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17 November 2015
Fort Campbell, Kentucky, Resident Guilty of First Degree Manslaughter Resulting from Child AbuseRead the Press Release
LOUISVILLE, Ky. – A Fort Campbell, Kentucky, woman pleaded guilty today before Senior United States District Judge Thomas B. Russell to a Superseding Information charging her with first degree manslaughter in the death of an infant whom she was babysitting in December 2013, announced United States Attorney John E. Kuhn, Jr.
Sheilla E. Linares, age 22, is in the custody of the United States Marshals Service and will be sentenced in Louisville on February 24, 2016 at 11:45 a.m.
Linares, pleaded guilty to first degree manslaughter in the December 7, 2013 death of T.R.C., Jr.
According to the Plea Agreement, Linares admitted that on December 3, 2013, while on Fort Campbell Military Base, a special jurisdiction of the United States, located in Christian County, Kentucky, she provided babysitting service for an infant child, T.R.C., Jr. Three other children were also in the residence under Linares’ care that day, her two young children and T.R.C., Jr.’s three-year-old sister, A.C. No other adults were present in the residence during the day.
Between 3:00-3:30 p.m. Linares intentionally caused serious injury to T.R.C., Jr. Linares later admitted to law enforcement that it took her less than a second to realize that what she had done was completely wrong. She admitted to then putting the baby in the swing at which point, the infant became unresponsive. Linares stated that she then called the baby’s mother and 9-1-1.
An ambulance transported T.R.C., Jr. to the emergency room at the Army hospital located on Fort Campbell Military Base. His condition deteriorated and he was transported to Vanderbilt. While being treated at Vanderbilt, medical personnel noticed bruising that appeared on both of his shoulders as well as his left upper arm. Medical tests and examinations revealed bilateral subdural hemorrhage (approximately 25 ml total volume), focal subarachnoid hemorrhage, cerebral edema, bilateral optic nerve sheath hemorrhage, subdural blood throughout the spinal cord, and cervical nerve root hemorrhage. T.R.C., Jr.’s injuries were a result of Linares’ abuse. Those injuries led to his death.
On December 7, 2013, T.R.C., Jr., was determined to have insufficient brain activity to sustain life, and pronounced dead. The amended autopsy report of the Tennessee medical examiner lists the cause of death as blunt force injuries of the head and neck.
According to the Plea Agreement, Linares will be sentenced to 18 years in prison followed by a three-year period of Supervised Release. She faces a fine of up to $250,000.00. There is no parole in the federal system.
Assistant United States Attorney Jo E. Lawless is prosecuting the case. The Federal Bureau of Investigation, with assistance from the United States Army Criminal Investigation Division, and the Clarksville Tennessee Police Department, conducted the investigation.
Former Teamster Convicted of Extorting Boston BusinessesRead the Press Release
BOSTON – A former member of a Boston Teamsters local was convicted today by a federal jury in connection with extorting businesses in Boston.
James E. Deamicis, a/k/a “Jimmy the Bull,” 52, of Quincy, was convicted following a one-week trial of extortion and conspiracy to commit extortion. Among the extortion victims were Pt. Lighting Systems, the Westin Copley Hotel, and House of Blues, a division of Live Nation. U.S. District Court Judge Denise J. Casper scheduled sentencing for March 23, 2016.
“A jury unanimously found that Deamicis's tactics were not legitimate union organizing, but orchestrated extortion,” said United States Attorney Carmen M. Ortiz. “A union card is not a license to commit a crime; the strong-arm tactics belong in the history books, not on the streets of Boston.”
“Today’s conviction represents the U.S. Department of Labor, Office of Inspector General’s commitment to protect employers and businesses from those who would instill fear and intimidation. James Deamicis and his co-conspirators lied to hotels, non-profits, and other businesses in Boston regarding their obligation to use union labor from the Teamsters in an effort to obtain cash in exchange for labor peace. This office stands committed to working with our law enforcement partners to combat this type of criminal activity,” stated Cheryl Garcia, Special Agent in Charge of the Office of Labor Racketeering and Fraud Investigations, New York Region, U.S. Department of Labor - Office of Inspector General.
Deamicis, a former member of Teamsters Local 82, worked in the trade show and moving industries loading and unloading trucks. Since 2007, Deamicis, and others, extorted various entities in Boston including hotels, event planners, catering companies, pharmaceutical companies, hospitals, music entertainment companies, and non-profit organizations, none of which had collective bargaining agreements with Local 82. Deamicis threatened to picket and disrupt business, sometimes just hours before an event, if the entity did not accede to his demand for unwanted, unnecessary and superfluous jobs. He also demanded payment for these unnecessary Ajobs.@
The charge provides for a sentence of no greater than 20 years in prison, five years of supervised release and a fine of $250,000 on each count. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
In November 2014, two Teamster co-defendants, John Perry and Joseph Burhoe, were convicted by a federal jury of RICO and extortion charges. A fourth defendant, Thomas Flaherty, was previously acquitted.
U.S. Attorney Ortiz; Inspector General Dahl; Jonathan Russo, District Director of the U.S. Department of Labor, Office of Labor-Management Standards; and Susan A. Hensley, Regional Director of the U.S. Department of Labor, Employee Benefits Security Administration, made the announcement today. The case is being prosecuted by Assistant U.S. Attorney Laura J. Kaplan of Ortiz’s Organized Crime and Gang Unit.
Former Tallassee, Alabama, Assistant Police Chief Pleads Guilty to Beating Suspect During InterrogationRead the Press Release
Former Tallassee, Alabama, Assistant Police Chief, Chris Miles, 41, pleaded guilty today in a federal court in Montgomery, Alabama, to one count of deprivation of rights and two counts of false statements, for beating a suspect with a phone book-sized packet of paper during an interrogation and then lying about the incident to an FBI agent investigating the matter. Miles also pleaded guilty to one count of possession with intent to distribute for abusing his position as assistant police chief to steal approximately 16 pounds of marijuana from an evidence room, later selling it to a known drug dealer.
During the plea hearing, Miles admitted that in April 2013, while he was on duty as assistant police chief, he beat a prisoner who was serving a sentence at Tallassee Jail while he was interrogating the inmate about uncharged crimes the inmate was suspected of having committed. During the interrogation, Miles grabbed a thick packet of copy paper and used it to strike the victim multiple times across the victim’s face and head. Miles also repeatedly slapped the victim across the face and head with his hand. Miles’ abuse caused the victim to suffer bruising, redness and physical pain.
“The defendant intentionally violated a man’s fundamental civil rights and threatened to weaken the public’s confidence in our criminal justice system when he decided to beat a suspect into a confession, and to further engage in narcotics trafficking,” said Principal Deputy Assistant Attorney General Vanita Gupta, head of the Civil Rights Division. “His blatant criminal conduct undermines the dedicated efforts of the vast majority of law enforcement officers who serve honorably. The Justice Department will continue to protect the rights of all individuals, including those in custody, to be free from such abuse and criminal conduct.”
“Miles was a maverick, working outside the law,” said U.S. Attorney George L. Beck Jr. of the Middle District of Alabama. “Fortunately the overwhelming majority of our law enforcement officials act reasonably and within the bounds of the Constitution.”
Miles is scheduled to be sentenced before U.S. District Court Judge Myron H. Thompson of the Middle District of Alabama at a date to be determined. He faces up to 10 years in prison and a maximum fine of $250,000 for the deprivation of rights count. For each of the other counts, he faces up to five years in prison and a maximum fine of $250,000.
This case was investigated by the Auburn Resident Agency of the FBI’s Mobile Field Office, with the cooperation of Alabama’s State Bureau of Investigation. The case is being prosecuted by Assistant U.S. Attorney Jerusha T. Adams of the Middle District of Alabama and Trial Attorney Gabriel Davis of the Civil Rights Division.
Miles Plea Agreement
Former Tallassee Assistant Police Chief Pleads Guilty to Beating Suspect During InterrogationRead the Press Release
Montgomery, Alabama – Former Tallassee, Alabama, Assistant Police Chief, Chris Miles, 41, pleaded guilty today in a federal court in Montgomery, Alabama, to one count of deprivation of rights and two counts of false statements, for beating a suspect with a phone book-sized packet of paper during an interrogation and then lying about it to an FBI agent investigating the matter. Miles also pleaded guilty to one count of possession of a controlled substance with intent to distribute for using his position as assistant police chief to steal approximately 16 pounds of marijuana from an evidence room, and later selling it to a known drug dealer.
