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Friday 2 October 2015
D.C. Man Pleads Guilty to 180 mph Car ChaseRead the Press Release
ALEXANDRIA, Va. – Omar T. Butler, 30, of Washington, D.C., pleaded guilty today to charges relating to a 28 mile car chase in June 2015, in which he reached speeds of 180 mph on roads in Virginia, Washington, D.C., and Maryland.
Butler pleaded guilty without a written plea agreement or agreed statement of facts. The government’s fact proffer noted that at approximately 12:35 a.m. on June 10, 2015, Butler led U.S. Park Police officers on a 28-mile pursuit during which Butler nearly hit and killed two officers. U.S. Park Police had attempted to stop his vehicle for speeding on the George Washington Memorial Parkway in the area of Spout Run, however, Butler ignored the emergency lights and sirens and fled through Virginia, D.C., and Maryland, reaching a top speed of approximately 180 mph with several dozen federal and state law enforcement officers in pursuit. Butler was ultimately arrested at a gas station in Bryans Road, Maryland, after pulling over to refuel his vehicle.
Butler was indicted by a federal grand jury on Aug. 6, 2015. He faces a maximum penalty of five years in prison when sentenced on Jan. 22, 2016. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; and Robert D. MacLean, Chief of the U.S. Park Police, made the announcement after the plea was accepted by U.S. District Judge Liam O’Grady. Special Assistant U.S. Attorney Timothy Belsan and Assistant United States Attorney Gene Rossi are prosecuting the case.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:15-cr-229.
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Convicted Felon Sentenced to 10 Years in Prison for Selling GunsRead the Press Release
Jacksonville, Florida – U.S. District Judge Brian J. Davis has sentenced Alphonso Parker (36, Jacksonville) to 10 years in federal prison for being a convicted felon in possession of multiple firearms. He pleaded guilty on May 28, 2015.
According to court documents, between June and July 2014, Parker sold nine firearms to a confidential informant. At the time, Parker had prior felony convictions for battery, burglary, and aggravated fleeing or attempting to elude a police officer, and therefore was prohibited from possessing firearms or ammunition under federal law.
This case was investigated by the Jacksonville Sheriff’s Office and the Bureau of Alcohol, Tobacco, Firearms and Explosives. It was prosecuted by Assistant United States Attorney Frank Talbot.
This is another case prosecuted as part of the Department of Justice’s “Project Safe Neighborhoods” Program - a nationwide, gun-violence reduction strategy. United States Attorney A. Lee Bentley, III, along with Regina Lombardo, Special Agent in Charge, ATF, are coordinating the Project Safe Neighborhoods effort here in the Middle District of Florida in cooperation with federal, state, and local law enforcement officials. It is also a part of ATF’s Frontline Strategy on reducing violent crime in communities.
Columbus Lobbyist Agrees to Plead Guilty to ExtortionRead the Press Release
COLUMBUS, Ohio – An Ohio lobbyist has agreed to plead guilty to extortion in connection with conduit contributions, announced Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Carter M. Stewart of the Southern District of Ohio and Special Agent in Charge Angela L. Byers of the FBI’s Cincinnati Field Office.
John P. Raphael, 60, of Columbus, has agreed to plead guilty to a one-count information charging him with interference with commerce by threats. A plea hearing will be scheduled.
According to the information, Raphael was a consultant and lobbyist based in Columbus, Ohio, who was hired and paid by companies that sought to do business with municipalities and counties in Ohio. From March 2005 to February 2013, a red light camera enforcement company hired and paid Raphael to seek and obtain lucrative contracts to provide red light photo enforcement systems in the City of Columbus.
During the time the red light camera enforcement company was seeking to retain contracts in Columbus, Raphael repeatedly pressured and induced the company to make campaign contributions to the campaigns of various elected officials. He communicated to the company that it would lose its contracts and suffer an economic loss if it did not make the payments. Thus, Raphael obtained and attempted to obtain the funds by the wrongful use of fear of economic harm.
The former chief executive officer of the red light camera vendor, Karen L. Finley, previously pleaded guilty to conspiracy to commit federal programs bribery and honest services wire and mail fraud.
Interference with commerce by threats is a crime punishable by up to 20 years in prison and a fine of $250,000 or a fine of twice the pecuniary gain or loss.
The case was investigated by the FBI’s Cincinnati Field Office, Columbus Resident Agency, with the assistance of IRS-Criminal Investigations and the Ohio Bureau of Criminal Investigation. The case is being prosecuted by Trial Attorney Edward P. Sullivan of the Criminal Division’s Public Integrity Section and Assistant U.S. Attorney J. Michael Marous of the Southern District of Ohio.
This information only contains a charge against John Raphael and should not be construed as a reflection on the guilt or innocence of any other individual.
Canadian Man Charged in Scheme to Launder Money for Drug Rings, including the Sinaloa Cartel, Arrives in L.A. to Face ChargesRead the Press Release
LOS ANGELES – The leader of an international money laundering organization is scheduled to be arraigned this afternoon on federal charges that allege he moved millions of dollars in drug money for organizations that included the Sinaloa Cartel.
Gurkaran Singh Isshpunani was arrested on September 14 in Buffalo, New York as he attempted to enter the United States from Canada. A federal magistrate ordered Isshpunani held without bond and directed that he be transported to Los Angeles, where he arrived last night.
Isshpunani is the lead defendant in a grand jury indictment that charges 22 defendants with money laundering and operating unlicensed money remitting businesses violations. The illegal scheme allegedly spanned the world and involved operatives in Canada, India, the United States and Mexico who laundered drug trafficking proceeds generated from multi-kilogram and multi-pound sales of narcotics in Canada and the United States for and on behalf of the Sinaloa Cartel and their affiliated drug trafficking organizations. The laundered money is alleged to have either been transported to the Sinaloa Cartel as profits or reinvested in additional narcotics to be sold and distributed in the United States and Canada.
The indictment accuses Isshpunani of being the leader of an international “hawala” ring that transferred narcotics proceeds for the Sinaloa drug cartel and other drug trafficking organizations. Isshpunani, 34, who is believed to reside in the Canadian province of Ontario, will be arraigned this afternoon on a three-count indictment that charges him and 21 other defendants with conspiracy to launder money, conspiracy to operate an unlicensed money transmitting business (a hawala), and a substantive count of operating an unlicensed money transmitting business.
Previously in this case, 14 other defendants have been arrested and arraigned. The indictment charges seven defendants who are currently fugitives.
The indictment specifically alleges that the hawala network transferred more than $4.5 million in narcotics proceeds and was involved in the trafficking of 29 kilograms of cocaine and approximately 90 pounds of methamphetamine.
However, during the course of a four-year federal wiretap investigation by the Drug Enforcement Administration’s LA Strike Force and IRS - Criminal Investigation, authorities seized a total of $15,467,293 in bulk United States currency, 321 kilograms of cocaine, 98 pounds of methamphetamine, 11 kilograms of MDMA (“ecstasy”) and nine kilograms of heroin.
Isshpunani and the others are charged in a 36-page indictment that outlines the workings of a “hawala,” which is an alternative form or method of money remittance which operates outside of traditional banking or financial systems. Through hawala transactions, only the value of the money is transferred, not the money itself. The hawala system transfers money via a network of brokers known as “hawaladars.” According to the indictment, Isshpunani is a hawaladar who is a part of a network of Indian men who move money based on a trust system.
The indictment explains that, in its most basic form, a hawala needs at least two brokers who are typically located in separate countries (but can be located in different cities within one country). The transfer of monetary value occurs between the brokers based solely upon the trust that exists between the brokers. Thus, there are no promissory instruments or any legally binding features of the hawala system. The necessary trust and long-established connections between brokers are typically based on familial, ethnic, religious, regional and/or cultural grounds. Often, a given hawala network consists of many brokers operating in multiple countries around the world in which all brokers are in contact with each other and money movements can occur in a variety of directions from one country to another.
“Drug traffickers in Canada would generate drug proceeds from multi-kilogram and multi-pound sales and distributions of drugs provided by Mexican cartels, including the Sinaloa Cartel,” the indictment alleges. The Canadian-based drug traffickers coordinated money transfers to their counterparts in Mexico by instructing Isshpunani and other alleged hawaladars in Canada to deliver specified amounts of money to couriers in the U.S. who were working on behalf of the cartels. The Canadian-based hawaladars, once in possession of the drug traffickers’ bulk Canadian currency, would contact U.S.-based hawaladars and authorize the release of the equivalent amounts of U.S. currency to the couriers operating in the Los Angeles area. A number of co-defendants named in the indictment served as U.S.-based couriers, picking up and subsequently delivering bulk U.S. currency in the Los Angeles area in exchange for narcotics that were to be transported back to Canada for sales and distribution.
The indictment in this case was returned under seal by a federal grand jury in Los Angeles in November 2014. Authorities began arresting defendants several months ago. In addition to Isshpunani, 14 defendants have been taken into custody and have been arraigned in Los Angeles.
Those previously arrested, and who have pleaded not guilty, are:
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Miguel Melendrez Gastelum, 35, of Coachella, California, who surrendered to federal authorities on September 16;
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Shannon Aubut, 30, a resident of the province of Ontario, who was arrested on August 14 at the Camplain, New York Port of Entry;
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Paul Alan Jacobs, 42, of Venice, California, who surrendered to authorities on August 13;
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Jose De Jesus Montenegro, 49, of Coachella, who was arrested at the Tecate, California Port of Entry;
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Breidi Alberto Espinoza, 28, of Corona, California, who was arrested on July 10 at the Otay Mesa Port of Entry;
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Alberto Diaz, 28, of San Diego, who was arrested on July 4 at the San Ysidro Port of Entry;
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Christopher Fagon, 37, a resident of the province of Ontario, who was arrested on June 28 at Los Angeles International Airport;
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Jose Luis Barraza, 47, of Coachella, who was arrested on June 27 at Calexico Port of Entry;
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Bradley John Martin, 54, of Carlsbad, California, who was arrested on June 12 at San Ysidro Port of Entry;
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Ramesh Singh, 46, of Alhambra, California, who surrendered to authorities on June 2;
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Sanjeev Wadhwa, 36, an Indian national, who was arrested on May 30 at LAX;
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Sucha Singh, 51, of Arleta, California, who was arrested at his residence on May 30;
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Harinder Singh, 30, of Monrovia, California, who was arrested on May 30; and
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Harmeet Singh, 54, of Chino Hills, California, who was arrested at his residence on May 30.
A trial date for the defendants who have been arraigned in Los Angeles has been scheduled for May 24, 2016.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed to be innocent until and unless proven guilty in court.
The money laundering conspiracy charge carries a statutory maximum sentence of 20 years in federal prison. Each of the two counts related to the alleged unlicensed money transmitting business carries a maximum sentence of five years.
The seven fugitives named in the indictment are:
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Sanjeev Bhola, of India;
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Balwat Bhola, of India;
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Bakshish Sidhu, of India;
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Jason Robert Carey, 37, a resident of the province of Ontario;
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Jesus Manuel Perez Rios, 33, of Coachella, who authorities believe fled to Mexico;
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Tina Pham, 25, of Montreal; and
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a Canadian man known only as “Buddy.”
The investigation in this case is being conducted by the Drug Enforcement Administration and IRS – Criminal Investigation. These agencies received assistance and support from the Santa Ana Police Department, the Beverly Hills Police Department and the Pomona Police Department.
Isshpunani was apprehended last month by U.S. Customs and Border Patrol while attempting to enter the United States from Canada at the Buffalo, New York Port of Entry.
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California Trucking Executive and Alleged Computer Hacker Arrested for Extorting $40,000 from Chicago-Area Software CompanyRead the Press Release
CHICAGO — The president of a southern California trucking company plotted with a Serbian man to extort $40,000 from a Chicago-area software company by hacking into the company’s computer system and threatening to disclose the data, federal authorities announced today.
STEFAN STOJANOVIC, 20, of Zemun, Serbia, hacked into the company’s servers in May and threatened to expose sensitive information, including employee usernames and passwords, unless the company paid him $40,000, according to a criminal complaint and affidavit filed in U.S. District Court in Chicago. Per instructions from Stojanovic, an employee of the company deposited the funds into a bank account in California, the complaint states.
A check for $25,000 – made payable to “cash” – was subsequently drawn on the California account and deposited into a bank account controlled by Love Freightways, a transportation logistics company in Anaheim, Calif., according to the complaint. The signatory for the Love Freightways account is its president, NEMANJA LOVRE, 32, of Seal Beach, Calif.
Lovre was arrested in California Wednesday morning. The complaint, which was unsealed following the arrest, charges him with intentionally extorting money by threat to cause damage to a protected computer. He is scheduled to appear for a bond hearing today at 2:00 p.m. PDT in U.S. District Court in Santa Ana, Calif. The U.S. Attorney’s Office for the Northern District of Illinois will seek to remove Lovre to Chicago for prosecution.
Serbian officials arrested Stojanovic early Wednesday morning local time in Serbia. He is expected to face charges in Serbia and be prosecuted in that country.
The Chicago-area software company is identified in the complaint only as “Company A.” The employee who paid the money is identified only as “Individual A.”
According to the affidavit, Stojanovic first contacted the company via email and stated that he worked for Love Freightways, which recently had become a customer of Company A. Stojanovic said in the email that he had hacked into Company A’s servers and obtained the personal identifying information of its employees. He also provided a sample of the stolen data. Individual A ultimately agreed to pay Stojanovic $40,000 in an attempt to protect the hacked data from being released, the complaint states.
Stojanovic instructed Individual A to have a cashier’s check deposited in the bank account in California, the complaint states. On May 21, the $40,000 was received in the California account. In early June, a $25,000 check was drawn on the account and made payable to “cash,” according to the complaint. It was deposited into the Love Freightways account controlled by Lovre, the affidavit states.
The arrest and charge against Lovre were announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois; and John A. Brown, Acting Special Agent-in-Charge of the Chicago Office of the Federal Bureau of Investigation.
The charge against Lovre carries a maximum sentence of 10 years in prison. If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory United States Sentencing Guidelines.
