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Tuesday 13 October 2015
Oscar Anchondo Arrested on Criminal Complaint Alleging a Violation of the Federal Firearms LawsRead the Press Release
ALBUQUERQUE – Oscar Anchondo, 38, of Albuquerque, N.M., has been arrested on a criminal complaint charging him with violating the federal firearms laws. Anchondo made his initial appearance in federal court this morning and remains in federal custody pending a preliminary hearing and detention hearing, both scheduled for tomorrow morning.
Anchondo’s arrest was announced by U.S. Attorney Damon P. Martinez, Special Agent in Charge Thomas G. Atteberry of the Phoenix Field Division of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Chief Tom Romero of the Bernalillo Police Department, Chief Gorden Eden, Jr., of the Albuquerque Police Department (APD), and Chief Michael Geier of the Rio Rancho Police Department.
The criminal complaint alleges that Anchondo unlawfully possessed a firearm and ammunition on Oct. 6, 2015, in Sandoval County, N.M. According to the criminal complaint, on Oct. 6, 2015, a resident of the Town of Bernalillo called the Bernalillo Police Department to report a stolen vehicle. The victim reported that Anchondo stole the vehicle after threatening to kill her; Anchondo allegedly was armed when he made the threat. Officers responded to the call and located the vehicle parked in the driveway of another residence in Bernalillo. In response to an inquiry from the officers, an occupant of the residence allegedly said that Anchondo was in the residence.
According to the criminal complaint, officers conducted surveillance at the residence until they observed Anchondo leave the residence. Anchondo allegedly held a firearm under his chin as he walked to and got into the stolen vehicle. Anchondo then fled from the area and eventually got stuck in a muddy area. Anchondo was taken into custody after he allegedly fled on foot to another residence. Thereafter the officers allegedly found a revolver in the stolen vehicle that was abandoned in the mud.
According to court records, on Oct. 6, 2015, Anchondo was prohibited from possessing firearms or ammunition because he previously had been convicted of the following felony offenses in state court: armed robbery with a deadly weapon, attempted robbery with a deadly weapon, and being a felon in possession of a firearm.
If convicted of the charge in the criminal complaint, Anchondo faces a statutory maximum penalty of ten years in federal prison. Charges in criminal complaints are mere accusations. Defendants are presumed innocent unless found guilty in a court of law.
This case was investigated by the ATF office in Albuquerque and the Bernalillo Police Department with assistance from the Albuquerque Police Department and the Rio Rancho Police Department. It is being prosecuted by Assistant U.S. Attorney Kimberly A. Brawley as part of a federal anti-violence initiative that targets “the worst of the worst” offenders for federal prosecution. Under this initiative, the U.S. Attorney’s Office and federal law enforcement agencies work with New Mexico’s District Attorneys and state, local and tribal law enforcement agencies to target violent or repeat offenders based on their criminal histories for federal prosecution with the goal of removing repeat offenders from communities in New Mexico for as long as possible. Because New Mexico’s violent crime rates, on a per capita basis, are amongst the highest in the nation, New Mexico’s law enforcement community is collaborating to target repeat offenders from counties with the highest violent crime rates, including Bernalillo County, under this initiative.
Operator of Botnet and Elite, International Hacking Forums Extradited from Italy to Face Hacking Charges in New JerseyRead the Press Release
Defendant Operated Army of More Than 13,000 Infected Computers and Administered Two Criminal Online Forums for Computer Hackers
NEWARK, N.J. – A Ukrainian citizen is scheduled to appear in Newark federal court today after being extradited from Italy to face charges that he participated in an international conspiracy to hack into the computer networks of individual users and corporations to steal log-in credentials and payment card data, U.S. Attorney Paul J. Fishman announced.
Sergey Vovnenko, a/k/a “Sergey Vovnencko,” “Tomas Rimkis,” “Flycracker,” “Flyck,” “Fly,” “Centurion,” “MUXACC1,” “Stranier,” and “Darklife,” 29, most recently of Naples, Italy, is charged by indictment with one count of wire fraud conspiracy, one count of unauthorized computer access, and four counts of aggravated identity theft. Vovnenko will appear today before U.S. Magistrate Judge Mark Falk. An arraignment has been scheduled for 2:00 p.m., Oct. 19, 2015, before U.S. District Judge Esther Salas in Newark federal court.
Vovnenko was arrested on June 13, 2014, following an international investigation led by the U.S. Secret Service in coordination with Italian law enforcement. He had been detained by the Italian authorities pending the resolution of extradition proceedings, which he contested for more than 15 months.
“As described in the indictment, Vovnenko commandeered thousands of computers to create a virtual army of hacked computers that he and his conspirators used to break into other networks and steal valuable information,” U.S. Attorney Fishman said. “Thanks to the work of our law enforcement partners here and in Italy, he is now in America to answer for his alleged crimes.”
“Over the course of our 150-year history, the Secret Service has evolved into an agency recognized worldwide for its investigative expertise and innovative approaches in detecting, investigating and protecting our nation’s critical financial infrastructure,” Secret Service Director Joseph P. Clancy said. “This case demonstrates the continued commitment of our cyber investigators and showcases the successful results of partnering with our international law enforcement colleagues. Our investigative reach will continue to expand beyond geographical borders despite the perceived anonymity these cybercriminals mistakenly think they enjoy.”
According to documents filed in this case and statements made in court:
From September 2010 through August 2012, Vovnenko and his conspirators operated an international criminal organization that hacked into the computers of individual users and companies located in the United States and elsewhere. They used that access to steal data, including, user names and passwords for bank accounts and other online services, as well as debit and credit card numbers and related personal identifying information.
To steal this data, Vovnenko operated a “botnet” – more than 13,000 computers infected with malicious computer software – programmed to gain unauthorized access to computers and to identify, store, and export information from hacked computers. A number of the infected computers were located in New Jersey. After stealing this data, Vovnenko and his conspirators used that information to illegally access and withdraw money from bank accounts and to incur unauthorized charges.
Vovnenko was also a high-level administrator of several online criminal forums and used his position to traffic in the data he stole as part of the conspiracy. These forums featured electronic bulletin boards, which members used to publicly communicate with all members and also send private messages directly to individual members. The public and private discussions on these forums typically pertained to criminal activity, including the purchase, sale, and use of stolen log-in credentials and payment card data, as well as discussions related to cybercrime activity such as malicious computer hacking. For example, in August 2012, one of the forums offered various illicit products for sale, including access to compromised computer servers located in the United States. A price was listed for each product, and customers could click an “order” button and purchase the product using “credits” associated with their accounts.
The maximum potential penalties for each count are as follows:
Count
Violation
Maximum Penalty
1
Wire Fraud Conspiracy
30 years in prison and a fine of the greater of $1 million or twice the gain or loss from the offense
2
Unauthorized Computer Access
Five years in prison and a fine of the greater of $250,000 or twice the gain or loss from the offense
3-6
Aggravated Identity Theft
Mandatory two years (consecutive to any other imposed sentence) in prison and a fine of the greater of $250,000 or twice the gain or loss from the offense
U.S. Attorney Fishman credited the special agents of the U.S. Secret Service, Criminal Investigations, under the direction of Director Joseph P. Clancy, and special agents from the Newark Division, under the direction of Special Agent in Charge Carl Agnelli, with the ongoing investigation leading to today’s charges.
He also thanked the Department’s Office of International Affairs in Washington and its attaché in Rome; the Office of the U.S. Ambassador to the Italian Republic and the Republic of San Marino, John R. Phillips; and the Italian Ministry of Justice and Italian law enforcement officials for their extraordinary support.
The government is represented by Assistant U.S. Attorney Daniel Shapiro of the Computer Hacking and Intellectual Property Section of the Economic Crimes Unit.
The charges and allegations contained in the indictment are merely accusations, and the defendant is considered innocent unless and until proven guilty.
New York Man Sentenced to 2 Years in Prison for Role in Tax Fraud and Identity Theft SchemeRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that, CESAR PENSON-PEREZ, 28, of New York, N.Y., was sentenced today by Chief U.S. District Judge Janet C. Hall in New Haven to 24 months of imprisonment, followed by three years of supervised release, for participating in a stolen identity tax refund fraud scheme that resulted in a loss of more than $7.5 million from the U.S. Treasury.
According to court documents and statements made in court, this matter stems from an investigation into individuals who, through various means, obtained fraudulent U.S. Treasury tax refund checks using stolen identities. After obtaining the checks, individuals sold them for less than face value of the checks, or deposited them into bank accounts that had been opened using fraudulent identifying documents. The funds were then quickly withdrawn from the bank accounts.
The investigation revealed that Julio Lara Trinidad, a resident of Waterbury, and his co-conspirators opened at least 59 bank accounts in the names of identity theft victims, deposited U.S. Treasury tax refund checks into the accounts, and then quickly withdrew the funds, resulting in more than $663,000 in loss to the U.S. Treasury. Between December 2012 and February 2013, one of the accounts was used to purchase six licenses for a brand of tax preparation software. These licenses were used to file more than 36,000 federal income tax returns, seeking more than $234 million in federal tax refunds intended to be issued to Trinidad and his co-conspirators. Nearly $6.8 million in fraudulent refunds were issued before the scheme was identified.
On May 15, 2015, PENSON-PEREZ pleaded guilty to one count of theft of public money and admitted that he worked with Trinidad to open bank accounts using fraudulent identities, deposit stolen checks into the accounts and withdraw the resulting funds.
PENSON-PEREZ was found to be responsible for a loss of $360,026.66, and he was ordered to pay restitution in that amount.
Trinidad pleaded guilty to one count of theft of public money and one count of aggravated identity theft and, on May 26, 2015, was sentenced to 144 months of imprisonment.
Four other individuals were convicted of charges stemming from this scheme.
This matter was investigated by the Internal Revenue Service – Criminal Investigation Division, U.S. Postal Inspection Service, U.S. Secret Service and Homeland Security Investigations, with the assistance of the Danbury and Darien Police Departments. The case was prosecuted by Assistant U.S. Attorney Sarala V. Nagala.
New Hampshire Woman Sentenced to 15 Months in Federal PrisonRead the Press Release
CONCORD, N.H. – Misty Maciejewski, a 36-year-old resident of Northfield, New Hampshire, was sentenced to 15 months in in federal prison after pleading guilty in June 2015 to falsely obtaining health care benefits from the U.S. Department of Veterans Affairs Health Administration (VHA), announced Acting U.S Attorney Donald Feith. Maciejewski was also sentenced to three years of supervised release that will begin when she is released from prison. During the period of supervised release, Maciejewski’s activities will be supervised by the United States Probation and Pretrial Services Office.
In an application for health care benefits that Maciejewski submitted to the VHA on October 3, 2012, Maciejewski falsely claimed to be a veteran of the U.S. Army and that she was honorably discharged after serving in combat. The application was mistakenly approved by the VHA due to an administrative error. After the application was approved, Maciejewski received VHA medical benefits totaling $29,442.13. The benefits were paid to a half-way house in Boston, Massachusetts, to non-VA medical providers in Massachusetts and New Hampshire, and applied to medical services Maciejewski received from VA hospitals in Boston and Manchester, New Hampshire.
Maciejewski was also order to repay $29,442.13 to the VHA.
“More than 8.7 million honorably discharged veterans receive medical benefits for their service related injuries and illnesses at VA and non-VA medical facilities,” stated Acting United States Attorney Donald Feith. “Those who would engage in fraud and illegally obtain benefits cause harm to the entire program and cause injury to those true veterans who deserved our support. Our office will work with law enforcement to protect the integrity of these benefit programs and bring to justice those who scheme to defraud those programs.”
The case was investigated by the Department of Veterans Affairs, Criminal Investigation Division and prosecuted by AUSA Robert M. Kinsella.
Mescalero Apache Man Pleads Guilty to Federal Assault ChargeRead the Press Release
ALBUQUERQUE – David Charles Prins, 47, a member of the Mescalero Apache Nation, pled guilty Friday afternoon in Las Cruces, N.M., to a federal assault charge.
Prins was arrested on April 24, 2015, on a criminal complaint that charged him with assault by striking resulting in serious bodily injury. According to the complaint, on Sept. 19, 2014, security guards at the Inn of the Mountain Gods Hotel responded to a disturbance in Prins’ hotel room, where they allegedly found Prins in bloody clothes and the victim unconscious on the floor covered in blood. As a result of her injuries, the victim had to have her ear sewn and she suffered facial bone fractures.
Prins was subsequently charged by indictment on June 17, 2015, with assault resulting in serious bodily injury which occurred on Sept. 19, 2014, in Otero County, N.M. During Friday’s proceedings, Prins entered a guilty plea to the indictment without the benefit of a plea agreement.
At sentencing, Prins faces a statutory maximum penalty of ten years in prison followed by up to three years of supervised release. Prins remains in custody pending a sentencing hearing which has yet to be scheduled.
This case was investigated by the Mescalero Agency of the BIA’s Office of Justice Services and is being prosecuted by Assistant U.S. Attorney Amanda Gould of the U.S. Attorney’s Las Cruces Branch Office.
The case was brought pursuant to the Tribal Special Assistant U.S. Attorney (Tribal SAUSA) Pilot Project in the District of New Mexico which is sponsored by the Justice Department’s Office on Violence Against Women under a grant administered by the Pueblo of Laguna. The Tribal SAUSA Pilot Project seeks to train tribal prosecutors in federal law, procedure and investigative techniques to increase the likelihood that every viable violent offense against Native women is prosecuted in either federal court or tribal court, or both. The Tribal SAUSA Pilot Project was largely driven by input gathered from annual tribal consultations on violence against women, and is another step in the Justice Department's on-going efforts to increase engagement, coordination and action on public safety in tribal communities.
Mercer County man sentenced for possessing child pornographyRead the Press Release
BLUEFIELD, W.Va. – A 31-year old Mercer County man received eight years and one month in federal prison, after pleading guilty to possession of child pornography, U.S. Attorney Booth Goodwin announced. Lindsey Dale Bowling, of Princeton, West Virginia was sentenced before Senior United States District Court Judge David A. Faber in Bluefield. After Bowling is released from prison, he will be on supervised release for 20 years.
Bowling admitted that on November 21, 2013, he possessed images and videos of prepubescent minors engaged in sexual acts. The images were on his personal computer located at his residence in Princeton, West Virginia. The investigation further revealed that defendant was using a peer-to-peer file sharing program to download child pornography and that he transferred some of the child pornography images and videos to discs.
