discrimination in the lending and financial markets, and conducting outreach to the public, victims, financial institutions, and other organizations. Since fiscal year 2009, the Justice Department has filed over 18,000 financial fraud cases against more than 25,000 defendants. For more information on the task force, visit http://www.StopFraud.gov.
The government’s case is being prosecuted by Assistant United States Attorneys Brian D. Morris, Karin K. Orenstein, Christopher C. Caffarone, and Winston M. Paes.
The Defendants:
BRIAN R. CALLAHAN
Age: 45
Old Westbury, New YorkADAM J. MANSON
Age: 43
Old Westbury, New YorkE.D.N.Y. Docket Nos: 12-CV-1880 (ADS) and 13-CR-453(ADS)
U.S. Attorney’s Office indicts 12 for Acadiana methamphetamine distribution conspiracyRead the Press Release
LAFAYETTE, La. – United States Attorney Stephanie A. Finley announced that 12 people were indicted Wednesday in a methamphetamine distribution conspiracy in Lafayette and the surrounding areas.
Those named in the 15-count indictment are:
Jeremy David Hamlett, 37, of Arnaudville, La.
Lovlace L. Comeaux II, 53, of Lafayette
Kevin Comeaux, 54, of Milton, La.
Darrell James Serrette II, 33, of Breaux Bridge, La.
Jared J. Dupuis, 38, of Breaux Bridge
Jade Dupuis, 37, of Arnaudville
Elton Scroggins, 34, of Breaux Bridge
John S. Stutes, 44, of Breaux Bridge
Ronnie J. Touchet, 34, of Breaux Bridge
Travis Joseph Thibodeaux, 34, of Breaux Bridge
Matthew James Hebert, 42, of New Iberia, La.
Tucker Huval, 34, of Breaux Bridge
According to the indictment, the defendants conspired to distribute and possess with intent to distribute methamphetamine in Lafayette and the surrounding areas from April 2015 until Wednesday. All defendants have been arrested. In addition to the conspiracy count, there were three counts of distribution of methamphetamine (Counts 2 to 4) and 11 counts of use of a communication facility in causing or facilitating a drug trafficking crime (Counts 5 to 15).
The defendants face various possible penalties depending on the drug quantity involved, their role in the conspiracy and their drug history. On the conspiracy and distribution counts, some defendants face up to life in prison, and others face up to 20 years or 40 years in prison. The defendants also face up to 10 years of supervised release. The penalties for use of a communication facility in causing or facilitating drug trafficking are up to eight years in prison and up to three years of supervised release for each count. Additionally, the defendants face fines up to $20 million and forfeiture of property seized in the case.
Counts 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 Hamlett X X X X X X X X X X X X Lovelace Comeaux X X Kevin Comeaux X X X Darrell Serrette X X Jared Dupuis X X Jade Dupuis X X Scroggins X X Stutes X X Touchet X X Thibodeaux X X Herbert X X Huval X XThe DEA (Lafayette Task Force), Louisiana State Police and Lafayette Metro Narcotics (LMN) participated in the investigation, and the ATF, FBI, DEA Task Force, St. Martin Parish Sherriff’s Office and LMN assisted in the apprehension of the individuals named in the indictment. Assistant U.S. Attorneys Myers P. Namie and Daniel J. McCoy are prosecuting the case.
An indictment is merely an accusation and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
U.S. Attorney Wagner Announces Selection of Sacramento for Phase II Anti Trafficking Coordination Team (ACTeam)Read the Press Release
SACRAMENTO, Calif. — Today, United States Attorney Benjamin B. Wagner announced the selection of Sacramento in the Eastern District of California as one of only six locations from across the United States designated to form new federal task forces as part of 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.
U.S. Attorney Wagner’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 earlier today designating the following cities as Phase II ACTeam sites: Cleveland, Ohio; Minneapolis, Minnesota; Newark, New Jersey; Portland, Maine; Portland, Oregon; and Sacramento, California. Sacramento was selected based on the commitment to identifying, investigating and prosecuting forced labor, international sex trafficking, and adult sex trafficking; the prevalence or suspected prevalence of these types of trafficking in the Sacramento area; and levels of cooperation among various law enforcement agencies and the US Attorney’s Office to combat human trafficking.
U.S. Attorney Wagner stated: “Consistent with the direction provided by the Attorney General, the investigation and prosecution of all forms of human trafficking is a top priority for our office. We are proud of our outstanding record of prosecuting various child exploitation offenses, and we are committed to continuing and enhancing our critical work in the identification and prosecution of offenses related to forced labor, international sex trafficking, and adult sex trafficking. I am pleased by our selection as an ACTeam location, which reflects the hard work we’ve already done in this area and will assist us in doing even more.”
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. Over the next two years, teams are expected to develop high-impact federal investigations and prosecutions, dismantle human-trafficking networks, vindicate the rights of human-trafficking victims and bring traffickers to justice. The new EDCA team will consist of personnel from Federal Bureau of Investigation, the U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), and the U.S. Department of Labor.
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 percent, compared to 35 percent 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.
The locations for Phase II were selected by unanimous consensus of the Federal Enforcement Working Group after a rigorous, competitive and nationwide selection process. The group includes subject matter experts from the Department of Justice (including the Civil Rights Division’s Human Trafficking Prosecution Unit, the Executive Office of U.S. Attorneys and the FBI’s Civil Rights Unit); the Department of Homeland Security (including ICE and Homeland Security Investigations’ Human Smuggling and Trafficking Unit); and the Department of Labor (including the Office of the Inspector General and the Wage and Hour Division).
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 Department of Justice.
The Eastern District of California has an accomplished history of prosecuting cases involving the sex trafficking of minors. Recent developments in such cases include: On December 14, 2015, Tyrell Richmond, 33, of Visalia, pleaded guilty to sex trafficking of a minor. On September 10, 2015, a federal grand jury in Sacramento charged Jeremy Ray Warren, 22, of Vallejo, and Alyssa Tegan Brulez, 22, of Vacaville, with sex trafficking of children, and brought a separate indictment charging Jarrail Lamont Smith, 23, of Cleveland, Ohio, with transportation of minors with intent to engage in prostitution. On August 24, 2015, Javier Solis, 30, of Fresno, was sentenced to 11 years and nine months in prison for sex trafficking of a minor. On August 18, 2015, Michael Anthony Andrade, 35, of Fresno, was sentenced to 12 years and seven months in prison for sex trafficking of a minor.
Two Sentenced in Heroin ConspiracyRead the Press Release
U.S. Attorney Kenneth A. Polite announced that PAUL LEE, age 36, and GARRY GENTRY, age 31, both of New Orleans, were sentenced today for conspiring to distribute one kilogram or more of heroin.
U.S. District Judge Carl J. Barbier sentenced LEE to a term of imprisonment of 168 months and GENTRY to a term of 140 months. Each defendant was also sentenced to a 5-year term of supervised release following imprisonment and a special assessment of one hundred dollars.
According to court documents, a series of court-authorized wiretaps on the cell phones of New Orleans area heroin dealers led Drug Enforcement Administration agents to identify co-defendant Fredrick Douglas Brooks III as a Houston-based heroin trafficker who was distributing kilogram quantities of heroin in the New Orleans area through drug and bulk cash couriers. LEE and GENTRY were two of the drug dealers who purchased wholesale quantities of heroin from Brooks’s network for distribution in New Orleans.
U.S. Attorney Polite praised the work of the Drug Enforcement Administration in investigating this matter. Assistant United States Attorney Michael B. Redmann was in charge of the prosecution.
Two Cuban Nationals Indicted for Possession Stolen Account Numbers and Identity TheftRead the Press Release
A federal grand jury in East St. Louis, IL, returned an indictment charging Eriberto Ricardo Gomez, 41, and Yasmanis L. Oduardo Fonseco, 26, with possession of fifteen or more stolen account numbers and aggravated identity theft, the Acting United States Attorney for the Southern District of Illinois, James L. Porter, announced today. Gomez and Gonseco, who are both originally from the country of Cuba, are currently residing in Houston, Texas.
The stolen account numbers were discovered by an officer of the Caseyville, Illinois, Police Department on October 8, 2015, during a traffic stop on I-70 in Madison County. At that time, Gomez and Gonseco had in their possession 19 prepaid credit cards. The magnetic strips of these prepaid credit cards had been re-encoded with account numbers registered to customers of a financial institution in the state of Pennsylvania,
The charge of possession of 15 or more stolen account numbers is punishable by up to 10 years in prison, a $250,000 fine, and three years of supervised release. The aggravated identity theft charge carries a mandatory sentence of 2 years in prison, which must be served consecutively with any prison sentence imposed for the stolen account number charge.
The investigation is being conducted by the Fairview Heights, Illinois, Office of the Federal Bureau of Investigation ("FBI"). The Caseyville and Pontoon Beach Police Departments are assisting in the investigation. The case is being prosecuted by Assistant United States Attorneys Scott A. Verseman.
An indictment is a formal charge against a defendant. Under the law, that charge is merely an accusation and the defendant is presumed innocent unless proven guilty.
Three Previously Convicted Felons Charged with Illegal Re-EntryRead the Press Release
HARRISBURG - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Luis Martinez-Gomez, age 29, Alexis Alvarado-Diaz, age 20, and Santos Aguilar-De Leon, age 30, natives and citizens of Mexico, were indicted separately yesterday by a federal grand jury in Harrisburg on illegal re-entry charges.
According to United States Attorney Peter Smith, Martinez-Gomez is charged with illegal re-entry into the United States by a previously deported alien. Martinez-Gomez was previously convicted of the same felony offense in New York – illegal re-entry by a deported alien – and removed from the United States in 2014. That conviction and removal followed another removal in 2008.
Alvarado-Diaz is charged with illegal re-entry into the United States by a previously deported alien. He was previously convicted of the same felony offense in New Mexico – illegal re-entry by a deported alien – and removed from the United States in 2014.
Both cases were investigated by the U.S. Immigration and Customs Enforcement (ICE) Enforcement and Removal Operations (ERO) and prosecution has been assigned to Assistant U.S. Attorney James T. Clancy.
Aguilar-De Leon is charged with illegal re-entry into the United States by a previously deported alien. He was deported on three previous occasions. Aguilar-De Leon was deported from Harrisburg in 2010, from Tucson Arizona in 2010, and again from Harrisburg in 2014. He was also previously convicted of improperly entering the United States in 2010 and again for re-entering the United States after having been previously deported in 2014.