The public is reminded that a complaint is not evidence of guilt. The defendant is presumed innocent and is entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
The government is represented by Assistant U.S. Attorney Peter Salib of the U.S. Attorney’s Office for the Northern District of Illinois.
Complaint
California Man Charged with Heroin TraffickingRead the Press Release
JEFFERSON CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a California man was charged in federal court today with possessing heroin with the intent to distribute, after state troopers found approximately seven pounds of heroin hidden in his vehicle during a traffic stop.
Jose F. Guzman-Pompa, 28, of California, was charged in a criminal complaint filed in the U.S. District Court in Jefferson City, Mo.
According to an affidavit filed in support of the federal criminal complaint, a state trooper stopped a 2014 Nissan Sentra (in which Guzman-Pompa was a passenger) on Interstate 70 in Callaway County (at the 140.6 mile marker) for a traffic violation at about 9:13 a.m. on Sept. 3, 2015. Guzman-Pompa told the trooper that the vehicle was owned by his girlfriend; Guzman-Pompa was listed on the insurance as a co-owner.
The trooper, after interviewing the driver and Guzman-Pompa, believed they were involved in criminal behavior. Another trooper utilized his canine, Rocky, to conduct a free air sniff of the Sentra. Rocky positively alerted to the Sentra for the presence of controlled substances.
A trooper searched the vehicle, the affidavit says, and found a package hidden under the seat cover of the driver’s seat. The package contained approximately seven pounds, or 3.171 kilograms, of heroin.
Dickinson cautioned that the charge contained in this indictment is simply an accusation, and not evidence of guilt. Evidence supporting the charge must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Supervisory Assistant U.S. Attorney Michael S. Oliver. It was investigated by the Drug Enforcement Administration and the Missouri State Highway Patrol.
Buffalo Man Sentenced on Drug ChargesRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051
BUFFALO, N.Y.-U.S. Attorney William J. Hochul Jr. announced today that Charles Humphrey, 47, of Buffalo, NY, who was convicted of conspiracy to distribute over 500 grams of cocaine, was sentenced to 30 months in prison by U.S. District Judge Richard J. Arcara.Assistant U.S. Attorney Thomas S. Duszkiewicz, who handled the case, stated that the defendant, along with four co-defendants, distributed multiple quantities of cocaine between 2009 and January 2010. In addition, Humphrey sold a quantity of cocaine to a confidential source on January 13, 2010.
The defendant was arrested along with Eric J. Humphrey, John E. Humphrey, Jr., James Humphrey, Jr. and Anthony Taylor. All five defendants have been convicted and sentenced.
Items seized during the execution of search warrants executed at the time of their arrests included quantities of cocaine, crack cocaine, marijuana, supplies used in the packaging of cocaine and crack cocaine, $153,000 in cash, ammunition and three vehicles.
The investigation resulted in the liquor license revocation of “The Good Life,” a Bailey Avenue sports bar owned by Eric Humphrey.
The sentencing is the culmination of an investigation by the Drug Enforcement Administration, under the direction of Special Agent-in-Charge James J. Hunt, New York Field Division, the Buffalo Police Department, under the direction of Commissioner Daniel Derenda, and the Erie County District Attorney’s Office, under the direction of District Attorney Frank A. Sedita. Additional assistance was provided by the Amherst Police Department and the Federal Bureau of Investigation Safe Streets Task Force.
Bank Employee Sentenced to 18 Months in Prison for Stealing More Than $100K from Customer AccountsRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that ALEXANDER ALVAREZ, 33, of East Lyme, was sentenced today by U.S. District Judge Michael P. Shea in Hartford to 18 months of imprisonment, followed by four years of supervised release, for stealing more $100,000 from customers of the bank where he was employed.
According to court documents and statements made in court, from January 2012 to February 2013, ALVAREZ was employed as a Financial Service Representative for a bank in Newington. While employed at the bank, ALVAREZ identified accounts that had little banking activity. He then caused the mailing address for the accounts he targeted to be changed from the owner’s address to a fraudulent address so that transactions in the accounts would not be immediately discovered by the account owner. ALVAREZ then created fraudulent transfer slips causing the funds to be transferred to another account that he believed was dormant, or to an account that he directly controlled, or to be issued in a bank check. Once the funds were transferred from the owner’s account, ALVAREZ withdrew the funds from the bank in cash or via an ATM card, or transferred them to his personal banking account.
ALVAREZ stole $100,806.85 from one bank customer and $11,137.01 from a second bank customer. He was ordered to pay full restitution, plus interest, to the bank.
On April 21, 2015, ALVAREZ pleaded guilty to one count of bank fraud.
This matter was investigated by the Connecticut Financial Crimes Task Force, the Stratford Police Department and the Greenwich Police Department. The case was prosecuted by Assistant U.S. Attorney Ray Miller.
Associate of Treasure Hunter Sentenced for Criminal ContemptRead the Press Release
COLUMBUS, Ohio – Alison L. Antekeier, 48, formerly of Columbus, Ohio, was sentenced in U.S. District Court today to five months in jail for criminal contempt, specifically disobedience or resistance of the court, stemming from a civil lawsuit.
Carter M. Stewart, United States Attorney for the Southern District of Ohio, and Peter C. Tobin, United States Marshal for the Southern District of Ohio, announced the plea entered into today before U.S. District Judge Algenon L. Marbley.
Antekeier and treasure-hunter Thomas “Tommy” G. Thompson, 63, also formerly of Columbus, Ohio, pleaded guilty to criminal contempt in April.
According to court documents, Thompson disobeyed and resisted a lawful order of U.S. District Chief Judge Sargus, who ordered Thompson to personally appear at an August 13, 2012 hearing related to a civil case involving the defendant. Specifically, Thompson had been ordered to appear at a hearing to provide an accounting of certain funds and the location of 500 re-strike commemorative gold coins as part of a lawsuit over the treasure that Thompson found from the SS Central America shipwreck. A bench warrant for Thompson’s arrest was issued the same day.
Antekeier was also ordered to appear in U.S. District Court as a witness in the civil lawsuit. She was to appear in court to give testimony related to the civil case on November 7, 2012; a bench warrant for her arrest was issued when she failed to appear.
In March 2013, an arrest warrant based on a criminal complaint alleging criminal contempt was authorized against Thompson.
U.S. Marshals found and arrested Thompson and Antekeier on January 27, 2015 in Boca Raton, Florida. Thompson and Antekeier had been living in a Hilton hotel room under fake names and paying with cash.
As part of their plea, the couple has agreed to forfeit the more than $425,000 in cash that was seized at the time of their arrest.
Thompson is scheduled to be sentenced at 9:30am on October 29.
U.S. Attorney Stewart commended the investigation by the U.S. Marshals Service, as well as Assistant United States Attorney Doug Squires, who is representing the United States in this case.
Alaska Resident Pleads Guilty in California to Drug Dealing Money LaunderingRead the Press Release
Anchorage, Alaska - U.S. Attorney Karen L. Loeffler announced that DuWayne LeDoux, 55, of Kodiak, Alaska, pleaded guilty yesterday, October 1, 2015, in U.S. District Court, Sacramento, California, to possession with intent to distribute methamphetamine and conspiracy to structure cash deposits.
According to court documents, LeDoux enlisted Sacramento resident Jennifer MacDougal to obtain and ship methamphetamine and crack cocaine to LeDoux at various addresses in Kodiak and under various names, so that LeDoux could sell the drugs. LeDoux paid for the drugs by depositing cash into a Wells Fargo account held by MacDougal in amounts designed to avoid bank reporting requirements.
Co-defendant MacDougal pleaded guilty in November 2012 and is currently serving a five-year sentence.
LeDoux is scheduled to be sentenced by United States District Judge Troy L. Nunley on January 7, 2016. LeDoux faces a maximum statutory penalty of 40 years in prison and a $5 million fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
This case is the product of an investigation by the Drug Enforcement Administration and the Internal Revenue Service’s Financial Crimes Task Force, Sacramento, California offices.
Ms. Loeffler thanks the investigative and prosecution team from Eastern California for helping decrease the flow of narcotics to rural Alaska. This case was prosecuted by the U.S. Attorney’s Office for the Eastern District of California.
Alabama Woman Pleads Guilty for Involvement in Stolen Identity Tax Refund Fraud RingRead the Press Release
A Phenix City, Alabama, resident pleaded guilty for her role in a stolen identity tax refund fraud (SIRF) conspiracy, Acting Assistant Attorney General Caroline D. Ciraolo of the Justice Department’s Tax Division and U.S. Attorney George L. Beck Jr. of the Middle District of Alabama announced today.
According to court documents, between Jan. 1, 2013, and Dec. 31, 2013, Benita Short conspired with others to defraud the United States by filing false federal income tax returns using stolen identities. Short obtained personal identifiable information, including names, social security numbers, addresses and dates of birth, without the individuals’ authorization. A co-conspirator obtained the stolen personal identifiable information from an individual who had access to Alabama state databases and gave it to Short. This co-conspirator also obtained Electronic Filing Identification Numbers (EFINs) in the names of several tax preparation businesses and provided the EFINs to Short. Short then used the stolen identities and EFINs to electronically file 326 fraudulent tax returns, causing a tax loss of $456,853. Short also caused fraudulent income tax refund checks to be cashed at several businesses in Alabama and Georgia.
Short additionally pleaded guilty to one count of aggravated identity theft. She faces a statutory maximum sentence of 10 years in prison and three years of supervised release for the conspiracy charge and a statutory mandatory sentence of two years in prison and one year of supervised release for the aggravated identity theft charge. Short must serve the two-year sentence for aggravated identity theft in addition to whatever sentence the court imposes for the conspiracy charge. Both charges carry a statutory maximum fine of $250,000.
Acting Assistant Attorney General Ciraolo and U.S. Attorney Beck commended special agents of Internal Revenue Service-Criminal Investigation, who investigated the case, and Trial Attorneys Michael C. Boteler and Michael P. Hatzimichalis of the Tax Division and Assistant U.S. Attorney Jonathan Ross of the Middle District of Alabama, who are prosecuting the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Thursday 1 October 2015
Yulee Man Sentenced to More Than Thirteen Years for Distributing Child PornographyRead the Press Release
Jacksonville, Florida – United States District Judge Timothy J. Corrigan has sentenced Nicholas Mitko Clark (22, Yulee) to 13 years and 4 months in federal prison, followed by a lifetime of supervised release, for transporting child pornography. The Court also ordered him to forfeit the laptop computer and cellphone that he had used to commit the offense. Clark pleaded guilty on January 13, 2015.
According to court documents, in April 2013, Clark used an instant messaging service to chat with an individual in Canada, with whom he exchanged child pornography. During the chat, Clark requested that the individual send him child pornography and advised that he likes children between the ages of and 8 and 13. After receiving an image depicting a young child, Clark responded that he already had that file and requested another one. Clark and the individual proceeded to exchange additional files of child pornography. Through their investigation, law enforcement agents obtained Clark’s cellphone and recovered several additional images of child pornography.
At the time of his arrest, Clark was employed as an afterschool counselor by a youth development organization in Northeast Florida, and worked with children through various churches. He also advertised his babysitting and child transportation services on the Internet.
“This case is especially egregious, as this pedophile actively sought to work with children, in places they should feel safe and secure,” said Susan L. McCormick, special agent in charge of HSI Tampa. “HSI special agents, and our law enforcement partners like the Nassau County Sheriff’s Office, will continue to work diligently to protect our children from predators.”
This case was investigated by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, the Nassau County Sheriff’s Office, and the Florida Department of Law Enforcement. It was prosecuted by Assistant United States Attorney Kelly S. Karase.
It is another case 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 United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Women Head to Prison for Stealing and Using Patient Information to Create Fraudulent Bank AccountsRead the Press Release
HOUSTON – With the sentencing of Leatrice Reynaud, 45, three Houston women have now been held accountable for their crimes of conspiracy to commit bank fraud and bank fraud, announced U.S. Attorney Kenneth Magidson. Reynaud previously pleaded guilty as did Houston cousins, Tonya Beverly, 39, and Demetria Jones, 41.
Today, U.S. District Judge Gray Miller ordered Reynaud to serve a sentence of 57 months in federal prison to be immediately followed by three years of supervised release. Beverly was sentenced last month to a term of 63 months in prison, while Jones, who was a minor participant, received 12 months and one day in custody. The three conspirators were further ordered to pay more than $100,000 in restitution to USAA Federal Savings Bank - the ultimate financial victim of the crime. As part of their plea agreements, the conspirators have agreed to forfeiture of $106,383.51 in unlawful proceeds to the United States.
Beverly, Reynaud and Jones admitted they conspired together to create and access false and fraudulent USAA Federal Savings Bank accounts using stolen personal identification information, including names, dates of birth and Social Security numbers. Beverly admitted she stole the personal information from the patient files of health care providers with whom she had been employed.
In less than two years, the conspirators created 33 false and fraudulent USAA accounts and transferred approximately $205,719 into those accounts from the real bank accounts of at least 35 individuals. Several of the victims were elderly, including one who was born in 1922 and another who was born in 1929 as well as another victim who was caring for her terminally ill husband when the crime occurred.
Today, the prosecutor read a portion of a victim statement to the court that described the mental anguish and stress caused by the conspirators’ actions. The amount of loss for each victim varied - $23,800 was taken out of the account of the victim born in 1922, while $24,000 was taken from another victim.
At least 16 different banks were affected by the defendants’ actions. As part of the fraud scheme, the conspirators used homes that were listed for sale or vacant as the recipient addresses for debit cards mailed by USAA for the false and fraudulent accounts. Jones received one of the false and fraudulent debit cards at her home address. The USAA debit cards in the victims’ real names were used to withdraw cash from ATM machines, including machines located in Hawaii, Los Angeles, Atlanta and Texas and to make purchases, including plane tickets to Los Angeles, California, for the defendants and the children of one of the defendants. The conspirators also used phones registered in the name of another victim of identity theft to access the fraudulent USAA accounts and perform account functions.
The women were permitted to remain on bond and voluntarily surrender to a U.S. Bureau of Prisons facility to be determined in the near future.