The West Virginia Internet Crimes Against Children Task Force and the Mercer County Sheriff’s Department conducted the investigation. Assistant United States Attorney Lisa G. Johnston is in charge of the prosecution.
This case is being brought as part of U.S. Attorney Goodwin’s ongoing initiative to combat child sexual exploitation and abuse in the Southern District of West Virginia.
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Melville man pleads guilty to possessing child pornographyRead the Press Release
LAFAYETTE, La. – United States Attorney Stephanie A. Finley announced that a Melville man pleaded guilty last week to storing child pornography on electronic devices.
Russell Guillory, 34, of Melville, La., entered a conditional guilty plea Friday for one count of possession of child pornography before U.S. Magistrate Judge Patrick Hanna. The plea will become final when accepted by U.S. District Judge Richard T. Haik. According to the guilty plea, Guillory’s home was searched in January of 2015. The investigation uncovered four electronic devices Guillory owned containing 75 videos and six images of child pornography.
Guillory faces up to 10 years in prison, five years to life supervised release and a $250,000 fine. He is also required to register as a sex offender and forfeit the devices and images seized during the investigation. A sentencing date was not set.
Homeland Security Investigations and the Louisiana State Police investigated the case. Assistant U.S. Attorneys Jamilla A. Bynog and John Luke Walker are prosecuting the case.
This case is part of Project Safe Childhood, a U.S. Department of Justice nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood combines federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
U.S. Department of Homeland Security/Homeland Security Investigations/Immigration & Customs Enforcement (ICE) also encourages the public to report suspected child predators and any suspicious activity through its toll-free hotline at (866) DHS-2ICE. Investigators are available at all hours to answer hotline calls. Tips or other information can also be submitted to ICE online by visiting their website at www.ice.gov/exec/forms/hsi-tips/tips.asp or through the Operation Predator smartphone application (http://www.ice.gov/predator/smartphone-app). Tips also may be submitted anonymously.
Media advisoryRead the Press Release
INDIANAPOLIS--United States Attorney Josh Minkler will hold a press conference TODAY, October 13, 2015, at 1:00 pm, at the former site of the Outlaw Motorcycle Clubhouse, 305 North Jefferson Avenue, Indianapolis, IN. The clubhouse will be demolished as part of a federal asset forfeiture procedure.
Minkler will be joined by U.S. Marshal Kerry Forrestal, officials from the FBI, IRS, IMPD, ISP and Mayor Ballard’s Office. This will be an outdoor event.
McLean Man Sentenced to Prison for Gold Investment Fraud SchemeRead the Press Release
ALEXANDRIA, Va. – Philip Barnard, Jr., 54, of McLean, was sentenced today to 63 months in prison, followed by three years of supervised release for one count of wire fraud and three counts of money laundering for his role in a gold investment fraud scheme involving multiple investors and up to $1 million in investor deposits. Barnard was also ordered by the court to pay $816,612 in restitution to victims.
Barnard pleaded guilty on July 22, 2015; three days into trial and after prosecutors had presented 10 witnesses and entered over 200 exhibits into evidence. According to court documents, Barnard owned and operated various companies that purportedly were in the business of coordinating gold transactions. Barnard claimed to have a global clientele including foreign governments, the world’s richest private investors, foreign private banks, and major purchasers of precious metals. Barnard solicited funds from investors through false and misleading representations regarding the use of funds, the amount of return on the investments, and the risk associated with investment of the funds. He also misrepresented that investors would receive minimum and/or guaranteed profits. For example, Barnard told one victim, “This opportunity involves no risk of losing your investment due to the nature of how we take possession of the bullion we work with ... And, remember, I would never allow you to lose one dime.” Barnard guaranteed short term returns as high as 1,500 percent.
According to court documents, Barnard sent charts, graphs, and certificates related to the purported investment designed to lull investors into a false sense of profitability. Unknown to investors, Barnard spent investment funds on personal expenses including private school tuition, personal vehicles, jewelry, and travel. After the investments failed to yield any profit, Barnard lied to investors about the security of their funds. For example, although he had already spent their funds on personal use, Barnard told one investor, “Your investment is in good hands. All of the assurances that I made to you are real. You can rely on my statements.” When some investors contemplated contacting law enforcement authorities, Barnard coerced them into signing agreements that claimed to immunize him from any civil or criminal liability. Ultimately, investors suffered losses up to $1 million.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Paul M. Abbate, Assistant Director in Charge of the FBI’s Washington Field Office; and Colonel Edwin C. Roessler, Jr., Fairfax County Chief of Police, made the announcement after sentencing by U.S. District Judge Leonie M. Brinkema. Assistant U.S. Attorneys Uzo Asonye and Christopher Catizone 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. 1:15-cr-60.
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Massachusetts Man Sentenced in Robbery SpreeRead the Press Release
CONCORD, N.H. – Acting United States Attorney Donald Feith announced today that Rafael Beamud, age 34, formerly of Lowell, Massachusetts, was sentenced in U.S. District Court in connection with pharmacy robberies in Nashua and Manchester in 2013. During a hearing before U. S. District Judge Joseph A. DiClerico, Beamud was sentenced to a prison term of 25 years and 1 day and a supervision term of 5 years upon his release from U.S. Bureau of Prisons custody. He was also ordered to make full restitution to the victims of both robberies.
On May 28, 2015, Beamud admitted guilt to using a firearm during the commission of a robbery at CVS Pharmacy in Nashua on March 25, 2013 and to the robbery of a CVS Pharmacy in Manchester on April 22, 2013. Beamud was arrested on April 23, 2013 in Salem, NH while operating his motor vehicle, in which the firearm was discovered. He has been in custody since his arrest.
The investigation was conducted by the DEA Tactical Diversion Group located in Worcester, MA, and the Nashua, Manchester and Salem, NH Police. The case was prosecuted by Assistant U.S. Attorney Robert J. Veiga.
Man Sentenced to Prison for Motion Picture Tax Credit ScamRead the Press Release
BATON ROUGE, LA - United States Attorney Walt Green announced that MATTHEW KEITH, age 38, was sentenced today by Chief U.S. District Judge Brian A. Jackson to 6 months in federal prison and ordered to pay $1,200,000 in restitution to the State of Louisiana.
KEITH previously pled guilty to one count of conspiracy to commit wire fraud in connection with a scheme to defraud the State of Louisiana’s Motion Picture Industry Development Tax Credit Program ("Tax Credit Program"). At his guilty plea, KEITH admitted that he owned and operated Dirty District Entertainment, LLC, which provided technical services for the productions of motion pictures. KEITH admitted that he conspired with at least one other person to present falsely inflated expenditures to the State of Louisiana in the application for film tax credits.
Between June 10, 2009 and March 31, 2010, a co-conspirator applied for, and received, tax credits from the Louisiana Economic Development Office ("LED") for various movies. The LED is a state entity with the mission to lead economic development for the State of Louisiana. LED operated the Tax Credit Program, which was designed to entice production companies to shoot films and video productions in Louisiana. The Tax Credit Program provided a 30% tax credit on qualified expenditures for the production of films in Louisiana. Once issued by LED, the tax credits were fully transferable. In this case, however, KEITH admitted that he conspired with at least one other individual to make a series of financial transfers, which were later used to falsely reflect $4,000,000 of expenditures that had purportedly been incurred in motion picture productions. These false expenditures allowed a co-conspirator to be awarded tax credits, and KEITH admitted that the co-conspirator was not entitled to $1,200,000 of the tax credits he received.
This investigation was conducted by the Federal Bureau of Investigation and the Louisiana Inspector General’s Office. The matter is being prosecuted by Assistant United States Attorney Frederick A. Menner, Jr.
Madison County Man Charged with Sex and Drug TraffickingRead the Press Release
TALLAHASSEE, FLORIDA – A federal grand jury returned an indictment charging Joseph-Michael Elias McFarland, 21, of Madison, Florida, with sex trafficking of a minor and with drug trafficking. McFarland was arraigned today in the United States District Court in Tallahassee. The indictment was announced by Christopher P. Canova, Acting United States Attorney for the Northern District of Florida.
The indictment alleges that, in September 2015, in the Northern District of Florida, McFarland knowingly enticed a person less than 18 years of age to engage in a commercial sex act, and that he knowingly distributed methylone. The trial is scheduled for December 14, 2015, at 8:15 a.m.
This case resulted from investigations by the United States Immigration and Customs Enforcement Homeland Security Investigations, the Tallahassee Police Department, and the Madison County Sheriff’s Office. It is being prosecuted by Assistant United States Attorney Michael J. Harwin.
An indictment is merely an allegation by a grand jury that a defendant has committed a violation of federal criminal law and is not evidence of guilt. All defendants are presumed innocent and entitled to a fair trial, during which it will be the government’s burden to prove guilt beyond a reasonable doubt at trial.
The United States Attorney's Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. The office strives to protect and serve the citizens of the Northern District of Florida through the ethical, vigorous, and impartial enforcement of the laws of the United States, to defend the national security, to improve the safety and quality of life in our communities through the protection of civil rights, and to protect the public funds and financial assets of the United States. To access public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
For more information, contact:
Amy Alexander, Public Information Officer
(850) 216-3854, [email protected]Louisiana Residents Sentenced for Involvement in Stolen Identity Tax Fraud SchemeRead the Press Release
Two residents of Hammond, Louisiana, were sentenced for their involvement in a stolen identity tax fraud scheme, Acting Assistant Attorney General Caroline D. Ciraolo of the Justice Department’s Tax Division and U.S. Attorney Kenneth A. Polite of the Eastern District of Louisiana announced today.
Angela Chaney, 43, was sentenced by U.S District Judge Jay C. Zainey of the Eastern District of Louisiana to serve 36 months in prison to be followed by three years of supervised release. Craig Lewis, 40, was sentenced by Judge Zainey to serve three years of probation. Chaney and Lewis each pleaded guilty to one count of a multi-object conspiracy to defraud the United States and to commit theft of public money and mail fraud on July 2 and June 23, respectively. Chaney additionally pleaded guilty to one count of aggravated identity theft. Their restitution to the Internal Revenue Service (IRS) will be determined at a later date.
According to court documents, Chaney, Lewis and their co-defendants conspired to prepare and file false income tax returns using stolen identities, including the victims’ names and social security numbers, to claim large tax refunds. The refund checks were mailed to addresses in Louisiana, including post office boxes that were opened by the co-conspirators. Once the checks were received, Chaney, Lewis and their co-conspirators brought checks to others who falsely endorsed and deposited the refund checks into bank accounts under their control. The co-conspirators then divided the proceeds of the refund checks amongst themselves.
The indictment also charged Cedrick Mitchell, aka Skeet, 40; Corey Lewis, 37; Thaddeus Richardson, 49; and others with conspiracy to defraud the United States, conspiracy to commit money laundering, conspiracy to commit mail fraud and conspiracy to commit theft of public money. Corey Lewis was also charged with three counts of theft of public money and three counts of aggravated identity theft. Mitchell was sentenced to serve 33 months in prison on Sept. 15, Corey Lewis was sentenced to serve 75 months in prison on Sept. 29 and Richardson was sentenced to serve 51 months in prison on Oct. 6. All of the remaining defendants in this case have pleaded guilty to various charges and are awaiting sentencing.
Acting Assistant Attorney General Ciraolo and U.S. Attorney Polite commended special agents of IRS-Criminal Investigation and the U.S. Postal Inspection Service, who investigated the case, and Assistant U.S. Attorneys Hayden Brockett and Dall Kammer of the Eastern District of Louisiana and Trial Attorney Lauren Castaldi of the Tax Division, who are prosecuting the case.
Louisiana Residents Sentenced for Involvement in Stolen Identity Tax Fraud SchemeRead the Press Release
WASHINGTON – Two residents of Hammond, Louisiana, were sentenced for their involvement in a stolen identity tax fraud scheme, Acting Assistant Attorney General Caroline D. Ciraolo of the Justice Department’s Tax Division and U.S. Attorney Kenneth A. Polite of the Eastern District of Louisiana announced today.
Angela Chaney, 43, was sentenced by U.S District Judge Jay C. Zainey of the Eastern District of Louisiana to serve 36 months in prison to be followed by three years of supervised release. Craig Lewis, 40, was sentenced by Judge Zainey to serve three years of probation. Chaney and Lewis each pleaded guilty to one count of a multi-object conspiracy to defraud the United States and to commit theft of public money and mail fraud on July 2 and June 23, respectively. Chaney additionally pleaded guilty to one count of aggravated identity theft. Their restitution to the Internal Revenue Service (IRS) will be determined at a later date.
According to court documents, Chaney, Lewis and their co-defendants conspired to prepare and file false income tax returns using stolen identities, including the victims’ names and social security numbers, to claim large tax refunds. The refund checks were mailed to addresses in Louisiana, including post office boxes that were opened by the co-conspirators. Once the checks were received, Chaney, Lewis and their co-conspirators brought checks to others who falsely endorsed and deposited the refund checks into bank accounts under their control. The co-conspirators then divided the proceeds of the refund checks amongst themselves.
The indictment also charged Cedrick Mitchell, aka Skeet, 40; Corey Lewis, 37; Thaddeus Richardson, 49; and others with conspiracy to defraud the United States, conspiracy to commit money laundering, conspiracy to commit mail fraud and conspiracy to commit theft of public money. Corey Lewis was also charged with three counts of theft of public money and three counts of aggravated identity theft. Mitchell was sentenced to serve 33 months in prison on Sept. 15, Corey Lewis was sentenced to serve 75 months in prison on Sept. 29 and Richardson was sentenced to serve 51 months in prison on Oct. 6. All of the remaining defendants in this case have pleaded guilty to various charges and are awaiting sentencing.
Acting Assistant Attorney General Ciraolo and U.S. Attorney Polite commended special agents of IRS-Criminal Investigation and the U.S. Postal Inspection Service, who investigated the case, and Assistant U.S. Attorneys Hayden Brockett and Dall Kammer of the Eastern District of Louisiana and Trial Attorney Lauren Castaldi of the Tax Division, who are prosecuting the case.
Little Rock Doctor Pleads Guilty to Health Care Fraud Admits to $2.2 Million in Fradulent BillingRead the Press Release
LITTLE ROCK—Christopher R. Thyer, United States Attorney for the Eastern District of Arkansas, David Shepard, Assistant Special Agent in Charge for the Little Rock Field Office of the Federal Bureau of Investigation (FBI), and Special Agent in Charge CJ Porter of U.S. Department of Health and Human Services–Office of Inspector General (HHS–OIG) announced that Dr. Robert Barrow, 62, of Little Rock, pled guilty today to conspiring to commit health care fraud before U.S. District Court Judge J. Leon Holmes.