The matter was investigated by the U.S. Immigration and Customs Enforcement and Removal Operations (ERO) and the case is being prosecuted by Assistant U.S. Attorney Scott R. Ford.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law is 10 years of imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Three Men Indicted in Case Involving Distribution of Heroin Resulting in Death and Maintaining A Drug EstablishmentRead the Press Release
HARRISBURG – The United States Attorney’s Office for the Middle District of Pennsylvania announced today that a federal grand jury in Harrisburg has indicted three men, two for distributing heroin and crack cocaine in York that led to the death of a York City man and a third man for operating and maintaining a home in York for purposes of facilitating drug trafficking.
According to United States Attorney Peter Smith, Dameon Lattimore, age 39, of Harrisburg, York and New York, Yushonda Durant, age 40, of York and New York, and Frederick Gladfelter, age 46, of York, were charged in an indictment by a federal grand jury in Harrisburg in November 2015.
Lattimore and Durant were charged with distributing heroin and crack cocaine and conspiracy, they were also charged with the unlawful distribution of heroin and crack cocaine on January 21, 2015 that allegedly caused the death of an individual. Gladfelter was charged separately for allowing his home on Harding Court, York to be used by Lattimore and Durant for unlawful use and distribution of controlled substances.
The indictment remained under seal until yesterday to allow investigators to locate and arrest the defendants. Lattimore was arrested on December 15 in New York City by the United States Marshals. Gladfelter was arrested by the United States Marshals on December 16th in York. Durant remains a fugitive.
The investigation was conducted by the Drug Enforcement Administration, the York City Police Department and the York County District Attorney’s Office and is assigned to Assistant U.S. Attorney William A. Behe.
Indictments are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law is life imprisonment on the drug charges. The charge of causing death from drug distribution carries a mandatory minimum 20 year term of imprisonment. The maximum penalty on the charge of maintaining and operating a drug distribution premises is 20 years, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Three Conspirators in Baltimore Heroin Distribution Organization Sentenced to PrisonRead the Press Release
Baltimore, Maryland – U.S. District Judge William D. Quarles, Jr. sentenced Brian Nettles, age 24, of Baltimore, today to 78 months in prison, followed by three years of supervised release, for conspiracy to distribute and possess with the intent to distribute heroin.
On December 15 and 16, 2015, Judge Quarles sentenced Bruce Jeffries, age 37, of Baltimore was sentenced to seven years in prison, followed by five years of supervised release, and Kevin Gray, age 32, also of Baltimore, was sentenced to 77 months in prison, followed by three years of supervised release, for the same charge.
The sentences were announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge William P. McMullan of the Bureau of Alcohol, Tobacco, Firearms and Explosives - Baltimore Field Division; Commissioner Kevin Davis of the Baltimore Police Department; and Baltimore City State’s Attorney Marilyn J. Mosby.
According to their plea agreements, Jeffries, Nettles and Gray conspired with others to distribute heroin in Baltimore. Nettles joined the conspiracy in June 2014, Jeffries joined in August 2014, Gray joined in October 2014. During the conspiracy, Jeffries met with a co-conspirator to provide heroin for distribution by members of the conspiracy. Between September and November of 2014, law enforcement intercepted communications on the cellular phones of Jeffries and other conspirators. During this time Nettles, Gray, Jeffries and others were heard discussing the distribution and payment for various amounts of heroin. Jeffries was also intercepted giving members of the conspiracy instructions regarding the distribution of narcotics. On November 14, 2014, law enforcement executed a search warrant at a “stash” house used by members of the conspiracy. During the search, law enforcement recovered 400 gel capsules of heroin from inside the stash house, along with another 100 gel capsules of heroin from a co-conspirator. This seizure precipitated intercepted phone conversations between Jeffries and other co-conspirators regarding the seizure.
Jeffries and Nettles agree that during their participation in the conspiracy, they were responsible for the distribution of between one and three kilograms of heroin. Gray admits that he was responsible for between 100 and 400 grams of heroin.
Ten other co-conspirators have pleaded guilty to their roles in the heroin distribution conspiracy. Brian Carr, age 26; Walter Timmons, age 27; Darrell Randolph, age 27; Pernell Randolph, age 28; Marvin Germany, age 26; and Vincent Jones, age 52, all of Baltimore, have been sentenced to between 70 and 84 months in prison. The remaining defendants are awaiting sentencing.
United States Attorney Rod J. Rosenstein commended the ATF, Baltimore City Police Department, and the Baltimore City State’s Attorney’s Office for their work in the investigation. Mr. Rosenstein thanked Matthew Hoff, a cross-designated Baltimore City Assistant State’s Attorney, part of the Baltimore initiative to combat violent crime, who is prosecuting the case.
The Departments of Justice and Labor Announce Expansion of Worker Endangerment Initiative to Address Environmental and Worker Safety ViolationsRead the Press Release
Justice Department’s Environment and Natural Resources Division Will Work with the Department of Labor and U.S. Attorneys for Broader Look at Environmental and Workplace Safety Crimes
In an effort to prevent and deter crimes that put the lives and the health of workers at risk, the Departments of Justice and Labor announced today a plan to more effectively prosecute such crimes. Under the new plan, the Justice Department’s Environment and Natural Resources Division and the U.S. Attorneys’ Offices will work with the Department of Labor’s Occupational Safety and Health Administration (OSHA), Mine Safety and Health Administration (MSHA) and Wage and Hour Division (WHD) to investigate and prosecute worker endangerment violations.
“On an average day in America, 13 workers die on the job, thousands are injured and 150 succumb to diseases they obtained from exposure to carcinogens and other toxic and hazardous substances while they worked,” said Deputy Attorney General Sally Quillian Yates. “Given the troubling statistics on workplace deaths and injuries, the Department of Justice is redoubling its efforts to hold accountable those who unlawfully jeopardize workers’ health and safety.”
“Safety and security in the workplace are a shared commitment. Workplace injuries and illnesses cause an enormous amount of physical, financial and emotional hardship for workers and their families and underscore the urgent need for employers to provide a safe workplace for their employees,” said Department of Labor Deputy Secretary Chris Lu. “Today’s announcement demonstrates a renewed commitment by both the Department of Labor and the Department of Justice to utilize criminal prosecution as an enforcement tool to protect the health and safety of workers.”
Starting last year, the Departments of Justice and Labor began meetings to explore a joint effort to increase the frequency and effectiveness of criminal prosecutions of worker endangerment violations. This culminated in a decision to consolidate the authorities to pursue worker safety statutes within the Department of Justice’s Environment and Natural Resource Division’s Environmental Crimes Section. In a memo sent today to all 93 U.S. Attorneys across the country, Deputy Attorney General Yates urged federal prosecutors to work with the Environmental Crimes Section in pursuing worker endangerment violations. The worker safety statutes generally provide for only misdemeanor penalties. However, prosecutors have now been encouraged to consider utilizing Title 18 and environmental offenses, which often occur in conjunction with worker safety crimes, to enhance penalties and increase deterrence. Statutes included in this plan are the Occupational Safety and Health Act (OSH Act), the Migrant and Seasonal Agricultural Worker Protection Act (MSPA) and the Mine Safety and Health Act (MINE Act).
“We have seen that employers who are willing to cut corners on worker safety laws to maximize production and profit, will also turn a blind eye to environmental laws,” said Assistant Attorney General John C. Cruden for the Justice Department’s Environment and Natural Resources Division. “Working with our partners in the Department of Labor and law enforcement, we will remove the profit from these crimes by vigorously prosecuting employers who break safety and environmental laws at the expense of American workers.”
“Every worker has the right to come home safely. While most employers try to do the right thing, we know that strong sanctions are the best tool to ensure that low road employers comply with the law and protect workers lives,” said Assistant Secretary for Occupational Safety and Health Dr. David Michaels. “More frequent and effective prosecution of these crimes will send a strong message to those employers who fail to provide a safe workplace for their employees. We look forward to working with the Environment and Natural Resources Division to enforce these life-saving rules when employers violate workplace safety, workers’ health and environmental regulations.”
In addition to prosecuting environmental crimes, the Environment and Natural Resources Division has also been strengthening its efforts to pursue civil cases that involve worker safety violations under statutes such as the Clean Air Act, Clean Water Act, Resource Conservation and Recovery Act and the Toxic Substances Control Act. Violations of a number of provisions under these statutes can have a direct impact on workers tasked with handling dangerous chemicals and other materials, cleaning up spills and responding to hazardous releases.
For more information, visit: www.justice.gov/enrd/worker-endangerment/
Sullivan County Man Charged in White Plains Federal Court with Distribution of Heroin and Fentanyl Causing the Death of an IndividualRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, Diego Rodriguez, the Assistant Director-in-Charge of the New York Office of the Federal Bureau of Investigation (“FBI”), James R. Farrell, the Sullivan County District Attorney, and Scott Kinne, the Chief of the Village of Liberty Police Department, announced the filing of a Superseding Indictment charging that TERRENCE JOHNSON, 23, of Sullivan County, distributed heroin and fentanyl, and that the use of the fentanyl caused the overdose death of Malcolm Perry, 35, a resident of Liberty, New York. The Superseding Indictment also charges JOHNSON with multiple additional counts of distributing heroin and fentanyl, conspiring to distribute heroin, and conspiring to distribute crack cocaine. JOHNSON was charged in an initial indictment filed in June 2015, and was previously taken into custody. The Superseding Indictment adds, among other things, the charge against JOHNSON for distributing heroin and fentanyl that resulted in Perry’s death. The case is assigned to U.S. District Judge Cathy Seibel.
U.S. Attorney Bharara stated: “As alleged, Terrence Johnson sold fentanyl-laced heroin in Sullivan County on multiple occasions, including the lethal mixture that killed Malcolm Perry. The heroin epidemic is on the rise and too often having deadly consequences. Thanks to the work of federal, state, and local law enforcement and the Sullivan County DA’s Office, one alleged drug dealer, Terrence Johnson, will be held to account for peddling this poison.”