The investigation leading in this case was conducted by the U.S. Secret Service. Assistant U.S. Attorney Julie Redlinger prosecuted the case.
Woman Sentenced to Prison for Assisting an Escape from JusticeRead the Press Release
FARGO – Acting U.S. Attorney Christopher C. Myers announced that on September 30, 2015, Rachel Marie Chepulis, 27, Devils Lake, ND, was sentenced before U.S. District Judge Ralph R. Erickson to serve 40 months in prison for obstruction of justice and assisting an escape from custody. Judge Erickson also sentenced Chepulis to three years of supervised release and ordered her to pay a $100 special assessment to the Crime Victims Fund for each charge.
On June 23, 2015, Chepulis pleaded guilty to two counts of a five-count Indictment. On March 13, 2015, Chepulis – a correctional officer at the Lake Region Law Enforcement Center (“LRLEC”) in Devils Lake – assisted inmate Wesley E. Brown (III) escape from the facility. Brown had been incarcerated at LRLEC pending sentencing in federal court for charges of being a felon in possession of a firearm and escape for a 2013 escape from Heart of America Correctional and Treatment Center in Rugby, ND.
The investigation revealed that Chepulis and Brown had planned the escape in advance. Chepulis advised Brown on how to evade security measures at LRLEC to escape from the facility, served as a lookout while Brown escaped, and picked Brown up near the LRLEC to ensure a speedy departure from the region. Chepulis and Brown evaded law enforcement for nearly three weeks before they were apprehended in Coos Bay, Oregon.
The case was investigated by the United States Marshals Service. Assistant United States Attorneys Megan A. Healy and David D. Hagler prosecuted the case.Woman Sentenced for Using Counterfeit Traveler’s ChecksRead the Press Release
Montgomery, Alabama -Cathy Ann Francesca Badal (23) of Brooklyn, New York was sentenced to 15 months’ imprisonment on Monday, September 28, 2015 by United States District Judge Callie V.S. Granade. Badal’s sentence was for possessing and passing counterfeit traveler’s checks, in violation of federal law.
On December 27, 2014, deputies of the Henry County, Alabama Sheriff’s Office arrested Badal. They found, in her purse, approximately 140 counterfeit traveler’s checks, each one purportedly worth $100. They also found a fraudulent driver’s license bearing Badal’s picture and the name and address of an Illinois resident who did not know Badal.
Further investigation revealed that, before being arrested in Henry County, Badal had traveled all over the country passing counterfeit traveler’s checks and using a fraudulent driver’s license to do so. Stores from Maine to Florida reported being victimized by Badal. As a result, Judge Granade ordered that Badal pay a total restitution amount of $53,800 to 47 different businesses.
“This case demonstrates that identity theft is a problem that is national in scope,” stated U.S. Attorney Beck. “We in the Middle District of Alabama consider it a great success when we are able to bring to justice a person like Badal who had, before coming to Alabama, preyed upon businesses and individuals all over the country and all for her own personal gain,” Beck stated.
This case was jointly investigated by the Henry County Sheriff’s Office and the United States Secret Service. Assistant United States Attorney Jonathan S. Ross prosecuted the case.
West Sacramento Woman Pleads Guilty to Wire Fraud for Filing False Workers’ Compensation Claim for Former NFL PlayerRead the Press Release
SACRAMENTO, Calif. — Kimberly Jones, 50, of West Sacramento, pleaded guilty today to wire fraud and agreed to submit to a restitution order of at least $1.5 million, United States Attorney Benjamin B. Wagner announced.
According to court documents, from September 2001 through August 2011, Jones was employed as a Senior Claims Representative, or claims adjuster, at Gallagher Bassett Services Inc. in its Sacramento office. Gallagher Bassett was a third-party administrator that managed, among other things, workers’ compensation claims in California on behalf of Pennsylvania Manufacturers’ Association Insurance Group (PMA). Co-defendant Marcus Buckley, 42, of Weatherford, Texas, played professional football in the National Football League between 1993 and 2000 for seven seasons with the New York Giants. During this time period, the Giants had workers’ compensation insurance coverage through PMA.
In 2006, Buckley filed a worker’s compensation claim against the Giants for cumulative stress injuries sustained while playing football, in part, in California. In November 2010, the claim was settled for $300,000.
After his claims had been settled, however, between late 2010 and June 2011, Buckley prepared and filed numerous additional requests for reimbursement under his closed claim. He prepared fictitious invoices and statements from medical providers for medical services purportedly provided to him and fictitious credit collection notices from collection agencies purportedly seeking payment from Buckley for past due medical bills. Buckley sent the fictitious invoices, statements, and credit collection letters to Jones who had Gallagher Bassett checks made payable to Buckley. In total, Buckley received more than $1,588,000 to which he was not entitled.
This case is the product of an investigation by the Federal Bureau of Investigation. Assistant United States Attorney Michael M. Beckwith is prosecuting the case.
Jones is scheduled to be sentenced on January 7, 2016, by United States District Judge Troy L. Nunley. Jones faces a maximum sentence of 20 years in prison, a fine of $250,000 or twice the gross gain or loss in the case, and a three-year term of supervised release. The actual sentence will be determined at the discretion of the court after consideration of any applicable statutory sentencing factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Charges against Buckley are pending. The charges are only allegations; he is presumed innocent until and unless proven guilty beyond a reasonable doubt.
West L.A. Pharmacy Owners Arrested on Drug Trafficking and Money Laundering Charges for Diverting Prescription Drugs to Black MarketRead the Press Release
LOS ANGELES – Two brothers were arrested today on federal drug trafficking and money laundering charges that allege they used a bogus pharmacy to obtain and distribute large quantities of prescription narcotics, including OxyContin, to black-market customers.
The two Brentwood men are charged in a 40-count indictment that alleges the operators of Global Compounding Pharmacy in West Los Angeles also illegally imported large quantities of anabolic steroids.
The two men arrested this morning are Berry Kabov, 44, and his brother, Dalibor Kabov (also known as “Dabo”), 32. The indictment that charges the Kabovs, which was unsealed this morning, also names Global Compounding, LLC, as a defendant.
Berry and Dalibor Kabov are expected to be arraigned on the indictment this afternoon in United States District Court in Los Angeles.
A search warrant also unsealed today details how the Kabov brothers used Los Angeles as a base to sell bulk shipments of prescription drugs – including oxycodone, which is commonly sold under the brand name OxyContin – to black market customers across the country. Investigators seized parcels containing thousands of hidden oxycodone pills that the Kabov brothers attempted to ship to customers in and around Columbus, Ohio, according to the search warrant affidavit, which states that the customers in turn made cash deposits into Kabov-controlled bank accounts or simply shipped bulk cash to the brothers in Southern California. During recorded calls with an informant that are described in the affidavit, Berry Kabov coordinated the shipments and explained that he could sell oxycodone in New York for as much as $50 per pill.
The court documents unsealed today allege that the Kabov brothers operated Global Compounding as a bogus pharmacy to facilitate the acquisition of prescription drugs from the wholesale market. DEA administrative records show that, between June 2012 and January 2014, the Kabov brothers purchased massive quantities of drugs, including nearly 100,000 in oxycodone pills, as well as tens of thousands of pills of hydrocodone (commonly sold under the brand name Vicodin) and hydromorphone (commonly sold under the brand name Dilaudid) .
DEA administrative records show that Global Compounding was the top purchaser of oxycodone among all pharmacies in the Los Angeles area in 2014, and that it ordered three times more oxycodone than the second-largest purchaser. Surveillance of Global Compounding has shown that few, if any, people who appear to be customers ever go the pharmacy.
The affidavit also described an inspection at Global Compounding by the California Board of Pharmacy in January 2014 that led investigators to conclude “that Global Compounding is not a legitimate pharmacy and in fact is a façade for a drug trafficking operation.” In coming to this conclusion, the state investigators noted a lack of over-the-counter drug products ordinarily carried by legitimate pharmacies and records indicating that many of the prescriptions purportedly being filled by the pharmacy were for patients outside of the Los Angeles area, according to the affidavit.
The indictment also alleges that the brothers engaged in money laundering and the structuring of cash transactions to avoid federal reporting requirements. The search warrant identifies more than $1.5 million in structured cash deposits into multiple bank accounts controlled by the Kabov brothers. The affidavit details extravagant expenditures, including private jets from the Los Angeles area to Las Vegas and other luxury items.
In addition to the charges related to oxycodone, the indictment alleges that the brothers illegally imported anabolic steroids purchased from a wholesale drug distributor located in Hubei, China. The indictment details how the brothers used the pharmacy to illegally order bulk quantities of testosterone, oxandrolone and nandrolone.
If convicted of the charges in the indictment, Berry Kabov and Dalibor Kabov each would face a statutory maximum sentence of 430 years in federal prison.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed to be innocent until and unless proven guilty in court.
The investigation into the Kabov brothers and Global Compounding is being conducted by the Drug Enforcement Administration, the United States Postal Inspection Service, the Los Angeles Police Department and the California Board of Pharmacy.
Weslaco Man Convicted in Cocaine-Trafficking ConspiracyRead the Press Release
CORPUS CHRISTI, Texas – A federal jury sitting in Corpus Christi has convicted a 40-year-old resident of Weslaco on one count of conspiracy to commit cocaine-trafficking and one count of possession with intent to distribute cocaine, announced U.S. Attorney Kenneth Magidson. The jury returned its verdicts against Marcos Garcia just a short time ago after less than two hours of deliberation following a three-day trial which included 18 government witnesses.
During the trial, the government presented testimony that Garcia was a commercial truck driver. On the evening of Sept. 4, 2014, Garcia picked up a load of produce in Donna and was scheduled to deliver it to Houston the next day. Garcia’s tractor trailer arrived at the Border Patrol Checkpoint near Falfurrias just after midnight on Sept. 5, 2014, but Garcia was not driving. He had solicited his brother-in-law and a 22-year-old female to drive the vehicle through the checkpoint, while Garcia passed through the checkpoint in another vehicle a few minutes prior.
Authorities arrested the two people in the tractor trailer after the discovery of 15 illegal aliens hidden in the trailer with the produce. Subsequently, 37 kilograms of cocaine was also found hidden in a false compartment underneath the trailer’s floor. The cocaine was found after the trailer had been seized by Border Patrol and stored at an impound lot.
The evidence at trial established that Garcia was going to resume driving his tractor trailer after his brother-in-law and the female successfully passed through the checkpoint. Garcia’s plan was to deliver the illegal aliens and the cocaine himself. For some time, Garcia believed that law enforcement would not discover the cocaine and filed paperwork with Border Patrol in an attempt to retrieve his trailer and the cocaine. However, law enforcement found the cocaine before Garcia could do so.
U.S. District Judge Nelva Gonzales Ramos presided over the trial and has set sentencing for Jan. 14, 2016. At that time, he faces a mandatory minimum of 10 years and up to life imprisonment as well as a possible $10 million fine.
In addition, Garcia was arrested at the Falfurrias checkpoint driving another tractor trailer hauling produce on Oct. 31, 2014. Along with the produce were 24 illegal aliens hiding in the vehicle that Garcia was driving. He previously pleaded guilty to that offense and faces up to 10 years imprisonment and a maximum $250,000 fine.
The charges are the result of an investigation conducted by Homeland Security Investigations with the assistance of Border Patrol. Assistant U.S. Attorney Chad W. Cowan is prosecuting the case.
Warrensburg Man Charged with Crossing State Line for Illicit Sex with a MinorRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Warrensburg, Mo., man has been charged in federal court with crossing state lines to engage in illicit sexual activity with a minor in Kansas.
Thomas Johnson, 22, of Warrensburg, was charged in a criminal complaint filed in the U.S. District Court in Kansas City, Mo., on Wednesday, Sept. 30, 2015. Johnson, who was arrested today, remains in federal custody pending a detention hearing.
According to an affidavit filed in support of the federal criminal complaint, the investigation began in the Eastern District of Virginia when law enforcement agents were monitoring a child pornography Web site where Johnson had an account. Johnson allegedly logged onto the Web site and accessed images of child pornography.
Law enforcement officers executed a search warrant at Johnson’s residence on Sept. 25, 2015 and interviewed Johnson. Johnson’s cell phone was examined, the affidavit says, and was found to have several explicit photos of possible minor females, including a 13-year-old minor in Olathe, Kan. Johnson told law enforcement officers that he drove to Olathe to meet with the minor victim on two occasions in May 2015. This was confirmed in an interview with the minor victim, according to the affidavit, who also reported illicit sexual contact between herself and Johnson.
Johnson was taken into custody by the Johnson County, Kan., Sheriff’s Department for an outstanding warrant on Sept. 25, 2015. Johnson later bonded out and the following day, the affidavit says, the minor victim’s mother reported that Johnson was attempting to communicate with the minor victim via social media.
Dickinson cautioned that the charge contained in this complaint is simply an accusation, and not evidence of guilt. Evidence supporting the charge must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorney Catherine A. Connelly. It was investigated by the FBI.
Vallejo Kidnapping Suspect Indicted in Federal CourtRead the Press Release
SACRAMENTO, Calif. — A federal grand jury returned an indictment today against Matthew D. Muller, 38, of South Lake Tahoe, charging him with one count of kidnapping, United States Attorney Benjamin B. Wagner announced.
According to court documents, it is alleged that in the early morning hours of March 23, 2015, Muller broke into a residence in Vallejo, restrained the male occupant and kidnapped the female occupant. It is further alleged that he demanded a $15,000 ransom, held her for two days, and ultimately released her in Huntington Beach. Muller was identified as a suspect in the Vallejo kidnapping following an investigation and his arrest on residential home-invasion burglary charges that occurred in Alameda County on June 5, 2015.
“The bizarre circumstances of the events in Vallejo in March complicated the investigation of this matter,” said U.S. Attorney Wagner. “But the Vallejo Police Department, the FBI, and our law enforcement allies in Alameda County have done excellent work in recent months to bring this investigation to a conclusion.”
This case is the product of an investigation by the Federal Bureau of Investigation, the Alameda County Sheriff’s Office, the Alameda County District Attorney’s Office, the Dublin Police Services and the Vallejo Police Department. Assistant United States Attorney Matthew D. Segal and Heiko P. Coppola are prosecuting the case.