Dr. Barrow owned and operated a Little Rock medical clinic named "Your Doctor’s Office." At today’s hearing, Dr. Barrow admitted that he conspired with Billy Marc Young, a local massage therapist. Dr. Barrow referred patients to Young and Young’s services were subsequently billed to health insurers under Dr. Barrow’s provider number as if they were physical therapy—even at times when Dr. Barrow himself was out of the state or out of the country in places like Las Vegas, Hawaii, and London. Bills to health insurers ultimately surpassed $2.2 million. In the plea agreement, Dr. Barrow admitted that he abused his position of trust and that his scheme victimized health insurers and former patients alike in that some former patients bore out-of-pocket expenses (for example, co-payments) believing that they were receiving physical therapy.
Young previously pled guilty in April 2014 in connection with Dr. Barrow’s scheme in case number 4:14-cr-00056 DPM.
"Our healthcare system relies on trust," Thyer said. "Insurers process millions upon millions of claims each year on good faith. Doctors and other providers who abuse this trust by submitting fraudulent claims for services that are not properly reimbursable or not provided place the entire system in jeopardy and will be prosecuted to the fullest extent of the law."
"Dr. Barrow’s theft from his patients not only deprived his patients of their money, but also their faith—and the public’s faith—in the health care system," Shepard said. "Today’s sentencing demonstrates the FBI’s resolve to work with our partners at HHS-OIG and the U.S. Attorney’s office to stamp out health care fraud."
"The scam perpetrated by Dr. Barrow defrauded Medicare and private insurers, and it also deprived patients of proper health care," Porter said. "HHS–OIG is dedicated to aggressively investigating this type of criminal activity because of the impact on quality of care and the health care economy as a whole."
Under the terms of the plea agreement, Dr. Barrow is required to pay $702,361.12 in restitution to Medicare and Blue Cross (less what Young pays) and up to $100,000 to former patients who bore out-of-pocket expenses believing that they were receiving physical therapy. In exchange, the United States has agreed to dismiss all remaining charges against Dr. Barrow and his wife, Dr. Angela Barrow.
Conspiracy to commit health care fraud is punishable by up to ten years’ imprisonment, a $250,000 fine, and not more than three years’ supervised. Sentencing before Judge Holmes will follow at a later date.
The case was the result of a multi-year joint investigation by the FBI and HHS-OIG. It was prosecuted by Assistant United States Attorneys Alex Morgan and Shannon Smith.
Last Two Members of the Jamal Dean Getaway Team SentencedRead the Press Release
The last two members of the Jamal Dean Getaway Team were sentenced today in federal court for their roles in obstructing a joint state-federal investigation and search for Jamal Dean in April and May of 2013.
“The arrests, convictions and sentencing’s in both the Jamal Dean case and the related Jamal Dean Getaway Team cases are the result of a law enforcement partners at the federal, state and local levels working together to help make Woodbury County and the surrounding region safer for everyone," said U.S. Attorney for the Northern District of Iowa Kevin W. Techau.
Techau also noted, “We will continue to work side-by-side with our law enforcement partners to vigorously investigate and prosecute those who break the law and particularly those who commit violent offenses.”
Evette Morris-Hernandez, age 34 (a F-13 gang member), of Sioux City, Iowa, and Esteban Hernandez, age 36 (her husband at the time), of Mercedes, Texas, received the sentences after guilty pleas to conspiring to defraud the United States by interfering with the federal investigation of and search for Jamal Dean.
Evidence presented at their guilty plea and sentencing hearings revealed that from about April 30, 2013 to May 5, 2014, the pair moved Jamal Dean from Ingmar Hernandez’s South Sioux City, Nebraska home, to Anna Baker’s home on the Winnebago Indian reservation, to the Palmer House Hotel in Sioux City, Iowa, and ultimately to within 70 miles of the Texas/Mexico Boarder to help him escape the joint state and federal investigation and manhunt of which he was then the subject.
Evette Morris-Hernandez and Esteban Hernandez were sentenced today in Sioux City by United States District Court Judge Mark W. Bennett. Evette Morris-Hernandez was sentenced to 41 months’ imprisonment. A special assessment of $100 was imposed. She must serve a 3-year term of supervised release after the prison term. There is no parole in the federal system.
Esteban Hernandez was sentenced to 6-months’ imprisonment. A special assessment of $100 was imposed. He must serve a one-year term of supervised release after the prison term. There is no parole in the federal system.
Both defendants will surrender to the Bureau of Prisons on a date yet to be set by the Court.
The case was prosecuted as a part of Project Safe Neighborhoods, a cooperative local, state, and federal program aimed at the enhanced prosecution of gun crimes. The case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, Homeland Security Investigations; the United States Marshal’s Service; the Federal Bureau of Investigation, the Iowa Department of Public Safety, the Iowa Department of Transportation, Bureau of Investigation & Identity Protection, the Iowa Division of Criminal Investigations, the Nebraska Department of Public Safety; the Texas Department of Public Safety, the Nebraska State Patrol, the Tri-State Drug Task Force, the Woodbury County, Iowa Sheriff’s Office; the Dakota County, Nebraska Sheriff’s Office; the Sioux City, Iowa Police Department, the South Sioux City, Nebraska Police Department; the North Sioux City, South Dakota Police Department, the Sergeant Bluff, Iowa Police Department, and the Dakota County, Nebraska County Attorney’s Office, and the Woodbury County, Iowa County Attorney’s Office. The case was prosecuted by Assistant United States Attorney Forde Fairchild.
Court file information is available at https://ecf.iand.uscourts.gov. The case file number is 14-4088.
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Las Vegas Woman Found Guilty of Defrauding Southern Illinois Residents in Telemarketing ScamRead the Press Release
Stephen R. Wigginton, United States Attorney for the Southern District of Illinois, announced that late Friday afternoon, a federal jury in East St. Louis found Elpenike Eddy-Aldava, 75, of Las Vegas, NV, guilty of telemarketing fraud. The fraud scheme that Eddy-Aldava participated in victimized individuals throughout the United States, including Southern Illinois.
Evidence at trial showed that for more than 5 years, Eddy-Aldava worked as a telemarketer for a telemarketing business in Las Vegas. Although the business frequently changed names, the two primary names of the business were Showcase Resorts and Vacation Max. Telemarketers from Showcase Resorts and Vacation Max called timeshare owners throughout the United States and offered to help them sell their timeshares. The telemarketers then falsely represented that they had found corporate buyers interested in acquiring blocks of timeshare units and that the victims’ timeshare units could be included in these blocks. In order to participate in this "corporate block," however, the telemarketers told the victims that they had to pay upfront fees, which usually ranged from $2,000 to $3,000. The telemarketers falsely told the victims that these fees were needed to pay closing costs. Instead, the fees were used as revenues for Showcase Resorts and Vacation Max. In addition, the telemarketers were paid a large commission for each fraudulent sale. These commissions typically ranged from 40% to 50%.
Because Showcase Resorts and Vacation Max had no corporate buyers, no timeshares were ever sold to any corporations. Showcase Resorts and Vacation Max employed individuals known as "Updaters" to handle all of the calls from customers who called in to ask why their timeshares had not been sold as had been promised. The job of these Updaters was to provide false excuses to the victims in order to string them along and prevent them from contacting their credit card companies and demanding their money back.
The scheme operated from at least December 5, 2006 until January 24, 2012. The losses caused by the scheme exceeded $11,000,000.
"These telemarketing scams are truly reprehensible," United States Attorney Wigginton stated. "These scam artists reach their tentacles into people’s homes and steal money by lying to those in need. When scammers reach out and steal from the citizens of Southern Illinois, we are going to aggressively prosecute them."
In May 2013, the owner of Vacation Max, Michael Patrick Sullivan, was indicted. Sullivan pled guilty and on January 9, 2015, was sentenced to 5 years in prison. Three other telemarketers from the scheme (John Nicosia, Robert Kelly Mathews, and Rebecca Mars), as well as one of the Updaters (Patrick Nosack) were also charged. Both Nicosia and Mathews pled guilty and were sentenced to prison. Nosack also pled guilty and is scheduled to be sentenced on November 19, 2015. Rebecca Marrs’ trial is scheduled to begin on January 26, 2016.
The sentencing hearing for Eddy-Aldava is scheduled for February 4, 2015, at 9:30 a.m. Eddy-Aldava is subject to a term of imprisonment of up to 25 years, a fine of $250,000 and five years of supervised release. In addition, Eddy-Aldava can be ordered to pay restitution to the victims of her crime.
The case against Eddy-Aldava is one of approximately 80 cases prosecuted by the U.S. Attorney's Office for the Southern District of Illinois relating to timeshare resale fraud and part of an ongoing investigation by the St. Louis Field Office of the Chicago Division of the United States Postal Inspection Service.
The prosecution of this case is being handled by Assistant United States Attorney Scott Verseman and Special Assistant United States Attorney Vanessa Lu.
Las Cruces Man Pleads Guilty to Federal Heroin Trafficking ChargeRead the Press Release
ALBUQUERQUE – Jared Alan Slyh, 33, of Las Cruces, N.M., pled guilty Friday afternoon in federal court in Las Cruces to a heroin trafficking charge. Under the terms of his plea agreement, Slyh will be sentenced to 24 months in prison followed by a term of supervised release to be determined by the court.
Slyh was arrested on June 16, 2015, and charged by criminal complaint with distributing heroin and participating in a heroin distribution conspiracy. According to the complaint, Slyh provided 353.4 grams of heroin to an undercover law enforcement officer on June 3, 2015.
During Friday’s proceedings, Slyh pled guilty to a felony information charging him with possession of heroin with intent to distribute. Slyh remains in custody pending a sentencing hearing which has yet to be scheduled.
This case was investigated by the Las Cruces office of the DEA and is being prosecuted by Assistant U.S. Attorney Amanda Gould of the U.S. Attorney’s Las Cruces Branch Office.
This case is being prosecuted pursuant to the New Mexico Heroin and Opioid Prevention and Education (HOPE) Initiative. The HOPE Initiative is a collaboration between the U.S. Attorney’s Office and the University of New Mexico Health Sciences Center that is partnering with the Bernalillo County Opioid Accountability Initiative with the overriding goal of reducing the number of opioid-related deaths in the District of New Mexico. The HOPE Initiative comprised of five components: (1) prevention and education; (2) treatment; (3) law enforcement; (4) reentry; and (5) strategic planning. The law enforcement component of the HOPE Initiative is led by the Organized Crime Section of the U.S. Attorney’s Office and the DEA in conjunction with their federal, state, local and tribal law enforcement partners. Targeting members of major heroin trafficking organizations for investigation and prosecution is a priority of the HOPE Initiative.
Justice Department Files Lawsuit Against Nebraska Beef to Enforce Civil Rights SettlementRead the Press Release
The Justice Department announced today the filing of a lawsuit against Nebraska Beef Ltd., which is headquartered in Omaha, Nebraska, for failing to comply with the terms of a settlement agreement that the parties entered to resolve a civil rights investigation.
The complaint alleges that Nebraska Beef entered into a settlement agreement with the Justice Department on Aug. 24, 2015, to resolve the department’s investigation into whether Nebraska Beef was discriminating against work-authorized non-citizens. The agreement requires Nebraska Beef to pay $200,000 as a civil penalty, and also to compensate affected workers who present valid claims for backpay, among other terms. Although Nebraska Beef’s civil penalty payment was due ten business days after the agreement was signed by both parties, the company has failed to make any payments. Nebraska Beef has stated that it will not comply with almost all of the terms of the agreement because it feels that the department’s press release announcing the agreement should have been worded differently. The parties’ agreement, however, does not contain any terms or provisions restricting the language in the department’s press release.
“The Department of Justice will take swift action not only when an employer discriminates against its employees, but also when an employer fails to live up to its end of an agreement,” said Principal Assistant Attorney General Vanita Gupta, head of the Civil Rights Division. “It is important that employers understand and abide by their duties not to engage in discriminatory practices, and honor their commitments under a settlement.”
The Justice Department’s Office of Special Counsel for Immigration-Related Unfair Employment Practices (OSC) is responsible for enforcing the anti-discrimination provision of the Immigration and Nationality Act (INA), which was the subject of the department’s investigation of Nebraska Beef. Among other things, the statute prohibits citizenship status and national origin discrimination in hiring, firing or recruitment or referral for a fee; unfair documentary practices; retaliation; and intimidation. The INA’s anti-discrimination provision prohibits employers from discriminating against people with permission to work in the United States because of their citizenship status, including by asking non-citizens to present more or different documents than necessary to prove their authorization to work in the United States.
For more information about protections against employment discrimination under immigration laws, call OSC’s worker hotline at 1-800-255-7688 (1-800-237-2515, TTY for hearing impaired); call OSC’s employer hotline at 1-800-255-8155 (1-800-237-2515, TTY for hearing impaired); sign up for a free webinar at www.justice.gov/crt/about/osc/webinars.php, email [email protected]; or visit OSC’s website at www.justice.gov/crt/about/osc.
Jackson Man Sentenced to Prison for Possession of a Firearm by Convicted FelonRead the Press Release
Jackson, Miss. – Antonio Anderson, 24, of Jackson, was sentenced on October 13, 2015, by U.S. District Judge Daniel P. Jordan III, to 82 months in prison followed by 3 years of supervised release for possessing a firearm after having previously been convicted of a felony, announced U.S. Attorney Gregory K. Davis. Anderson pled guilty to the charge on July 23, 2015. His previous felony conviction was in Hinds County Circuit Court for house burglary.
On October 28, 2014, members of the Jackson Police Department received information that a vehicle was in the process of being burglarized in the Highland Village parking lot. Police officers responded to Highland Village and then pursued the suspect’s vehicle for approximately four miles to an area near Pleasant and Illinois Avenues. Anderson was observed by officers running with two firearms into a nearby house. Anderson and the two firearms were found inside the house. One of the firearms discovered during the search of the house had been stolen from the vehicle during the burglary at Highland Village.
Anderson was indicted as part of the Jackson Violent Crime Initiative, a joint initiative between federal, state and local law enforcement agencies who are working together to reduce violent crime in the city of Jackson and to remove violent offenders from the streets of this community. The Initiative is an ongoing operation aimed at making the streets of Jackson and the surrounding communities safe for all citizens. Jackson Violent Crime Initiative partners include the Jackson Police Department, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Federal Bureau of Investigations (FBI), Drug Enforcement Administration (DEA), U.S. Marshals Service, Homeland Security Investigations, U.S. Postal Inspection Service, and U.S. Secret Service.