Sullivan County District Attorney James R. Farrell stated: “I am pleased that our partners in law enforcement on the federal level have used the laws at their disposal to hold accountable a purveyor of dangerous drugs that plague the Sullivan County community. Mr. Perry’s untimely death is one of many losses we, as a community, have suffered as a result of the distribution of heroin and fentanyl by those who seek to profit from others’ addictions. This indictment demonstrates the benefit to Sullivan County that results from combining our resources with those of the federal government, and evaluating laws available on the state and federal levels to determine the best method of prosecution for offenders like this. Without this teamwork, this defendant may not have been charged with acts resulting in Mr. Perry’s death, because of the lack of laws on the state level which contemplate such conduct. I am proud of the partnership between my office, our local law enforcement agencies, federal law enforcement agencies, and the United States Attorney’s Office, and I look forward to our continued collaboration. I applaud Mr. Bharara’s decision to move forward on these charges.”
FBI Assistant Director-in-Charge Rodriguez stated: “Those who engage in the distribution of illegal drugs destroy our communities and ruin lives. In this case, Johnson’s actions were directly responsible for the overdose death of another individual. The FBI and our partners will aggressively pursue any person or organization suspected of bringing these toxic substances to our streets.”
Village of Liberty Police Chief Scott Kinne stated: “I will do everything in my power and use every resource at my disposal to eliminate heroin and fentanyl from the streets of the Village of Liberty, the ongoing cooperation between my department, our local law enforcement partners, federal law enforcement agencies, the Sullivan County District Attorney’s Office and the United States Attorney’s Office should send a clear message to those who continue to threaten the public safety by distributing dangerous drugs: We will stay the course in our endeavor to detect, investigate and apprehend you and bring you to justice.”
According to the allegations in the Superseding Indictment and other information in the public record,[1] on multiple occasions between May 28, 2015, and June 6, 2015, JOHNSON sold heroin mixed with fentanyl in Sullivan County. Fentanyl is a synthetic opioid that is significantly stronger than both ordinary heroin and morphine. One of those sales occurred on or about June 1, 2015. The fentanyl in the drugs sold by Johnson on June 1 caused the death of Malcolm Perry. If convicted of the offense of distributing controlled substances that resulted in death, as charged in Count Four of the Superseding Indictment, JOHNSON faces a mandatory minimum sentence of 20 years in prison, and a maximum sentence of life in prison.
The nine-count Superseding Indictment also charges JOHNSON with multiple counts of distribution and possession with intent to distribute controlled substances, in violation of Title 21, United States Code, Sections 812, 841(a)(1), and 841(b)(1)(C) (Counts One through Three and Counts Five through Seven); conspiring to distribute 100 grams or more of heroin, in violation of Title 21, United States Code, Sections 846 (Count Eight); and conspiring to distribute 280 grams or more of crack cocaine, in violation of Title 21, United States Code, Section 846 (Count Nine).
A chart containing the charges and maximum penalties for each of the counts is set forth below. The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
* * *
Mr. Bharara praised the outstanding investigative work of the FBI, the Village of Liberty Police Department, the New York State Police, the Sullivan County Sheriff’s Department, and the Village of Monticello Police Department. Mr. Bharara also thanked the Sullivan County District Attorney’s Office for its assistance in the case.
The prosecution is being handled by the Office’s White Plains Division. Assistant U.S. Attorneys Anden Chow and Michael Gerber are in charge of the prosecution.
The charges contained in the Superseding Indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
CHARGE
MAXIMUM PENALTY
Counts One, Two, Three, Five, Six, and Seven
Distribution and Possession with Intent to Distribute controlled substances, in violation of Title 21, United States Code, Sections 812, 841(a)(1), and 841(b)(1)(C)
20 years in prison for each count
Count Four
Distribution of controlled substances resulting in death, in violation of Title 21, United States Code, Sections 812, 841(a)(1), and 841(b)(1)(C)
Life in prison
Mandatory minimum: 20 years in prison
Count Eight
Conspiracy to distribute and possess with intent to distribute 100 grams or more of heroin, in violation of Title 21, United States Code, Section 846
40 years in prison
Mandatory minimum: Five years in prison
[1] As the introductory phrase signifies, the entirety of the text of the Superseding Indictment and the description of the Superseding Indictment set forth herein constitute only allegations, and every fact described should be treated as an allegation.
Stamford Man Charged with Orchestrating Murder for Hire SchemeRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, and Daniel J. Kumor, Special Agent in Charge of the ATF Boston Field Division, today announced that a federal grand jury in Bridgeport returned an indictment today charging LARRY TALLEDO-TORREJON, 29, a citizen of Peru last residing in Stamford, with orchestrating a murder for hire scheme.
According to allegations contained in the indictment and a previously-filed criminal complaint, in early December 2015, TALLEDO-TORREJON, as part of a contract to purchase a restaurant in Stamford for $300,000, provided the seller of the restaurant with $150,000 in cashier checks and an additional $150,000 in checks drawn on bank accounts with insufficient funds. On December 5, TALLEDO-TORREJON directed an individual who owed him $5,000 to follow the manager of the restaurant (“G.R.”) to his home in New York and to murder him. In exchange for doing so, TALLEDO-TORREJON agreed to forgive the $5,000 debt and to pay the individual an additional $5,000 in cash. The individual subsequently contacted law enforcement, and also contacted TALLEDO-TORREJON to let him know that he had kidnapped G.R. and was holding him.
It is further alleged that on December 7, 2015, TALLEDO-TORREJON provided the individual with a manila folder containing two copies of a receipt that falsely stated that TALLEDO-TORREJON had provided G.R. with $150,000. TALLEDO-TORREJON directed the individual to provide the receipts to G.R., coerce G.R. into signing them, and then kill him. TALLEDO-TORREJON told the individual that his pre-existing debt had been cancelled, and also suggested that they could start a business kidnapping and extorting money from persons.
It is also alleged that on December 8, TALLEDO-TORREJON made a complaint with the Stamford Police Department falsely claiming that G.R. had stolen $150,000 that TALLEDO-TORREJON had provided G.R. to complete the purchase of the restaurant.
TALLEDO-TORREJON was arrested on December 8 after the individual provided him with the receipts signed by G.R., and TALLEDO-TORREJON provided the individual with $500 in partial payment for the murder.
TALLEDO-TORREJON has been detained since his arrest.
The charge of murder for hire carries a maximum term of imprisonment of 10 years.
U.S. Attorney Daly stressed that an indictment 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 Bureau of Alcohol, Tobacco, Firearms and Explosives and is being prosecuted by Assistant U.S. Attorney Rahul Kale.
Southern Texas Man Pleads Guilty to Drug ConspiracyRead the Press Release
Arnoldo Garza, a resident of the McAllen, Texas, area, pled guilty in federal district court this afternoon to conspiracy to distribute and possess with intent to distribute 500 grams or more of a mixture or substance containing a detectable amount of methamphetamine, the Acting United States Attorney for the Southern District of Illinois, James L. Porter, announced today. Garza was detained pending sentencing, which is scheduled for April 3, 2016, at 2:30 P.M. before the Honorable Nancy J. Rosenstengel, United States District Judge. Garza faces a mandatory minimum sentence of ten years imprisonment up to life imprisonment followed by a minimum of five years on supervised release. Garza also faces a fine of up to $10,000,000 and a special assessment fee of $100.
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. Agencies participating in this case include the Drug Enforcement Administration and the Internal Revenue Service, Criminal Investigations. This case was prosecuted by Assistant United States Attorney Monica A. Stump.
Six Defendants Plead Guilty to $100 Million Software Piracy SchemeRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that a Seattle, Wash., man has become the sixth defendant convicted in federal court for his role in one of the largest software piracy schemes ever prosecuted by the U.S. Department of Justice.
“An investigation that began in Kansas City, Mo., uncovered one of the largest software piracy schemes ever prosecuted by the U.S. Department of Justice, with tentacles reaching into cities across the United States and overseas,” Dickinson said. “Investigators seized more than $20 million in assets from conspirators who are estimated to have sold in excess of $100 million worth of illicit, unauthorized and counterfeit software products to thousands of online customers.
“Software piracy is a significant economic crime that victimizes not only software developers and manufacturers, but unwitting consumers,” Dickinson said. “Today’s announcement is part of an ongoing investigation. We can’t provide additional information about the investigation at this time, but we expect that more offenders soon will be brought to justice.”
“Pirating software, particularly on this massive scale, damages the American economy, hurts private businesses and harms the unsuspecting buyer,” said acting Special Agent in Charge James Gibbons of HSI Chicago. “These plea agreements mark a historic day for our HSI special agents, and our law enforcement partners, in the fight to stop the theft of intellectual property.”
Rex Yang, 37, of Seattle, waived his right to a grand jury and pleaded guilty before U.S. Chief District Judge Greg Kays on Wednesday, Dec. 16, 2015, to a federal information that charges him with participating in a criminal conspiracy from Jan. 1, 2009, to Dec. 10, 2014.
Yang, who owned and operated Digisoft, LLC., and Premiere Software, Inc., is the sixth and final defendant to plead guilty – in separate, but related, cases – in this stage of an ongoing criminal investigation that originated with a Kansas City, Mo., company. Many of these defendants, and their related entities, had been sued civilly for willful trademark and copyright infringement by Microsoft and other software developers.
The multi-million dollar scheme, with co-conspirators operating overseas in the People’s Republic of China, Singapore and Germany and across the United States, illegally sold millions of dollars of Microsoft Corporation and Adobe Systems, Inc., software product key codes through a charitable organization and several online businesses. (Product key codes are used to obtain full access to unlocked, licensed versions of various copyrighted software programs.) Over 170,000 product activation key codes were distributed by conspirators, and many of these key codes were used and activated numerous times each.
Investigators seized more than $20.6 million in assets, including $10,188,777 seized from bank and investment accounts, 10 luxury automobiles and 27 parcels of real estate with a total market valuation of $9,739,399, through federal forfeitures. Affidavits filed in those forfeiture complaints estimate that conspirators reaped about $30 million in profits from customers who paid more than $100 million for the software.
In the course of this investigation, search warrants have been executed at 13 separate residential and business locations in five different states.
Kansas City, Mo.: USA v. Ross
Casey Lee Ross, 29, of Kansas City, Mo., pleaded guilty on June 11, 2015, to his role in the conspiracy. The investigation began when federal agents in Kansas City, Mo., learned in 2013 that Ross, the owner of Software Slashers, had purchased (and redistributed) tens of thousands of illegitimate and unauthorized Microsoft product key codes and counterfeit product key cards from sources in China.