Muller is currently being held in the Sacramento County Jail. He is scheduled to be arraigned on Monday, October 5, 2015, before United States Magistrate Judge Kendall J. Newman at 2:00 p.m.
If convicted, Muller faces a maximum statutory penalty of life in prison and a $250,000 fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
U.S. Departments of Justice and Labor and Washington State Department of Labor and Industries Reach Agreement to Improve Access for Limited English Proficient WorkersRead the Press Release
The U.S. Departments of Justice and Labor have reached an agreement with the Washington State Department of Labor and Industries (L&I) to resolve civil rights complaints filed by limited English proficient (LEP) workers who alleged that they were subject to national origin discrimination in the state’s workers’ compensation program. These workers alleged that they were denied access to interpreters and to vital information in their primary languages. The agreement calls for significant improvements in language assistance services for LEP workers.
“This agreement symbolizes how federal and state government can work together to improve access to government services for limited English proficient communities.” said Principal Deputy Assistant Attorney General Vanita Gupta, head of the U.S. Department of Justice’s Civil Rights Division. “The Department of Justice will continue its efforts to ensure these communities have equal access to government services.”
“Navigating a system of government benefits can be daunting for anyone,” said U.S. Attorney Annette L. Hayes of the Western District of Washington. “This is particularly so for members of our community who are applying for workers compensation benefits and whose primary language is not English. The changes to Washington’s Labor and Industries practices set forth in this settlement agreement will ensure all workers’ rights are protected regardless of their country of origin.”
“I commend L&I for its commitment to work with the Civil Rights Center and the Department of Justice to remove language barriers for limited English proficient workers.” said Director Naomi M. Barry-Pérez of the U.S. Department of Labor’s Civil Rights Center.
The Departments of Justice and Labor worked with L&I to develop a memorandum of agreement (MOA) that memorializes L&I’s commitment to develop and implement a language access program that ensures LEP individuals are provided meaningful access to L&I programs, activities, and information. The MOA and new L&I Language Access Policy include the following commitments:
- All L&I staff will ensure LEP individuals receive language assistance services at no charge.
- L&I will develop a Language Access Plan, that sets forth the management actions needed to implement the Language Access Policy and ensure compliance with federal civil rights laws, including the tasks to be undertaken, assignment of responsibility, deadlines, processes, resources, quality controls, and periodic updates.
- L&I will translate claim and application forms, complaint and consent forms, letters and notices, and electronic materials into non-English languages.
- L&I will add advisory members to the Language Access Steering Committee to represent the interests of LEP workers and the Washington employer community.
- L&I will submit detailed monitoring reports that document its implementation of the MOA.
The investigation was jointly conducted by the Federal Coordination and Compliance Section (FCS) in the Department of Justice’s Civil Rights Division, the U.S. Attorney’s Office for the Western District of Washington and the U.S. Department of Labor’s Civil Rights Center (CRC). Title VI of the Civil Rights Act of 1964, Section 188 of the Workforce Investment Act of 1998, the Victims of Crime Act, and their corresponding implementing regulations all prohibit national origin discrimination and require recipients of federal financial assistance to provide LEP individuals meaningful access to programs and activities through no-cost language assistance services.
FCS has worked with a number of state courts, law enforcement agencies, correctional agencies and other government entities to ensure Title VI compliance and access to language assistance services for LEP individuals. Please click here for further information about FCS. For additional LEP-related resources, go to LEP.gov, the Federal Interagency Website on LEP.
CRC enforces nondiscrimination laws that apply to recipients of financial assistance from the U.S. Department of Labor and, in some circumstances, from other federal departments and agencies. For more information about CRC, call 202-693-6500 (voice) or 800-877-8339 (relay) or visit CRC’s website.
U.S. Departments of Justice and Labor and Washington State Department of Labor Industries Reach Agreement to Improve Access for Limited English Proficient WorkersRead the Press Release
The U.S. Departments of Justice and Labor have reached an agreement with the Washington State Department of Labor and Industries (L&I) to resolve civil rights complaints filed by limited English proficient (LEP) workers who alleged that they were subject to national origin discrimination in the state’s workers’ compensation program. These workers alleged that they were denied access to interpreters and to vital information in their primary languages. The agreement calls for significant improvements in language assistance services for LEP workers.
“This agreement symbolizes how federal and state government can work together to improve access to government services for limited English proficient communities.” said Principal Deputy Assistant Attorney General Vanita Gupta, head of the U.S. Department of Justice’s Civil Rights Division. “The Department of Justice will continue its efforts to ensure these communities have equal access to government services.”
“Navigating a system of government benefits can be daunting for anyone,” said U.S. Attorney Annette L. Hayes of the Western District of Washington. “This is particularly so for members of our community who are applying for workers compensation benefits and whose primary language is not English. The changes to Washington’s Labor and Industries practices set forth in this settlement agreement will ensure all workers’ rights are protected regardless of their country of origin.”
“I commend L&I for its commitment to work with the Civil Rights Center and the Department of Justice to remove language barriers for limited English proficient workers.” said Director Naomi M. Barry-Pérez of the U.S. Department of Labor’s Civil Rights Center.
The Departments of Justice and Labor worked with L&I to develop a memorandum of agreement (MOA) that memorializes L&I’s commitment to develop and implement a language access program that ensures LEP individuals are provided meaningful access to L&I programs, activities, and information. The MOA and new L&I Language Access Policy include the following commitments:
- All L&I staff will ensure LEP individuals receive language assistance services at no charge.
- L&I will develop a Language Access Plan, that sets forth the management actions needed to implement the Language Access Policy and ensure compliance with federal civil rights laws, including the tasks to be undertaken, assignment of responsibility, deadlines, processes, resources, quality controls, and periodic updates.
- L&I will translate claim and application forms, complaint and consent forms, letters and notices, and electronic materials into non-English languages.
- L&I will add advisory members to the Language Access Steering Committee to represent the interests of LEP workers and the Washington employer community.
- L&I will submit detailed monitoring reports that document its implementation of the MOA.
The investigation was jointly conducted by the Federal Coordination and Compliance Section (FCS) in the Department of Justice’s Civil Rights Division, the U.S. Attorney’s Office for the Western District of Washington and the U.S. Department of Labor’s Civil Rights Center (CRC). Title VI of the Civil Rights Act of 1964, Section 188 of the Workforce Investment Act of 1998, the Victims of Crime Act, and their corresponding implementing regulations all prohibit national origin discrimination and require recipients of federal financial assistance to provide LEP individuals meaningful access to programs and activities through no-cost language assistance services.
FCS has worked with a number of state courts, law enforcement agencies, correctional agencies and other government entities to ensure Title VI compliance and access to language assistance services for LEP individuals. Please click here for further information about FCS. For additional LEP-related resources, go to LEP.gov, the Federal Interagency Website on LEP.
CRC enforces nondiscrimination laws that apply to recipients of financial assistance from the U.S. Department of Labor and, in some circumstances, from other federal departments and agencies. For more information about CRC, call 202-693-6500 (voice) or 800-877-8339 (relay) or visit CRC’s website.
U.S. Attorney Paul J. Fishman Announces $932,805 Grant Award to Help Prisoner Reentry Programs in New JerseyRead the Press Release
NEWARK, N.J. – U.S. Attorney Paul J. Fishman, in conjunction with the U.S. Department of Justice’s Bureau of Justice Assistance (BJA), today announced a $932,805 grant to the N.J. State Parole Board to help reduce the recidivism of individuals reentering their communities after incarceration.
The funds were awarded as part of the Second Chance Act (SCA) Two-Phase Adult Reentry Demonstration Program, which is designed to help jurisdictions develop and implement collaborative strategies to reduce recidivism for medium to high risk parolees. The $932,805 will support a reentry program for 100 parolees from pre to post-release, with an emphasis on improved housing and supportive services.
In April 2008 the SCA was passed with bipartisan support and was backed by a broad spectrum of leaders in law enforcement, corrections, courts, behavioral health and other areas. The Second Chance Act represents a federal investment in strategies to reduce recidivism and increase public safety, as well as to reduce corrections costs for state and local governments. Since 2009, more than 600 Second Chance Act grant awards have been made to government agencies and nonprofit organizations from 49 states for reentry programs serving adults and juveniles. The Second Chance Act’s grant programs are funded and administered by the U.S. Department of Justice’s Office of Justice Programs.
For additional information about SCA programs, visit https://www.bja.gov/.
U.S. Attorney Ortiz Hosts Roundtable to Commemorate 25th Anniversary of the Americans with Disabilities ActRead the Press Release
BOSTON – U.S. Attorney Carmen M. Ortiz hosted a roundtable discussion yesterday with local disability rights activists to commemorate the 25th anniversary of the Americans with Disabilities Act (ADA).
“The ADA remains one of the most important tools we have to advance the cause of civil rights in the United States and to eradicate discrimination for people with disabilities,” said U.S. Attorney Carmen M. Ortiz. “My office is committed to ADA compliance -- through cooperative efforts and enforcement actions -- to ensure equal access in schools, employment, in places of public accommodation, and in the programs and services offered by state and local governments.”
To commemorate this important anniversary, U.S. Attorney Ortiz invited a dozen local disability rights advocates, including the National Alliance on Mental Illness, the Boston Center for Independent Living, the Institute for Human Centered Design, Greater Boston Legal Services, and several state and local offices on disability, to participate in a discussion about the most pressing ADA issues facing citizens of the Commonwealth today. This includes equal access for adults and children with mental health issues, physical disabilities, and vision and hearing impairments.
The ADA was signed into law on July 26, 1990, by President George H.W. Bush. It is one of America’s most comprehensive pieces of civil rights legislation that prohibits discrimination and guarantees that people with disabilities have the same opportunities as everyone else to participate in the mainstream of American life -- to enjoy employment opportunities, to purchase goods and services, and to participate in state and local government programs and services. Modeled after the Civil Rights Act of 1964, which prohibits discrimination on the basis of race, color, religion, sex, or national origin, the ADA is an “equal opportunity” law for people with disabilities.
The U.S. Attorney’s Office wishes to thank the U.S. Department of Health and Human Services, Office for Civil Rights for co-hosting the roundtable discussion.
Two Men Plead Guilty to Murder and Attempted Murder Involving in 7th Street Case; Third Defendant Pleads Guilty to Rico ConspiracyRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y.-U.S. Attorney William J. Hochul Jr. announced today that Kasiem Williams, 26, of Buffalo, NY, pleaded guilty to RICO Conspiracy, before U.S. District Judge Richard J. Arcara. The charge carries a maximum penalty of life in prison and a $250,000 fine. In addition, Leslie Cunningham, 44, of Rochester, NY, pleaded guilty to Attempted Murder in Aid of Racketeering, also before Judge Arcara. That charge carries a maximum penalty of 10 years in prison and a $250,000 fine.
Assistant U.S. Attorney Joseph M. Tripi, who is handling the case, stated that Kasiem Williams participated in several acts of violence during the course of his involvement in the racketeering conspiracy. Specifically, the defendant participated in the following gang-related shootings:
• On July 10, 2009, Williams shot at a rival 10th Street Gang member during an attempted murder. In the aftermath of the attempted murder, Williams shot himself in the foot.
• On August 11, 2009, Williams spotted rival 10th Street Gang members on the corner of Auburn and West Avenue in Buffalo and notified his fellow gang members to shoot at the 10th Street Gang members. As a result, Eric Morrow was shot and killed.
• On November 5, 2009, Williams and a fellow gang member shot and attempted to murder a victim on 7th Street in Buffalo because they believed the victim was associated with the 10th Street Gang.
• On May 24, 2010, Williams and a fellow gang member shot a maintenance worker during the course of attempting to shoot and kill a rival gang member.
• On June 5, 2010, Williams shot and killed Virgil Page at 41 19th Street in Buffalo, a drug rival of Leslie Cunningham. As a result, Cunningham agreed to murder 10th Street Gang rivals for members of the 7th Street Gang as a part of a “favor for a favor” deal.
• On June 13, 2010, Cunningham went to the vicinity of 224 Virginia Street in Buffalo. Armed with the same .380 caliber semi-automatic handgun used by Kasiem Williams to kill Virgil Page, Cunningham shot a 10th Street Gang associate who was inside a store, and fired several shots at a 10th Street Gang member who was seated inside a sport utility vehicle parked outside the store.
Kasiem Williams also conspired to distribute marijuana, cocaine, and heroin as a part of his involvement in the gang.
In addition, Sammy Ortiz, 28, of Buffalo, pleaded guilty to RICO Conspiracy, also before Judge Arcara. The charge carries a maximum penalty of 20 years in prison and $250,000 fine. As a part of his participation in the 7th Street Gang, Ortiz sold cocaine and permitted other members of the gang to store firearms at his residence.
A total of 18 defendants have been charged in this case, to date 12 have been convicted.
Today’s pleas are the culmination of an investigation on the part of Special Agents of the FBI Safe Streets Task Force, the New York State Police, under the direction of Major Michael Cerretto, the Buffalo Police Department under the direction of Commissioner Daniel Derenda and the Bureau of Alcohol, Tobacco, Firearms, and Explosives, under the direction of Special Agent in Charge Delano A. Reid, New York Field Division.Kasiem Williams will be sentenced on January 15, 2016, at 1:30 p.m.; Leslie Cunningham on February 3, 2016, at 12:30 p.m.; and Sammy Ortiz on February 4, 2016 at 12:30 p.m., all before Judge Arcara.
Two Men Found Guilty of First-Degree Murder of a U.S. Border Patrol AgentRead the Press Release
Today, a federal jury in Tucson, Arizona, found Ivan Soto-Barraza, 37, and Jesus Leonel Sanchez-Meza, 27, guilty of first-degree murder and other offenses for the murder of United States Border Patrol Agent Brian Terry, announced U.S. Attorney Laura E. Duffy for the Southern District of California.
According to evidence presented at trial, during the evening of Dec. 14, 2010, Soto-Barraza, Sanchez-Meza and three other men were in the United States for the purpose of robbing drug traffickers of their contraband. While Agent Terry and three other Border Patrol Agents were engaged in the performance of their official duties, members of the defendants’ group exchanged gun fire with the agents and one of the shots fired by a member of the defendants’ group killed Agent Terry.