This case was investigated by the ATF and the Jackson Police Department. It was prosecuted by Assistant U.S. Attorney Patrick Lemon.
Isaiah C. Fisher Sentenced for RobberyRead the Press Release
SOUTH BEND – United States Attorney for the Northern District of Indiana, David Capp, announced that Isaiah C. Fisher, 34, of Michigan City, Indiana, was sentenced today in federal court by Judge Robert L. Miller, Jr for robbery of a credit union.
Fisher was sentenced to 188 months’ imprisonment, 3 years supervised release and ordered to pay $11,460.00 in restitution.
According to documents in the case, on April 16, 2015, at around 10:49 A.M., Fisher entered a credit union located in Michigan City, Indiana, jumped over a teller counter and announced that the place was being robbed. Fisher told police that he carried a box cutter into the Credit Union and fashioned the covering over the box cutter to resemble a firearm. The funds of the institution are insured by the National Credit Union Administration, a federal entity. The total amount of loss reported by bank personnel was $11,460.
This case was the result of an investigation by Federal Bureau of Investigation and the Michigan City Police Department. The case was handled by the Assistant United States Attorney William T. Grimmer.
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Iraqi-Born US Citizen Admits Making False Statement to FBIRead the Press Release
DALLAS – A Mesquite, Texas man, Bilal Abood, 37, appeared this morning before U.S. Magistrate Judge Irma C. Ramirez and pleaded guilty to a superseding indictment charging one count of making a false statement to a federal agency, announced Assistant Attorney General for National Security John P. Carlin, U.S. Attorney John Parker of the Northern District of Texas and Special Agent in Charge Thomas M. Class Sr. of the FBI’s Dallas Field Office.
Abood faces a maximum statutory penalty of eight years in federal prison and a $250,000 fine. He has been in federal custody since his arrest in May 2015 by special agents with the FBI on a related criminal complaint. A sentencing date was not set.
According to plea documents filed in the case, Abood admits that on March 29, 2013, he attempted to depart the U.S. at Dallas Fort Worth International Airport, but was not allowed to board the international flight. While at the airport, FBI special agents asked Abood about his planned travel, and he stated he was merely planning to travel to Iraq to visit family. During a subsequent interview, Abood admitted to FBI special agents that his intent on March 29, 2013, was to travel to Syria to fight the regime of Bashar Al Assad.
On approximately April 29, 2013, Abood left the U.S. through Mexico and traveled through various countries into Syria. On September 16, 2013, Abood returned to the U.S. and admitted to FBI special agents that he had traveled to Syria, but he denied supporting any terrorist groups.
A search warrant was executed on Abood’s computer on July 9, 2014. A review of that computer revealed that on approximately June 19, 2014, Abood stated, while using his Twitter handle @ibnalislaam, “I pledge obedience to the Caliphate Abu Bakr al-Baghdadi.” Abood stipulated that Abu Bakr al-Baghdadi is the self-proclaimed leader of ISIL and was designated as a Specially Designated Global Terrorist on October 4, 2011, and remains so to date.
Abood admits that on April 14, 2015, FBI special agents advised him that lying to a federal agent is a crime. He further stipulates that on that date, he falsely told FBI special agents that he had never pledged allegiance to Abu Bakr-al-Baghdadi. He also stipulates that he was aware the FBI special agents were investigating a matter that they suspected could involve international terrorism.
The FBI’s Dallas Division is investigating the case. The prosecution is being handled by the U.S. Attorney’s Office for the Northern District of Texas, with assistance from the National Security Division’s Counterterrorism Section.
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International Fugitive Arrested for Role in Multi-Million Dollar Health Care Fraud SchemeRead the Press Release
A Cuban national who had been wanted since 2013 on charges relating to a multi-million dollar health care fraud scheme was arrested on Friday, Oct. 9, 2015, when he arrived in Miami on a flight from Cuba.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney A. Lee Bentley III of the Middle District of Florida, Special Agent in Charge Paul Wysopal of the FBI’s Tampa Division and Special Agent in Charge Shimon Richmond of the U.S. Department of Health and Human Services Office of Inspector General’s (HHS-OIG) Miami Regional Office made the announcement.
Ubert Guillermo Rodriguez, aka Ubert Guillermo Rodriguez Sigler, 47, of Cuba, was charged by indictment, returned on July 31, 2013, with 14 counts of health care fraud. The indictment was unsealed today following his initial appearance in the Southern District of Florida.
According to the indictment, Rodriguez was the president and owner of G.R. Services Equipment & Supplies Inc. (G.R. Services), a Largo, Florida, company that purported to provide durable medical equipment to Medicare beneficiaries. The indictment alleges that, between May and July 2013, Rodriguez caused G.R. Services to submit to Medicare approximately $2,579,695 in false and fraudulent claims seeking reimbursement for durable medical equipment that was not prescribed by doctors and not provided to beneficiaries. For example, according to the indictment, G.R. Services sought thousands of dollars in reimbursement for wound therapy electrical pumps and sterile collagen dressings purportedly provided in 2013 to Medicare beneficiaries who had died in 2010.
Federal law enforcement agents previously seized from the bank account for G.R. Services approximately $243,339 in proceeds from the health care fraud scheme.
The charges and allegations contained in an indictment are merely accusations. The defendant is presumed innocent until and unless proven guilty.
This case is being investigated by HHS-OIG and the FBI and was brought as part of the Medicare Fraud Strike Force, under the supervision of the Criminal Division’s Fraud Section and U.S. Attorney’s Office of the Middle District of Florida. This case is being prosecuted by Senior Trial Attorney Christopher J. Hunter of the Criminal Division’s Fraud Section.
Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged over 2,300 defendants who collectively have billed the Medicare program for over $7 billion. In addition, the HHS Centers for Medicare and Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
To learn more about the Health Care Fraud Prevention and Enforcement Team, go to: www.stopmedicarefraud.gov.
Guillermo Rodriguez Indictment
Heather Morgan Sentenced for Making False Statements to Federal Law Enforcement in Breakthrough Pain Management InvestigationRead the Press Release
KNOXVILLE, Tenn. -- On Oct. 13, 2015, Heather Morgan, 28, of Maryville, Tenn., was sentenced to serve 18 months in federal prison by the Honorable Thomas A. Varlan, Chief U.S. District Judge. Upon her release from prison, Morgan will serve a two year period of supervised release.
Morgan pleaded guilty to a federal grand jury indictment charging her with making false statements to a federal law enforcement agent. She admitted to lying to law enforcement regarding the location of customer files during the investigation of the Breakthrough Pain Management Clinic (Breakthrough) in Maryville, Tenn.
The co-owners of Breakthrough, along with two family members, were previously convicted for their roles in operating the pain clinic and are currently serving prison terms. The pain clinic ceased operations after raids at several locations by federal and local law enforcement agents in December 2010, when agents seized significant quantities of prescription narcotic pain pills, firearms, and nearly $700,000 in cash.
The investigation into the pill mill case was the collaborative effort of several law enforcement agencies including the Internal Revenue Service, Fifth Judicial Drug Task Force, and Drug Enforcement Administration. Assistant U.S. Attorney Jennifer Kolman represented the United States.
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Hardy County, WV man convicted for role in manufacturing methamphetamineRead the Press Release
ELKINS, WEST VIRGINIA – Johnny Biggs, 36, of Moorefield, West Virginia, was convicted in federal court today for his role in manufacturing methamphetamine, United States Attorney William J. Ihlenfeld, II, announced.
Biggs was discovered in May 2015 in Hardy County, West Virginia in possession of materials commonly used to manufacture methamphetamine. Those materials included a bottle, coffee filters, drain cleaner, batteries, cold medicine, and fuel.
Biggs pled guilty today to one count of “Possession of Material used in the Manufacture of Methamphetamine.” He faces up to 10 years in prison and fine of up to $250,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Stephen Warner prosecuted the case on behalf of the government. The West Virginia State Police investigated.
U.S. Magistrate Judge Michael J. Aloi presided.
Grand Prairie Man Admits Role in Counterfeit Goods Trafficking ConspiracyRead the Press Release
DALLAS — A 31-year-old, Grand Prairie, Texas, man, Evan Patterson, pleaded guilty today in federal court before U.S. Magistrate Judge Irma C. Ramirez to his role in a conspiracy to traffic counterfeit goods, announced U.S. Attorney John Parker of the Northern District of Texas.
Patterson, who remains on bond, pleaded guilty to one count of conspiracy to traffic in counterfeit goods. He faces a maximum statutory sentence of five years in federal prison and a $250,000 fine. Sentencing is set for February 16, 2016, before U.S. District Judge Sam A. Lindsay.
According to documents filed in the case, from approximately January 2010 through December 2013, Patterson and a co-defendant conspired together to knowingly and intentionally traffic in goods they knew bore counterfeit marks. The marks on these goods were spurious and identical, or indistinguishable from trademarks registered for those goods in the U.S. Patent and Trademark Office.
Patterson and his co-defendant imported and sold clothing, apparel, and accessories manufactured by unauthorized suppliers in China that replicated the authentic brand name goods bearing the counterfeit marks of Nike, Ugg, Beats, Burberry, Cartier, Chanel, Christian Dior, Carolina Herrera, New Era, Oakley, Michael Kors, North Face, National Football League, Coach, Gucci, National Basketball Association, Major League Baseball, Ray Ban, Prada, Ralph Lauren, Versace, Vera Wang, White Diamonds, Tory Burch, Armani, True Religion, Rolex, Lacoste, Fendi, Dolce & Gabbana, Hermes, and Louis Vuitton.
Patterson and his co-defendant displayed and sold the counterfeit goods to customers at a showroom and warehouse located on W. Pioneer Parkway in Grand Prairie. They also established and maintained at least 17 websites where customers could order and pay for the goods online. Orders for the goods were directed to suppliers in China, who would then ship the items directly to customers in the U.S.
On June 6, 2013, Patterson sold an undercover federal agent one Louis Vuitton handbag, one Louis Vuitton wallet, one Michael Kors handbag, one Buffalo Bills jersey, one Dallas Cowboys jersey, and one Texas Rangers jersey, all bearing counterfeit marks, for a total of $200.
In November 2013, special agents with U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), executed a federal search warrant at the showroom and seized approximately 750 counterfeit items, including sports jerseys, Nike sports shoes, Ugg boots, and designer handbags, wallets, belts, watches, sunglasses and perfumes, all bearing counterfeit trademarks. Industry representatives confirmed the seized items were counterfeit and the combined estimated Manufacturers Suggested Retail Price (MSRP) was $200,000.
ICE HSI is investigating the case. Assistant U.S. Attorney Christopher Stokes is prosecuting.
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Georgia Man Pleads Guilty to Operating Unlicensed Money Transmitting BusinessRead the Press Release
Defendant Cashed Fraudulent Tax Refund Checks Totaling More than $1.3 Million
A Columbus, Georgia, resident pleaded guilty to one count of operating an unlicensed money transmitting business, Acting Assistant Attorney General Caroline D. Ciraolo of the Justice Department’s Tax Division and U.S. Attorney Michael J. Moore of the Middle District of Georgia announced today.
According to court documents, between February 2013 and March 2014, Sawan Shah, aka Sunny, 43, owned, operated and managed several money transmitting companies in the Columbus area. Shah offered check-cashing services to the public, including cashing checks that exceeded $1,000. Shah knew that he and his companies were required to be registered with Financial Crimes Enforcement Network (FinCEN) and with the state of Georgia. Neither Shah nor any of the businesses he controlled were registered with FinCEN or the state of Georgia as a money transmitting business or as a check cashier.
Several individuals approached Shah about cashing tax refund checks that were issued in the names of other individuals. Shah agreed to do so and did not require proof of identification for the individuals listed on the checks. Shah charged fees between 10 and 30 percent of the check’s worth, due to his knowledge that the checks were involved in tax fraud. In 2013 and 2014, Shah cashed approximately 567 federal tax refund checks that totaled $1,357,476.18. Those refund checks were the result of fraudulent claims for refund submitted in the names of stolen identities.
A sentencing hearing has been scheduled for Jan. 26, 2016. Shah faces a statutory maximum sentence of five years in prison. Shah agreed to a forfeiture order in the amount of $1,357,476.18.
Acting Assistant Attorney General Ciraolo and U.S. Attorney Moore commended special agents of Internal Revenue Service-Criminal Investigation and the U.S. Secret Service, who investigated the case, and Trial Attorney Michael C. Boteler of the Tax Division and Assistant U.S. Attorney Crawford L. Seals of the Middle District of Georgia, who are prosecuting the case.
Additional information about the Tax Division and its enforcement efforts against stolen identity tax refund fraud may be found on the division’s website.
Georgia Man Pleads Guilty to Operating Unlicensed Money Transmitting BusinessRead the Press Release
WASHINGTON – A Columbus, Georgia, resident pleaded guilty to one count of operating an unlicensed money transmitting business, Acting Assistant Attorney General Caroline D. Ciraolo of the Justice Department’s Tax Division and U.S. Attorney Michael J. Moore of the Middle District of Georgia announced today.
According to court documents, between February 2013 and March 2014, Sawan Shah, aka Sunny, 43, owned, operated and managed several money transmitting companies in the Columbus area. Shah offered check-cashing services to the public, including cashing checks that exceeded $1,000. Shah knew that he and his companies were required to be registered with Financial Crimes Enforcement Network (FinCEN) and with the state of Georgia. Neither Shah nor any of the businesses he controlled were registered with FinCEN or the state of Georgia as a money transmitting business or as a check cashier.
Several individuals approached Shah about cashing tax refund checks that were issued in the names of other individuals. Shah agreed to do so and did not require proof of identification for the individuals listed on the checks. Shah charged fees between 10 and 30 percent of the check’s worth, due to his knowledge that the checks were involved in tax fraud. In 2013 and 2014, Shah cashed approximately 567 federal tax refund checks that totaled $1,357,476.18. Those refund checks were the result of fraudulent claims for refund submitted in the names of stolen identities.
A sentencing hearing has been scheduled for Jan. 26, 2016. Shah faces a statutory maximum sentence of five years in prison. Shah agreed to a forfeiture order in the amount of $1,357,476.18.
Acting Assistant Attorney General Ciraolo and U.S. Attorney Moore commended special agents of Internal Revenue Service-Criminal Investigation and the U.S. Secret Service, who investigated the case, and Trial Attorney Michael C. Boteler of the Tax Division and Assistant U.S. Attorney Crawford L. Seals of the Middle District of Georgia, who are prosecuting the case.