During the plea hearing, Miles admitted that in April 2013, while he was on duty as assistant police chief, he beat a prisoner who was serving a sentence at Tallassee Jail while he was interrogating the inmate about uncharged crimes the inmate was suspected of having committed. During the interrogation, Miles grabbed a thick packet of copy paper and used it to strike the victim multiple times across the victim’s face and head. Miles also repeatedly slapped the victim across the face and head with his hand. Miles’ abuse caused the victim to suffer bruising, redness and physical pain.
“The defendant intentionally violated a man’s fundamental civil rights and threatened to weaken the public’s confidence in our criminal justice system when he decided to beat a suspect in order to force a confession and to further engage in narcotics trafficking,” said Principal Deputy Assistant Attorney General Vanita Gupta, head of the Civil Rights Division. “His blatant criminal conduct undermines the dedicated efforts of the vast majority of law enforcement officers who serve honorably. The Justice Department will continue to protect the rights of all individuals, including those in custody, to be free from such abuse and criminal conduct.”
“Miles was a maverick, working outside the law,” stated U.S. Attorney George Beck. “Fortunately, the overwhelming majority of our law enforcement official’s act reasonably and within the bounds of the Constitution.”
Miles is scheduled to be sentenced before U.S. District Court Judge Myron H. Thompson of the Middle District of Alabama at a date to be determined. He faces up to 10 years in prison and a maximum fine of $250,000, for the deprivation of rights count. For each of the other counts, he faces up to five years in prison and a maximum fine of $250,000.
This case was investigated by the Auburn resident agency of the FBI’s Mobile Field Office, with the cooperation of the Alabama Law Enforcement Agency. The case is being prosecuted by Assistant U.S. Attorney Jerusha T. Adams for the Middle District of Alabama and Trial Attorney Gabriel Davis of the Civil Rights Division.
Former Office Manager of Hobbs Business Sentenced to Prison on Federal Tax ChargesRead the Press Release
ALBUQUERQUE – Connie C. Sims, 44, of Eunice, N.M., was sentenced today in federal court in Las Cruces, N.M., to a year and a day in prison followed by one year of supervised release for violating the federal tax laws, announced U.S. Attorney Damon P. Martinez and Special Agent in Charge Ismael Nevarez Jr. of the Phoenix Field Office of IRS Criminal Investigation. Sims also was ordered to pay $169,951.00 in restitution to the IRS in addition to a $100,000.00 fine.
Sims was charged with four counts of federal tax evasion in an indictment filed in Sept. 2014. The indictment charged Sims with evading her federal tax obligations during tax years 2009, 2010, 2011 and 2012 by failing to report her true income. At the time the offenses were committed, Sims was employed as the office manager of a surveillance equipment company located in Hobbs, N.M.
On March 18, 2015, Sims pled guilty to all four counts of the indictment and admitted that she knowingly evaded approximately $120,366.00 in federal taxes by failing to report an aggregate of $482,890.00 in income during tax years 2009, 2010, 2011 and 2012. In her plea agreement, Sims admitted that from 2010 through 2013, she wrote checks to herself on the company’s bank accounts and did not report the money as compensation when she filed her federal tax returns. Sims acknowledged deriving an aggregate amount of $482,890.00 by writing checks to herself, which resulted in a loss of $120,366.00 to the IRS when she failed to report the income in her federal tax returns.
This case was investigated by the Las Cruces office of IRS Criminal Investigation and was prosecuted by Assistant U.S. Attorney Amanda Gould of the U.S. Attorney’s Las Cruces Branch Office.
Former MDPD Police Officer, Former Public Service Aide and two Tow Truck Drivers Arrested in Illegal Bribery and Kickback SchemeRead the Press Release
Four individuals arrested, including former Miami Dade Police Officer, for their participation in illegal bribery and kickback scheme.
Wifredo A. Ferrer, U.S. Attorney for the Southern District of Florida, George L. Piro, Special Agent in Charge, FBI, Miami Field Office, and J.D. Patterson Jr., Director, Miami Dade Police Department (MDPD), made the announcement.
Former MDPD Police Officer Yuri Millan, 39, Oriel Ugardes, 42, and Jose Guim, 34, are charged by criminal complaint with conspiring and participating in a bribery and kickback scheme, in violation of Title 18, United States Code, Section 371. Another alleged participant in the conspiracy, former MDPD Public Service Aide (PSA) Elina Rodriguez was charged by information on October 27, 2015. If convicted, each defendant faces a maximum statutory sentence of five years imprisonment, up to 3 years supervised release, and a maximum fine of $250,000.
According to the facts alleged in the complaint, Miami-Dade County has a rotational wrecker system, which is a process where certain tow truck companies enter into a contract with the county in return for being placed on a rotational wrecker list. When there is an accident within MDPD jurisdiction, if the driver of the disabled vehicle is not able to secure their own tow truck, the responding MDPD employee is required to contact, via dispatch, the rotational tow truck company with responsibility for that geographical area. In return for that business, the rotational tow truck company pays Miami-Dade County a fee for each referred tow.
In 2013, the FBI Task Force became aware of allegations that Oriel Ugardes, the owner of O&U towing, was paying police department employees bribes in return for their assistance in enabling the defendant and his company trucks to circumvent the MDPD rotational wrecker system. During the resulting investigation, investigators documented that Ugardes and one of his drivers, Jose Guim, would pay bribes to MDPD Officer Yuri Millan and MDPD PSA Elina Rodriguez. In return for cash payments, rather than contact the rotational tow truck company, Millan and Rodriguez would permit O&U tow trucks to tow disabled vehicles directly from accident scenes. Millan and Rodriguez would also use their MDPD computers to access police databases and locate accidents that were “holding,” that is, which were not yet assigned a responding officer. Ugardes and Guim would then use this information to respond to the accident scenes before an officer or PSA arrived and solicit business directly from the stranded driver. Once business was obtained, the disabled vehicles would be towed to body shops which themselves participated in the scheme by paying cash kickbacks based upon the anticipated repair cost of the disabled vehicle.
In addition, by May 2014, the FBI had also become aware that Millan was renting his MDPD police encrypted radio to Ugardes and Guim in return for $300 a week. With that radio, Ugardes and Guim could intercept confidential police communications and identify accident locations. On May 14, 2014, investigators recovered Millan’s assigned MDPD radio from Ugardes’s possession after Ugardes was seen picking the radio up at Millan’s residence. Millan subsequently filed a false police report claiming that he had lost his encrypted radio at an unknown location.
On May 2, 2014, investigators interviewed Rodriguez and she allegedly admitted being paid bribes by Ugardes since 2009. Rodriguez admitted being paid between $100 to $300, per accident. Rodriguez has estimated that she personally received at least $35,000 during the course of the conspiracy.
On June 20, 2014, Millan was interviewed and provided a statement in which he allegedly admitted to taking bribes from Guim. Millan admitted that for the five month period preceding his interview, he accepted $500 to $600 and “borrowed” and additional $2,000 to $3,000 in cash from Jose Guim. Millan also admitted providing Guim and Ugardes his encrypted MDPD radio.
“All public officials, including police officials, cannot take money kickbacks in exchange for performing, or in this case for not performing, their official duties,” stated U.S. Attorney Ferrer. “This case, and our ongoing investigation, makes clear that corrupt activity that affects the people of this community will not be tolerated and will be punished to the fullest extent of the law.”
“Every day, thousands of dedicated, able and honorable law enforcement officers take to the streets to protect communities throughout South Florida,” said George L. Piro, Special Agent in Charge, FBI Miami. “It is on behalf of these professionals that the FBI’s Miami Area Corruption Task Force seeks to root out wrongdoing to ensure that the high standards we expect of our police are met and maintained.”
Mr. Ferrer commended the investigative efforts of the FBI Miami Area Corruption Task Force and the MDPD Internal Affairs Division. To date, the FBI investigation into alleged corruption in the towing industry has resulted in sixteen police department employees and tow truck operators being charged in federal court. This case is being prosecuted by Assistant U.S. Attorney Anthony Lacosta.
A criminal complaint, information or indictment is only an accusation and a defendant is presumed innocent until proven guilty.
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.
Former Glock Manager and Wife Sentenced for Taking Bribes, KickbacksRead the Press Release
TOPEKA, KAN. – A former regional manager for the company that makes Glock firearms was sentenced Monday to 18 months in federal prison for conspiring to take bribes and kickbacks, U.S. Attorney Barry Grissom said. The man’s wife was sentenced to a year and a day in federal prison for her part in the scheme.
Welcome D. “Bo” Wood, Jr., 66, Oviedo, Fla., who was the Eastern Regional Manager for Glock, pleaded guilty to one count of conspiracy. His wife, Paula Ann Wood, 65, Oveido, Fla., pleaded guilty one count of conspiracy, too.