Ross admitted that he purchased approximately 30,159 product key codes and counterfeit product key cards. Ross purchased these product key codes at prices well below that of the estimated retail price. In many cases, they were distributed on counterfeit card stock intended to make it appear as if they were genuine Microsoft products.
Ross distributed large quantities of these product key codes and counterfeit Microsoft product key cards to co-conspirators in the United States, who in turn sold the product key codes and counterfeit product key cards through their respective Web sites as well as on e-commerce sites such as eBay or Amazon. Ross admitted that he received $1,387,595 from Rex Yang, Jr. of Seattle, Wash.; $1,127,190 from Matthew Lockwood, 38, of Denver, Colo.; $875,630 from Reza Davachi, 41, of Damascus, Md.; and payment for approximately 2,569 unauthorized product key codes from Arunachalam Annamalai, 48, a citizen of India residing in Las Vegas, Nev.
Seattle, Wash.: USA v. Yang
Yang admitted that he possessed approximately 10,205 Microsoft certificates of authenticity. In addition to his purchase from Ross, Yang paid $402,929 to Davachi to acquire various software and software components. Yang also admitted that he sold various software items to Lockwood for $1,574,054.
Denver, Colo.: USA v. Lockwood
Lockwood pleaded guilty on June 11, 2015, to his role in the conspiracy. In addition to his purchases from Ross and Yang, Lockwood (doing business as Discount Mountain, Inc.) paid Davachi $1,243,570 for counterfeit, illicit, and/or unauthorized software and software components.
Lockwood admitted that he obtained approximately 6,165 certificates of authenticity, 4,996 “Lenovo” product key cards and approximately 11,000 unauthorized product key codes.
Baltimore, Md.: USA v. Davachi
Davachi pleaded guilty on Oct. 20, 2015, to his role in the conspiracy. Davachi admitted that, in addition to his purchases from Ross, he paid $672,300 to a counterfeiter within the People’s Republic of China as payment for unauthorized product key codes and counterfeit product key cards.
Federal agents seized approximately 5,040 Microsoft operating system certificates of authenticity – valued at $1.26 million – while executing search warrants at Davachi’s residence and business. Davachi also admitted that he used Project Contact Africa, a charitable organization, as a way of operating his for-profit Rez Candles, Inc. business, which sold a host of items online, including illicit, unauthorized, and counterfeit software. Davachi was aware that the stated purpose of the charity was to “support a medical clinic in Africa for needy families and children” and children suffering from HIV.
Davachi’s role was managing and maintaining the on-line presence of the Project Contact Africa eBay/PayPal charity since January 2004. Over this time, Davachi actively used the Project Contact Africa charity’s eBay/PayPal account to sell unauthorized, illicit, and counterfeit software and software components through eBay, and used the charity’s PayPal account to facilitate payments for these software components.
Davachi managed and maintained the online presence for the Project Contact Africa charity by a person identified in court documents as INDIVIDUAL F, in exchange for a payment to INDIVIDUAL F of approximately $2,000 per month beginning in early 2012. By using the charity’s account to sell his items through the eBay charity store, Davachi saved thousands of dollars per month that he would have otherwise had to pay eBay in the form of various fees. During this time, the Project Contact Africa eBay/PayPal account took in approximately $12
million in revenue, and eBay/PayPal sustained losses of approximately $908,231 due to the waived fees for that were intended to go to this charitable organization.
Customers of the Project Contact Africa eBay charity store were under the impression that “100 percent” of the proceeds of sales were intended to go to the charity when, in fact, Davachi and INDIVIDUAL F agreed that only a portion of the proceeds would go to the charity; the remainder would go to Davachi and Rez Candles, Inc., which, in turn, would use these proceeds to purchase new inventory. Davachi and INDIVIDUAL F intended to repeat this cycle for their benefit. Davachi also admitted that he allowed numerous other individuals, including Ross, to use the Project Contact Africa eBay/PayPal charity store to sell their own items at a significantly reduced amount as compared to other for-profit sales methods on eBay, with the understanding that Ross, and others, would pay back to Davachi a portion of their savings.
Las Vegas, Nev.: USA v. Annamalai
Annamalai pleaded guilty on July 29, 2015, to his role in the software piracy conspiracy. Annamalai is the owner and operator of Vegascart, LLC. Annamalai admitted that he purchased approximately 2,569 Microsoft software product key codes from Ross between March and December 2013. These software key codes are calculated at a loss amount of $250 each, therefore, the relevant loss amount in this matter is estimated at $642,250.
Seattle, Wash.: USA v. Schwartz
Jake Schwartz, 28, of Seattle, Wash., owner of JHS Enterprises, Inc., pleaded guilty on Oct. 27, 2015, to misprision of a felony. Schwartz admitted that he knew about Yang’s involvement in the conspiracy and helped to conceal it. After Digisoft was sued for willful copyright and trademark infringement by Adobe Systems, Schwartz agreed to form a new corporation with Yang, Soft Deals, LLC.
These cases are being prosecuted by Assistant U.S. Attorney Patrick D. Daly; Assistant U.S. Attorney Curt Bohling is responsible for the civil proceedings. They were investigated by Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI).
Six Bakersfield Residents Indicted for Conspiracy to Distribute MethamphetamineRead the Press Release
FRESNO, Calif. — A federal grand jury returned a one-count indictment today against Carlos Gerardo Blanco, 25; Salvador Morales, 26; Jose Alejandro Jacobo, 23; Josefina Blanco, 23; Justin Alan Rivera, 20; and Henry Polin Morales III, 20 all residents of Bakersfield, charging them with conspiracy to distribute methamphetamine, United States Attorney Benjamin B. Wagner announced.
According to court documents, from November 1, 2014, to December 9, 2015, the defendants conspired to distribute pound quantities of methamphetamine in and outside the Bakersfield area.
This case is the product of an investigation by the Drug Enforcement Administration, the Federal Bureau of Investigation, the Kern County Sheriff’s Office, the Bakersfield Police Department, and the California Highway Patrol. Assistant United States Attorney Brian K. Delaney is prosecuting the case.
If convicted, Carlos Gerardo Blanco, Salvador Morales, and Jacobo face a maximum statutory penalty of life in prison and a $10 million fine. If convicted, Josefina Blanco, Rivera, and Henry Polin Morales III face a maximum statutory penalty of 40 years in prison and a $5 million fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.
This case was part of an Organized Crime Drug Enforcement Task Force (OCDETF). The OCDETF program was established in 1982 to conduct comprehensive, multi-level attacks on major drug trafficking and money laundering organizations. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking and money laundering organizations and those primarily responsible for the nation’s drug supply.
Sioux Falls Man Sentenced for FraudRead the Press Release
United States Attorney Randolph J. Seiler announced that a Sioux Falls, South Dakota, man convicted of wire fraud was sentenced on December 11, 2015, by Chief Judge Jeffrey L. Viken, U.S. District Court.
Randall William McKee, age 58, was sentenced to 41 months imprisonment, to be followed by 3 years of supervised release, and ordered to pay $100 to the Federal Crime Victims Fund. He was also ordered to pay restitution of $684,230.11.
McKee was indicted for wire fraud and money laundering by a federal grand jury on November 4, 2014. He pled guilty to one count of wire fraud on August 21, 2015.
McKee served as trustee for an irrevocable supplemental needs trust that was established to provide for the needs of a disabled person. McKee wrote checks from the trust’s checking account payable to himself, or to a business he controlled, and then used the funds for his own purposes. McKee also defrauded investors in a real estate scheme by soliciting investment funds and then using those funds for his own purposes. Most of this activity occurred while McKee was a resident of Rapid City, South Dakota.
This case was investigated by the Federal Bureau of Investigation. Assistant U.S. Attorney Ann M. Hoffman prosecuted the case.
McKee was immediately turned over to the custody of the U.S. Marshals Service.
Shreveport man sentenced to 71 months in prison for possessing firearms after being convicted of feloniesRead the Press Release
SHREVEPORT, La. – United States Attorney Stephanie A. Finley announced today that a Shreveport man was sentenced to 71 months in prison for possessing three firearms and ammunition after being convicted of multiple felonies.
Jonathan Shane Roberts, 41, of Shreveport, was sentenced by U.S. District Judge S. Maurice Hicks Jr. on one count of possession of a firearm and ammunition by a convicted felon. He was also sentenced to three years of supervised release. According to the August 28, 2015 guilty plea, Roberts swapped an all-terrain vehicle (ATV) for a 9 mm pistol, a .308 caliber rifle, a .223 caliber rifle and more than 2,500 rounds of ammunition on November 19, 2014. Roberts later filed a police report claiming the ATV was stolen. After further investigation, a Shreveport Police Department detective found that Roberts had at least three felony convictions before obtaining the firearms. Roberts was convicted in March of 1993 of unauthorized entry of an inhabited dwelling, in December of 2001 of simple robbery, and in August of 2007 of felony theft of more than $500. All convictions were in the First Judicial District Court in Caddo Parish.
This case is part of Project Safe Neighborhoods, which is a Department of Justice initiative designed to reduce firearm crimes by removing dangerous and persistent felons from the community and to promote firearm safety.
The Shreveport office of the ATF and Shreveport Police Department conducted the investigation. Assistant U.S. Attorney Robert W. Gillespie Jr. prosecuted the case.
Sentencings for December 11 - December 17, 2015Read the Press Release
Roman Palma-Flores, aka Ivan Ubence Cantarero-Hernandez, 43, of Honduras, was sentenced by Chief Federal District Court Judge Nancy D. Freudenthal on December 17, 2015, for illegal re-entry of a previously deported alien into the United States. Palma-Flores was arrested in Buffalo, Wyoming. He received time served, plus 10 days, was ordered to pay a $100.00 special assessment, and is subject to deportation upon release from custody. This case was investigated by the U.S. Department of Homeland Security, Immigration and Customs Enforcement.