The jury found both Soto-Barraza and Sanchez-Meza guilty of first-degree murder, second degree murder, conspiracy to interfere with commerce by robbery, attempted interference with commerce by robbery, using and carrying a firearm during a crime of violence and assault on Agent Terry and three additional federal officers – Border Patrol Agents William Castano, Gabriel Fragoza, and Timothy Keller. The court scheduled the defendants’ sentencing hearing for Dec. 9, 2015. Both defendants face a mandatory sentence of life on the first degree murder charge (count 1).
“With these convictions, we have taken another important step towards securing justice for Agent Brian Terry,” said Attorney General Loretta E. Lynch. “Today’s verdict is the result of years of tireless effort from dozens of dedicated law enforcement officers, prosecutors, and investigators committed to ensuring that the murder of their friend and colleague does not go unpunished. The Department of Justice will continue to relentlessly pursue the remaining individuals responsible for Agent Terry’s loss, and to uphold the values of courage, duty, and honor that he embodied with his life and service.”
“Agent Terry gave his life protecting our country. Today’s verdict cannot undo that tragedy and loss, but brings another measure of justice to Agent Terry’s family and the United States,” said U.S. Attorney Duffy. “I commend the prosecution team, the Federal Bureau of Investigation, the United States Border Patrol and all other law enforcement partners who have assisted in the investigation and prosecution.”
Two other men, Manuel Osorio-Arellanes and Rosario Rafael Burboa-Alvarez, previously pleaded guilty to first-degree murder for their roles in Agent Terry’s death. Yet another two men, Jesus Rosario Favela-Astorga and Heraclio Osorio-Arellanes, remain fugitives.
At trial, the United States was represented by attorneys from the Southern District of California, Special Attorneys Todd W. Robinson and David Leshner. The U.S. Attorney’s Office for the District of Arizona is recused. The case was investigated by the Federal Bureau of Investigation.
Two Harrison County men convicted of heroin traffickingRead the Press Release
CLARKSBURG, WEST VIRGINIA – Two individuals were convicted of heroin trafficking today in federal court, United States Attorney William J. Ihlenfeld, II, announced.
Jeremiah Robert Dodrill, 34, of Spelter, West Virginia, sold heroin in October 2014 near Spelter Park, a playground located in Harrison County, West Virginia. He pled guilty today to one count of “Distribution of Heroin within 1,000 feet of a Protected Location.” He faces between one and forty years in prison and a fine of up to $2,000,000.
Adam Thomas Mitchell, 29, of Clarksburg, sold heroin in Harrison County, West Virginia in April 2015. He pled guilty today to one count of “Distribution of Heroin – Aiding and Abetting.” He faces up to 20 years in prison and a fine of up to $1,000,000.
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 defendants.
Assistant U.S. Attorneys Zelda Wesley and Stephen Warner along with former Assistant U.S. Attorney Shawn Morgan prosecuted Mitchell and Assistant U.S. Attorney Zelda Wesley prosecuted Dodrill on behalf of the government. The Greater Harrison County Drug and Violent Crime Task Force, a HIDTA-funded initiative, investigated each defendant.
U.S. District Judge Irene M. Keeley presided.
Two California Men Sentenced for Meth ConspiracyRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that two California men have been sentenced in federal court for their roles in a conspiracy to distribute large amounts of methamphetamine in southwest Missouri.
Jaime Gonzalez-Alvarado, 33, a citizen of Mexico residing in South Baja, Calif., and Camilo Acosta, 22, of Imperial Beach, Calif., were sentenced by U.S. District Judge M. Douglas Harpool on Wednesday, Sept. 30, 2015. Gonzalez-Alvarado was sentenced to 15 years in federal prison without parole. Acosta was sentenced to 11 years in federal prison without parole.
On May 13, 2015, Gonzalez-Alvarado pleaded guilty to participating in a conspiracy to distribute methamphetamine in Barry County, Mo., from March 1, 2012, to Oct. 11, 2013. He also pleaded guilty to possessing methamphetamine with the intent to distribute.
Gonzalez-Alvarado admitted that he directed the delivery and then the distribution of methamphetamine, which was being delivered from California to the residence of co-defendant Julio Vincente Mendoza, 33, a Mexican citizen who is a resident alien residing in Monett, Mo. This methamphetamine was then distributed by Gonzalez-Alvarado and others in the Monett area and throughout southwest Missouri.
On Oct. 11, 2013, law enforcement officers in Oklahoma seized one of these shipments of methamphetamine that was enroute to Mendoza’s residence in Monett. Officers seized 15 tape-wrapped bundles of methamphetamine weighing 14.61 kilograms.
On the same day, Missouri law enforcement officers conducted a controlled delivery of a portion of the methamphetamine to Mendoza’s residence, where they arrested Gonzalez-Alvarado and the other co-conspirators. Officers executed a search warrant and seized $57,660 found in a locked safe, $3,000 found in a downstairs bedroom, a Smith and Wesson 10mm semi-automatic handgun with 50 rounds of ammunition, packaging material consistent with the packaging of methamphetamine, approximately 3.5 grams of methamphetamine, a glass pipe commonly used to ingest methamphetamine and a drug ledger notebook which contained names, numbers, and currency amounts.
Mendoza and co-defendants Ernie Soto, 22, and Armando Arizpe, 24, both of Los Angeles, Calif., pleaded guilty to their roles in the drug-trafficking conspiracy. Mendoza, Soto and Arizpe were each sentenced to three years in federal prison without parole.
This case was prosecuted by Assistant U.S. Attorneys Randall D. Eggert and Nhan Nguyen. It was investigated by the Drug Enforcement Administration; the Missouri State Highway Patrol; the Canadian County, Okla., Sheriff’s Department; the Barry County, Mo., Sheriff’s Department; and the Barry County, Mo., Prosecuting Attorney’s Office.
Twenty-Five Individuals Charged in Southeastern Massachusetts Heroin RingRead the Press Release
BOSTON – Twenty-five individuals were indicted on federal drug trafficking charges in connection with a southeastern Massachusetts heroin trafficking ring. Arrests were made this morning in Fall River, Lawrence, Taunton, Marshfield, New Bedford, Berkley and Providence.
This indictment follows four other recent federal indictments charging 17 individuals in connection with a Taunton heroin distribution network. All five indictments are part of an ongoing federal effort to stem the tide of heroin and fentanyl in southeastern Massachusetts.
In a related development, Attorney General Loretta Lynch will be addressing Massachusetts doctors and public health officials at a forum on Friday in Waltham on how the misuse of prescription opioids is driving demand for narcotics such as heroin and fentanyl.
The following people were charged in an indictment unsealed today with conspiracy to distribute controlled substances, including heroin and fentanyl: Dedwin Cruz-Rivera, 39, and Christian Sostre, 21, both of Fall River; Eric Matos, 37, and Miguelina Mejia Ruiz, 41, both of Lawrence; Manuel Romero-Gonsalez, 37, Luz Gonzalez, 33, Francis Gonsalez-Romero, 39, and Maria Elena Ocasio, 55, all of Providence, R.I.; Julio C. Ocasio, 24, Xavier Ramos, 25, Maria Rodriguez, 38, William M. Rodriguez, 22, Lindsay Ann Belisle, 29, Jose O. Perez, 28, Kelly Patterson, 36, Jorge Vega, 40, Jose A. Rodriguez, 40, Oniel Rivera, 28, Christopher Perez, 36, Kelly Jean Gagnon, 39, Joseph W. Parsons, 23, and Philip Malaguti, 31, all of Taunton; Cory S. Nickerson, 31, of New Bedford; Steven M. Enos, 28, of Berkley; and John A. Gray, Jr., 40, of Marshfield.
The investigation revealed that Dedwin Cruz-Rivera was obtaining heroin and fentanyl from multiple wholesale suppliers, including Eric Matos and Manuel Romero-Gonsalez, and was distributing the drugs to Taunton-based dealers, including Maria Rodriguez, her son William Rodriguez, Oniel Rivera, and Xavier Ramos. Doris Mejia Ruiz delivered fentanyl to Cruz-Rivera at the direction of Matos.
The investigation also revealed that Romero-Gonsalez worked with his associate, Luz Gonzalez, and his brother, Francis Gonsalez-Romero, to distribute narcotics. Agents repeatedly observed William Rodriguez selling heroin to customers in and around Taunton, including Jose Perez, Kelly Patterson, Jorge Vega, Jose Rodriguez, Christopher Perez, Kelly Jean Gagnon, Joseph Parsons, Philip Malaguti, and John Gray, Jr. Lyndsay Belisle helped William Rodriguez distribute the drugs.
The investigation led to seizures of heroin and fentanyl. Fentanyl is an extremely potent synthetic opioid, which, by weight, is 30-40 times deadlier than heroin.
The indictment was the result of a 15-month investigation that included court-authorized wiretaps and the execution of six search warrants. The investigation was launched as part of the federal response to the heroin epidemic plaguing Massachusetts, and Taunton in particular, which has seen a steep increase in heroin overdose deaths since 2013.
The charge in today’s case provides for a sentence of no greater than 20 years in prison, a minimum of three year and up to a lifetime of supervised release, and a fine of $1 million. Cruz-Rivera faces a mandatory minimum 10 years and up to a lifetime in prison, a minimum of five years and up to a lifetime of supervised release, and a fine of up to $10 million. Gray faces a mandatory minimum sentence of five years and no greater than 40 years in prison, a minimum of four years and up to a lifetime of supervised release, and a fine of up to $5 million.
United States Attorney Carmen M. Ortiz; Michael J. Ferguson, Special Agent in Charge of the Drug Enforcement Administration, New England Field Division; and Taunton Police Chief Edward J. Walsh, made the announcement today. The investigation was a joint effort by the DEA’s Cape Cod Task Force; the Massachusetts State Police; the Bristol County Sherriff’s Department; the Barnstable, Fall River, Haverhill, Marshfield, Attleboro, Fairhaven, New Bedford, Bridgewater, Norwood, Lawrence, Plymouth, Berkley, Raynham and Providence Police Departments; the Rhode Island State Police; the Bristol, Essex and Plymouth County District Attorney’s Offices; and the United States Attorney’s Office for the District of Rhode Island. The case is being prosecuted by Assistant U.S. Attorneys Katherine Ferguson and Ann Taylor of Ortiz’s Narcotics and Money Laundering Unit.
The details contained in the indictment are allegations. The defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Town of Hill Man Sentenced for Tax EvasionRead the Press Release
CONCORD, N.H. – Ronald Martin, 65, of Hill, New Hampshire, was sentenced today by the United States District Court for the District of New Hampshire to 12 months in prison and 3 years of supervised release for tax evasion reports Acting United States Attorney Donald Feith.
Martin formerly owned and operated Martin Construction in Northfield, New Hampshire, and employed three to eight employees at various times. In 2008, 2009 and 2010, Martin’s business earned about $1.2 million in gross receipts, but Martin did not file any federal income tax returns for Martin Construction or for himself during those years and did not pay any federal income tax for either. Martin took steps to conceal the business revenue by directing payments and invoices for selling scrap metal to be made in the name of a third party. He also only deposited a small fraction of the income earned from Martin Construction into the business’ bank account. Instead, Martin diverted a significant portion of the business income for personal expenditures. He also did not file any federal employment tax returns or pay over to the Internal Revenue Service (IRS) any federal employment taxes for any of his employees.
A federal grand jury indicted Martin on three counts of tax evasion in July 2014 and, on June 23, 2015, he pleaded guilty to those charges.
This case was investigated by special agents of the IRS – Criminal Investigation and the Environmental Protection Agency Criminal Investigation Division. It was prosecuted by Assistant United States Attorney Mark S. Zuckerman and Senior Litigation Counsel Corey J. Smith of the Department of Justice’s Tax Division.
Tiffany Thomas Sentenced to Five Years ImprisonmentRead the Press Release
SOUTH BEND – United States Attorney for the Northern District of Indiana, David Capp, announced that Tiffany Thomas, 29, of South Bend, Indiana, was sentenced today for health care billing fraud and aggravated identity theft.
Thomas was sentenced to 61 months imprisonment and two years supervised release.
According to documents in the case, in 2014 and 2015, Thomas obtained prescriptions and medications including alprazolam, hydrocodone, promethazine and others fraudulently and then caused fraudulent billings and claims for reimbursement through Indiana Medicaid and other health care benefit programs. As part of the fraud scheme, the defendant caused fraudulent and phony prescriptions for medications to be called in and otherwise presented to pharmacies by persons pretending to be licensed doctors or the staff or licensed doctors. As part of the scheme, Thomas also fraudulently used the means of identification of others persons. Finally, Thomas also throughout the scheme sold and distributed the medications, including controlled substances that she obtained fraudulently.
This case was the result of an investigation by the Bureau of Alcohol, Tobacco Firearms and Explosives and the State of Indiana Attorney General’s Medicaid Fraud Control Unit. The case was prosecuted by the Assistant United States Attorney Donald J. Schmid.
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Three More Men Sentenced to Lengthy Prison Terms for Participation in Armed PCP Drug Distribution RingRead the Press Release
WASHINGTON – Three men have been sentenced to lengthy prison terms for their roles in an armed narcotics organization that trafficked phencyclidine (PCP) in Southeast Washington. The defendants were arrested in 2013 after a local resident walked into the Seventh District Police station and reported that the armed defendants had forcibly taken over his apartment in the Woodberry Village Apartment complex to distribute PCP.
The sentences were announced today by Acting U.S. Attorney Vincent H. Cohen, Jr. and Cathy L. Lanier, Chief of the Metropolitan Police Department (MPD).
Marquette Boston, 28, of Washington, D.C., was found guilty of possession with intent to distribute PCP in March 2015 following a nine-week jury trial in the U.S. District Court of the District of Columbia. Ira Adona, 24, of Fort Washington, Md., pled guilty in April 2014 to conspiracy to distribute and possess with intent to distribute PCP and attempted assault with a deadly or dangerous weapon in a related case in D.C. Superior Court. Breal Hicks, 25, also pled guilty in April 2014 to conspiracy to distribute and possess with intent to distribute PCP.