Co-defendant John Sullivan Ralph, III, was sentenced to 18 months after pleading guilty to conspiracy. Ralph, who owned Global Guns & Hunting, Inc., of Olathe, doing business as OB Guns, admitted he paid 140 bribes and kickbacks to Glock employees totaling approximately $900,000. Welcome Wood accepted gifts, payments and other things of value from Ralph in return for preferential treatment. Paula Wood received checks made payable to her as part of a plan to conceal the bribes.
Grissom commended the FBI and Assistant U.S. Attorney Richard Hathaway for their work on the case.
District Man Sentenced to Six Years in Prison for Burglary and Assault in Southeast WashingtonRead the Press Release
WASHINGTON – Kenneth Gaines, 51, of Washington, D.C., has been sentenced to a six-year prison term for a violent burglary of a home in Southeast Washington, U.S. Attorney Channing D. Phillips announced today.
Gaines pled guilty in July 2015, in the Superior Court of the District of Columbia, to one count of first-degree burglary, one count of assault with a dangerous weapon, and one count of unlawful possession of a firearm. He was sentenced on Nov. 16, 2015, by the Honorable Juliet McKenna. After his prison term, Gaines will be placed on three years of supervised release.
According to the government’s evidence, on April 4, 2015, at about 11:15 p.m., Gaines entered the apartment of one of the victims, in the 3900 block of Fourth Street SE. While inside, Gaines took out a .40 caliber Glock semi-automatic handgun and a .40 caliber Beretta semi-automatic handgun, and ordered the victim and his two houseguests to give him all their money and car keys. One of the victims was able to wrestle the handguns from Gaines and sustained an injury to the head during the struggle. The victims were able to subdue Gaines shortly before police arrived on scene.
In announcing the sentence, U.S. Attorney Phillips commended the work of the Metropolitan Police Department’s Seventh District. He also acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Paralegal Specialist Daphne Nelson and Assistant U.S. Attorneys Sarah C. Santiago and Kondi Kleinman, of the Felony Major Crimes Trial Section, who prosecuted the matter.
Crack Cocaine Lands Local Man in Federal PrisonRead the Press Release
CORPUS CHRISTI, Texas - A 34-year-old Corpus Christi resident has been sentenced to prison following his conviction for possession with intent to distribute cocaine base, also known as crack cocaine, announced U.S. Attorney Kenneth Magidson. Shane Lucas Winn pleaded guilty Aug. 31, 2015.
Today, Senior U.S. District Judge Hayden Head sentenced Winn to 36 months in federal prison to be followed by three years of supervised release. In handing down the sentence, the court noted the sincerity of the defendant in wanting to turn his life around for his kids. Winn had noted that he did not want his children to grow up without a father like him and make the same bad choices as he had done.
In April 2013, law enforcement officers with the Texas Department of Public Safety (DPS) conducted a series of narcotics search warrants at residences in Corpus Christi. During the enforcement actions, officers seized approximately 25 grams of crack cocaine and approximately 250 grams of cocaine. Winn admitted to purchasing the powder cocaine and then “cooking” the crack to be sold. Winn was arrested by federal agents on the charge in July 2015.
Winn will remain in custody and serve his sentence at a U.S. Bureau of Prisons facility to be designated in the near future.
The charge stems from an investigation conducted by Homeland Security Investigations and DPS. Assistant U.S. Attorney Lance Watt is prosecuting the case.
Couple Pleads Guilty to Production of Child PornographyRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051
ROCHESTER, N.Y. - U.S. Attorney William J. Hochul, Jr. announced today that Alfred Dasilva, 46, of Greece, NY and Sharon Sexton, 45, of Gates, NY, pleaded guilty to production of child pornography before Chief U.S. District Court Judge Frank P. Geraci. The charge carries a mandatory minimum penalty of 15 years in prison, a maximum of 30 years, a $250,000 fine or both.
Assistant U.S. Attorney Craig R. Gestring, who is handling the case, stated that the investigation began when a school resource officer employed by the Gates Police Department was informed by a school official that Sexton was taking nude photos of a female student. The ensuing investigation determined that Sexton sent these photos to her boyfriend, Alfred Dasilva. Sexton was interviewed by law enforcement and admitted to both taking the photos and then sending them to Dasilva. She told officers that she took the photos and sent them to Dasilva because he asked her to, and that Dasilva used the naked photos to “fantasize.”Federal investigators examined Dasilva’s cellphone and also located a video of a child performing oral sex on Dasilva. Sexton admitted to being the person who took the video. Several online chats were also recovered from the cellphone in which Sexton and Dasilva graphically discussed engaging in sexual conduct with children.
The defendants were also charged in State Court related to sexual activity with a child and endangering the welfare of a child.
The pleas are the culmination of a joint investigation by the Gates Police Department and the Federal Bureau of Investigation Child Exploitation Task Force consisting of the Monroe County Sheriff’s Office, the Rochester Police Department, the Greece Police Department and Immigration and Customs Enforcement, Homeland Security Investigations.
DaSilva is scheduled to be sentenced on January 7, 2016 at 11:00 a.m., and Sexton is scheduled to be sentenced on February 18, 2016 at 9:30 a.m. both before Judge Geraci. The defendants are being detained pending sentencing.
Collinsville Man Sentenced to Federal Prison for Mail Fraud and Aggravated Identity TheftRead the Press Release
Jeffrey C. Brown, 36, of Collinsville, Illinois, was sentenced to a total of thirty-six months in federal prison for the offenses of Conspiracy to Commit Mail Fraud in a scheme to obtain money and property through the use of unauthorized access devices through the commission of identity theft, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today. Brown was also ordered to pay $19,505.17 in restitution and serve two years of supervised release following his release from prison.
The convictions are the result of Brown and a co-conspirator stealing mail out of mailboxes. The stolen mail matter contained means of identification of other persons that included names, dates of birth and social security numbers. As part of the conspiracy, Brown used that information to apply for and obtain credit cards. The credit cards were then used to make purchases. Some of the fraudulently obtained items were then shipped or mailed to Brown’s residence. The items fraudulently obtained were often taken to local pawn shops for quick cash. It was ultimately determined that Brown was addicted to methamphetamines and cocaine and also had a gambling addiction.
The prosecution is the result of an investigation conducted by the Collinsville Police Department, the Postal Inspection Service, the Internal Revenue Service/Criminal Investigations, and the United States Secret Service. The case was prosecuted by Assistant United States Attorney Norman R. Smith.
Civil Rights Settlement Requires Major Real Estate Developer to Make Rental Complexes Accessible to All New YorkersRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced today that the United States has reached a settlement that resolves a federal civil rights lawsuit against THE DURST ORGANIZATION, INC. (“DURST”), a major real estate developer based in New York City, and DURST’s affiliates and subsidiaries. The lawsuit alleges that DURST engaged in a pattern and practice of developing rental apartment buildings that are inaccessible to persons with disabilities. Under the settlement, DURST agrees to establish procedures to ensure that its ongoing and future development projects, such as the 2,400-unit Halletts Point development in Queens and the 709-unit VIA 57 West development in Manhattan, will comply with the accessibility requirements of the federal Fair Housing Act (“FHA”). DURST also agrees to make two apartment buildings in Manhattan containing more than 1,000 units – The Helena and The Epic – more accessible to individuals with disabilities. Finally, DURST agrees to provide up to $515,000 to compensate aggrieved persons and pay a civil penalty of $55,000. The settlement was reached after the court denied DURST’s motion to dismiss the government’s lawsuit and was approved yesterday by U.S. District Judge Ronnie Abrams.
Manhattan U.S. Attorney Preet Bharara said: “This is the ninth in a series of lawsuits that this office has brought against real estate developers and architects who fail to design and construct new apartment buildings accessible to people with disabilities. When the government filed this lawsuit, Durst claimed that it should not be held responsible for inaccessible conditions at The Helena and other rental buildings – despite the fact that Durst’s own website trumpets its role in developing those buildings. It was only after the Court rejected Durst’s argument that Durst finally accepted its obligations under the law. Today’s settlement with Durst makes clear that real estate developers cannot hide behind opaque corporate structures to evade their obligation to comply with the Fair Housing Act or avoid liability for violating that Act.”
The FHA’s accessible design and construction provisions require new multi-family housing complexes constructed after January 1993 to have basic features accessible to persons with disabilities. In April 2014, the United States filed this lawsuit against DURST and an architectural firm, alleging that past and ongoing rental projects designed and constructed by DURST and the architect, including The Helena, did not comply with the FHA’s accessibility requirements. Inaccessible features at The Helena were first brought to the attention of the United States by testing performed by the Fair Housing Justice Center.