Jesus Fragozzo-Guarneros, aka Jesus Fragoso-Guarneros, 39, of Mexico, was sentenced by Federal District Court Judge Alan B. Johnson on December 17, 2015, for illegal re-entry of a previously deported alien into the United States. Fragozzo-Guarneros was arrested in Rock Springs, Wyoming. He received six months imprisonment, was ordered to pay a $100.00 special assessment, and is subject to deportation upon release from custody. This case was investigated by the U.S. Department of Homeland Security, Immigration and Customs Enforcement.
Afam Muojeke, 28, of Laurelton, New York, was sentenced by Federal District Court Judge Scott W. Skavdahl on December 15, 2015, for attempting to pass counterfeit obligations. Muojeke was arrested in Laurelton, New York. He received nine months unsupervised probation and was ordered to pay a $500.00 fine, a $100.00 special assessment and restitution in the amount of $40.00. This case was investigated by the U.S. Secret Service.
Brent Peterson, 51, of Magna, Utah, was sentenced by Chief Federal District Court Judge Nancy D. Freudenthal on December 14, 2015, for conspiracy to distribute 500 grams or more of methamphetamine. Peterson was arrested in Salt Lake City, Utah. He received 135 months imprisonment, to be followed by five years of supervised release, and was ordered to pay a $500.00 fine and a $100.00 special assessment. This case results from an ongoing Organized Crime Drug Enforcement Task Forces (OCDETF) joint investigation conducted by the Wyoming Division of Criminal Investigation, the U.S. Drug Enforcement Administration and the Internal Revenue Service. The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply.
David Scott Goodwin, 44, of Cheyenne, Wyoming, was sentenced by Federal District Court Judge Alan B. Johnson on December 14, 2015, for attempted receipt of child pornography. Goodwin was arrested in Cheyenne, Wyoming. He received 72 months imprisonment, to be followed by five years of supervised release, and was ordered to pay a $400.00 fine and a $100.00 special assessment. This case was investigated by the Wyoming Division of Criminal Investigation Internet Crimes Against Children Task Force.
Sergio Miranda-Velazquez, aka Felipe Corona-Hernandez, 33, of Mexico, was sentenced by Chief Federal District Court Judge Nancy D. Freudenthal on December 14, 2015, for illegal re-entry of a previously deported alien into the United States. Miranda-Velazquez was arrested in Gillette, Wyoming. He received 16 months imprisonment, was ordered to pay a $100.00 special assessment, and is subject to deportation upon release from custody. This case was investigated by the U.S. Department of Homeland Security, Immigration and Customs Enforcement.
Jesus Gomez-Valle, 30, of Mexico, was sentenced by Chief Federal District Court Judge Nancy D. Freudenthal on December 14, 2015, for illegal re-entry of a previously deported alien into the United States. Gomez-Valle was arrested in Sheridan, Wyoming. He received time served, plus 10 days, was ordered to pay a $100.00 special assessment, and is subject to deportation upon release from custody. This case was investigated by the U.S. Department of Homeland Security, Immigration and Customs Enforcement.
Shasta Klistine Wesaw, 34, of Ft. Washakie, Wyoming, was sentenced by Federal District Court Judge Scott W. Skavdahl on December 11, 2015, for distributing five grams or less of methamphetamine and aiding and abetting. Wesaw was arrested in Riverton, Wyoming. She received five months imprisonment, to be followed by three years of supervised release, and was ordered to pay a $100.00 special assessment. This case was investigated by the Wyoming Division of Criminal Investigation, the Federal Bureau of Investigation and the Bureau of Indian Affairs.
Schenectady Man Pleads Guilty to Selling Crack CocaineRead the Press Release
ALBANY, NEW YORK – Robert "Poobar" Daniels, age 42, of Schenectady, New York, pled guilty today to distributing crack cocaine, announced United States Attorney Richard S. Hartunian and Andrew W. Vale, Special Agent in Charge of the Albany Division of the Federal Bureau of Investigation. The guilty plea included Daniels’ admission that he sold crack cocaine directly and oversaw the distribution of crack cocaine by another individual. At sentencing on April 15, 2016 in Albany, New York, Daniels faces a maximum term of imprisonment of 20 years, a fine of $1,00,000, and a term of supervised release of up to life.
The case was investigated by the Federal Bureau of Investigation, the New York State Police, and the Schenectady Police Department, in connection with the Capital District Safe Streets Gang Task Force. The case is being prosecuted by Assistant United States Attorney Wayne A. Myers.
San Jose Couple Pleads Guilty to Wire Fraud and Aggravated Identity TheftRead the Press Release
SAN JOSE—Yujen Chen and Maria Chen, husband and wife, pleaded guilty yesterday in federal court to conspiracy to commit wire fraud and aggravated identity theft arising out of their ownership of 888 Auto Corporation, announced Acting United States Attorney Brian Stretch; Internal Revenue Service, Criminal Investigation, Acting Special Agent in Charge Andrew Toth; and FBI Special Agent in Charge David J. Johnson; and U.S. Customs and Border Protection Director of Field Operations Brian J. Humphrey. In connection with their guilty pleas, defendants acknowledged their crimes involved sophisticated means, ten or more victims, and that the loss amount was in excess of $3.4 million.
According to their plea agreements, Yujen Chen, 60, and Maria Chen, 58, both of Cupertino, used their automotive business to fraudulently lease luxury vehicles, including vehicles from Porsche, Mercedes-Benz, Audi, BMW, and Toyota, and then to export those vehicles abroad. As part of the scheme, the Chens recruited friends and associates to serve as straw lessees and sometimes paid these friends $500 to lease cars on the Chens’ behalf. Subsequently, the Chens took custody of the cars and promised the straw lessees they would make the car payments. Instead, the Chens exported the cars and never paid off the lease obligations. The Chens also used without permission the identities of others to lease cars.
In addition, as part of the plea agreements, the Chens acknowledged they also acted as vehicle brokers and received money from people to purchase vehicles on their behalf. However, instead of paying the dealers the money received from the purchasers, the Chens allegedly used the identities of these purchasers, without authorization, to lease or finance the vehicles and kept the money for themselves.
The defendants were originally charged in a 24-count indictment filed November 20, 2013. They are currently out of custody on bond. They pleaded guilty to conspiracy to commit wire fraud, in violation of 18 U.S.C. § 1343, and aggravated identity theft, in violation of 18 U.S.C. § 1028A. As part of the plea agreement, the government agreed to dismiss the remaining open charges at the time of sentencing.
U.S. District Judge Edward J. Davila set this matter for sentencing on April 25, 2016, at 1:30 p.m. The maximum statutory penalty for conspiracy to commit wire fraud, in violation of 18 U.S.C. § 1349, is 20 years' imprisonment and a fine of $250,000 or twice the gross gain or loss from the offense, plus restitution. The maximum penalty for aggravated identity theft, in violation of 18 U.S.C. § 1028A, is 24 months’ imprisonment consecutive to any other sentence of imprisonment imposed. However, any sentence following conviction would be imposed by the court after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Assistant U.S. Attorney Joseph Fazioli is prosecuting the case with the assistance of Laurie Worthen. The prosecution is the result of an investigation by the Internal Revenue Service, Criminal Investigative Division; the Federal Bureau of Investigation; the United States Customs and Border Protection; the California Department of Motor Vehicles; and the California Highway Patrol.
San Angelo, Texas, Psychiatrist Sentenced to Serve 71 Months in Federal Prison on Health Care Fraud ConvictionRead the Press Release
AMARILLO, Texas — A licensed psychiatrist from San Angelo, Texas, Robert Hadley Gross, 58, was sentenced yesterday by U.S. District Judge Mary Lou Robinson to 71 months in federal prison, fined $100,000 and ordered to pay $1,832,869 in restitution, announced U.S. Attorney John Parker of the Northern District of Texas.
Gross pleaded guilty in September 2015 to one count of health care fraud stemming from a scheme he ran to defraud Medicare and Medicaid by submitting claims for services not rendered in the manner billed, including submitting claims for services allegedly rendered after patients’ deaths. He has been in federal custody since his arrest in mid-October 2014 on related charges outlined in a federal indictment. Gross also must forfeit nearly $2 million seized from various accounts.
According to documents filed in the case, beginning in January 2009 and continuing until approximately June 20, 2014, Gross filed, and caused to be filed, claims against Medicare, Medicaid, and other health insurance carriers, for payment for services that were never rendered and services that were billed using inappropriate CPT codes.
Gross regularly submitted claims for services rendered to nursing home residents in and around San Angelo and he also regularly submitted claims for services provided to clients of mental health and mental retardation (MHMR) organizations in San Angelo, Midland, and Abilene, Texas, in addition to claims for services provided to foster care children in Brownwood, Texas.
As part of his scheme, Gross filed claims against Medicare, Medicaid, and other health insurance carriers for services for nursing home patients on dates he did not actually render services to patients. In those instances, the patients may have died or been discharged before Gross allegedly visited them in the nursing home.
The Federal Bureau of Investigation, Health and Human Services Office of Inspector General, and Medicaid Fraud Control Unit, Office of the Texas Attorney General investigated. Assistant U.S. Attorney Ann Cruce-Haag and Deputy Criminal Chief Assistant U.S. Attorney Denise Williams prosecuted and Assistant U.S. Attorney Megan Fahey handled the forfeiture.
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Rochester Man Pleads Guilty to Attempting to Provide Material Support to IsilRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051ROCHESTER, NY – Assistant Attorney General for National Security John P. Carlin, U.S. Attorney William J. Hochul Jr. and Special Agent in Charge Adam S. Cohen of the FBI’s Buffalo Division announced today that Mufid Elfgeeh, 31, of Rochester, NY, pleaded guilty to attempting to provide material support and resources to the Islamic State of Iraq and the Levant (ISIL), a designated foreign terrorist organization, before U.S. District Judge Elizabeth A. Wolford. The charges carry a maximum penalty of 30 years in prison, a $250,000 fine and lifetime supervised release.
“Mufid Elfgeeh pleaded guilty to attempting to provide material support to ISIL through his various efforts to recruit individuals, raise funds and coordinate logistics for the designated terrorist group,” said Assistant Attorney General Carlin. “ISIL’s horrific violence is waged against men, women and children, as well as against Muslims and non-Muslims alike. The National Security Division will continue to vigorously investigate and prosecute anyone who seeks to provide material support to the designated foreign terrorist organization.”