Additional information about the Tax Division and its enforcement efforts against stolen identity tax refund fraud may be found on the division’s website.
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Garden City Man Sentenced to 9+ Years for Distributing Child PornRead the Press Release
WICHITA KAN. – A Garden City man was sentenced Tuesday to 110 months in federal prison for distributing child pornography, U.S. Attorney Barry Grissom said.
Alfredo Franco, Jr., 33, Garden City, Kan., pleaded guilty to one count of distributing child pornography. He admitted that from June 2012 to November 2013 he used a file-sharing program to download and share child pornography over the Internet. In September 2013, law enforcement downloaded images of child pornography from his shared files via the Internet. When investigators served a search warrant at his residence, they found child pornography with creation dates spanning a year’s time on his computer.
Grissom commended the Finney County Sheriff’s Office and Assistant U.S. Attorney Jason Hart for their work on the case.
Founder and Managing Partner of Investment Firm Sentenced in Manhattan Federal Court for Securities and Commodities FraudRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced that RYAN TOMAZIN, the founder and managing partner of R2 Capital Group LLC (“R2 Capital”), was sentenced today in Manhattan federal court to six months in prison for crimes stemming from his defrauding investors and misappropriating investment funds. Among other things, TOMAZIN lied to investors in an R2 Capital commodity pool by disseminating, or causing others to disseminate, documents containing false representations regarding how assets in the commodity pool would be managed, and falsely informed investors that their investments were increasing when, in fact, the value was declining. Furthermore, TOMAZIN and other principals at R2 Capital caused over $850,000 of investors’ funds to be withdrawn from bank accounts associated with the commodity pool and directed to bank accounts held in their own names or those of their respective holding companies. TOMAZIN, 35, of Stamford, Connecticut, pled guilty on July 30, 2015, and was sentenced today before United States District Judge Paul A. Crotty.
According to the Indictment and other statements made in open court:
In late 2009, R2 Capital created a commodity pool, R2 Capital Partners I L.P. (the “Commercial Pool”) and began to solicit investors, eventually raising approximately $2.2 million. In early 2010, TOMAZIN solicited a potential investor in the Commercial Pool (“Investment Fund-1”) and provided Investment Fund-1 with documentation that stated, among other things, that R2 Capital would receive a management fee limited to 50% of the profits earned by the Commercial Pool. Investment Fund-1 invested over $1 million in the Commercial Pool. From June 2010 up to and including July 2011, the Commercial Pool experienced significant net losses. In July 2011, all trading activity in the Commercial Pool ceased. By August 2011, there was less than $5,000 remaining in bank accounts associated with the Commercial Pool. Nonetheless, between August 2011 and March 2013, TOMAZIN caused false “Trading Statements” to be sent to Investment Fund-1 reflecting false purported monthly trading profits and inaccurate trade balances. Furthermore, contrary to prior representations that R2 Capital’s management fee would be limited to 50% of profits earned, TOMAZIN and other principals at R2 Capital caused approximately $850,000 to be withdrawn from bank accounts associated with the Commercial Pool for their own personal benefit.
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TOMAZIN was convicted of one count of securities fraud (Count One) and one count of commodities fraud (Count Two). In addition to the prison term, TOMAZIN was sentenced to three years of supervised release and ordered to pay forfeiture and restitution to the victims of the offense in the amount of $288,000.
The charges were brought in connection with the President’s Financial Fraud Enforcement Task Force. The task force was established to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices, and state and local partners, it is the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets; and conducting outreach to the public, victims, financial institutions and other organizations. Since fiscal year 2009, the Justice Department has filed over 18,000 financial fraud cases against more than 25,000 defendants. For more information on the task force, please visit www.StopFraud.gov.
This case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant U.S. Attorneys Aimee Hector and Harry A. Chernoff are in charge of the prosecution.
Former Mamou, Louisiana, Police Chief Sentenced, Second Former Police Chief Pleads Guilty to Firing Taser at Non-Combative PrisonersRead the Press Release
The Justice Department announced today that the former Mamou, Louisiana, Police Chief Gregory W. Dupuis was sentenced to one year and one day in prison, and former Mamou Police Officer and Chief Robert McGee pleaded guilty to one count of the deprivation of rights under color of law, both for their roles in a series of incidents in which they deployed TASERs on non-resistant inmates at the Mamou Jail. Dupuis’s and McGee’s guilty pleas are the result of a federal investigation into the illegal use of excessive force upon inmates at the Mamou jail.
Dupuis, 57, of Mamou, pleaded guilty to one count of violation of an individual’s civil rights on Apr. 13, 2015, and was sentenced today by U.S. District Judge Richard T. Haik of the Western District of Louisiana.
According to evidence presented at Dupuis’s plea hearing, Dupuis served as police chief from 1994 to 1997 and from 2004 to 2014. During his tenure as chief, officers, including McGee, repeatedly administered TASER shocks as a form of punishment on inmates who were being disruptive, even if the inmates’ disruption was purely verbal, and on inmates who were calm and compliant when the officer deployed the TASER. On Apr. 25, 2010, Dupuis went to the department’s jail to deal with a verbally disruptive detainee. Dupuis ordered the detainee to get down from his bunk and put his hands on the far wall. The detainee complied. Dupuis then entered the cell and deployed the TASER on the detainee’s back, causing the detainee to fall to the ground, suffer pain and injure his knee. At his plea hearing, Dupuis admitted that he knew at the time that his actions were unlawful.
McGee, 44, of Mamou, pleaded guilty today to one count of violation of an individual’s civil rights committed as an officer in 2010, prior to his 2014 election as chief of the Mamou Police Department. According to McGee’s guilty plea, McGee was called to the Mamou Police Department on multiple occasions in 2010 and 2011 to deal with disruptive inmates. On Aug. 6, 2010, McGee and an inmate were engaged in a conversation. Although the inmate posed no threat to himself or the officers, McGee fired the TASER at the inmate, causing the inmate to fall and experience pain. McGee, who was elected Mamou police chief after this incident, resigned his position as chief on Oct. 8, 2015, as a result of the federal investigation. McGee faces up to 10 years in prison, three years supervised release and a $250,000 fine. A sentencing date was not set.
“The defendants abused the trust given to them as law enforcement officers when they engaged in a pattern of repeatedly tasing compliant detainees,” said Principal Deputy Assistant Attorney General Vanita Gupta, head of the the Civil Rights Division. “The Justice Department will vigorously prosecute those who violate the civil rights laws to ensure that the rights of all individuals, including those in custody, are protected.”
“Law enforcement officers have a duty to ensure that detainees are treated fairly and humanely when taken into custody,” said U.S. Attorney Stephanie A. Finley of the Western District of Louisiana. “Mr. Dupuis and Mr. McGee breached that trust and violated their oaths by using excessive force on incarcerated individuals.”
The FBI and the Louisiana State Police conducted the investigation. Trial Attorneys Stephen Curran and Sanjay Patel of the Civil Rights Division, and Assistant U.S. Attorneys Myers P. Namie and Robert Abendroth of the Western District of Louisiana are prosecuting the case.
Former Mamou police chief sentenced, 2nd former police chief pleads guilty to firing TASER at non-combative prisonersRead the Press Release
LAFAYETTE, La. – The Justice Department and U.S. Attorney Stephanie A. Finley announced today that the former Mamou Police Chief Gregory W. Dupuis was sentenced to one year and one day in prison, and former Mamou Police Officer and Chief Robert McGee pleaded guilty to one count of the deprivation of rights under color of law, both for their roles in a series of incidents in which they deployed TASERs on non-resistant inmates at the Mamou Jail. Dupuis’s sentencing and McGee’s plea are the result of a federal investigation into the illegal use of excessive force upon inmates at the Mamou jail.
Dupuis, 57, of Mamou, La., pleaded guilty to one count of violation of an individual’s civil rights on April 13, 2015, and was sentenced today by U.S. District Judge Richard T. Haik.
According to evidence presented at Dupuis’s plea hearing, Dupuis served as police chief from 1994 to 1997 and from 2004 to 2014. During his tenure as chief, officers, including McGee, repeatedly administered TASER shocks as a form of punishment on inmates who were being disruptive, even if the inmates’ disruption was purely verbal, and on inmates who were calm and compliant when the officer deployed the TASER. On Apr. 25, 2010, Dupuis went to the department’s jail to deal with a verbally disruptive detainee. Dupuis ordered the detainee to get down from his bunk and put his hands on the far wall. The detainee complied. Dupuis then entered the cell and deployed the TASER on the detainee’s back, causing the detainee to fall to the ground, suffer pain and injure his knee. At his plea hearing, Dupuis admitted that he knew at the time that his actions were unlawful.
McGee, 44, of Mamou, pleaded guilty today to one count of violation of an individual’s civil rights committed as an officer in 2010, prior to his 2014 election as chief of the Mamou Police Department. According to McGee’s guilty plea, McGee was called to the Mamou Police Department on multiple occasions in 2010 and 2011 to deal with disruptive inmates. On Aug. 6, 2010, McGee and an inmate were engaged in a conversation. Although the inmate posed no threat to himself or the officers, McGee fired the TASER at the inmate, causing the inmate to fall and experience pain. McGee, who was elected Mamou police chief after this incident, resigned his position as chief on Oct. 8, 2015, as a result of the federal investigation.
McGee faces up to 10 years in prison, three years supervised release and a $250,000 fine. A sentencing date was not set.
“The defendants abused the trust given to them as law enforcement officers when they engaged in a pattern of repeatedly tasing compliant detainees,” said Principal Deputy Assistant Attorney General Vanita Gupta of the Civil Rights Division. “The Justice Department will vigorously prosecute those who violate the civil rights laws to ensure that the rights of all individuals, including those in custody, are protected.”
“Law enforcement officers have a duty to ensure that detainees are treated fairly and humanely when taken into custody,” Finley stated. “Mr. Dupuis and Mr. McGee breached that trust and violated their oaths by using excessive force on incarcerated individuals.”
The FBI and the Louisiana State Police conducted the investigation. Trial Attorneys Stephen Curran and Sanjay Patel of the Civil Rights Division, and Assistant U.S. Attorneys Myers P. Namie and Robert Abendroth of the Western District of Louisiana are prosecuting the case.
Former Hedge Fund Manager Convicted of Wire Fraud, Money Laundering, and Contempt of CourtRead the Press Release
SAN FRANCISCO – A jury convicted James Murray today of 22 felonies—including wire fraud, money laundering, and aggravated identity theft—and contempt of court, announced Acting U.S. Attorney Brian J. Stretch, FBI Special Agent in Charge David J. Johnson, and U.S. Secret Service Special Agent in Charge David Thomas.
Murray, 45, formerly of Larkspur, was the sole member and investment advisor of Market Neutral Trading, LLC (MNT), a purported hedge fund. MNT’s marketing materials claimed the fund was audited by Jones, Moore & Associates (JMA), a sham entity that Murray started and controlled. After being charged in a criminal complaint with wire fraud in February of 2012, Murray was charged on March 17, 2015, in a fourth superseding indictment with 22 felonies including 16 counts of wire fraud, in violation of 18 U.S.C. § 1343; 4 counts of engaging in money transactions in criminally derived property, in violation of 18 U.S.C. § 1957; 2 counts of aggravated identity theft, in violation of 18 U.S.C. § 1028A(a)(1); as well as contempt of court, in violation of 18 U.S.C. § 401(3).
According to the indictment, beginning in 2007, Murray used JMA and MNT to defraud merchant banks and investors. Among the schemes devised by Murray was a scheme involving fraudulent credit card transactions in JMA’s merchant account. Murray used credit cards he controlled to process more than $650,000 in sham transactions, followed by fraudulent refunds on those same cards, leading to a loss of more than $550,000 to the credit card processing company.
Also according to the indictment, Murray defrauded victim investors out of more than $2.5 million. Murray caused false and misleading marketing materials to be created and provided potential investors with false monthly performance numbers for the fund. For example, the materials indicated that the fund had been audited by accountants with JMA. Murray never disclosed JMA was not a real auditing firm and never disclosed that JMA did not actually conduct an audit and that the performance numbers in the JMA audit reports grossly overstated the performance of the fund in 2009. Murray also provided potential investors with a fake resume that included honors and a master’s degree he had never achieved.
Also according to the indictment, in July of 2012, Murray convinced a New York brokerage to advance 50,000 shares of stock in Netflix in order to complete a short sale stock transaction. Murray represented to the bank that at the time MNT had $5 million of assets available to invest, a fact Murray knew was not true.
Also according to the indictment, while this matter was pending, the Honorable Edward M. Chen, U.S. District Judge, issued an order setting conditions for Murray’s release on bond. According to Judge Chen’s order, Murray was prohibited from using a computer to access the Internet, prohibited from using a telephone other than at the halfway house, and prohibited from contacting witnesses. According to the indictment, Murray nevertheless obtained a computer and used it to access the Internet, sent messages to and communicated with a witness in the case, and committed additional violations of the order. The evidence at trial established that Murray used the computer at his former attorney’s office when he was released from the halfway house for the purpose of meeting with his counsel. A search conducted pursuant to a warrant revealed Murray hid the computer above ceiling tiles in a conference room in his former attorney’s office.
Today’s verdict followed a three-week jury trial and resulted in a finding by the jury that Murray was guilty of all the charges in the indictment. The maximum penalties Murray faces are as follows:
For each of the 16 counts of wire fraud, twenty years and $250,000 or two times the gross gain or loss resulting from the crime.
For each of the 4 counts of money laundering, 10 years and $250,000 or two times the amount of the criminally derived property.
For each of the 2 counts of aggravated identity theft, a two year mandatory sentence to run consecutively to the other crimes.
There is no maximum penalty for contempt of court, in violation of 18 U.S.C. § 401(3). Additional terms of supervised release, penalties and restitution may be ordered. However, any sentence following conviction would be imposed by the court only after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553. Murray is scheduled to appear for a sentencing hearing on January 20, 2016.
Assistant U.S. Attorneys Robin Harris and Lloyd Farnham are prosecuting the case with the assistance of Lillian Arauz-Haase, Maryam Beros and Jessica Meegan. The prosecution is a result of an investigation by the FBI and U.S. Secret Service.
Former Correction Officer Sentenced to 41 Months in Prison for Involvement in Rikers Island Bribery and Narcotics RingRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced today that AUSTIN ROMAIN, a former New York City Correction Officer, was sentenced in Manhattan federal court today to 41 months in prison for narcotics, bribery, and honest services fraud offenses arising from a scheme to smuggle drugs and other contraband into Rikers Island for inmates. ROMAIN was convicted on December 12, 2014, following a four-day trial before the Honorable Robert W. Sweet, who imposed today’s sentence.