In September 2014, DURST moved to dismiss the government’s complaint on the grounds that DURST itself could not be held liable under the Fair Housing Act because it was not involved with developing any of the rental buildings at issue. The government opposed that motion, noting that DURST’s public statements on its own website described its executives’ direct involvement with the design and construction of buildings like The Helena. On January 9, 2015, the court denied DURST’s motion to dismiss. Shortly thereafter, DURST pursued settlement discussions with the government.
Under the settlement, DURST agrees that, for every multi-family housing project it constructs in the next three years, it will retain an FHA compliance consultant to ensure that the building, as constructed, will comply with the FHA’s accessibility requirements. For example, the FHA consultant will advise DURST on the selection of fixtures and appliances and whether deviating from the architects’ drawings will affect accessibility. The FHA consultant also will conduct a site visit to identify non-compliant conditions and recommend appropriate solutions prior to the completion of construction. In addition, DURST agrees to institute policies and training to ensure that its own employees and agents will comply with the FHA’s accessibility requirements.
Further, the settlement also requires DURST to make extensive retrofits at The Helena, and to commit to additional retrofits at The Epic once that building has been inspected, to make these buildings accessible.
Finally, the settlement requires DURST to provide up to $515,000 in funds to compensate aggrieved persons. DURST also agrees to pay a civil penalty of $55,000.
The government’s lawsuit also asserted claims against the architect of The Helena, FXFOWLE ARCHITECTS, P.C. Those claims remain pending while FXFOWLE pursues settlement negotiations with the government.
Aggrieved individuals may be entitled to monetary compensation from the fund created through today’s settlement. Aggrieved individuals may include those who were:
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Injured by a lack of accessible features at The Helena, The Epic, or the other properties constructed by DURST;
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Discouraged from living at The Helena, The Epic, or the other properties constructed by DURST because of the lack of accessible features;
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Required to pay to have an apartment at The Helena, The Epic, or the other properties constructed by DURST made accessible,
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Prevented from having visitors because of a lack of accessible features at The Helena, The Epic, or the other properties constructed by DURST; or
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Otherwise injured or discriminated against on the basis of disability as a result of the design or construction of The Helena, The Epic, or the other properties constructed by Durst.
People who may be entitled to compensation should file a claim by contacting the Civil Rights Complaint Line at (212) 637-0840, using the Civil Rights Complaint Form available on the United States Attorney’s Office’s website http://www.justice.gov/usao/nys/civilrights.html, or sending a written claim to:
U.S. Attorney’s Office, Southern District of New York
86 Chambers Street, 3rd Floor
New York, New York 10007
Attention: Chief, Civil Rights Unit
The case is being handled by the Office’s Civil Rights Unit. Assistant U.S. Attorneys Li Yu, Jessica Jean Hu, and Jacob Lillywhite are in charge of the case.
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Chesterland man faces child pornography chargesRead the Press Release
A grand jury returned a two-count indictment charging Jeffrey J. Justice, 32, of Chester Township, with receiving and distributing visual depictions of minors engaged in sexually explicit conduct and with possessing child pornography, said Steven M. Dettelbach, U.S. Attorney for the Northern District of Ohio.
If convicted, the defendant’s sentence will be determined by the Court after a review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense, and the characteristics of the violation. In all cases, the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
The case is being prosecuted by Assistant U.S. Attorney Brian M. McDonough following an investigation by the FBI Cleveland Field Office, Painesville Resident Agency.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government's burden to prove guilt beyond a reasonable doubt.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims.
Chesapeake Man Pleads Guilty to Illegally Receiving Silencers from CanadaRead the Press Release
NORFOLK, Va. – Benjamin Lloyd Fisher, 42, of Chesapeake, pleaded guilty today to charges of illegally receiving imported firearms, namely silencers.
In a statement of facts filed with the plea agreement, Fisher admitted that in the spring of 2014 he purchased a homemade .22 caliber suppressor (silencer) from a Canadian source he had met online. The parties arranged that the silencer would be shipped to Fisher in two separate packages, in order to avoid detection by U.S. Customs and Border Patrol. Based on email correspondence between Fisher and his Canadian source, as well as other evidence, in May 2015 ATF agents executed a search warrant on the home in Chesapeake that Fisher shared with his mother. During the search agents recovered 13 firearms, eight silencers, and crates of ammunition. One month later, several additional firearms associated with Fisher were recovered. Fisher is a prohibited person and unable to possess a firearm due to a previous crime of violence.
Fisher was indicted by a federal grand jury on Sept. 16, 2015. Fisher faces a maximum penalty of five years in prison when sentenced on Feb. 29, 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 Charles E. Smith, Special Agent in Charge of Alcohol, Tobacco, Firearms, and Explosives’ (ATF) Washington Field Office, made the announcement after the plea was accepted by Senior U.S. District Judge Robert G. Doumar. Assistant U.S. Attorneys William D. Muhr and V. Kathleen Dougherty 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. 2:15cr117.
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Charleston man pleads guilty in Federal court to heroin distributionRead the Press Release
CHARLESTON, W.Va. – Antoine Maurice Brown, 32, of Charleston, West Virginia, pleaded guilty today in federal court in Charleston to distribution of heroin, announced United States Attorney Booth Goodwin. Brown admitted that on June 26, 2013, he sold heroin to a confidential informant working with law enforcement. The drug deal took place in the parking lot of the 7-Eleven on Washington Street, East, in Charleston. Brown faces up to 20 years in federal prison and a $1 million fine when he is sentenced on February 17, 2016.
The investigation of this case was conducted by the Metropolitan Drug Enforcement Network Team.
This case is being prosecuted as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs and heroin. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal pill trafficking, eliminating open air drug markets, and curtailing the spread of opiate painkillers and heroin in communities across the Southern District.
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Charleston man pleads guilty in Federal court to crack and heroin distributionRead the Press Release
CHARLESTON, W.Va. – Anton R. Courts, 40, of Charleston, West Virginia, pleaded guilty today in federal court in Charleston to distribution of both crack and heroin, announced United States Attorney Booth Goodwin. Courts admitted to selling quantities of cocaine base, also known as “crack,” and heroin in April 2015 to a confidential informant working with law enforcement. The drug deals took place in the Wertz Avenue area of Charleston. Courts faces up to 20 years in federal prison and a $1,000,000 fine when he is sentenced on February 18, 2016.
The investigation was conducted by the Charleston Police Department’s Special Enforcement Unit.
This case is being prosecuted as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs and heroin. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal pill trafficking, eliminating open air drug markets, and curtailing the spread of opiate painkillers and heroin in communities across the Southern District.
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Cayuga County Postmaster Convicted of EmbezzlementRead the Press Release
SYRACUSE, NEW YORK –Yesterday Grover Horn, 71, of Cayuga County, New York, pled guilty and was sentenced in federal court for embezzling money orders and cash from the U.S. Post Office in Martville, New York, announced United States Attorney Richard S. Hartunian and Eileen Neff, Special Agent in Charge, United States Postal Service, Office of Inspector General (USPS OIG), Northeast Area Field Office. Following the entry of his guilty plea, Horn was sentenced to a one (1) year term of probation and 50 hours of community service. The defendant was also ordered to pay more than $6,000 in restitution to the United States Postal Service.
The defendant admitted in court that he used his position as Postmaster to embezzle more than $6,000 in money orders and cash over a period of several weeks during July and September 2015. Horn was an employee of the Postal Service for more than 30 years.
This case was investigated by USPS Office of Inspector General and was prosecuted by Assistant United States Attorney Michael F. Perry.
Canfield man charged with child pornography offensesRead the Press Release
Christopher B. Yates, 24, of Canfield, was charged with receiving, distributing and possessing visual depictions of minors engaged in sexually explicit conduct, said Steven M. Dettelbach, U.S. Attorney for the Northern District of Ohio.
The indictment charges that from on or about September 25, 2013, through on or about October 28, 2013, Yates knowingly received and distributed, using any means and facility of interstate and foreign commerce, numerous computer files, which files contained visual depictions of real minors engaged in sexually explicit conduct, and which files had been shipped and transported in and affecting interstate and foreign commerce. The indictment also charges that on November 15, 2013, Yates possessed a computer containing child pornography.