“Thanks to today’s convictions, one of the first ISIL recruiters ever captured in this country stands convicted of terrorism related charges,” said U.S. Attorney Hochul. “While our case against this defendant will conclude with a very long jail sentence, our ongoing efforts to defeat ISIL and other terrorist groups will continue until all are brought to justice. As it did in this case, the public should continue to report to law enforcement any suspicious individuals or activities and thereby hasten the demise of these killers.”
“Mufid Elfgeeh failed because law enforcement used its best weapon – unity,” said Special Agent in Charge Cohen of the FBI’s Buffalo Division. “Our success in this case is directly linked to the notion that we are stronger and more formidable working in concert with our community than standing alone. This approach, which has been embraced by our law enforcement counterparts and the intelligence community, must continue for us to prevail.”
According to the plea agreement and other court documents, Elfgeeh used social media to receive and disseminate information about foreign terrorist groups and their activities in Syria and other countries; to declare his support for violent jihad, ISIL and other foreign terrorist groups; to inspire and encourage others to engage in violent jihad and/or pledge allegiance to ISIL and other foreign terrorist groups; and to seek financial contributions to assist jihadist fighters.
From December 2013 through May 31, 2014, Elfgeeh actively recruited and attempted to send two individuals – referred to as Individuals A and B, both of whom were cooperating with the FBI at the time – to Syria to join and fight on behalf of ISIL.
Elfgeeh sent anti-American ISIL propaganda videos to Individual B and arranged for an English-speaking ISIL contact to communicate with Individual B over Facebook about the state of affairs in Syria. In addition, Elfgeeh paid more than $240 for Individual B to obtain a copy of his birth certificate, passport photographs and an expedited passport. Elfgeeh also purchased a laptop computer and a high-definition action camera for Individuals A and B to take to Syria. The defendant provided guidance to Individuals A and B about traveling so that they could avoid detection and the vetting process involved in joining ISIL. In May 2014, Elfgeeh arranged for an overseas contact to coordinate the logistics of the trip and the admission of Individuals A and B into ISIL-controlled territory in Syria.
According to the plea agreement and other court documents, Elfgeeh also sent $600 to an individual in Aden, Yemen, in an effort to assist that individual in traveling from Yemen to Syria for the purpose of joining and fighting on behalf of ISIL.In addition, in March 2014, Elfgeeh communicated with a Syrian national who purported to be the military commander of a battalion of fighters located in Homs, Syria. At the time, the battalion was blockaded in Homs and needed military support, including ammunition, mortar shells and explosives that could penetrate armored vehicles, to break out. Elfgeeh facilitated communication and coordination between the battalion commander and ISIL leadership for the purpose of the commander and his battalion pledging their allegiance to and joining ISIL.
The case is being investigated by the FBI’s Rochester Joint Terrorism Task Force (JTTF). The case is being prosecuted by Assistant U.S. Attorneys Brett A. Harvey and Frank H. Sherman with the assistance of Trial Attorney Paul Casey of the National Security Division’s Counterterrorism Section.
Sentencing is scheduled for March 17, 2016 at 2:00 p.m. before Judge Wolford. Elfgeeh’s sentence will be determined by the court after review of factors unique to this case, including the defendant’s prior criminal history, if any, the defendant’s role in the offense and the characteristics of the violation. He has been detained in federal custody since his arrest on May 31, 2014.
Riverside Man Charged with Conspiring to Provide Material Support to Terrorism, as well as Being ‘Straw Purchaser’ of Assault Rifles Later Used in San Bernardino Attack that Killed 14Read the Press Release
RIVERSIDE, California – Enrique Marquez Jr., a longtime friend of Syed Rizwan Farook, the male shooter in the San Bernardino terrorist attack, was charged today with conspiring with Farook in 2011 and 2012 to commit crimes of terrorism. Marquez was also charged today with the unlawful purchase of two assault rifles used in the deadly shooting two weeks ago.
A three-count criminal complaint filed this afternoon additionally charges Marquez with defrauding immigration authorities by entering into a sham marriage with a member of Farook’s family.
Marquez, a 24-year-old Riverside resident, was arrested today by special agents with the Federal Bureau of Investigation, and he is expected to make his initial court appearance this afternoon in federal court in Riverside.
The criminal complaint filed in United States District Court charges Marquez with conspiring with Farook to provide material support – including himself, a firearm and explosives – for crimes of terrorism; making a false statement in connection with acquisition of firearms; and immigration fraud.
“Mr. Marquez conspired with Mr. Farook to commit vicious attacks, as set forth in today’s charges,” said United States Attorney Eileen M. Decker. “Even though these plans were not carried out, Mr. Marquez’s criminal conduct deeply affected San Bernardino County, Southern California and the entire United States when the guns purchased by Marquez were used to kill 14 innocent people and wound many others. While there currently is no evidence that Mr. Marquez participated in the December 2 attack or had advance knowledge of it, his prior purchase of the firearms and ongoing failure to warn authorities about Farook’s intent to commit mass murder had fatal consequences. Today’s charges are the result of exceptional work by many prosecutors and law enforcement agencies, and I thank them for their tremendous effort so far in this case.”
The affidavit in support of the complaint provides details into parts of the exhaustive and ongoing investigation into the attack on December 2 that killed 14 people at the Inland Regional Center (IRC). The complaint does not allege that Marquez was involved in the December 2 terrorist attack at the IRC. The complaint does allege that Marquez purchased the AR-15-style rifles used in the shooting, that Marquez purchased explosive material ultimately used to construct a pipe bomb found at the IRC, and that in 2011 and 2012 Marquez and Farook planned terrorist attacks in the Inland Empire that were not carried out.
“Many dedicated law enforcement personnel have worked around the clock and side by side with their Joint Terrorism Task Force partners to gather evidence and build a solid terrorism case against Mr. Marquez over the past two weeks,” said Assistant Director in Charge David Bowdich of the FBI’s Los Angeles Field Office. “As we will continue to investigate the facts surrounding the terrible shooting in San Bernardino, we will leave no stone unturned in an effort to deliver answers and justice to the murdered victims and the families they left behind.”
According to the affidavit, in approximately 2005, Marquez moved to Riverside, where he met Farook, who was his next-door neighbor. After their initial meeting, Farook introduced Marquez to Islam, and, in 2007, Marquez converted to Islam. Farook later introduced Marquez to radical Islamic ideology, which included expressing disdain towards Muslims in the U.S. military who killed other Muslims, as well as discussing the extremist views of the now-deceased imam and Islamic lecturer Anwar al-Aulaqi. Over the next few years, Farook provided Marquez with radical Islamic materials, and by 2011, Marquez spent most of his time at Farook’s residence listening to lectures and watching videos involving radical Islamic content. Those materials included Inspire Magazine, the official publication of Al-Qaeda in the Arabian Peninsula (AQAP), and videos produced by Al-Shabaab. In August 2011, Farook informed Marquez of his interest in joining AQAP in Yemen.
In late 2011, according to the affidavit, Marquez and Farook started planning to use firearms and explosives to carry out terrorist acts – attacks that Marquez told investigators were designed to maximize the number of casualties that could be inflicted. The affidavit recounts a recent interview with Marquez in which he admitted making plans with Farook to attack the library or cafeteria at Riverside Community College (RCC), where both men had been students. The plan allegedly was to throw pipe bombs into the cafeteria area from an elevated position on the second floor, and then to shoot people as they fled.
Marquez and Farook also planned to attack eastbound lanes of State Route 91 (SR-91) during afternoon rush hour, the affidavit states. Marquez told investigators that they chose a particular section of the freeway because there were no exits, which would increase the number of targets in the eastbound lanes. The plan was for Farook to throw pipe bombs on to the freeway, which they believed would disable vehicles and stop traffic. Farook allegedly planned to then move among stopped vehicles, shooting into them, while Marquez shot into vehicles from a position on a nearby hillside. Marquez allegedly said that he would watch for law enforcement and emergency vehicles, and his priority was to shoot law enforcement before shooting life-saving personnel.
According to the affidavit, Marquez and Farook took steps to carry out their plans by purchasing firearms, ammunition and other tactical gear, as well as going to local firing ranges. In late 2011 and 2012, Marquez allegedly purchased two firearms and portrayed himself as the actual purchaser of the rifles, when he was in fact buying the weapons for Farook as part of the plan to attack RCC and SR-91. According to the affidavit, Marquez told investigators that he agreed to purchase the weapons because “his appearance was Caucasian, while Farook looked Middle-Eastern.” Investigators have determined that on November 14, 2011, Marquez purchased a Smith and Wesson M&P-15 Sport rifle for Farook. On February 22, 2012, Marquez purchased a DPMS model A-15 rifle, according to records in the affidavit, which states that each rifle cost approximately $750.
Around the same time as he purchased the firearms for Farook, Marquez purchased explosives – specifically smokeless powder – “in furtherance of his and Farook’s plans to create bombs and commit mass killings,” according to the affidavit.
In the first half of 2012, Marquez and Farook allegedly continued to prepare for terrorist attacks by going to firing ranges to practice shooting guns and further discussing extremist ideologies. After 2012, Marquez allegedly distanced himself from Farook and ceased plotting with Farook for a variety of reasons, including the arrest of Ralph Deleon and others on material support for terrorism charges in November 2012.
The complaint affidavit alleges the following timeline of events based on the investigation to date: On the morning of December 2, 2015, shortly after 9:00., Farook went to an event at the IRC and placed an item on a table. Following the shooting at the IRC, investigators discovered a remote-controlled improvised explosive device (IED) on a table – a pipe bomb constructed out of three galvanized steel pipes and smokeless powder that was armed and ready to detonate. A subsequent search of Farook’s residence led to the discovery of smokeless powder that Marquez allegedly admitted purchasing in 2011 while planning terrorist acts with Farook. In addition, a remote control was found in the sports utility vehicle after Farook and his wife Tafsheen Malik were killed. In his interview with investigators, Marquez allegedly stated that the smokeless powder was purchased to be used in the construction of an “explosive device.” According to the affidavit, Marquez described his familiarity with the use of remote-control devices to detonate IEDs, and said he and Farook reviewed instructions on how to make IEDs that were in Inspire Magazine.
According to the affidavit, subsequent investigation determined that on the morning of the shooting, a Facebook account associated with Malik searched for materials related to the Islamic State of Iraq and the Levant (ISIL). Shortly after the shooting, a post on a Facebook page associated with Malik said, “We pledge allegiance to Khalifa bu bkr al bhaghdadi al quraishi” which the affidavit alleges is a reference to the leader of ISIL.