The Honorable Richard J. Leon sentenced Boston on Sept. 4, 2015, to eight years in prison, to be followed by five years of supervised release. He sentenced Adona on Sept. 29, 2015, to a total of 11 ½ years in prison, to be followed by eight years of supervised release. Finally, he sentenced Hicks on Sept. 30, 2015, to a total of seven years in prison, to be followed by five years of supervised release. Adona was sentenced on the related charge by D.C. Superior Court Judge Patricia A. Broderick on Jan. 30, 2015.
On Sept. 1, 2015, co-defendants Dawayne Brown, 21, and Keith Matthews, 24, were sentenced to 14 years and nine years of incarceration, respectively. One other co-defendant, Conovia Eddie, has entered a guilty plea and is still awaiting sentencing.
The defendants were indicted in 2013 following an investigation by the Metropolitan Police Department of violent distributors of PCP in the Woodberry Village area of Southeast Washington. The investigation revealed that from May 2012 through April 2013, the defendants and fellow 23rd Street crew members (also known as “Little Mexico”) worked together to distribute PCP in the Woodberry Village area by taking over apartments from the residents and selling narcotics from the safety of these apartments. The crew members were often armed with firearms, and they sold large amounts of PCP in the local area. The crew members also regularly exposed young children to narcotics and firearms.
The investigation revealed that in January 2013, crew members violently took over the apartment of a resident at gunpoint to facilitate PCP sales, and that defendant Brown used an 11-year-old child to facilitate his drug distribution. Crew members thereafter took control and used the resident’s apartment against his will, and they stored numerous firearms and bottles of PCP in his apartment. Despite being intimidated and in fear, the resident reported the defendants’ crimes by walking into the Seventh District Station to report that the defendants had taken over his apartment and that they were in possession of a large quantity of PCP and a number of firearms. Police immediately responded to the resident’s apartment and found Brown inside the apartment with three loaded firearms, including an Uzi-style firearm with 19 rounds of ammunition, and multiple bottles of PCP.
In a subsequent search warrants conducted in March and April 2013, MPD uncovered numerous other apartments being used by crew members to distribute narcotics and they seized multiple bottles of PCP, more than eight firearms, body armor, and over $3,500 in cash. In one search warrant, Adona and Hicks were found inside an apartment with three loaded firearms and various narcotics, including multiple bottles of PCP. In another warrant, Boston was found inside an apartment with a loaded gun, military-grade body armor, and multiple bottles of PCP. Since the first arrest of the 23rd Street members in January, 2013, more than a dozen 23rd Street drug traffickers, many of whom are known to be violent, have been identified, arrested and charged with narcotics, firearms and/or related criminal conduct.
In announcing the sentences, Acting U.S. Attorney Cohen and Chief Lanier commended the work of the agents, officers and investigators from the Seventh Police District who investigated the case. They also cited the efforts of those who worked on the case from the U.S. Attorney’s Office for the District of Columbia, including Paralegal Specialists Crystal Barclay, Tony Griffith, and Daphne (Teresa) Nelson; the Litigation Support Unit; Tanya Via, Debra Cannon, and Wanda Queen of the Victim/Witness Assistance Unit, Criminal Investigators Durand Odom and Nelson Rhone, and former intern Daniella Sterns. Finally, they acknowledged the work of Assistant U.S. Attorneys Tejpal S. Chawla and George Eliopoulos, and Kathryn Rakoczy, who prosecuted the cases.
Sutter County Man Sentenced to 12.5 Years in Prison for Role in $14 Million Unemployment and Disability Benefits Fraud SchemeRead the Press Release
SACRAMENTO, Calif. — United States District Judge Morrison C. England Jr. sentenced Mohammad Nawaz Khan, 60, today to 12 and a half years in prison for his role in a $14 million unemployment and disability benefits fraud scheme, United States Attorney Benjamin B. Wagner announced.
In sentencing, Judge England said that this was “one of the longest-running, most sophisticated fraud schemes that I have ever seen.” Judge England ordered Khan to be taken into custody at the end of today’s hearing.
According to court documents, Mohammad Nawaz Khan and other family members operated a scheme that sold fake paystubs to other people in the community and used the companies they controlled to report false wages for the individuals who purchased those paystubs. At times the Khans instructed the purchasers how to use the fake paystubs to fraudulently claim unemployment and disability benefits. The Khans set up a storefront in Yuba City and sold the fraudulent paystubs on a walk-in basis. Purchasers found out about the opportunity to commit fraud with the Khans in a number of ways. Some purchasers approached the Khans looking for work and were told to commit fraud instead. Over the course of the conspiracy, the defendants reported wages for over 400 separate individuals that resulted in more than 2,000 fraudulent claims for unemployment and disability benefits. The loss in this case is more than $14 million.
U.S. Attorney Wagner stated: “This defendant was part of a massive and brazen fraud that corrupted many members of their community. The fraud occurred over the course of decades and involved hundreds of individuals who, but for the defendants running the scheme, would likely never have become involved in criminal conduct.”
“Khan and his co-conspirators defrauded the State of California for more than 20 years,” said Special Agent in Charge Monica Miller of the FBI's Sacramento field office. “He victimized California taxpayers and placed a burden on deserving benefits claimants. This sentence is a fitting reflection of the severity of his crimes and the efforts of the FBI and our partners to end to Khan’s scheme.”
“The Employment Development Department is proud to have partnered with the investigations that stopped this criminal defrauding of programs so vital to unemployed and disabled workers,” said EDD’s Director Patrick W Henning Jr.
“Today’s sentencing sends a powerful message that combating unemployment insurance fraud remains a high priority for the Office of Inspector General. We will continue to work with our law enforcement partners to safeguard unemployment insurance benefits from illicit enrichment schemes and conspiracies carried out against Department of Labor programs,” stated Abel Salinas, Special Agent-in-Charge, U.S. Department of Labor, Office of Inspector General, Office of Labor Racketeering and Fraud Investigations in Los Angeles.
To date, 28 individuals have been charged and 24 have pleaded guilty to various offenses connected to the scheme. Last week, Judge England sentenced co-defendants Mohammad Adnan Khan, 35, of Live Oak, to nine years in prison; Iqila Begum Khan, 34, of Live Oak, to five years in prison; and Mohammad Shahbaz Khan, 50, of Yuba City, to seven years and three months in prison and a $50,000 fine. Each was also ordered to serve a term of three years of supervised release following the service of their prison terms. A hearing will be held November 5, 2015 to determine the amount of restitution owed to the California Employment Development Department. Parole has been abolished in the federal system, and each defendant will be required to serve at least 85 percent of the prison time imposed.
This case is the product of an investigation by the Federal Bureau of Investigation; the U.S. Department of Labor, Office of Inspector General; and the California Employment Development Department, Investigations Division. Assistant United States Attorneys Jared C. Dolan and Sherry D. Haus are prosecuting the case.
Suspect Charged for Arson of Liquor Store During the Baltimore RiotsRead the Press Release
Baltimore, Maryland – Darius Raymond Stewart, age 21, of Baltimore, has been charged in a federal criminal complaint with malicious destruction of a commercial building, arising from the arson of a liquor store on April 27, 2015, during the riots following the death of Freddie Gray. One victim was trapped and seriously injured inside the store, and another escaped with minor injuries. The criminal complaint was filed on September 24, 2015 and unsealed today. Stewart was arrested on September 28, on unrelated state charges. Stewart will make his initial appearance on the federal charges on Friday, October 2, 2015 at 11:00 a.m. in U.S. District Court in Baltimore, Courtroom 7B, before U.S. Magistrate Judge Stephanie A. Gallagher.
“There are recordings and other evidence of people looting businesses, starting fires and attacking innocent victims, and it is our duty to prosecute the perpetrators,” said U.S. Attorney Rod J. Rosenstein. “Citizens need to know that the rule of law will be upheld, and criminals who destroy property and jeopardize lives will be held accountable.”
The charges were announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge William P. McMullan of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) - Baltimore Field Division; and Interim Commissioner Kevin Davis of the Baltimore Police Department.
“ATF has continuously stated that we would focus our investigative efforts to ensure that the individuals who set these fires across our city would be caught,” said ATF Special Agent in Charge William P. McMullan. “Today's arrest is another example of ATF's commitment to holding people responsible for their violent actions.”
According to the affidavit filed in support of the criminal complaint, on April 27, 2015, at approximately 8:33 p.m. Baltimore City Fire Department dispatch received a call reporting a fire at a liquor store located in the 2200 block of West North Avenue. The caller reported that looters had set the building on fire and there was at least one person inside. The Baltimore City Fire Department went to the store and discovered a small trash can on fire inside the store. Approximately 20 minutes later, the fire department was again sent to the store for another fire. They again extinguished the fire and discovered an unconscious victim in the basement of the building. The victim suffered smoke inhalation and carbon monoxide poisoning and was hospitalized for one week. The damage caused by the fire was extensive and it is estimated that it will cost approximately $350,000 to repair and restore the building.
The store’s owners reported that on the day of the incident a group of approximately 20 to 30 people entered the store and began banging on the bulletproof plexiglass window with pipes and crow bars before being chased off by a member of the community. A second wave of dozens of people then entered the business and began ransacking and looting the store. Baltimore CitiWatch surveillance footage captured individuals repeatedly assaulting and robbing one of the owners as he stood outside the store while it was being looted. He was eventually rescued by police, but suffered a head injury. The second owner hid inside the building until he became aware of a fire inside the building. He was able to escape through a back door to the roof. He jumped down off the roof, injuring his ankle, and escaped in his vehicle.
A surveillance camera recorded a man wearing camouflage pants, a dark jacket with an orange lining, and a skull cap, intentionally setting multiple fires within the store. Fire investigators discovered multiple areas of origin within the store, consistent with the locations observed on the surveillance footage.
ATF issued a reward poster with a photo of the man seen in the store surveillance video. According to the affidavit, a confidential source contacted ATF and identified the man in the photo as Darius Stewart. Other witnesses also identified Stewart from CitiWatch surveillance camera footage as well as from the store’s surveillance video.
Stewart faces a mandatory minimum sentence of five years and a maximum of 20 years in prison for malicious destruction of a commercial building by fire. Stewart remains detained.
A criminal complaint is not a finding of guilt. An individual charged by criminal complaint is presumed innocent unless and until proven guilty at some later criminal proceedings.
United States Attorney Rod J. Rosenstein commended ATF and the Baltimore City Police Department for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Judson T. Mihok, who is prosecuting the case.
Strata Pathology to Resolve Allegations Regarding Kickback PaymentsRead the Press Release
BOSTON – Lexington-based Strata Pathology Laboratory, Inc. (known as StrataDx), has agreed to pay $558,793 to resolve allegations that it violated the False Claims Act by inducing physicians to refer Medicare and Medicaid patients to Strata by paying kickbacks in the form of sham consulting fees and providing unlawful discounts to physicians.
“Billing arrangements like Strata’s, which provide a financial incentive to physicians to refer Medicare and Medicaid patients to a particular lab are unlawful,” said United States Attorney Carmen M. Ortiz. “When a company prioritizes profit, it disregards laws that are intended to protect patient health and the integrity of the healthcare system. Settlements like this serve to deter illicit kickback schemes.”
“When laboratory referrals are made based on the amount of kickback money physicians can make from a lab, both patients and the healthcare system suffer,” said Acting Special Agent in Charge Joseph Bonavolonta of the Federal Bureau of Investigation’s Boston Division. “Patients expect their physicians to choose laboratories based on their competent medical practices, not how much money they can pocket. The FBI will continue to aggressively investigate illegal kickback schemes designed to put profits over patient care.”
“Companies that financially reward physicians in exchange for the referral of business -- as the government contended in this case -- corrupt the physicians’ impartial medical judgment and drive up health care costs for everyone,” said Special Agent in Charge Phillip M. Coyne, U.S. Department of Health and Human Services Office of Inspector General. “We will continue to investigate such wasteful business arrangements.”
According to the settlement agreement, Strata acknowledged paying consulting fees to two referring physician practices that did not provide consulting services in exchange. Strata also acknowledged entering into “account billing” arrangements with seven referring physician practices that facilitated fee-splitting between the parties. The government alleges that, under these arrangements, Strata allowed the physician practices to bill patients’ private insurers directly for pathology services that Strata performed. Strata then charged the physician practices for its services at deeply discounted rates, allowing the physician practices to pocket the difference between Strata’s discounted price and the amount of the private insurers’ full reimbursement. All of the physician practices allegedly referred specimens of federal health care program beneficiaries to Strata, and Strata billed those programs at its full price.
The United States alleges that Strata’s claims to Medicare and Medicaid were false because they resulted from kickbacks that Strata provided the referring physicians in violation of the federal Anti-Kickback Statute. The Anti-Kickback Statute prohibits offering, paying, soliciting, or receiving remuneration to induce referrals of items or services covered by Medicare, Medicaid, and other federally funded programs. Although Strata’s account billing arrangements did not explicitly condition the discounted prices upon the physicians’ referrals of Medicare and Medicaid business to Strata, the United States alleges that Strata offered the discounts with the understanding that physicians who entered into account billing arrangements with Strata would refer virtually all of their patients, including Medicare and Medicaid patients, to Strata.
The settlement announced today stems from a complaint filed by a former Strata employee under the whistleblower provisions of the False Claims Act, which authorize private parties to sue on behalf of the United States and to receive a portion of any recovery. The settlement amount will be shared between the United States, the whistleblower, and the Commonwealth of Massachusetts.
U.S. Attorney Ortiz, Acting FBI SAC Bonavolonta, and HHS-OIG SAC Coyne, made the announcement today. The matter was handled by Assistant U.S. Attorneys Abraham George and Deana El-Mallawany in Oritz’s Civil Division, Special Assistant U.S. Attorney Joshua H. Orr, and Assistant Attorney General Angela Neal of the Medicaid Fraud Division of Massachusetts Attorney General Healey’s Office.