Manhattan U.S. Attorney Preet Bharara said: “The sentencing of Austin Romain marks the latest step in our efforts to root out unlawful conduct at Rikers Island, by individuals and by the institution as a whole. Romain abused his position of authority as a corrections officer to become, in effect, a jailhouse drug dealer. Corruption at New York prisons, whether by individual officers like Romain or by the corrections system more broadly, is unacceptable and remains a top priority of this Office.”
As alleged in the Superseding Indictment against ROMAIN and established by the evidence admitted at trial:
ROMAIN became a Correction Officer in 2007. He was assigned to the George R. Vierno Center (GRVC) and later the Otis Bantum Correctional Center (OBCC) at Rikers Island. On multiple occasions in 2012 and 2013, ROMAIN smuggled marijuana, tobacco, and other contraband into the GRVC and provided it to inmates housed in that facility, who in turn sold it to other inmates. ROMAIN coordinated with the girlfriends of his inmate co-conspirators, who met with him to supply him with marijuana and to pay him for his smuggling activities. ROMAIN accepted thousands of dollars in bribes for the packages that he smuggled in to the GRVC and OBCC.
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ROMAIN, 33, of Brooklyn, New York, was convicted on one count of honest services fraud, one count of bribery, and one count of conspiring to distribute marijuana.
Mr. Bharara praised the outstanding investigative work of the Drug Enforcement Administration and the New York City Department of Investigation.
The prosecution is being handled by the Office’s Public Corruption Unit. Assistant United States Attorneys Russell Capone and Martin S. Bell are in charge of the prosecution.
Former Contract Employee of Radford Army Ammunition Plant SentencedRead the Press Release
ROANOKE, VIRGINIA – A former contract employee at the Radford Army Ammunition Plant, who pled guilty earlier this year to charges of sexually assaulting fellow employees at the plant, was sentenced today in the United States District Court for the Western District of Virginia in Roanoke.
Joshua Linkous, 39, of Dublin, Va., previously pled guilty to one count of aggravated sexual abuse by force against “Victim 1,” one count of abusive sexual contact of “Victim 2,” and one count of abusive sexual contact of “Victim 3.” Today in District Court, Linkous was sentenced to 168 months of federal incarceration and 15 years of supervised release thereafter. Linkous will also be required to register as a sex offender for the rest of his life.
In a written statement of facts signed by Linkous and filed with the court during a previous hearing, Linkous admitted to working at the Radford Army Ammunition Plant (“Arsenal”) from approximately January 2001 until August 2014. The Radford Army Ammunition Plant is a government-owned facility that is operated by defense contractor BAE Systems and manufactures, among other things, propellant for the country’s military ammunitions. While employed at the Arsenal, Linkous, and the victims in this case, worked in or near an area of the Arsenal known as the Tub House, which is part of the manufacturing process.
Linkous admitted that on July 27, 2014, he coaxed Victim 1 into the Tub House, where no one else was working at the time. With Victim 1 standing near the lockers, Linkous admitted to grabbing and pushing her into a small, secluded break room area. The lights were off and he closed the door, pushed Victim 1 against a kitchen counter, pinning her there. Linkous then forcibly unbuttoned Victim 1’s coveralls, while she was attempting to prevent him from doing so. The defendant admitted that Victim 1 was crying and trying to make him stop. Linkous then forcibly turned Victim 1 around and pinned her stomach against the counter with his body behind her, he got his hands inside of her clothing, touched her bare breasts and penetrated her labia with his finger, over her objection and against her will.
In a second incident, Linkous admitted that, in June 2014, he saw Victim 2 at her locker near the break room in the Tub House. When Victim 2 began to exit the Tub House, Linkous grabbed her by the upper arm and dragged her into a circuit breaker room in the Tub House. Linkous closed the door and shut the lights off, pushed her against a control panel and pinned her down with his body. He then forcibly kissed her, unbuttoned her coveralls and kissed her breasts against her will. Linkous put his hands inside her coveralls and touched her vaginal area over her underwear with his hand, against her will.
Linkous also admitted that, sometime between August 2010 and December 2011, he approached Victim 3, who worked in a building near the Tub House. He admitted to putting his hand inside her coveralls near her vaginal area and asked her to go to the break room. Victim 3 said no and removed Linkous’ hand from her coveralls. Linkous then followed Victim 3 as she tried to walk away and forcibly put his hands inside her coveralls and under her underwear, against her will. Linkous removed his hand only when a co-worker approached.
In determining the defendant’s sentence, the court also considered actions Linkous allegedly took against a fourth victim. In a statement submitted to the court during today’s sentencing hearing, without objection from the defendant, Victim 4, who also worked in the Tub House, claimed that Linkous held her against her will in the break room, forced his hands inside her coveralls and underwear and touched her vagina without her consent.
The investigation of the case was conducted by the United States Army’s Criminal Investigation Division, the Federal Bureau of Investigation, and the Defense Criminal Investigative Service. Assistant United States Attorneys Erin Kulpa and Laura Rottenborn prosecuted the case for the United States.
Former Chief Executive of Chicago Public Schools Pleads Guilty to Accepting Bribes and Kickbacks to Steer No-Bid ContractsRead the Press Release
CHICAGO — BARBARA BYRD-BENNETT pleaded guilty in federal court today to using her position as chief executive officer of the Chicago Public Schools to guide lucrative no-bid contracts to her former employer in exchange for bribes and kickbacks.
In a written plea agreement, Byrd-Bennett admitted that she steered no-bid contracts worth more than $23 million to two education-consulting firms, THE SUPES ACADEMY LLC and SYNESI ASSOCIATES LLC. In exchange, Byrd-Bennett expected to receive cash kickbacks from the companies, as well as a consulting job at SUPES upon her retirement from CPS. The kickbacks were to be paid to Byrd-Bennett in the form of a “signing bonus” on the first day of her new employment, according to the plea agreement.
Byrd-Bennett previously worked as a consultant for SUPES and Synesi before moving to CPS in May 2012. She served as CEO at CPS from Oct. 12, 2012, to June 1, 2015.
Byrd-Bennett, 66, of Solon, Ohio, pleaded guilty to one count of wire fraud. She faces a maximum sentence of 20 years in prison, mandatory restitution, and a maximum fine of $250,000 or twice the gross gain or gross loss resulting from the offense, whichever is greater. The Court will impose a reasonable sentence under federal sentencing statutes and the advisory United States Sentencing Guidelines.
The Court will schedule a sentencing date at a later time. U.S. District Judge Edmond E. Chang scheduled a status hearing for Jan. 27, 2016, at 9:00 a.m.
In addition to the expected kickback from the contracts, Byrd-Bennett admitted in the plea agreement that the companies provided her with numerous other benefits, including meals and tickets to sporting events.
The Wilmette-based SUPES and the Evanston-based Synesi are also charged in the indictment, along with their respective former owners, GARY SOLOMON, 47, of Wilmette, and THOMAS VRANAS, 34, of Glenview. The four co-defendants are scheduled for an arraignment on Oct. 14, 2015, at 2:00 p.m., before Judge Chang.
Byrd-Bennett’s guilty plea was announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois; John A. Brown, Acting Special Agent-in-Charge of the Chicago Office of the Federal Bureau of Investigation; and Nicholas J. Schuler, Inspector General for the Chicago Public Schools.
The government is represented by Assistant United States Attorneys Megan Cunniff Church and Lindsay Jenkins.
Plea Agreement
FnD Gang Leader Pleads Guilty to Racketeering and Narcotics ChargesRead the Press Release
U.S. Attorney Kenneth A. Polite announced that TRAVIS SCOTT, a/k/a “Trap,” a/k/a “Slim,” age 31, of New Orleans, pled guilty today to the Third Superseding Indictment charging him with racketeering conspiracy, narcotics conspiracy, and firearms violations. He was the final pending defendant in this RICO prosecution.
According to court documents, SCOTT admitted to his role as the leader of the Frenchmen/Derbigny gang, or “FnD.” SCOTT admitted that the FnD gang was an enterprise that engaged in racketeering under federal law. From approximately 2006 through 2014, FnD members sold heroin, crack cocaine, marijuana, and other illegal drugs near the intersection of Frenchmen and North Derbigny Streets in New Orleans. FnD members often sold drugs in the Frenchmen Meat Market, a convenience store located at the corner of Frenchmen and North Derbigny Streets. FnD members used intimidation, violence, and threats of violence to maintain the gang’s control over turf that extended from Elysian Fields Avenue, North Johnson Street, the I-10 Interstate Highway, St. Anthony Street, and North Claiborne Avenue. SCOTT admitted that no other individuals could sell drugs in this area without his permission, and he would direct FnD members to commit crimes of violence against rival gang members in order to preserve FnD’s control over the neighborhood.
Pursuant to a plea agreement, SCOTT pleaded guilty to Counts 1, 2, 3, and 10 of the Third Superseding Indictment. Count 1 charged TRAVIS SCOTT with engaging in a Racketeer Influenced and Corrupt Organizations (RICO) conspiracy. The maximum sentence for Count 1 is a term of life imprisonment. Count 2 charged a conspiracy to distribute one kilogram or more of heroin and 280 grams or more of crack cocaine, for which TRAVIS SCOTT faces a mandatory minimum of 10 years in prison and a maximum of life imprisonment. Count 3 charged a conspiracy to possess and use firearms in furtherance of a drug trafficking conspiracy, which carries a maximum sentence of 20 years in prison. Finally, TRAVIS SCOTT pleaded guilty to Count 10, which alleged that TRAVIS SCOTT committed a shooting on March 25, 2012, in furtherance of a drug trafficking conspiracy and the RICO conspiracy. Count 10 carries a mandatory minimum of 10 years in prison and maximum of life imprisonment, which must be served consecutively to any other sentence imposed. In total, TRAVIS SCOTT may receive no less than 20 years in prison, and he could receive any term of years up to and including life imprisonment. U.S. District Judge Ivan L.R. Lemelle set sentencing for February 3, 2016.
TRAVIS SCOTT was the final defendant pending in this indictment. Previously, co-defendants Akein Scott, Shawn Scott, Stanley Scott, Jeremiah Jackson, Brian Benson, Crystal Scott, Gralen Benson, and Richmond Smith pleaded guilty to narcotics and firearms-related offenses. TRAVIS SCOTT, Akein Scott, Shawn Scott, Stanley Scott, and Jeremiah Jackson each pleaded guilty to committing shootings on behalf of the FnD gang. In total, members of FnD have admitted to perpetrating at least six shootings in New Orleans. Among these was the Mother’s Day shooting, in which Akein Scott and Shawn Scott fired upon a Mother’s Day second-line parade in the New Orleans Seventh Ward on May 12, 2013, striking at least 20 victims.
This case was the product of an ongoing investigation into the violent acts in furtherance of the drug trafficking by the FnD gang. It represents the continued coordinated effort of the federal and state law enforcement authorities within the Multi-Agency Gang (“MAG”), including the United States Attorney’s Office, the Orleans Parish District Attorney’s Office, Special Agents of the Bureau of Alcohol, Tobacco, Firearms, and Explosives (“ATF”), and officers of the New Orleans Police Department. Federal and local authorities also utilized tips through the Crimestoppers Program in the successful investigation of these crimes.
Assistant United States Attorney Matthew Payne and Special Assistant United States Attorney Brian Ebarb, who is assigned from the Orleans Parish District Attorney’s Office are in charge of the prosecution.
Federal Grand Jury IndictmentsRead the Press Release
Contact Person: Beth Drake (803) 929-3000
United States Attorney Bill Nettles stated today that a Federal Grand Jury in Greenville, South Carolina, returned Indictment(s) against the following:
Georgia Resident Indicted for Possession of Counterfeit Access Devices
Daniel Sampah Aryertey, age 25, of Union City, Georgia, was charged in a 1-count indictment with possession of at least fifteen counterfeit access devices, a violation of Title 18, United States Code, Section 1029(a)(3). The maximum penalty Aryertey could receive is ten years imprisonment and a maximum fine of $250,000.00. The case was investigated by U.S. Immigration and Customs Enforcement (ICE) Homeland Security Investigations (HSI) special agents and is assigned to Assistant United States Attorney William J. Watkins, Jr., of the Greenville office for prosecution.Two New York Men Indicted for Counterfeit Access Device Conspiracy
Jamal J. Wint, age 26, of Rosedale, New York, and Stephen S. Wint, age 25, of Far Rockaway, New York, were charged in a 1-count indictment with conspiracy to possess fifteen or more counterfeit access devices, a violation of Title 18, United States Code, Section 1029(b)(2). The maximum penalty the defendants could receive is five years imprisonment and a maximum fine of $250,000. The case was investigated by U.S. Immigration and Customs Enforcement (ICE) Homeland Security Investigations (HSI) special agents and is assigned to Assistant United States Attorney William J. Watkins, Jr., of the Greenville office for prosecution.The United States Attorney stated that all charges in these Indictments are merely accusations and that all defendants are presumed innocent until and unless proven guilty.
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FBI Victim Hotline Created Relating to Coercion and Enticement ChargesRead the Press Release
CINCINNATI – A federal grand jury has charged Bryan Harris, 27, of Cincinnati, with coercion and enticement in an indictment returned in Cincinnati.
Carter M. Stewart, United States Attorney for the Southern District of Ohio, Angela L. Byers, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Field Division, Hamilton County Sheriff Jim Neal and Cincinnati Police Department Interim Chief Eliot Isaac announced the indictment returned last week.
According to court documents, Harris allegedly used the Internet and social media to coerce more than 15 minor females, ordering them to send him sexually explicit photographs and meeting with some in person to engage in sexual activity.
Coercion and enticement by means of interstate commerce is a crime punishable by up to 20 years in prison and coercion and enticement of a minor to engage in sexual activity carries a maximum life sentence, with a mandatory minimum 10-year sentence.
Any individuals who believe they may also be a victim in this case are encouraged to call the FBI victim information line at 513-979-8882, where they will be connected with a member of the FBI Cincinnati Child Exploitation Task Force.
U.S. Attorney Stewart commended the investigation of this case by the FBI Cincinnati Child Exploitation Task Force, which includes FBI, Hamilton County Sheriff’s Office and Cincinnati Police Department, and Assistant U.S. Attorney Christy Muncy, who is prosecuting the case.
An indictment merely contains allegations, and the defendant is presumed innocent unless proven guilty in a court of law.