After Farook and Malik were killed in the shooting that ended the pursuit, authorities recovered four firearms and thousands of rounds of ammunition. Among the firearms recovered were the two rifles that Marquez allegedly purchased for Farook several years earlier. Forensic testing has confirmed that the two rifles were used in the attack on the IRC.
Four days after the attack on the IRC, Marquez met with law enforcement officials investigating the incident. Marquez admitted a series of statements that are detailed in the affidavit.
In addition to the charges related to the straw purchase of the rifles and the plans to commit terrorist attacks, Marquez is charged with defrauding U.S. Citizenship and Immigration Services in relation to a sham marriage with a member of Farook’s extended family so that she could obtain legal status in the United States. In return for his participation in the fraud, she paid Marquez $200 per month.
The charges against Marquez were filed by prosecutors in the National Security Division of the United States Attorney’s Office for the Central District of California. Prosecutors from the National Security Division have been working closely with law enforcement in support of the investigation, beginning shortly after the attacks and continuing around the clock since then.
This investigation is being conducted by several members of the Inland Empire Joint Terrorism Task Force, including agents and detectives from the Federal Bureau of Investigation; the San Bernardino Police Department; the San Bernardino County Sheriff’s Department; the Bureau of Alcohol, Tobacco, Firearms and Explosives; U.S. Immigration and Customs Enforcement’s Homeland Security Investigations; the Riverside County Sheriff’s Department; the Ontario Police Department; and the Riverside Police Department. Several agencies are providing considerable assistance to the investigation, including the San Bernardino County District Attorney’s Office and detectives with the Chino Police Department, the Redlands Police Department, and the Corona Police Department. Additionally, investigators have collaborated with sister task forces in the region and throughout the country, as well as with the intelligence community, foreign law enforcement partners, and various FBI Legal Attachés located overseas.
A criminal complaint contains allegations that a defendant has committed a crime. Every defendant is presumed innocent until and unless proven guilty in court.
The charge of providing material support to terrorists carries a maximum sentence of 15 years. The charge of making a false statement in connection with acquisition of firearms carries a statutory maximum penalty of 10 years in federal prison. The visa fraud count carries a statutory maximum sentence of 10 years in prison.
Riverside Man Charged with Conspiring to Provide Material Support to Terrorism, as well as Being ‘Straw Purchaser’ of Assault Rifles Later Used in San Bernardino Attack that Killed 14Read the Press Release
RIVERSIDE, California – Enrique Marquez Jr., a longtime friend of Syed Rizwan Farook, the male shooter in the San Bernardino terrorist attack, was charged today with conspiring with Farook in 2011 and 2012 to commit crimes of terrorism. Marquez was also charged today with the unlawful purchase of two assault rifles used in the deadly shooting two weeks ago.
A three-count criminal complaint filed this afternoon additionally charges Marquez with defrauding immigration authorities by entering into a sham marriage with a member of Farook’s family.
Marquez, a 24-year-old Riverside resident, was arrested today by special agents with the Federal Bureau of Investigation, and he is expected to make his initial court appearance this afternoon in federal court in Riverside.
The criminal complaint filed in United States District Court charges Marquez with conspiring with Farook to provide material support – including himself, a firearm and explosives – for crimes of terrorism; making a false statement in connection with acquisition of firearms; and immigration fraud.
“Mr. Marquez conspired with Mr. Farook to commit vicious attacks, as set forth in today’s charges,” said United States Attorney Eileen M. Decker. “Even though these plans were not carried out, Mr. Marquez’s criminal conduct deeply affected San Bernardino County, Southern California and the entire United States when the guns purchased by Marquez were used to kill 14 innocent people and wound many others. While there currently is no evidence that Mr. Marquez participated in the December 2 attack or had advance knowledge of it, his prior purchase of the firearms and ongoing failure to warn authorities about Farook’s intent to commit mass murder had fatal consequences. Today’s charges are the result of exceptional work by many prosecutors and law enforcement agencies, and I thank them for their tremendous effort so far in this case.”
The affidavit in support of the complaint provides details into parts of the exhaustive and ongoing investigation into the attack on December 2 that killed 14 people at the Inland Regional Center (IRC). The complaint does not allege that Marquez was involved in the December 2 terrorist attack at the IRC. The complaint does allege that Marquez purchased the AR-15-style rifles used in the shooting, that Marquez purchased explosive material ultimately used to construct a pipe bomb found at the IRC, and that in 2011 and 2012 Marquez and Farook planned terrorist attacks in the Inland Empire that were not carried out.
“Many dedicated law enforcement personnel have worked around the clock and side by side with their Joint Terrorism Task Force partners to gather evidence and build a solid terrorism case against Mr. Marquez over the past two weeks,” said Assistant Director in Charge David Bowdich of the FBI’s Los Angeles Field Office. “As we will continue to investigate the facts surrounding the terrible shooting in San Bernardino, we will leave no stone unturned in an effort to deliver answers and justice to the murdered victims and the families they left behind.”
According to the affidavit, in approximately 2005, Marquez moved to Riverside, where he met Farook, who was his next-door neighbor. After their initial meeting, Farook introduced Marquez to Islam, and, in 2007, Marquez converted to Islam. Farook later introduced Marquez to radical Islamic ideology, which included expressing disdain towards Muslims in the U.S. military who killed other Muslims, as well as discussing the extremist views of the now-deceased imam and Islamic lecturer Anwar al-Aulaqi. Over the next few years, Farook provided Marquez with radical Islamic materials, and by 2011, Marquez spent most of his time at Farook’s residence listening to lectures and watching videos involving radical Islamic content. Those materials included Inspire Magazine, the official publication of Al-Qaeda in the Arabian Peninsula (AQAP), and videos produced by Al-Shabaab. In August 2011, Farook informed Marquez of his interest in joining AQAP in Yemen.
In late 2011, according to the affidavit, Marquez and Farook started planning to use firearms and explosives to carry out terrorist acts – attacks that Marquez told investigators were designed to maximize the number of casualties that could be inflicted. The affidavit recounts a recent interview with Marquez in which he admitted making plans with Farook to attack the library or cafeteria at Riverside Community College (RCC), where both men had been students. The plan allegedly was to throw pipe bombs into the cafeteria area from an elevated position on the second floor, and then to shoot people as they fled.
Marquez and Farook also planned to attack eastbound lanes of State Route 91 (SR-91) during afternoon rush hour, the affidavit states. Marquez told investigators that they chose a particular section of the freeway because there were no exits, which would increase the number of targets in the eastbound lanes. The plan was for Farook to throw pipe bombs on to the freeway, which they believed would disable vehicles and stop traffic. Farook allegedly planned to then move among stopped vehicles, shooting into them, while Marquez shot into vehicles from a position on a nearby hillside. Marquez allegedly said that he would watch for law enforcement and emergency vehicles, and his priority was to shoot law enforcement before shooting life-saving personnel.
According to the affidavit, Marquez and Farook took steps to carry out their plans by purchasing firearms, ammunition and other tactical gear, as well as going to local firing ranges. In late 2011 and 2012, Marquez allegedly purchased two firearms and portrayed himself as the actual purchaser of the rifles, when he was in fact buying the weapons for Farook as part of the plan to attack RCC and SR-91. According to the affidavit, Marquez told investigators that he agreed to purchase the weapons because “his appearance was Caucasian, while Farook looked Middle-Eastern.” Investigators have determined that on November 14, 2011, Marquez purchased a Smith and Wesson M&P-15 Sport rifle for Farook. On February 22, 2012, Marquez purchased a DPMS model A-15 rifle, according to records in the affidavit, which states that each rifle cost approximately $750.
Around the same time as he purchased the firearms for Farook, Marquez purchased explosives – specifically smokeless powder – “in furtherance of his and Farook’s plans to create bombs and commit mass killings,” according to the affidavit.
In the first half of 2012, Marquez and Farook allegedly continued to prepare for terrorist attacks by going to firing ranges to practice shooting guns and further discussing extremist ideologies. After 2012, Marquez allegedly distanced himself from Farook and ceased plotting with Farook for a variety of reasons, including the arrest of Ralph Deleon and others on material support for terrorism charges in November 2012.
The complaint affidavit alleges the following timeline of events based on the investigation to date: On the morning of December 2, 2015, shortly after 9:00., Farook went to an event at the IRC and placed an item on a table. Following the shooting at the IRC, investigators discovered a remote-controlled improvised explosive device (IED) on a table – a pipe bomb constructed out of three galvanized steel pipes and smokeless powder that was armed and ready to detonate. A subsequent search of Farook’s residence led to the discovery of smokeless powder that Marquez allegedly admitted purchasing in 2011 while planning terrorist acts with Farook. In addition, a remote control was found in the sports utility vehicle after Farook and his wife Tafsheen Malik were killed. In his interview with investigators, Marquez allegedly stated that the smokeless powder was purchased to be used in the construction of an “explosive device.” According to the affidavit, Marquez described his familiarity with the use of remote-control devices to detonate IEDs, and said he and Farook reviewed instructions on how to make IEDs that were in Inspire Magazine.
According to the affidavit, subsequent investigation determined that on the morning of the shooting, a Facebook account associated with Malik searched for materials related to the Islamic State of Iraq and the Levant (ISIL). Shortly after the shooting, a post on a Facebook page associated with Malik said, “We pledge allegiance to Khalifa bu bkr al bhaghdadi al quraishi” which the affidavit alleges is a reference to the leader of ISIL.
After Farook and Malik were killed in the shooting that ended the pursuit, authorities recovered four firearms and thousands of rounds of ammunition. Among the firearms recovered were the two rifles that Marquez allegedly purchased for Farook several years earlier. Forensic testing has confirmed that the two rifles were used in the attack on the IRC.
Four days after the attack on the IRC, Marquez met with law enforcement officials investigating the incident. Marquez admitted a series of statements that are detailed in the affidavit.
In addition to the charges related to the straw purchase of the rifles and the plans to commit terrorist attacks, Marquez is charged with defrauding U.S. Citizenship and Immigration Services in relation to a sham marriage with a member of Farook’s extended family so that she could obtain legal status in the United States. In return for his participation in the fraud, she paid Marquez $200 per month.