If convicted, the defendant’s sentence will be determined by the court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant's role in the offense and the characteristics of the violation. In all cases the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
This case is being prosecuted by Assistant United States Attorney Michael A. Sullivan. The case was investigated by the Youngstown Office of the Federal Bureau of Investigation.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Campton Man Sentenced to Year in Prison for Manufacturing MarijuanaRead the Press Release
CONCORD, N.H. - Peter Apicelli, 31, of Campton, N.H., was sentenced in the United States District Court for the District of New Hampshire on one count of manufacturing marijuana, announced Acting United States Attorney Donald Feith. Senior U.S. District Judge Joseph DiClerico imposed a sentence of 12 months and a day imprisonment, 2 years supervised release, and a mandatory special assessment of $100.
A federal jury in Concord found Apicelli guilty of federal marijuana manufacturing charges following a three day trial in July 2015.
According to the evidence at trial, in September 2013, Apicelli was renting a property in Campton, N.H. Following a tip, law enforcement investigated and found an outdoor marijuana grow on the property about 200 yards from the residence. A law enforcement temporary surveillance camera then captured video of a male individual wearing a red back-pack and tan shorts tending to the plants on September 14. After obtaining a search warrant for the house, police located an indoor marijuana grow in the basement, drying marijuana, packaged marijuana, scales and other packaging materials, as well as evidence indicating that Apicelli lived there, including a red back-pack and tan shorts. All told, over 120 marijuana plants were seized from the house and grounds.
Apicelli was ordered to surrender to the Bureau of Prisons on January 8, 2016.
This matter was jointly investigated by the Campton Police Department, the Grafton County Sheriff’s Office, and the New Hampshire State Drug Task Force, with assistance from the New Hampshire State Police Forensic Laboratory. The case is being prosecuted by Assistant U.S. Attorney Charles L. Rombeau.
California Woman Admits Scheme to Steal 94,000 Debit and Credit Cards from Michaels’ Stores in 19 StatesRead the Press Release
CAMDEN, N.J. – A California woman today admitted her role in a large-scale conspiracy to steal 94,000 credit and debit cards from customers at approximately 80 Michaels’ Stores in 19 states and to then use that information to make fraudulent withdrawals from the bank accounts of those customers, U.S. Attorney Paul J. Fishman announced.
Crystal Banuelos, 28, of Bloomington, California, pleaded guilty before U.S. District Judge Joseph H. Rodriguez in Camden federal court to Count One of the indictment, conspiracy to commit bank fraud, and Count Three of the indictment, aggravated identity theft.
According to documents filed in this case and statements made in court:
The conspirators installed devices that acquired customers’ bank account and personal identification number (PIN) information on point of sale (POS) terminals at stores operated by Michaels. The stolen account information was used to produce counterfeit bank cards, which were used with the stolen PINs to withdraw funds from the compromised bank accounts.
The conspirators allegedly replaced 88 POS terminals in 80 different stores operated by Michaels across 19 states, including New Jersey, with counterfeit POS devices. Each counterfeit device was equipped with wireless technology, which the conspirators used to retrieve the stolen information. From February 2011 to April 2011, conspirators stole approximately 94,000 debit and credit card account numbers.
From April 2011 to May 2011, Banuelos, her co-defendant, Angel Angulo, and others obtained counterfeit cards with the corresponding PIN numbers written on them from other conspirators. They used the cards and PIN numbers to withdraw money using automated teller machines (ATMs) from hundreds of bank accounts. On May 14, 2011, Banuelos and Angulo possessed 179 counterfeit cards in New Jersey.
The charge of conspiracy to commit bank fraud carries a maximum potential penalty of 30 years in prison and a $1 million fine. The charge of aggravated identity theft carries a mandatory penalty of two years in prison, to be served consecutively to any other sentence. Banuelos also consented to an order of forfeiture in the amount of $480,300, representing the proceeds of the offense. Her sentencing is scheduled for Feb. 23, 2016.
U.S. Attorney Fishman credited special agents of the U.S. Secret Service, under the direction of Special Agent in Charge David Beach, for the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Daniel Shapiro of the Computer Hacking and Intellectual Property Section of the U.S. Attorney’s Office Economic Crimes Unit.
Defense counsel: Edward Sapone Esq., New York
Bonners Ferry Woman Pleads Guilty to Possessing Stolen MailRead the Press Release
COEUR D'ALENE - Nicole Lynn Abraham, 30, of Bonners Ferry, Idaho, pleaded guilty today to possession of stolen mail, U.S. Attorney Wendy J. Olson announced. Abraham was indicted by a federal grand jury in Coeur d'Alene on March 17, 2015.
According to the plea agreement, in June 2014, Kootenai Tribal Police executed a search warrant at a residence where the defendant was residing. During the search, a Kootenai Tribal Officer seized a suitcase containing mail stolen from individuals in Idaho, Washington and Montana. Abraham was arrested and later made bond.
A week later, Spokane police confronted Abraham who was a passenger in a stolen vehicle where more stolen mail and items taken during a home burglary were found. Abraham was arrested.
The charge of possession of stolen mail is punishable by up to five years in prison, a maximum fine of $250,000.00, and up to three years of supervised release.
Sentencing is set for January 26, 2016, before Senior U.S. District Judge Edward J. Lodge at the federal courthouse in Coeur d'Alene.
The case was investigated by Kootenai Tribal Police, U.S. Postal Inspection Service, Federal Bureau of Investigation, and the Spokane Police Department.
Bishop Man Sentenced for Possession of Child PornographyRead the Press Release
CORPUS CHRISTI, Texas – Matthew Victor Hernandez, 27, of Bishop, has been ordered to federal prison following his conviction of possession of child pornography, announced U.S. Attorney Kenneth Magidson.
Today, Senior U.S. District Judge John D. Rainey sentenced Hernandez to 84 months in prison to be immediately followed by a 10-year-term of supervised release during which time he will have to comply with numerous requirements designed to restrict his access to children and the Internet. He will also be ordered to register as a sex offender.
On Sept. 3, 2014, authorities began investigating Hernandez for allegations involving the sexual abuse of a minor girl. The victim was identified, confirmed the abuse and also reported receiving inappropriate and threatening text messages from Hernandez. A forensic examination of Hernandez’s phone led to the discovery of more than 175 images and nine videos of children involved in sexual explicit conduct. Law enforcement also located several text messages Hernandez sent to the minor girl threatening to kill her if she reported the abuse.
At the time of his arrest, Hernandez was in possession of second phone. A forensic examination of this phone led to the discovery of more than 195 images of children involved in sexual explicit conduct.
Hernandez admitted to possessing the images and sending the threatening text messages to the minor girl.
He has been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The charges against Hernandez were the result of an investigation conducted by FBI, Texas Rangers and the Corpus Christi Police Department—Internet Crimes Against Children Task Force.
This case, prosecuted by Assistant U.S. Attorney Hugo R. Martinez, was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Bangor Resident Pleads Guilty to Drug ChargeRead the Press Release
Contact: Joel B. Casey
Assistant United States Attorney
Tel: (207) 945-0373Bangor, Maine: United States Attorney Thomas E. Delahanty II announced that Mark Wood, 56, of Bangor pleaded guilty today in U.S. District Court to conspiring to distribute and possess with the intent to distribute bath salts.
According to court records, between about January 2012 and March 2014, the defendant conspired with others to distribute the bath salts MDPV and Alpha-PVP in Penobscot County. He obtained drugs from other conspirators and delivered them to friends and associates who paid for them. He was also paid in drugs for driving his supplier on drug deliveries and by other users and dealers who were buying drugs from his supplier.The defendant faces up to 20 years in prison, a $1,000,000 fine and supervised release of between three years and life. He will be sentenced after the completion of a presentence investigation report by the U.S. Probation Office.
The case was investigated by the Maine Drug Enforcement Agency; the U.S. Postal Inspection Service; the Bureau of Alcohol, Tobacco, Firearms and Explosives; and U.S. Immigration and Customs Enforcement’s Homeland Security Investigations.Alien Smuggler Sentenced to Three-Year Prison TermRead the Press Release
SYRACUSE, NEW YORK – Yesterday Ergys Metashi, 34, of Ontario, Canada, was sentenced to a term of three (3) years in prison, followed by a three-year term of supervised release, in connection with his conviction after trial for bringing an alien to the United States for the purpose of financial gain, announced United States Attorney Richard S. Hartunian, Homeland Security Investigations, Assistant Special Agent in Charge Nicholas DiNicola, and Timothy J. Walker, Area Port Director, U.S. Customs and Border Protection, Area Port of Alexandria Bay.