Statement of Department of Justice on Survey of Community Attitudes Towards Seattle Police Department Filed with U.S. District Court TodayRead the Press Release
SEATTLE – A recent survey conducted by national polling firm Anzalone Liszt Grove Research as part of the consent decree between the Department of Justice (DOJ) and the City of Seattle to measure community attitudes towards the Seattle Police Department (SPD) has found the overall approval of SPD improving, disapproval of the department decreasing, and fewer troubling interactions between officers and Seattle residents, particularly among African Americans and Latinos, notably in the area of excessive force. The scientific poll, filed with the U.S. District Court today, was commissioned by the federal Monitor with input from the parties. The poll follows a similar survey conducted in 2013.
A summary of the survey can be found here.
This poll, along with a rigorous examination of how police services are delivered in Seattle and other qualitative reviews of SPD’s community relations, including work conducted by the Community Police Commission, will inform an overall assessment of community perceptions and public confidence that will be filed by the federal Monitor with the Court in December.
The following is a statement from Annette L. Hayes, U.S. Attorney for the Western District of Washington, on behalf of the U.S. Attorney’s Office and DOJ’s Civil Rights Division:
“The goals of true and lasting police reform must include both increased public safety and public trust. They go hand in hand. According to this survey, there are positive signs that Seattle residents are giving SPD higher marks for its work, and, perhaps most encouraging, there are far fewer people reporting problematic interactions with SPD. As important, the people of Seattle continue to believe that SPD is keeping them safe. Still, this data helps identify areas where there is work to do, particularly in the African-American and Latino communities, where positive perceptions and improved interactions lag the rest of our community.”
Anzalone Liszt Grove Research conducted 692 live cellphone and landline telephone interviews with adults 18 and older in Seattle, with an additional 67 interviews among Latinos and 141 interviews among African Americans. The survey can be found here.
Six Members of Large-Scale Multi-State Methamphetamine Organization Sentenced to PrisonRead the Press Release
BOISE - Jose Luis Corrales Cruz, 58, of Romona, California; Juan Navarette, 20, of Ontario, Oregon; Jorge Sandoval, 22, of Placentia, California, Marco Antonio Tinoco, 26, of Ontario, Oregon; Hernan Arteaga-Solchaga, 23, of Nampa, Idaho; and Ruby Martinez, 41, of Nampa, Idaho were sentenced over the past week to federal prison for their role in a large-scale, multi-state methamphetamine trafficking organization, U.S. Attorney Wendy J. Olson announced. Visiting Senior United States District Judge William B. Shubb sentenced Cruz to 72 months imprisonment and ordered $100,000 in cash proceeds to be forfeited. Cruz will be deported to Mexico after serving his prison sentence. Judge Shubb sentenced Juan Navarette to 37 months imprisonment, to be followed by four years of supervised release. Navarette was also ordered to forfeit $100,000 in cash proceeds.
Earlier this week, Chief U.S. District Judge B. Lynn Winmill sentenced Jorge Sandoval to 87 months imprisonment, to be followed by 4 years of supervised release. Sandoval was ordered to forfeit $100,000 in cash proceeds. Judge Winmill sentenced Marco Tinoco to 33 months imprisonment, to be followed by four years of supervised release, and ordered cash proceeds of $4500 to be forfeited. Yesterday, Judge Winmill sentenced Hernan Arteaga-Solchaga to 30 months imprisonment, with no supervised release to follow. Arteaga-Solchaga will be deported back to Mexico after serving his prison sentence. This morning, Judge Winmill sentenced Ruby Martinez to serve 24 months imprisonment, to be followed by three years of supervised release, and ordered her to forfeit $2500 in cash proceeds.
Co-defendant’s Maribel Betancourt, 41, of Meridian, Idaho; Oscar Adan Jaimez-Munoz, 35, of Placentia, California; Ruben Rangel Perez, 34, of Placentia, California, and Andres Navarrette, Jr., 26, of Ontario, Oregon, are set for sentencing later this fall. Francisco Sandoval, 60, of Placentia, California is pending a change of plea hearing, while Horacio Linares, 47, of Anaheim, California and Rafael Sotero Lopez-Vasquez, 43, of Nampa, Idaho are set for jury trial on November 16, 2015. Carmen J. Gomez-Rangel, 49, of Nampa, Idaho, remains a fugitive.
This case was investigated by the Drug Enforcement Administration, the Ada County Sheriff’s Office, the Boise Police Department, the Meridian Police Department and the Nampa Police Department, as well as the Organized Crime and Drug Enforcement Task Force (OCDETF), which includes the cooperative law enforcement efforts of the Federal Bureau of Investigation; Drug Enforcement Administration; Bureau of Alcohol, Tobacco, Firearms and Explosives; U. S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); Internal Revenue Service-Criminal Investigation; and U.S. Marshals Service. The OCDETF program is a federal multi-agency, multi-jurisdictional task force that supplies supplemental federal funding to federal and state agencies involved in the identification, investigation, and prosecution of major drug trafficking organizations.
Shreveport resident pleads guilty to producing child pornographyRead the Press Release
SHREVEPORT, La. – United States Attorney Stephanie A. Finley announced today that a Shreveport resident pleaded guilty to producing child pornography.
Jason Carl Fruge, 45, of Shreveport, pleaded guilty before U.S. District Judge Elizabeth E. Foote to one count of production of child pornography. According to evidence presented at the guilty plea, during the course of investigating Fruge for other offenses, agents found a video on Fruge’s computer of a minor male child engaged in a sexually explicit sex act. Fruge pretended to be an attractive female in order to convince the minor to engage in the sexual act. Fruge directed the minor child to commit the sexual explicit act and recorded the minor using an online video chat service similar to Skype on June 9, 2014.
Fruge faces 15 to 30 years in prison, five years to life of supervised release, a $250,000 fine and mandatory registration as a sex offender. A sentencing date of January 28, 2016 was set.
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.
Those concerned may leave tips with the FBI at tips.fbi.gov. Tips may be submitted anonymously. The Shreveport FBI office number is (318) 861-1890.
The 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.
The FBI and ICE Homeland Security Investigations conducted the investigation. Assistant U.S. Attorney Robert W. Gillespie Jr. is prosecuting the case.
Sentencings for September 17 - September 29, 2015Read the Press Release
Ronald Kenneth Stankus, 39, of Casper, Wyoming, was sentenced by Federal District Court Judge Scott W. Skavdahl on September 29, 2015, for carrying a firearm during and in relation to a drug trafficking crime. Stankus was arrested in Casper, Wyoming. He received 150 months imprisonment, to be followed by five years of supervised release, and was ordered to pay a $500.00 fine and a $100.00 special assessment. This case was investigated by the Wyoming Division of Criminal Investigation and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Louis Hoopes, 44, of Lyman, Wyoming, was sentenced by Federal District Court Judge Scott W. Skavdahl on September 22, 2015, for conspiracy to possess with intent to distribute no less than 200 grams of a mixture or substance containing a detectable amount of methamphetamine. Hoopes was arrested in Salt Lake City, Utah. He received 70 months imprisonment, to be followed by four years of supervised release, and was ordered to pay a $400.00 fine and a $100.00 special assessment. This case results from an ongoing Organized Crime Drug Enforcement Task Forces (OCDETF) joint investigation conducted by the Wyoming Division of Criminal Investigation and the U.S. Drug Enforcement Administration. The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply.
Beverly Hardy, 53, of Las Vegas, Nevada, was sentenced by Federal District Court Judge Scott W. Skavdahl on September 17, 2015, for distribution of methamphetamine and distribution of oxycodone. Hardy was arrested in Las Vegas, Nevada. She received 60 months imprisonment, to be followed by four years of supervised release, and was ordered to pay a $400.00 fine and a $200.00 special assessment. This case was investigated by the Washakie County Sheriff’s Office, the Wyoming Division of Criminal Investigation, and the U.S. Postal Service Inspector.
Second Conspirator Admits to Jewelry Store Heist that Included a Carjacking and KidnappingRead the Press Release
Baltimore, Maryland – Peter Aleksandrov Magnis, age 27, of Hydes, Maryland, pleaded guilty today to a robbery conspiracy in connection with the robbery of a jewelry store, including a carjacking and kidnapping.
The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Kevin Perkins of the Federal Bureau of Investigation; Chief James W. Johnson of the Baltimore County Police Department; and Baltimore County State’s Attorney Scott Shellenberger.
According to his plea agreement, Magnis was part of a conspiracy to rob a Pikesville jewelry store. Specifically, in the fall of 2012, a co-conspirator devised a plan to commit an armed robbery of a jewelry store, known to be owned and operated by members of the Russian community of Northwest Baltimore. The co-conspirator recruited Magnis, Grigoriy Zilberman and others to participate in the robbery. Prior to the robbery, the conspirators gathered intelligence, including conducting surveillance and attaching a GPS device to the car of an employee of the jewelry store in order to learn the employee’s travel routine and habits. Zilberman also exploited his friendship with the employee to obtain information about the operation of the jewelry store and the habits of the employee.
According to Magnis’ plea agreement, on January 15, 2013, Zilberman enticed the employee to visit his home, in order to alert the other co-conspirators of the employee’s whereabouts. Early in the morning on January 16, 2013, as the employee was driving from Zilberman’s home, four co-conspirators used a law enforcement-type light bar and a loudspeaker to impersonate a police officer and pull over the employee. Brandishing firearms, the co-conspirators removed the employee from his car, bound and blindfolded the employee, put him into the trunk of his own car, and drove him to a predetermined location. According to the plea agreement, once at the location, Magnis’ co-conspirators continued to brandish firearms and threatened to kill the employee’s family if he did not comply with their demands or if he reported the incident to police. The employee complied and at approximately 3:52 a.m., two co-conspirators drove the employee’s vehicle from the remote location to the jewelry store, while other co-conspirators stayed with the employee. Additional co-conspirators were stationed near the jewelry store to act as “look-outs.” The two co-conspirators entered the jewelry store and stole jewelry, stones, and watches, valued at about $500,000. The 2 co-conspirators drove back to the remote location, where the employee was placed back into the trunk of his car and driven to another location, where he was left. The employee was able to kick his way out of the trunk through the back seat of his car.
On January 18, 2013, one of the conspirators sold a portion of the stolen jewelry for approximately $29,000 to an FBI informant. On January 19, 2013, the conspirator traveled to Brooklyn, New York to sell some of the jewelry and stones taken during the robbery, receiving over $100,000. On January 21, 2013, the conspirator returned to Maryland and divided the cash proceeds among the members of the conspiracy and others.
On November 19, 2014, during the search of Magnis’ residence and the adjacent property, a bag of guns was found buried on the adjacent property within 20 feet of Magnis’ property. Inside the bag were six firearms (all rifles and shotguns), each individually wrapped in clear plastic wrap. Two of the firearms were sawed off shotguns, and one of these had an obliterated serial number. Both of those guns were stolen during an armed home invasion of residence in Reisterstown, Maryland, on July 22, 2012.
In addition, in January and May 2013 Magnis purchased three handguns. One of those handguns was seized during a car stop and search of a co-conspirator in September 2013. The co-conspirator was prohibited from purchasing or possessing firearms due to a previous felony conviction.
Magnis faces a maximum sentence of 20 years in prison for the robbery conspiracy. U.S. District Judge J. Frederick Motz has scheduled sentencing for December 22, 2015, at 10:30 a.m.
Grigoriy (Greg) Zilberman, age 24, of Owings Mills, Maryland, previously pleaded guilty to his role in the robbery conspiracy and is scheduled to be sentenced on December 18, 2015.
United States Attorney Rod J. Rosenstein praised the FBI, Baltimore County Police Department, and Baltimore County State’s Attorney’s Office for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorney Paul E. Budlow and Aaron S. J. Zelinsky, who are prosecuting the case.
Sarasota Man Pleads Guilty to Making False Statements in Mortgage Loan ApplicationsRead the Press Release
Tampa, Florida – United States Attorney A. Lee Bentley, III announces that Randy Platfoot (54, Clearwater) today pleaded guilty to making false statements in mortgage loan applications. He faces a maximum penalty of 30 years in federal prison. His sentencing is scheduled for December 18, 2015.
According to court documents, between September 2005 and April 2007, Platfoot applied for two separate mortgage loans from Washington Mutual Bank, in connection with the purchase of properties in Myakka City and Sarasota. In the loan documents that Platfoot signed and submitted to the bank, he made false statements about his income and about the lack of subordinate financing in connection with one of the properties. Washington Mutual Bank suffered financial losses after Platfoot defaulted on both loans.
This case was investigated by the Federal Bureau of Investigation and the Federal Deposit Insurance Corporation-Office of Inspector General. It is being prosecuted by Assistant United States Attorney Jay L. Hoffer.
Rumford Woman Sentenced to Six Months of Home Confinement for Social Security FraudRead the Press Release
Contact: Halsey B. Frank
Assistant United States Attorney
Tel: (207) 780-3257Portland, Maine: United States Attorney Thomas E. Delahanty II announced that Marie Angel Michaud, formerly Marie Angel Broad, 43, of Rumford, Maine, was sentenced in U.S. District Court by Judge Jon D. Levy to three years of probation with six months of home confinement for Social Security fraud. She was also ordered to pay $19,978 in restitution. Michaud pleaded guilty on April 22, 2015.
According to court documents, in January 2002, Michaud was granted and began receiving Social Security Supplemental Security Income ("SSI") benefits. SSI pays benefits to persons who are aged, blind or disabled and who have proven financial need. Recipients of SSI are responsible for reporting material changes in their situation such as changes in their household composition and marital status. In November of 2010, Broad married but did not report that change to the Social Security Administration ("SSA"). Thereafter, during periodic redeterminations for continued eligibility for benefits, Michaud did not disclose her marital status and falsely stated that she was not married. As a result of her concealment, Broad received benefits to which she was not entitled.
In pronouncing sentence, Judge Levy observed that Social Security fraud is a serious crime that is difficult to detect and that is costly for the public and for government.
The case was investigated by the SSA’s Office of Inspector General.Riviera Beach Resident Sentenced to 20 Years in Prison as an Armed Career CriminalRead the Press Release
A Riviera Beach man was sentenced yesterday to 20 years in prison for being a felon in possession of firearms.