The charges against Marquez were filed by prosecutors in the National Security Division of the United States Attorney’s Office for the Central District of California. Prosecutors from the National Security Division have been working closely with law enforcement in support of the investigation, beginning shortly after the attacks and continuing around the clock since then.
This investigation is being conducted by several members of the Inland Empire Joint Terrorism Task Force, including agents and detectives from the Federal Bureau of Investigation; the San Bernardino Police Department; the San Bernardino County Sheriff’s Department; the Bureau of Alcohol, Tobacco, Firearms and Explosives; U.S. Immigration and Customs Enforcement’s Homeland Security Investigations; the Riverside County Sheriff’s Department; the Ontario Police Department; and the Riverside Police Department. Several agencies are providing considerable assistance to the investigation, including the San Bernardino County District Attorney’s Office and detectives with the Chino Police Department, the Redlands Police Department, and the Corona Police Department. Additionally, investigators have collaborated with sister task forces in the region and throughout the country, as well as with the intelligence community, foreign law enforcement partners, and various FBI Legal Attachés located overseas.
A criminal complaint contains allegations that a defendant has committed a crime. Every defendant is presumed innocent until and unless proven guilty in court.
The charge of providing material support to terrorists carries a maximum sentence of 15 years. The charge of making a false statement in connection with acquisition of firearms carries a statutory maximum penalty of 10 years in federal prison. The visa fraud count carries a statutory maximum sentence of 10 years in prison.
Marquez Criminal Complaint (800.47 KB)
Readout of Department of Justice’s First Meetings in Chicago Following Announcement of Pattern or Practice Investigation of the Chicago Police DepartmentRead the Press Release
The Department of Justice, including lawyers and senior leaders from the Civil Rights Division, and the U.S. Attorney’s Office of the Northern District of Illinois, completed two days of introductory meetings in Chicago today following last week’s announcement of a pattern or practice investigation into the Chicago Police Department (CPD). The team, comprised primarily of lawyers from the Civil Rights Division was joined by the head of the Civil Rights Division Vanita Gupta, as well as Zachary Fardon, the U.S Attorney of the Northern District of Illinois. The investigation into use of force, disparities in use of force and accountability systems of the CPD is being led by the Civil Rights Division with assistance from the U.S. Attorney’s Office of the Northern District of Illinois.
On Dec. 16, the group met with CPD Superintendent John Escalante and briefed CPD command staff on the investigative process. The Civil Rights Division also had initial meetings with community members and organizations in order to solicit information and explain the pattern or practice investigation’s scope and process.
Today, Dec. 17, the Civil Rights Division and U.S. Attorney’s Office met with additional community groups, city officials and union representatives. Meetings with the city of Chicago included Mayor Rahm Emanuel and his staff and a separate meeting with the Independent Police Review Authority Administrator Sharon Fairley.
Throughout the investigative process the Civil Rights Division, assisted by the U.S. Attorney’s Office, will continue to meet with representatives from the community, the city and the unions. During the course of the investigation, community members will have the opportunity to provide information both in public meetings and privately. Any public meetings will be announced at a later date. Anyone who wishes to share information relevant to the investigation is encouraged to contact the Department of Justice by phone: (844) 401-3735 or email: [email protected].
Readout of Department of Justice’s First Meetings in Chicago Following Announcement of Pattern or Practice Investigation of Chicago Police DepartmentRead the Press Release
WASHINGTON – The Department of Justice, including lawyers and senior leaders from the Civil Rights Division, and the U.S. Attorney’s Office of the Northern District of Illinois, completed two days of introductory meetings in Chicago today following last week’s announcement of a pattern or practice investigation into the Chicago Police Department (CPD). The team, comprised primarily of lawyers from the Civil Rights Division was joined by the head of the Civil Rights Division Vanita Gupta, as well as Zachary Fardon, the U.S Attorney of the Northern District of Illinois. The investigation into use of force, disparities in use of force and accountability systems of the CPD is being led by the Civil Rights Division with assistance from the U.S. Attorney’s Office of the Northern District of Illinois.
On Dec. 16, the group met with CPD Superintendent John Escalante and briefed CPD command staff on the investigative process. The Civil Rights Division also had initial meetings with community members and organizations in order to solicit information and explain the pattern or practice investigation’s scope and process.
Today, Dec. 17, the Civil Rights Division and U.S. Attorney’s Office met with additional community groups, city officials and union representatives. Meetings with the city of Chicago included Mayor Rahm Emanuel and his staff and a separate meeting with the Independent Police Review Authority Administrator Sharon Fairley.
Throughout the investigative process the Civil Rights Division, assisted by the U.S. Attorney’s Office, will continue to meet with representatives from the community, the city and the unions. During the course of the investigation, community members will have the opportunity to provide information both in public meetings and privately. Any public meetings will be announced at a later date. Anyone who wishes to share information relevant to the investigation is encouraged to contact the Department of Justice by phone: (844) 401-3735 or email: [email protected].
Rogers Man Sentenced to 12 ½ Years in Federal Prison for Drug TraffickingRead the Press Release
Fayetteville, Arkansas - Kenneth Elser, Acting United States Attorney for the Western District of Arkansas, announced that Juan Valenzuela, age 41, of Rogers, was sentenced to 150 months in federal prison, three years of supervised release, and ordered to pay a $2,800.00 fine on one count of Conspiracy to Distribute Methamphetamine and one count of Distribution of Methamphetamine. The Honorable Timothy L. Brooks presided over the sentencing hearing in the United States District Court in Fayetteville. Valenzuela was found guilty of the charges after a two day jury trial in July, 2015.
This case was investigated by the Drug Enforcement Administration and the Benton County Sheriff’s Office. Assistant United States Attorneys Brice White and Brandon Carter prosecuted the case for the United States.
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Related court documents may be found on the Public Access to Electronic Records website @ www.pacer.gov
Philadelphia Woman Charged with Theft of Government FundsRead the Press Release
PHILADELPHIA - Phyllis Ransome, a/k/a “Phyllis Roberts,” 70, of Philadelphia, PA, was charged by Indictment, unsealed yesterday, with nine counts of wire fraud, one count of theft of government funds, and one count of Social Security fraud, announced United States Attorney Zane David Memeger. According to the Indictment, the defendant received Supplemental Security Income benefits under one Social Security number, while failing to disclose her receipt of widow’s benefits under a second Social Security number, from October 2009 through December 2014. The defendant’s alleged actions resulted in a loss to the government of approximately $42,108.
If convicted, the defendant faces a substantial period of incarceration, a three year period of supervised release, restitution of $42,108, a $1,100 special assessment, forfeiture, and a possible million fine.
The case was investigated by the Social Security Administration, Office of Inspector General, and is being prosecuted by Special Assistant United States Attorney Amanda R. Reinitz.
An Indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Pennsylvania Resident Charged with Providing Material Support to ISILRead the Press Release
A Harrisburg, Pennsylvania, resident was arrested today on charges of conspiring and attempting to provide material support to the Islamic State of Iraq and the Levant (ISIL). Jalil Ibn Ameer Aziz, 19, a U.S. citizen, is charged in a two-count criminal complaint that was unsealed today in the U.S. District Court for the Middle District of Pennsylvania following his arrest. His initial appearance will be at 4:30 p.m. EST in Harrisburg.
The arrest was announced by Assistant Attorney General for National Security John P. Carlin, U.S. Attorney Peter J. Smith of the Middle District of Pennsylvania and Special Agent in Charge William F. Sweeney Jr. of the FBI’s Philadelphia Division.
“According to the allegations in the complaint, Jalil Ibn Ameer Aziz conspired to provide and attempted to provide material support to ISIL by propagating their hateful rhetoric on social media and aiding individuals in their pursuit of traveling overseas to join the designated foreign terrorist organization,” said Assistant Attorney General Carlin. “A prior physical search of Aziz’s residence also revealed a tactical-style backpack in his closet, which contained high-capacity weapons magazines, ammunition, a knife, and other survival items. The National Security Division’s highest priority is counterterrorism, and we will remain vigilant in our efforts to hold accountable any and all those who seek to provide material support to terrorists, and to disrupt potential attacks in the United States before they happen.”
“The charges in this case focus on Aziz’s efforts to assist persons seeking to travel to and fight for the Islamic State,” said U.S. Attorney Smith. “These charges are a testament to the perseverance and dedication of those who stand watch over our nation and a clear message that those who support terrorism – will face justice.”
“The FBI’s Joint Terrorism Task Force (JTTF) will move with speed to detect and disrupt those who are involved in facilitation or operational planning in support of a terrorist organization. There is no difference between the two, and we will aggressively pursue every threat in order to protect our communities,” said Special Agent in Charge Sweeney. “In this instance, Aziz operated quietly on behalf of the Islamic State and facilitated others looking to do the same.” Sweeney extended his appreciation to the Harrisburg-based members of FBI Philadelphia’s JTTF, and he encouraged anyone with concerns about suspicious behavior to contact appropriate authorities.
According to the complaint, Aziz has used at least 57 different Twitter accounts to advocate violence against the United States and its citizens, to disseminate ISIL propaganda and espouse pro-ISIL views. Aziz is alleged to have posted a hyperlink containing the names, addresses and other identifying information of 100 reported members of the U.S. military and calls for violence against them. Additionally, on at least three occasions, Aziz also allegedly used his Twitter accounts and other electronic communication services to assist persons seeking to travel to and fight for ISIL. In one instance, Aziz allegedly acted as an intermediary between a person in Turkey and several well-known members of ISIL. According to the allegations in the complaint, Aziz passed location information, including maps and a telephone number, between these ISIL supporters.
A prior search of a backpack located in Aziz’s closet identified five loaded M4-style high-capacity magazines, a modified kitchen knife, a thumb drive, medication and a balaclava.
A criminal complaint is only a charge 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.
If convicted, the defendants’ sentence will be determined by the court after reviewing factors unique to this case, including the defendant’s prior criminal record, if any, and 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 investigated by the FBI’s Philadelphia JTTF. This case is being prosecuted by Trial Attorneys Robert Sander and Adam L. Small of the National Security Division’s Counterterrorism Section and Assistant U.S. Attorney Daryl Bloom of the Middle District of Pennsylvania.
Aziz Complaint