Ergys Metashi, a commercial truck driver originally from Albania who lives and works in Canada, was convicted following a July jury trial in federal court of bringing an alien to the United States from Canada through the Alexandria Bay Port of Entry, New York, on March 31, 2015. The evidence at trial showed that Metashi agreed to smuggle the alien, a fellow Albanian, into the United States by hiding him in the sleeping compartment of a tractor trailer in exchange for the promise of a payment of several thousand American dollars. During an inspection, U.S. Customs and Border Protection Officers found the alien hiding under a blanket in the truck and arrested Metashi.
This case was investigated by Homeland Security Investigations and U.S. Customs and Border Protection, and was prosecuted by Assistant United States Attorney Michael F. Perry.
Albuquerque Man Pleads Guilty to Theft Charge Arising Out of Robbery of Retail Pharmacy in August 2014Read the Press Release
ALBUQUERQUE – Roy Christopher, 28, of Albuquerque, N.M., pleaded guilty today in federal court to a theft of medical products charge arising out of the robbery of an Albuquerque-area retail pharmacy in Aug. 2014.
The guilty plea was announced by U.S. Attorney Damon P. Martinez, 2nd Judicial District Attorney Kari E. Brandenburg, Special Agent in Charge Carol K.O. Lee of the FBI’s Albuquerque Division, Special Agent in Charge Will R. Glaspy of the DEA’s El Paso Division, Chief Gorden Eden, Jr., of the Albuquerque Police Department, and Chief Pete N. Kassetas of the New Mexico State Police.
Christopher was one of six defendants charged in four indictments that were announced by federal and local officials on April 29, 2015. The indictments alleged that the six defendants robbed retail pharmacies in Albuquerque to illegally obtain Oxycodone and other highly addictive opioid painkillers. The four indictments charged Christopher and five other Albuquerque residents with crimes arising out of the armed robberies of retail pharmacies, including violations of the Controlled Substance Registrant Protection Act and the Safe Doses Act, laws passed to address the theft and diversion of prescription drugs.
Christopher was indicted on April 28, 2015, and charged with (1) violating the Hobbs Act by interfering with interstate commerce by robbery and violence; (2) violating the Safe Doses Act by theft of medical products; and (3) possession of Oxycodone with intent to distribute. The charges against Christopher arise out of the robbery of a CVS Pharmacy on Aug. 3, 2014.
During today’s proceedings, Christopher pled guilty to Count 2 of the indictment charging him with violating the Safe Doses Act by robbery involving controlled substances. In entering the guilty plea, Christopher admitted that on Aug. 3, 2014, he entered the CVS pharmacy and handed the attending pharmacy employee a note demanding Oxycodone and that the pharmacy employee complied with his demand. Christopher was apprehended shortly after the robbery. Christopher admitted that he stole more than 200 Oxycodone pills of various dosages during the robbery.
At sentencing, Christopher faces statutory maximum penalty of 20 years in federal prison. He remains in custody pending a sentencing hearing which has yet to be scheduled.
With respect to the other five defendants charged in these pharmacy robbery cases, four have entered guilty pleas and remain detained pending sentencing hearings:
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On July 1, 2015, Victor Hurtado, 20, pled guilty to felony charges arising out of the Jan. 6, 2015, armed robbery of the Smith’s Pharmacy located at 4016 Louisiana Blvd. NE in Albuquerque. Under the terms of his plea agreement, Hurtado will be sentenced to a prison term within the range of ten to 18 years.
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On Sept. 17, 2015, Valentin Garcia, 23, pled guilty to felony charges arising out of the Jan. 30, 2015, armed robbery of the CVS Pharmacy located at 4201 Montano in Albuquerque.Under the terms of his plea agreement, Garcia will be sentenced to ten years in prison.
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On Sept. 4, 2015, Blake Gallardo, 22, pled guilty to felony charges arising out of the June 6, 2015, robbery of a Walgreens Pharmacy located at 1201 Unser Blvd. NW in Albuquerque.Under the terms of his plea agreement, Gallardo will be sentenced to a prison term within the range of 15 to 20 years.
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On Sept. 24, 2015, Josephine Duran, 23, pled guilty to felony charges arising out of the June 6, 2015, robbery of a Walgreens Pharmacy located at 1201 Unser Blvd. NW in Albuquerque.Under the terms of her plea agreement, Duran will be sentenced to a prison term within the range of 48 to 100 months.
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Joseph Montano, 23, has entered a not guilty plea to an indictment arising out of the armed robbery of a Smith’s Pharmacy on Jan. 6, 2015.He remains in custody pending trial which is currently scheduled for Nov. 30, 2015.Charges in indictments are merely accusations and defendants are presumed innocent unless found guilty in a court of law.
These cases were investigated by the Albuquerque office of the FBI, the Tactical Diversion Squad of the DEA in Albuquerque, and the Albuquerque Police Department, with assistance from the 2nd Judicial District Attorney’s Office in Bernalillo County. The cases are being prosecuted by Assistant U.S. Attorneys Joel R. Meyers and Shaheen P. Torgoley.
DEA’s Tactical Diversion Squads combine DEA resources with those of federal, state and local law enforcement agencies in an innovative effort to investigate, disrupt and dismantle those suspected of violating the Controlled Substances Act or other appropriate federal, state or local statutes pertaining to the diversion of licit pharmaceutical controlled substances or listed chemicals.
These cases are being prosecuted pursuant to 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 Bernalillo County, under this initiative.
The cases also are being prosecuted pursuant to the New Mexico Heroin and Opioid Prevention and Education (HOPE) Initiative. The HOPE Initiative is a collaborative effort between the U.S. Attorney’s Office and the University of New Mexico Health Sciences Center that is partnering with the Bernalillo County Opioid Accountability Initiative with the overriding goal of reducing the number of opioid-related deaths in the District of New Mexico. The HOPE Initiative comprised of five components: (1) prevention and education; (2) treatment; (3) law enforcement; (4) reentry; and (5) strategic planning. The law enforcement component of the HOPE Initiative is led by the Organized Crime Section of the U.S. Attorney’s Office and the DEA in conjunction with their federal, state, local and tribal law enforcement partners. Targeting members of major heroin and opioid trafficking organizations for investigation and prosecution is a priority of the HOPE Initiative.
The Controlled Substance Registrant Protection Act was enacted in 1984, to combat the theft of prescription drugs from individuals and businesses registered with the DEA. It created penalties for entering a pharmacy’s premises for the purpose of stealing controlled substances, and includes enhanced punishment for using a dangerous weapon. The Safe Doses Act was enacted in Oct. 2012, to fight medical theft and protect patients from unknowingly using stolen and mishandled drugs. It provides for enhanced sentences for those who rob pharmacies of controlled substances; individuals who steal medical products; and “fences” who knowingly obtain stolen medical products for resale in the supply chain.
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25 charged in drug trafficking organizationRead the Press Release
Indianapolis--United States Attorney Josh J. Minkler and Marion County Prosecutor Terry Curry announced federal and state charges against 25 individuals in a drug trafficking conspiracy that brought pound quantities of methamphetamine and heroin into the Indianapolis area.
“Criminal organizations have the goal of infecting neighborhoods with drugs, guns and violence,” said Minkler. “It is a top priority of federal law enforcement to work with state and local law enforcement to identify, investigate and eliminate those organizations. I want to assure this community that the elimination of armed drug trafficking organizations reduces violent crime in Marion County.”
Six SWAT teams and approximately 175 federal, state and local law enforcement officials served 20 warrants all around Marion County early this morning. The raids netted over two pounds of heroin, 19 pounds of methamphetamine and 16 guns. (a stolen Kel-tec 9 mm rifle, SKS 7.62 mm rifle, sawed off shotgun and several handguns)
In March 2015, agents from the Drug Enforcement Administration (DEA) learned of a drug conspiracy bringing large quantities of red methamphetamine and heroin into the Indianapolis area. Alfonso Pineda-Hernandez and Nicolas Cazares-Garcia received large quantities of methamphetamine from sources in Mexico that were delivered to Indianapolis and then redistributed. They were also responsible for obtaining large quantities of heroin from local suppliers and redistributing the drug through subordinate distributors.
The defendants used cellular phones to maintain contact with one another during the conspiracy. Cazares-Garcia, Pineda-Hernandez and others, used cell phones to maintain contact with suppliers of controlled substances in Mexico. They discussed the availability and prices of methamphetamine and heroin, arranged for deliveries of the drugs and arranged for payment of drugs which had already been delivered. They used multiple cell phones simultaneously and changed phones frequently, using different numbers to communicate by voice and text.
“A big part of public safety depends upon the disruption and dismantlement of heroin drug-trafficking networks,” said Greg Westfall, Assistant Special Agent in Charge of the Drug Enforcement Administration.