Wifredo A. Ferrer, U.S. Attorney for the Southern District of Florida, Carlos Canino, Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Miami Field Division, Stephen J. Stepp, Chief, Palm Beach Gardens Police Department (PBGPD) and Ric Bradshaw, Sheriff, Palm Beach County Sheriff’s Office (PBSO), made the announcement.
Joseph McDonald, 36, of Riviera Beach, was sentenced by U.S. District Judge Donald M. Middlebrooks to 240 months (20 years) in federal prison, to be followed by five years of supervised release, for being an armed career criminal in possession of a firearm.
According to evidence presented at trial, McDonald fled from the police on two separate occasions during the course of stolen vehicle investigations. On July 28, 2013, McDonald dropped a fully loaded 9 mm semi-automatic pistol during his flight from members of the Palm Beach Gardens Police Department. Then, on December 17, 2013, deputies with the Palm Beach County Sheriff’s Office recovered a fully semi-automatic pistol from McDonald’s flight path. A forensic examination report confirmed that the firearm that was recovered on December 17, 2013 had been used in a Jupiter, Florida shooting the preceding day. McDonald had previously been convicted of numerous felonies and was thereby prohibited from possessing a firearm.
McDonald was sentenced under the Armed Career Criminal Act, which provides a mandatory sentencing range of fifteen years to life for individuals who have been convicted of a federal gun offense and have at least three prior qualifying felony convictions for crimes of violence and/or serious drug offenses.
This case was brought as part of Project Safe Neighborhoods (PSN). PSN is a Department of Justice nationwide initiative that combines traditional law enforcement activities with community-based support and intervention programs. The two primary goals of the PSN initiative are to reduce and prevent violent crimes and to help past offenders adjust and re-enter the community. This program emphasizes and facilitates cooperative federal, state and local prosecution of firearm crimes, violent criminals, repeat violent offenders and gang related criminal activity.
Mr. Ferrer commended the investigative efforts of ATF, PBGPD and PBSO. The case was prosecuted by Assistant U.S. Attorneys Brandy Galler and Daniel Funk.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov
River Ridge Man Charged with Fraud in Security System ContractsRead the Press Release
U.S. Attorney Kenneth A. Polite announced that WAYNE WILLIAMS, age 37, of River Ridge, was charged today in a two-count Bill of Information with wire fraud.
According to the Bill of Information, WILLIAMS was responsible for selling security systems and services, and also for negotiating and signing customer contracts on behalf of ADT Security and Protection One. WILLIAMS was compensated by his employers through commissions received on contracts he negotiated.
The charges filed allege that WILLIAMS forged a customer’s signature on a $466,046.18 ADT Security equipment and installation services contract. Without ADT Security’s knowledge, the defendant secretly executed a separate contract with the customer in which only $109,148.93 was charged. The defendant received approximately $73,576.72 in commissions from ADT Security as a result of the fraudulent contract.
With regard to Protection One, the charges filed allege that WILLIAMS forged a purported customer’s signature on an $80,240.48 Protection One equipment and installation services contract. The defendant received approximately $2,353.99 in commissions from Protection One as a result of this fraudulent contract.
If convicted, WILLIAMS faces a maximum term of imprisonment of twenty years incarceration, three years of supervised release after any term of imprisonment, and a $250,000 fine.
United States Attorney Polite reiterated that the Bill of Information is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
U.S. Attorney Polite praised the work of the Federal Bureau of Investigation in investigating this matter. Assistant United States Attorney G. Dall Kammer is in charge of the prosecution.
Rio Rancho Man Sentenced to Ten Years for Violating Federal Narcotics Trafficking and Firearms LawsRead the Press Release
ALBUQUERQUE – Christopher Mathuren, 39, of Rio Rancho, N.M., was sentenced this afternoon in federal court in Albuquerque, N.M., to 120 months in prison followed by three years of supervised release for his methamphetamine trafficking and firearms convictions.
The sentence was announced by U.S. Attorney Damon P. Martinez, 13th Judicial District Attorney Lemuel L. Martinez, Special Agent in Charge Thomas G. Atteberry of the Phoenix Division of the Bureau of Alcohol, Tobacco, Firearms and Explosives, and Chief Michael Geier of the Rio Rancho Police Department.
Mathuren, whose prior criminal history includes convictions for possession of marijuana with intent to distribute, possession of methamphetamine, and possession of methamphetamine with intent to distribute, is prosecuted 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 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 Sandoval County, under this initiative.
Mathuren was arrested on Oct. 28, 2014, on a three-count indictment charging him with being a felon in possession of firearms and ammunition; possession of methamphetamine with intent to distribute; and using and carrying a firearm in furtherance of a drug trafficking crime. According to the indictment, Mathuren committed the three offenses on July 22, 2014, in Sandoval County, N.M. The indictment was superseded on Dec. 16, 2014, to add two additional charges of being a felon in possession of firearms and ammunition on Oct. 28, 2014 – the date on which Mathuren was arrested on the original indictment.
On June 17, 2015, Mathuren pled guilty to Counts 2 and 3 of the indictment. In entering the guilty plea, Mathuren admitted that on July 22, 2014, officers of the Rio Rancho Police Department executed a search warrant on his vehicle and seized approximately 30.3 grams of methamphetamine, drug paraphernalia, a pistol, rifle and ammunition. Mathuren further admitted that the rear stalk of the rifle had been shortened and the pistol had been reported stolen. Mathuren acknowledged that the firearms were “tools of the drug trafficking trade” and that he possessed them to assist him in his drug trafficking activities.
Mathuren previously was charged in July 2014, on related state charges. The state charges were dismissed in favor of federal prosecution after Mathuren was arrested on the federal charges in this case.
This case was investigated by the Albuquerque office of the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Rio Rancho Police Department with assistance from the 13th Judicial District Attorney’s Office. Assistant U.S. Attorney Rumaldo R. Armijo prosecuted the case.
Palm Coast Man Sentenced to More Than 21 Years for Possessing A Machinegun and Silencer and Assaulting A Federal OfficerRead the Press Release
Orlando, Florida – U.S. District Judge Paul G. Byron has sentenced Radbourne Mark Anthony Saleem (40, Palm Coast) to 21 years and 10 months in federal prison for possessing a machinegun and silencer and assaulting a federal officer. He pleaded guilty on November 5, 2014.
According to court documents, on November 1, 2013, Saleem, a previously convicted felon, met with a confidential informant (CI) to discuss purchasing a machinegun, a silencer, and a pistol. During the meeting, Saleem talked with the CI about the advantages of using a silencer to commit home invasion robberies. He also mentioned that he was looking for something to catch the shells. Saleem told the CI that he would sell his “soul to the devil” to get the weapons.
On November 15, 2013, Saleem met with the CI again and bought a .45 caliber pistol with a silencer and a machinegun for $1,000. As agents attempted to arrest him, Saleem began driving toward the agents at a high rate of speed. Saleem was shot several times as he fled the scene. He later hit a vehicle in Flagler County, was ejected from his vehicle, and was subsequently arrested.
“Mr. Saleem is a multi-convicted felon who will be off of our streets and unable to victimize anyone for a long time,” said Special Agent in Charge Regina Lombardo, ATF. “He will no longer be in a position to possess or use firearms. The sentence imposed by the court guarantees that our community will be safe from Mr. Saleem.”
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives. It was prosecuted by Assistant United States Attorney James D. Mandolfo.
This is another case prosecuted as a part of the Department of Justice’s “Project Safe Neighborhoods” Program - a nationwide, gun-violence reduction strategy. United States Attorney A. Lee Bentley, III, along with Regina Lombardo, Special Agent in Charge, ATF, is coordinating the Project Safe Neighborhoods effort here in the Middle District of Florida in cooperation with federal, state, and local law enforcement officials. It is also a part of ATF’s Frontline strategy to reduce violence in our communities.
Palm Coast Man Sentenced to More Than 11 Years for Receiving Child Pornography over the InternetRead the Press Release
Jacksonville, Florida – United States District Judge Timothy J. Corrigan has sentenced Timothy Edward McDermott (61, Palm Coast) to 11 years and 3 months in federal prison for receiving child pornography over the Internet. He pleaded guilty on May 14, 2015.
According to court documents, an FBI agent began an undercover investigation to identify individuals that were trading child pornography over the Internet. The agent determined that McDermott was hosting and trading images of child pornography using a peer-to-peer file sharing program. A search warrant was then executed at McDermott’s residence and his computer was seized. During an interview, McDermott admitted that he had downloaded child pornography from a file sharing website. Forensic analyses of McDermott’s computer revealed that it contained 310 images and 68 videos depicting child pornography, including babies being sexually exploited by adults.
This case was investigated by the Federal Bureau of Investigation in Dallas, Daytona Beach, and Jacksonville; the Flagler County Sheriff’s Office; and the Wheaton (Illinois) Police Department. It was prosecuted by Assistant United States Attorney D. Rodney Brown.
It is another case 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 United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Onondaga County Man Charged with Production of Child PornographyRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y.-U.S. Attorney William J. Hochul Jr. announced today that a federal grand jury has returned an indictment charging Donald Gardner, Jr., 40, of Lafayette, NY, with production of child pornography, receipt of child pornography, possession of child pornography. The charges carry a mandatory minimum penalty of 15 years in prison and a maximum of 30 years.
Assistant U.S. Attorney Marie P. Grisanti, who is handling the case, stated that on February 2, 2014, the defendant used the internet to entice, and coerce a minor a 10 year old to send him to sexually explicit photos.
The defendant was arraigned today before the U.S. Magistrate Judge H. Kenneth Schreoder, Jr.
The indictment is the culmination of an investigation by agents of the Federal Bureau of Investigation and the Niagara County Sheriff’s Department.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
Ohio Psychologist Sentenced to 24 Months for Conspiracy to Commit Extortion and Threatening A WitnessRead the Press Release
HARRISBURG – The United States Attorney’s Office for the Middle District of Pennsylvania announced that Marcia J. Weber, age 46, of Loveland, Ohio was sentenced today in federal court in Harrisburg by U.S. District Court Judge John E. Jones, III to serve 24 months in prison on the charges of conspiracy to commit extortion and threatening to injure a witness.
According to United States Attorney Peter Smith, Nicholas I. Stanishia, while serving a sentence of life imprisonment plus 23 years at the Southeastern Correctional Institution in Lancaster, Ohio, for a murder conviction, developed a relationship with clinical psychologist Weber who helped orchestrate Stanishia’s release from prison by attempting to get the sole witness who identified Stanishia at his Ohio murder trial to recant his trial testimony.
The surviving witness was also shot during the murder but was able to flee. Stanishia escaped, was captured three years later and tried for the murder. He was also convicted of a rape and burglary committed while on the run. He was sentenced to 54 years’ imprisonment for this offense.
Weber and Stanishia met in an Ohio correctional facility where he was participating in a work release program. Weber hired a private investigator to help obtain information about the witness, who now lives in Central Pennsylvania, including where he and his wife lived, where he worked, and information about his children and other immediate family. Weber and Stanishia then hired Martin Jay Wilson to travel from Missouri to Pennsylvania, where Wilson rented a car, drove to the witness’s house near Harrisburg and placed a gas can filled with water at the witness’s porch.
Stanishia, with the help of Joy Six and Anthony Vaughn - both other inmates - used a smuggled-in cellular telephone to contact the witness to get the victim/witness to sign an affidavit prepared by Stanishia. Stanishia stated in the call that the next time the gas can would not be filled with water. During the call, Stanishia claimed to be a high ranking member of the Aryan Brotherhood and that his release was being orchestrated by the Aryan Brotherhood. The contacts with the witness were subsequently reported to law enforcement agencies. Many of the phone calls were recorded at the prison and played during Stanishia’s trial.
Stanishia was found guilty by a federal jury in Harrisburg of conspiracy to transmit a threat to injure a central Pennsylvania witness who had testified against him. The case was tried before Judge Jones. Sentencing of Stanishia is deferred pending preparation of a presentence report.
Six, age 40 and Vaughn, age 41, both Ohio inmates, pled guilty to the conspiracy in July 2015. Sentencing dates have not been scheduled.
Wilson, age 43, of Kansas City, Missouri, pled guilty to the conspiracy in April 2015 and was sentenced in September 2015 by Judge Jones to 18 months.
This case was a collaborative effort between the Federal Bureau of Investigation, Harrisburg, Cincinnati, and Columbus, Ohio Offices, the Hampden Township and the Lower Paxton Police Departments, the Ohio State Highway Patrol, and investigators from the Southeastern Correctional Institution in Ohio.
This case was prosecuted by Assistant United States Attorney Daryl F. Bloom.
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New York Man Found Guilty of Heroin and Crack Cocaine TraffickingRead the Press Release
Contact: David B. Joyce
Assistant United States Attorney
Tel: (207) 780-3257Portland, Maine: The United States Attorney’s Office announced that James Winbrone, 32, of Brooklyn, New York, was found guilty yesterday in U.S. District Court by Judge D. Brock Hornby of possession with intent to distribute heroin and distributing cocaine base, also known as crack cocaine, following a two-day bench trial.
Court records reveal that on April 10, 2014 and October 28, 2014, the defendant was involved in the distribution of heroin and crack cocaine in Lewiston. On January 14, 2015, a search warrant executed at a Lewiston apartment used by the defendant resulted in the seizure of cocaine and heroin.
Winbrone faces up to 30 years in prison and a $2,000,000 fine. Based on prior convictions for drug trafficking, he may also be subject to an enhanced sentence as a career offender.
The investigation was conducted by the Maine Drug Enforcement Agency, the Maine State Police, and the Southern Maine Gang Task Force, which is comprised of agents and officers from the Federal Bureau of Investigation; the Portland and Biddeford Police Departments; the Bureau of Alcohol, Tobacco, Firearms and Explosives; U.S. Immigration & Customs Enforcement’s Homeland Security Investigations; and the U.S. Drug Enforcement Administration. Assistance was also provided by the Lewiston and Auburn Police Departments and the Androscoggin County Sheriff’s Office.