Extradited Defendant Convicted for Leading Sex Trafficking RingRead the Press Release
HOUSTON – The leader of a sex trafficking ring who was indicted 10 years ago and later extradited from Mexico has pleaded guilty to four counts of harboring illegal aliens for the purpose of prostitution, announced U.S. Attorney Kenneth Magidson. Gerardo Salazar aka El Gallo entered a plea of guilty today, admitting to his role in smuggling minor girls and young women from Mexico into the United States and using deception, threats of harm, physical force and psychological coercion to compel their service as prostitutes in Houston area bars.
El Gallo, 51, of Mexico City, Mexico, was indicted in 2005 along with Mexican nationals Salvador Fernando Molina Garcia, Angel Moreno Salazar, Jose Luis Moreno Salazar, Juan Carlos Salazar and Ivan Salazar. El Gallo was the leader of the group and had been a fugitive since 2005. At that time, a warrant was issued for his arrest. He was taken into custody in 2010 and extradited to the United States in June 2014.
At their respective guilty plea hearings in 2006, the co-defendants admitted to being part of an organization that operated between early 2004 through the summer of 2005. The purpose was to recruit, entice, harbor, transport, provide and obtain young Mexican women and girls for the purpose of prostitution. They admitted they benefitted financially from participating in the venture knowing that force, fraud and coercion would be used to cause the young women and to engage in commercial sex acts. Those in the sex trafficking ring further admitted to knowing that some of the girls were under the age of 18.
U.S. District Judge Vanessa Gilmore accepted the plea today and has set sentencing for Jan. 16, 2015. At that time, Salazar faces up to 10 years on federal prison on each count of conviction as well as a possible $250,000 fine. He will remain in prison pending that hearing.
The charges were the result of an investigation conducted by members of the Human Trafficking Rescue Alliance (HTRA) in Houston, which includes the FBI, Homeland Security Investigations, Harris County Sheriff’s Office, Texas Alcoholic and Beverage Commission, Texas Attorney General’s Office, Department of State, Texas Department of Public Safety and the Houston Police Department. The HTRA was formed by the United States Attorney’s office in Houston as part of a broader effort by the Department of Justice to concentrate and combine resources of our own office’s civil rights and organized crime units as well as federal, state law and local enforcement agencies and non-governmental service organizations to target human traffickers while providing necessary services to those victimized by the traffickers. The Houston HTRA was one of the first of 42 such funded organizations and the first of its kind in Texas. The mission of the HTRA is to foster the collaboration of local, state and federal law enforcement agencies with area social service organizations to identify and assist the victims of human trafficking and to effectively identify, apprehend and prosecute those engaged in trafficking offenses.
The Justice Department's Office of International Affairs provided assistance with the extradition.Assistant
U.S. Attorneys Ruben R. Perez and Joe Magliolo are prosecuting the case.El Departmento de Justicia Demanda a Nebraska Beef para Hacer Cumplir un Acuerdo Sobre Derechos CivilesRead the Press Release
El Departamento de Justicia anunció hoy la presentación de una demanda contra Nebraska Beef, Ltd., con sede en Omaha, Nebraska, por no cumplir con los términos de un acuerdo que las partes firmaron para resolver una investigación de violaciones de derechos civiles.
La demanda alega que Nebraska Beef firmó un acuerdo con el Departamento de Justicia el 24 de agosto del 2015 para resolver la investigación del Departamento sobre si Nebraska Beef estaba discriminando a inmigrantes no ciudadanos con autorización para trabajar. El acuerdo exige que Nebraska Beef pague $200,000 en sanciones civiles y que indemnice a los trabajadores afectados que presenten reclamaciones válidas para pagos retroactivos, entre otros términos. Aunque las sanciones civiles de Nebraska Beef vencieron diez días después de que ambas partes firmaran el acuerdo, la compañía se negó a hacer el pago. Nebraska Beef ha declarado que no va a cumplir con casi ninguno de los términos del acuerdo porque sienten su opinión, el comunicado de prensa del Departamento que anunció el acuerdo debería haber sido redactado de otra manera. No obstante, el acuerdo entre las partes no contiene ningún término o disposición que restrinja el lenguaje del comunicado de prensa del Departamento.
"El Departamento de Justicia actuará con rapidez, no sólo cuando un empleador discrimina a sus empleados, sino también cuando un empleador no cumple con su parte de un acuerdo," dijo Vanita Gupta, Subprocuradora Prinicpal General y Directora de la División de Derechos Civiles del Departamento de Justicia. "Es importante que los empleadores entiendan y cumplan con sus obligaciones de no incurrir en prácticas discriminatorias y que honren sus compromisos en virtud de un acuerdo."
La Oficina del Consejero Especial para Prácticas Injustas en el Empleo Relacionadas a Inmigración (OSC, por sus siglas en inglés) del Departamento de Justicia es responsable de hacer cumplir la disposición antidiscriminatoria de la ley de Inmigración y Nacionalidad (INA, por sus siglas en inglés), que fue objeto de investigación del Departamento de Nebraska Beef. Entre otras cosas, la ley prohíbe la discriminación por motivos del estatus de ciudadanía u origen nacional en la contratación, el despido, o el reclutamiento o la referencia por comisión; prácticas documentales injustas; las represalias o la intimidación. La disposición antidiscriminatoria de la INA prohíbe que los empleadores discriminen a las personas con permiso para trabajar en los Estados Unidos debido a su estatus de ciudadanía, lo que incluye pedir a los no ciudadanos que presenten documentos adicionales o diferentes a los que sean necesarios para probar su autorización para trabajar en los Estados Unidos.
Para obtener más información acerca de protecciones contra la discriminación en el empleo bajo las leyes migratorias, llame directa de la OSC para trabajadores al 1-800-255-7688 (1-800-237-2515, TTY para personas con discapacidad auditiva); llame a la línea directa de la OSC para empleadores al 1-800-255-8155 (1-800-237-2515, TTY para personas con discapacidad auditiva); regístrate para un seminario en línea gratuito en www.justice.gov/crt/about/osc/webinars.php, mande un correo electrónico al [email protected] o visite el sitio web de OSC en www.justice.gov/crt/about/osc.
Eight Men Charged Federally with Participating in Schuylkill County Heroin ConspiracyRead the Press Release
SCRANTON- The United States Attorney’s Office for the Middle District of Pennsylvania, today announced the indictment and arrests of eight men for participating in an interstate heroin trafficking conspiracy based in Shenandoah, Pennsylvania.
According to United States Attorney Peter Smith, the indictment by a federal grand jury in Scranton on September 9, 2015 was made public after all defendants were taken into custody. The indictment alleges the eight men conspired to distribute and possess with intent to distribute more than a kilogram of heroin between July 2012 and the present.
The indictment alleges that as part of the conspiracy, the defendants and/or their co-conspirators obtained heroin from suppliers in New Jersey, New York, and Hazleton; maintained “stash houses” in Schuylkill County where heroin, firearms and money were stored; possessed firearms to protect their drug distribution locations and activities; used cell phones to communicate with drug associates and customers; distributed the drug to others in Schuylkill County; and used threats and intimidation to collect drug debts, punish disloyalty, and further the goals of the conspiracy.
Those named in the indictment and their charges are:
- Rhashean Strange a/k/a “Chicago”, age 30: conspiracy to distribute more than a kilogram of heroin; three counts of distribution of heroin; and carrying and possessing a firearm in furtherance of drug trafficking;
- Anthony Navarro-Velez a/k/a “Essay”, age 30: conspiracy to distribute more than a kilogram of heroin; three counts of distribution of heroin;
- Jesus Santos, age 35: conspiracy to distribute more than a kilogram of heroin; four counts of distribution of heroin;
- Thomas Nestor, age 38: conspiracy to distribute more than a kilogram of heroin; five counts of distribution of heroin;
- Nicolai Varga, age 25: conspiracy to distribute more than a kilogram of heroin; two counts of distribution of heroin;
- Derek Yashinsky a/k/a “Clumzy”, age 25: conspiracy to distribute more than a kilogram of heroin; three counts of distribution of heroin;
- Carlos Correa, age 30: conspiracy to distribute more than a kilogram of heroin; three counts of distribution of heroin;
- Paul Jadus, age 50: conspiracy to distribute more than a kilogram of heroin; two counts of distribution of heroin; maintaining a building, room or enclosure for the purpose of storing, distributing or using heroin.
The government is also seeking forfeiture of property allegedly used in the alleged criminal activities or were part of the proceeds, and were seized by law enforcement officers, including four firearms and approximately $13,000 in cash found in two Shenandoah residences. The government is also seeking a $1 million asset forfeiture money judgment based on the alleged criminal activity.
All of the defendants are residents of Shenandoah, Pennsylvania.
Rhashean Strange faces a mandatory minimum of 15 years in prison and a potential maximum sentence of life in prison if he is convicted of all of the charges. The other seven defendants face a mandatory minimum of 10 years in prison and a potential maximum sentence of life in prison if convicted of all of the charges.
The charges against the defendants resulted from an investigation by the Federal Bureau of Investigation, the Pennsylvania State Police, the Schuylkill County District Attorney’s Office, and local police in Schuylkill County.
Assistant U.S. Attorney Francis P. Sempa is prosecuting the case.
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 life imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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East Greenbush Man Sentenced to 6 Years in Prison for Child Pornography OffensesRead the Press Release
ALBANY, NEW YORK – Howard Eugene Hazelton II, age 63, of East Greenbush, was sentenced today to serve 72 months in prison for distribution, receipt, and possession of child pornography, 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.
In May, Hazelton pleaded guilty to an eight-count indictment, consisting of two counts of distribution of child pornography, one count of receipt of child pornography, and five counts of possession of child pornography.
U.S. District Court Judge Thomas J. McAvoy also sentenced Hazelton to 15 years of supervised release, to begin following his term of imprisonment, and to pay $2,500 to a child pornography victim.
Hazelton was prosecuted after he used the Internet to distribute child pornography to undercover officers of the Saratoga Springs and Colonie Police Departments. Subsequently, the FBI executed a search warrant on Hazelton’s home and seized electronic devices that contained sexually explicit images and videos of minors.
This case was investigated by the FBI, the Saratoga Springs Police Department and the Colonie Police Department, and prosecuted by Assistant U.S. Attorney Emily T. Farber and former Special Assistant U.S. Attorney Amanda Cox.
Doña Ana County Clerk’s Office Employee and Mexican National Plead Guilty to Federal Theft and Identity Fraud ChargesRead the Press Release
ALBUQUERQUE – Maria L. Ceniceros, 43, of Anthony, N.M., and Armando Gutierrez-Torres, 51, a Mexican national who resides in Delicias, Mexico, pleaded guilty today in federal court in Las Cruces, N.M., to theft of government property and aggravated identity theft charges.
Ceniceros and Gutierrez-Torres were charged in June 2015, with conspiracy to commit theft of government property and aggravated identity theft in a criminal complaint. The charges in the complaint arose out of a scheme to steal money from the United States by using the identities of individuals without their knowledge or consent to generate and cash fraudulent federal income tax refund checks. According to the criminal complaint, Ceniceros and Gutierrez-Torres conspired with each other and others to perpetuate the scheme, and that Ceniceros abused her position as a Document Technician at the Doña Ana County Clerk’s Office to facilitate the scheme.
Law enforcement authorities learned of the scheme in mid-May 2015, when Ceniceros approached a co-worker in the Doña Ana County Clerk’s Office and attempted to solicit his participation in the scheme. The co-worker reported the solicitation to law enforcement authorities and agreed to assist officers in conducting an undercover investigation into Ceniceros and Gutierrez-Torres. During the investigation, Ceniceros provided three fraudulent federal income tax refund checks to the co-worker so that he could cash the checks with the understanding that the proceeds would be divided between Ceniceros, Gutierrez-Torres and the co-worker. Ceniceros and Gutierrez-Torres were arrested on related state charges on May 29, 2015.
During today’s proceedings, Ceniceros pled guilty to a felony information charging her with conspiracy to commit theft of public money and conspiracy to commit aggravated identity theft. Ceniceros admitted that she accessed the Voter Registration database at work and recorded the names, dates of birth and social security numbers of 111 people whose identities she knew were going to be used to file fraudulent federal income tax returns in order to obtain fraudulent refund checks, she also agreed to mail fraudulent federal income tax returns and cash refund checks for Gutierrez-Torres. Under the terms of her plea agreement, Ceniceros will be sentenced to 24 months in prison followed by a term of supervised release to be determined by the court.
Gutierrez-Torres also entered a guilty plea to a felony information today in federal court. Gutierrez-Torres admitted that in Nov. 2014, he asked Ceniceros for the identifiers of people born in 1995, to be used to file fraudulent federal income tax returns in order to obtain fraudulent refund checks. Gutierrez-Torres further admitted that he asked Ceniceros to mail fraudulent federal income tax returns to the IRS and to cash refund checks in the total amount of $11,963.73. Under the terms of his plea agreement, Gutierrez-Torres will be sentenced to 24 months in prison. He will be deported following his term of imprisonment.
This case was investigated by IRS Criminal Investigation and the Doña Ana County Sheriff’s Office, and is being prosecuted by Assistant U.S. Attorney Mark A. Saltman of the U.S. Attorney’s Las Cruces Branch Office.
District of Columbia Police Officer Convicted of Tax FraudRead the Press Release
A Washington, D.C., Metropolitan Police Department Officer was convicted today in the U.S. District Court for the District of Columbia of corruptly endeavoring to obstruct the Internal Revenue Service (IRS), announced Acting Assistant Attorney General Caroline D. Ciraolo of the Justice Department’s Tax Division.
Ishmeal Heru-Bey, formerly known as Jamal Adams, of Glenarden, Maryland, was convicted by a federal jury after a five-day trial.
According to the evidence presented at trial, Heru-Bey failed to file individual income tax returns on a timely basis for the years 2005 through 2012. To prevent the Metropolitan Police Department from withholding federal income taxes from his wages and paying them over to the IRS, Heru-Bey submitted three false IRS Forms W-4 (Employee’s Withholding Allowance Certificates) on which he falsely claimed he was exempt from income tax withholding. After Heru-Bey was indicted on tax charges in March 2015, he filed false U.S. Individual Income Tax Returns for tax years 2011 and 2014 on which he fraudulently claimed deductions relating to unreimbursed employee expenses, including expenses for uniforms, dry cleaning, vehicle mileage and meals. The government introduced evidence at trial that proved Heru-Bey was not entitled to claim these expenses because he was on paid administrative leave from the Metropolitan Police Department during those years and therefore had no police powers. The government presented evidence that the resulting tax loss for the years 2005 through 2011 and for 2014 exceeded $90,000.