“Drug trafficking organizations thrive on financial gain and perpetuate criminal violence in our city,” said IRS Criminal Investigation Special Agent in Charge, Stephen Boyd. “IRS Criminal Investigation is committed and determined to work together with our federal, state and local partners to bring justice to the streets of Indianapolis and keep the communities in which we live safe.”
"Today, the Indianapolis Metropolitan Police Department (IMPD) assisted with several drugs raids throughout Indianapolis. We, along with our federal, state and local partners, remain committed to rooting out violent crime and identifying those responsible for harm within our community,” said IMPD Chief Rick Hite. “This inter-agency cooperation has led to successful investigations and prosecutions in the past and sends a clear message. We stand together in our efforts and applaud the community for their tips and leads."
Arrested today include:
Federal Charges :
Alfonso-Pineda-Hernandez, a/k/a Flaco, 30
Nicolas Cazares-Garcia, a/k/a Niko, 28
Aurelio Estrada-Alvarado, a/ka/ Winn, 20
Jose Trinidad- Garcia Jr., 32
Miguel Barragan-Lopez, 35
Mario Gomez-Cano, 20
Javier Sarabia-Gutierrez, a/k/a Cholo, 30
Fernando Paniagua, 22
Cynthia Vergara, 24
Francisa Vasquez-Casimiro, 45
Fugitives:
Jose Araujo-Orduno, a/k/a Cuervo , 18
Oswaldo Rendon, a/k/a Junior, 22
State Charges:
Billy Buchanan, 20, Indianapolis
Cassandra Crank, 24, Indianapolis
Jessica Crank, 23, Indianapolis
Zachary Daniels, 21, Indianapolis
Raul Guitierrez, 29, Indianapolis
Ronald Lee, 47, Indianapolis,
Andres Martinez, 30, Indianapolis
Isreal Vasquez, 27, Indianapolis
Joseph Vasquez, 18, Indianapolis
Still at Large:
Frederico Gonzalez-Ortega, 31, Indianapolis
Johnathon Perkinson, 24, Indianapolis
Shannon Rayas, 42, Indianapolis
Simon Ruiz, 24, Indianapolis
This case was investigated by the Drug Enforcement Administration, Indianapolis Metro Drug Task Force, Internal Revenue Service Criminal Investigation, Homeland Security Investigations, United States Marshal’s Service, Marion County Prosecutors Office, Indiana State Police, Hamilton County Drug Task Force, Carmel Police Department, Beech Grove Police Department, Pittsboro Police Department, Richmond Police Department, Bloomington Police Department and the Lawrence Police Department.
According to Assistant U.S. Attorney Matthew J. Lasher who is prosecuting this case for the government, most federal charges carry a sentence from ten years to life in prison, a $1,000,000 fine and years of supervised release.
An indictment is only a charge and not an indication of guilt. Each defendant is presumed innocent and is entitled to a fair trial at which the government must prove guilt beyond a reasonable doubt.
16 November 2015
Warren Doctor Sentenced for Unlawful Oxycodone Prescriptions and Health Care FraudRead the Press Release
A physician who practiced in Warren, Michigan, was sentenced to 84 months in prison today for writing prescriptions for oxycodone and other controlled medications without medical justification, and for health care fraud, announced U.S. Attorney Barbara L. McQuade. McQuade was joined in the announcement by DEA Special Agent in Charge Joseph P. Reagan, Special Agent in Charge Lamont Pugh III of the U.S. Department of HHS Office of Inspector General’s Chicago Regional Office, and Special Agent in Charge David P. Gelios of the FBI’s Detroit Field Office. Hussein Awada, 46, of Royal Oak, Michigan, was sentenced by U.S. District Judge Nancy Edmunds. From 2010 throughearly 212,he conspired with James Lyons, a patient “marketer,” and others, to write prescriptions for 80,000 oxycodoneand Roxicodone, plus other controlled medications, in the names of people who were brought to him by Lyons and other marketers, for no medical purpose. The marketers then bought the pills from the “patients” and re-sold them to street dealers. Awada then used the patient data for the patients brought to him by the marketers to submit bills to Medicare and Blue CrossBlue Shield for services that were either never performed or were medically unjustified.Awada caused these same patiensto receive monthly x-rays, and other invasive tests, which were medically unnecessary buthelped to concealhis fraud.Awada admitted that he defrauded Medicare, Medicaid, and Blue Cross of about $2.3 million. In addition to imprisonment, Awada was ordered to pay restitution to Blue Cross and Medicare in the total amount of $2.3million, and was ordered to forfeit various assets and agree to pay the government $2.3 million. McQuade said, "More people die from overdoses of prescription drugs in America than from overdoses of all other drugs combined. We hope that prosecuting the doctors who are putting these drugs on the streets will deter others from contributing to this epidemic.” DEA Special Agent in Charge Reagan stated, “The DEA has made it a priority to address the dangerous practice of illegally diverting prescription medications. Prescription drugs, such as oxycodone and Roxicodone, are controlled substances for a very good reason. If they are abused, they can lead to addiction, illness, or even death. As a physician, Mr. Awada violated the public trust by illegally diverting prescription drugs on to the streets. This sentence makes it clear that the DEA, and our partners in law enforcement, will continue to utilize our investigative techniques to bring to justice those individuals that are responsible for the illegal distribution of prescription medicines.”Upcoming symposium will educate businesses, highlight latest cybersecurity trendsRead the Press Release
FAIRMONT, WEST VIRGINIA – On Friday, November 20, 2015, the United States Attorney’s Office will host the Northern West Virginia Cybersecurity Symposium, an educational forum designed to empower businesses and organizations to more effectively anticipate, mitigate, and respond to cyber threats to their technology infrastructures.
The symposium, which is being co-sponsored by the Federal Bureau of Investigation, will feature presentations by the FBI, the United States Secret Service, the Depart of Justice Computer Crimes and Intellectual Property Section, and the United States Attorney’s Offices for the Southern District of West Virginia, the Western District of Pennsylvania, and the District of Maryland. A reservation is required in order to attend.
“Modern technology and business infrastructures are constantly evolving,” noted United States Attorney William J. Ihlenfeld, II. “That evolution can be an invaluable asset, allowing for improved communication and access to information. On the other hand, increased reliance on rapidly changing technology also increases the risk of cyber threats, including data breaches and stolen information. With a variety of businesses, educational institutions, and health care systems in the region, the Northern District of West Virginia is not immune from these threats. We're excited to be able to provide education on how to recognize and prepare for cyber risks and how to respond when those risks materialize."The symposium will begin at 9:00 a.m. on Friday at the Robert H. Mollohan Research Center in Fairmont. Businesses, corporate representatives, and individuals interested in obtaining additional information or registering should contact the United States Attorney’s Office by calling (304) 234-0100 or emailing [email protected].
Union County, New Jersey, Man Sentenced to 22 Years in Prison for Robbing Multiple New Jersey Banks at GunpointRead the Press Release
NEWARK, N.J. – An Elizabeth, New Jersey, man was sentenced today to 22 years in prison for robbing seven New Jersey banks at gunpoint and attempting to rob an eighth bank at the time of his arrest on July 30, 2012, U.S. Attorney Paul J. Fishman announced.
Claude Williams, 64, previously pleaded guilty before U.S. District Judge Kevin McNulty to Count One, Count Fourteen and Count Fifteen of an indictment charging him with conspiracy to commit bank robbery, bank robbery and using a firearm during a crime of violence. Judge McNulty imposed the sentence today in Newark federal court.
According to documents filed in this case and statements made in court:
Williams admitted that, between Sept. 26, 2011 and July 30, 2012, he robbed seven banks and attempted to rob an eighth bank, all at gunpoint. He used a similar procedure for each robbery: after entering the bank armed with a handgun and wearing a bandana, hooded sweatshirt or jacket and white gloves, Williams would vault over the counter and demand money from bank tellers at gunpoint.
Williams admitted robbing, or attempting to rob, the following New Jersey banks:
Date
Bank
Location
Sept. 26, 2011
Financial Resources Federal Credit Union
Somerset
Nov. 21, 2011
Somerset Savings Bank
Somerville
Feb. 27, 2012
Provident Bank
Piscataway
April 17, 2012
Provident Bank
Clifton
May 22, 2012
Provident Bank
Piscataway
June 20, 2012
Fulton Bank
Metuchen
July 12, 2012
Unity Bank
Middlesex
July 30, 2012
Unity Bank
North Plainfield
Prior to the July 12, 2012 robbery, an unarmed, off-duty police officer was parked across from the Unity Bank. The officer observed Williams leave the bank, get into the rear of the getaway car and crouch down to hide. After noting the license plate number, the officer followed the car. During the plea hearing, Williams admitted that he exited the getaway car, walked toward the officer’s car and pointed his firearm at the officer, forcing the officer to leave the scene.