Sentencing is scheduled on Jan. 7, 2016, before U.S. District Judge James E. Boasberg of the District of Columbia, who presided over the trial of the case. The count of conviction carries a statutory maximum sentence of three years in prison and a $250,000 fine.
Acting Assistant Attorney General Ciraolo thanked the special agents of IRS-Criminal Investigation, under the direction of Special Agent in Charge Thomas Jankowski, who investigated the case, and Trial Attorneys Jeffrey A. McLellan and Melissa S. Siskind of the Tax Division, who prosecuted the case.
Defendant Sentenced in Manhattan Federal Court to More Than Three Years in Prison for Insider TradingRead the Press Release
PREET BHARARA, the United States Attorney for the Southern District of New York announced that ZACHARY ZWERKO was sentenced today in Manhattan federal court to 37 months in prison for his participation in an insider trading scheme. ZWERKO, who worked for a pharmaceutical company (the “Pharma Company”), passed material, nonpublic information to a co-conspirator (“CC-1”) who then made profitable securities trades based on the information and reaped more than $700,000 in profits. The information concerned potential and actual corporate transactions, including acquisitions. ZWERKO was sentenced by U.S. District Judge Alvin K. Hellerstein.
U.S. Attorney Preet Bharara said: “Zachary Zwerko’s attempts to circumvent the law and share inside information may have made him and his co-conspirator lots of money, but such criminal conduct has now come at the expense of his freedom.”
According to the allegations contained in court documents previously filed in federal court, and statements made during the plea and sentencing proceedings of ZWERKO:
From 2010 to 2014, ZWERKO engaged in an insider trading scheme involving trading around information related to the acquisitions of certain pharmaceutical companies. ZWERKO, who was a senior finance analyst in the financial evaluation and analysis group of the Pharma Company, passed material, non-public information related to potential acquisitions to CC-1. As part of his employment, ZWERKO performed work in connection with numerous potential and actual corporate transactions, including acquisitions. ZWERKO also had access to a computer directory maintained by the Pharma Company that contained material, non-public information related to potential acquisitions by the Pharma Company.
ZWERKO on multiple occasions passed to CC-1 material, non-public information related to future acquisitions by the Pharma Company, including the identities of companies that were in negotiations with the Pharma Company for potential acquisitions (the “Target Companies”). ZWERKO and CC-1 at times communicated with each other via disposable cellphone to disguise their communications. CC-1 then traded in the securities of the Target Companies. The Target Companies were subsequently acquired, in one instance by the Pharma Company, and the prices of the shares of the Target Companies increased after the acquisitions were announced publicly. CC-1 then exited CC-1’s positions in the shares of the Target Companies, thereby profiting from the movement in stock price. From this illegal trading, CC-1 reaped trading profits of at least $737,000. CC-1 gave ZWERKO approximately $57,000 in cash, from CC-1’s illegal proceeds, as part of ZWERKO’s share of the scheme’s profits.
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ZWERKO, 33, of Cambridge, Massachusetts, pled guilty on February, 19, 2015, to one count of conspiracy to commit securities fraud and three counts of securities fraud. In addition to his prison term, ZWERKO was sentenced to three years of supervised release, and was ordered to pay a fine of $50,000, a special assessment of $400, and forfeiture in the amount of $644,314.
Mr. Bharara praised the investigative work of the Federal Bureau of Investigation. He also thanked the U.S. Securities and Exchange Commission.
The charges were brought in connection with the President’s Financial Fraud Enforcement Task Force. The task force was established to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices, and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets; and conducting outreach to the public, victims, financial institutions and other organizations. Since fiscal year 2009, the Justice Department has filed over 18,000 financial fraud cases against more than 25,000 defendants. For more information on the task force, please visit www.StopFraud.gov.
This case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant U.S. Attorneys Jessica Masella and Edward Kim are in charge of the prosecution.
Corinna Concepcion Sentenced to Prison in Ice Trafficking CaseRead the Press Release
ALICIA A.G. LIMTIACO, United States Attorney for the Districts of Guam and the Northern Mariana Islands, announced that defendant CORINNA CONCEPCION, who was convicted at the trial of U.S. v. Francisco Arias, Eder Cortez-Zelaya and Corinna Concepcion in the District Court of Guam, was sentenced today.
CORINNA CONCEPCION, age 44, from Agat, was sentenced by Chief Judge Frances Tydingco-Gatewood, to 169 months imprisomnent for conspiracy to distribute methamphetan1ine (ice) and 169 months imprisonment for money laundering. Both sentences are to be served concurrently.
CORINNA CONCEPCION organized her husband Lawrence Concepcion, her son-in law A.J. Santos, her nephew-in-law, Joshua Moye, and her friend Florentina Depamaylo to receive packages containing methamphetamine. The packages were sent from Las Vegas, Nevada to Guam by her co-defendants Francisco Arias and Eder Cortez-Zelaya. All of her co defendants except for Arias and Cortez-Zelaya have been sentenced. Aria and Cortez-Zelaya will be sentenced on November 2, 2015 in the U.S. District Court of Guam.
U.S. Attorney Limtiaco stated, "Our community is not immune from the poison of methamphetamine. This case illustrates the hard work our partners in law enforcement do every day to stop the distribution of methamphetamine into Guam. This conviction resulted from the concerted efforts of law enforcement pa1tners in the Organized Crime Drug Enforcement Task Force (OCDETF) investigation, a focused multi-agency, multi-jurisdictional task force investigating and prosecuting the most significant drug trafficking organizations throughout the United States by leveraging the combined expertise of federal , state and local law enforcement agencies."
This OCDETF investigation involved federal agents and local law enforcement officers of the U.S. Postal Inspection Service (USPIS), Drug Enforcement Administration (DEA), U.S. Department of Homeland Security Investigations (HSI), Guam Police Department (GPD), Guam Customs and Quarantine Agency (GCQA), Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF), U .S. National Oceanic Atmosphere Administration (NOAA), and U.S. Coast Guard Criminal Investigative Service (CGIS).
Colorado Man Sentenced to Life in Prison for Kidnapping a Toddler and Producing Child PornographyRead the Press Release
A Colorado man was sentenced today to life in prison for kidnapping a toddler and producing child pornography, announced Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Benjamin B. Wagner of the Eastern District of California and Special Agent in Charge Ryan L. Spradlin of ICE-HSI San Francisco Office.
Shawn McCormack, 31, of Colorado Springs, Colorado, was found guilty in April 2015 by a federal jury of four counts of sexual exploitation of a child and two counts of kidnapping. Senior U.S. District Judge Anthony W. Ishii of the Eastern District of California presided over the trial and imposed the sentence.
“McCormack’s depraved actions in this case are the stuff of nightmares. While posing as a trusted friend and house guest, McCormack kidnapped his hosts’ toddler child and sexually abused the child in local motels and parked cars,” said Assistant Attorney General Caldwell. “Through tireless efforts, law enforcement was able to rescue the victim from further abuse and ensure that McCormack never again will victimize another child.”
“McCormack’s acts were both vile and heart-breaking, and they may have continued undetected for years but for the imaginative, dogged, and painstaking work of the investigators who brought him to justice,” said U.S. Attorney Wagner. “We are gratified by the sentence McCormack received today, which is both severe and just, and while the harm that he inflicted cannot be undone, we can be assured that he will not be able to inflict further harm upon our most vulnerable.”
“The sexual exploitation of children is a heinous crime that leaves lifelong emotional scars on young victims,” said Special Agent in Charge Spradlin. “It is our duty to protect those who cannot protect themselves. Together with our law enforcement partners, we will continue to pursue child predators and make them accountable for their dark and monstrous deeds.”
According to evidence presented at trial, McCormack, feigning to be a friend, traveled to a couple’s residence in Bakersfield, California, and stayed as an overnight guest on multiple occasions. During several of the overnight stays, in the middle of the night, McCormack removed the couple’s toddler from the house and sexually abused the toddler in nearby motels and other locations, and then returned the toddler to the house before the parents awoke. The evidence demonstrated that McCormack photographed and recorded the sexual abuse and distributed the images and videos to others online, including to an undercover officer with the Toronto Police Services. McCormack also recorded his sexual abuse of a second toddler and distributed those images as well.
The trial evidence showed that, in 2010, during forensic analysis of the computer of another individual, Homeland Security Investigations (HSI) agents in Boston, discovered images and recordings distributed by McCormack. After the agents identified the date, time and motel room in which one of the videos had been produced, they learned that McCormack had rented that motel room on the night when the recording was created.
This case is part of an ongoing HSI-led investigation being conducted by U.S. Immigration and Customs Enforcement’s Field Offices in Bakersfield, California; Colorado Springs, Colorado; and Boston, Massachusetts; the Bakersfield Police Department; the Colorado Springs Police Department; Toronto Police Services and the FBI. This case was prosecuted by Trial Attorney Maureen C. Cain of the Criminal Division’s Child Exploitation and Obscenity Section (CEOS) and Assistant U.S. Attorneys Patrick R. Delahunty and Megan A.S. Richards of the Eastern District of California.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Colorado Man Sentenced to Life in Prison for Kidnapping a Toddler and Producing Child PornographyRead the Press Release
FRESNO – Shawn McCormack, 31, of Colorado Springs, Colorado, was sentenced today by United States District Judge Anthony W. Ishii to life in prison for four counts of sexual exploitation of a child and two counts of kidnapping, announced Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Benjamin B. Wagner and Special Agent in Charge Ryan L. Spradlin of ICE-HSI San Francisco Office.
McCormack was found guilty in April 2015 by a federal jury of kidnapping and producing child pornography involving two toddlers. According to evidence presented at trial, McCormack, feigning to be a friend, traveled to a couple’s residence in Bakersfield, and stayed as an overnight guest on multiple occasions. During several of the overnight stays, in the middle of the night, McCormack snuck the couple’s toddlers out of the house and recorded his sexual abuse of them at a variety of locations, including a nearby motel, outdoors and in his truck. McCormack then returned the toddlers to the house before the parents awoke. The evidence demonstrated that McCormack distributed the images and videos of his abuse to others online, including an undercover officer with the Toronto Police Services.
Homeland Security Investigations agents in Boston found images and recordings distributed by McCormack on a separate defendant’s computer in Massachusetts. The agents were able to identify the date, time and specific hotel room where one of the videos had been produced. When agents visited that hotel, they learned that McCormack had rented that hotel room on the night when the recording was created. During the investigation, agents uncovered evidence that McCormack had recorded his abuse of both of the couple’s children.
The case is part of an ongoing HSI-led investigation that originated in Boston in 2010 when the U.S. Attorney’s Office of the District of Massachusetts and HSI Boston arrested and convicted Robert Diduca on child pornography production charges. Forensic analysis of Diduca’s computer led investigators to the Netherlands where a Dutch national was arrested and charged with production, distribution and possession of child pornography, as well as the sexual assault of 87 minors. Since that time, a worldwide network of child pornographers has been, and continues to be, unraveled, as multiple offenders are prosecuted, including McCormack. Defendants and victims continue to be identified around the world. To date, more than 140 children have been rescued and 43 perpetrators arrested worldwide as a result.
“McCormack’s depraved actions in this case are the stuff of nightmares. While posing as a trusted friend and house guest, McCormack kidnapped his hosts’ toddler child and sexually abused the child in local motels and parked cars,” said Assistant Attorney General Caldwell. “Through tireless efforts, law enforcement was able to rescue the victim from further abuse and ensure that McCormack never again will victimize another child.”
“McCormack’s acts were both vile and heart-breaking, and they may have continued undetected for years but for the imaginative, dogged, and painstaking work of the investigators who brought him to justice,” said U.S. Attorney Wagner. “We are gratified by the sentence McCormack received today, which is both severe and just, and while the harm that he inflicted cannot be undone, we can be assured that he will not be able to inflict further harm upon our most vulnerable.”
“The sexual exploitation of children is a heinous crime that leaves lifelong emotional scars on young victims,” said HSI Special Agent in Charge Spradlin. “It is our duty to protect those who cannot protect themselves. Together with our law enforcement partners, we will continue to pursue child predators and make them accountable for their dark and monstrous deeds.”
This case was the product of an investigation by U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) field offices in Bakersfield, California; Colorado Springs, Colorado; and Boston, Massachusetts; the Bakersfield Police Department; the Colorado Springs Police Department; and the Toronto Police Services. Assistant U.S. Attorneys Patrick R. Delahunty and Megan A.S. Richards of the Eastern District of California and Trial Attorney Maureen C. Cain of the Criminal Division’s Child Exploitation and Obscenity Section prosecuted the case.
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 those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. Click on the “resources” tab for information about Internet safety education.
Cocaine Trafficker Sentenced to 11 Years in PrisonRead the Press Release
Greenbelt, Maryland – U.S. District Judge Deborah K. Chasanow sentenced Cornelius Maurice Jackson, a/k/a “Buddy Love” and “Buddy,” age 43, of Washington, D.C., Maryland today to 11 years in prison followed by four years of supervised release for conspiring to distribute and possession with intent to distribute cocaine base. Judge Chasanow also entered an order that Jackson forfeit $9,100.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Karl C. Colder of the Drug Enforcement Administration - Washington Field Division; Chief Cathy L. Lanier of the Metropolitan Police Department; and Chief Mark A. Magaw of the Prince George’s County Police Department.
According to his plea agreement, from at least September 12 to December 18, 2013, Jackson and co-defendant Daniel Fields distributed cocaine base. Specifically, on four occasions, a confidential source met Fields in Oxon Hill, Maryland, and the two traveled to Washington, D.C. where they met Jackson. Jackson traveled back to Maryland with the confidential source and Fields to obtain the crack cocaine from a source in Hillcrest Heights. Jackson handed the drugs to Fields who in turn distributed the drugs to the confidential source. The confidential source gave Fields $2,600 on each of three occasions for the individual purchases of about 58 grams of crack cocaine, and $1,300 on the fourth occasion to purchase 27.3 grams of crack cocaine.
Daniel Aubulah Fields, a/k/a “Squirt,” age 44, of Forest Heights, Maryland, previously pleaded guilty to his participation in the drug trafficking conspiracy and was sentenced to eight years in prison.
United States Attorney Rod J. Rosenstein praised DEA, Metropolitan Police Department and Prince George’s County Police Department for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorneys Kelly O. Hayes and Ray D. McKenzie, who prosecuted the case.