On July 30, 2012, Williams was arrested after law enforcement observed him driving in the vicinity of the Unity Bank in North Plainfield on July 27, 2012 and July 28, 2012. He admitted that he planned to rob the bank at gunpoint.
In addition to the prison term, McNulty sentenced Williams to serve five years of supervised release.
Andrea Dorsey, 56, of Plainfield New Jersey, who admitted that she served as a lookout and getaway driver for three of the robberies, was sentenced to 87 months in prison on March 13, 2014. Teresa Webb, 45, of Plainfield, who admitted that she was the getaway driver for one of the robberies, was sentenced to 54 months in prison on May 30, 2013.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Richard M. Frankel in Newark, with the investigation leading to today’s sentencing. He also thanked the Somerset County Prosecutor’s Office and the Middlesex Borough, Piscataway, Clifton, Metuchen, North Plainfield and Plainfield Police Departments for their roles.
The government is represented by Assistant U.S. Attorneys Osmar J. Benvenuto and Courtney M. Oliva of the U.S. Attorney’s Office Criminal Division in Newark.
Defense counsel: Kenneth W. Kayser Esq., Irvington
U.S. Attorney Sponsors Forum about Protecting the Rights of Service Members in EmploymentRead the Press Release
BOSTON – U.S. Attorney Carmen M. Ortiz, in conjunction with the U.S. Department of Labor, Veteran’s Employment and Training Service and the U.S. Equal Employment Opportunity Commission, sponsored a forum this afternoon on protecting the rights of service members in employment. The program was hosted by the Massachusetts Iraq & Afghanistan Fallen Heroes.
The discussion was attended by city and town counsel, human resources representatives, and private employers, and focused on employers’ obligations to returning veterans under the Uniform Services Employment and Reemployment Rights Act (USERRA). “The United States Attorney’s Office remains steadfast in its support of veterans returning from military service, and we are committed to ensuring that both public and private employers are educated about the provisions of USERRA and the rights of their employees who have been called to serve their country,” said U.S. Attorney Carmen M. Ortiz.
USERRA is a federal law, passed in 1994, that protects military service members and veterans from employment discrimination on the basis of their military service. USERRA applies to members of the Armed Forces, Reserves, National Guard, and other uniformed services. The law ensures that service members: (1) are not disadvantaged in their civilian careers because of their military service; (2) are promptly re-employed in their civilian jobs upon return from duty; and (3) are not discriminated against by employers because of past, present, or future military service. USERRA applies to both public and private employers.
Torrance County Man Pleads Guilty to Violating Federal Firearms LawsRead the Press Release
ALBUQUERQUE – Fredric Dodd, 40, of McIntosh, N.M., pleaded guilty this morning in federal court in Las Cruces, N.M., to being a felon in possession of firearms and ammunition.
Dodd was arrested on Sept. 1, 2015, on an indictment charging him with being a felon in possession of firearms and ammunition. According to the indictment, Dodd committed the offense in Eddy County, N.M., on May 20, 2015. At the time, Dodd was prohibited from possessing firearms or ammunition because he previously had been convicted of numerous felony offenses, including aggravated fleeing a law enforcement officer, receiving or transferring a stolen motor vehicle, larceny, unlawful taking of a motor vehicle and burglary.
During today’s change of plea hearing, Dodd pled guilty to the indictment without the benefit of a plea agreement. At sentencing, Dodd faces a statutory maximum penalty of ten years in federal prison. Dodd remains in custody pending a sentencing hearing which has yet to be scheduled.
This case was investigated by the Roswell office of the Bureau of Alcohol, Tobacco, Firearms and Explosives and is being prosecuted by Assistant U.S. Attorney Maria Y. Armijo of the U.S. Attorney’s Las Cruces Branch Office.
Topeka Man Sentenced to 24+ Years for Producing Child PornographyRead the Press Release
TOPEKA, KAN. – A Topeka man convicted after a jury trial of producing child pornography has been sentenced to 292 months in federal prison, U.S. Attorney Barry Grissom said today.
Jonathan Kearn, 40, Topeka, Kansas, was convicted in May 2015 on one count of producing child pornography, one count of distributing child pornography and one count of possessing child pornography.
During trial, prosecutors presented evidence that the investigation began in April 2013 when Homeland Security Investigations received a report from the Queensland Police Service, Queensland, Australia. An Australian investigator received emails from Kearn in Kansas containing child pornography Kearn produced. The images included photos of a child under six years old.
Grissom commended Homeland Security Investigations, the Topeka Police Department, the Queensland Police Service and Assistant U.S. Attorney Christine Kenney for their work on the case.
Sykesville Business Owner Sentenced to 2 Years in Prison in $11 Million Fraud SchemeRead the Press Release
Baltimore, Maryland – U.S. District Judge J. Frederick Motz sentenced Rolf Ramelmeier, age 79, of Sykesville, Maryland today to two years in prison followed by three years of supervised release for mail fraud and money laundering in connection with a 10 year scheme to defraud Northrop Grumman Corporation. Judge Motz also entered an order requiring Ramelmeier to forfeit $11,238,519, and pay restitution of $11,740,925.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein and Special Agent in Charge Kevin Perkins of the Federal Bureau of Investigation.
Ramelmeier owned and operated JADM. Inc., selling or brokering natural gas sales, out of his residence. JADM’s sole client for many years was the Northrop Grumman Corporation. JADM supplied natural gas to several Northrop Grumman facilities l in Linthicum, Maryland. Ramelmeier obtained the gas from a supplier, such as UGI Energy Services (UGI) or PEPCO. BG&E transported the gas from UGI or PEPCO to the Northrop Grumman facilities. JADM would then invoice Northrop Grumman each month, and Northrop Grumman would pay JADM.
According to his plea agreement, from at least 2003 to December 2013, Ramelmeier overcharged Northrop Grumman for the natural gas delivered to the Linthicum facilities. Ramelmeier concealed this scheme by falsifying invoices and other documents, and by using a false corporate identity and bank accounts that he maintained in the names of shell entities.
Specifically, Ramelmeier represented himself as a gas broker and led the UGI or PEPCO personnel to believe that their company was entering into sales contracts directly with Northrop Grumman when, in fact, Northrop Grumman had no knowledge of these agreements. The contracts required UGI and PEPCO to submit their invoices to Northrop Grumman by mail to a post office box in Roanoke Rapids, North Carolina, and by e-mail to Ramelmeier at JADM. In fact, Northrop Grumman had no such post office box. Rather, at Ramelmeier’s direction, an associate opened that post office box using the name “Northrop Sensors.” The associate regularly retrieved the mail from the post office box, including the invoices from PEPCO and UGI, and forwarded that mail to Ramelmeier. Ramelmeier created invoices on JADM letterhead which charged the real Northrop Grumman for more than the amount of natural gas that UGI or PEPCO had invoiced. Northrop Grumman then paid JADM on the inflated JADM invoices, first by check and then, in more recent years, by wire transfer to JADM’s bank account.
Ramelmeier transferred those Northrop Grumman payments from the JADM account into a bank account that he held in the name of a shell company with no assets or business. He then transferred all or most of the funds again into an account he had opened in the name of Northrop Group Sensor Division (NGS Div.) with an address at the post office box in Roanoke Rapids. Ramelmeier used NGS Div. checks to pay UGI or PEPCO for their original invoices, deceiving those companies into believing that they were being paid by Northrop Grumman. Ramelmeier kept the difference between the original amount invoiced by UGI and PEPCO, and the amount that Northrop Grumman paid based on JADM’s inflated invoice, for his own personal use and benefit.
As a result of the fraudulent scheme, Ramelmeier caused Northrop Grumman to pay him at least $11,238,519 for natural gas that was never actually provided.
In December 2013, Northrop Grumman noticed some unusual charges by JADM for natural gas purportedly used at one of the Linthicum locations, which Ramelmeier falsely claimed was a JADM billing error. Ramelmeier offered to credit Northrop Grumman for the overcharge. Suspicious of Ramelmeier’s explanation, Northrop Grumman hired a consulting firm to analyze the invoices. The consulting firm compared the amounts of gas delivered per JADM’s invoices to BG&E’s records, and determined that between 2003 and 2013, JADM overcharged Northrop Grumman by $11,238,519.
On May 16, 2014, Northrop Grumman representatives confronted Ramelmeier about the overcharges. Ramelmeier falsely claimed that the billing errors occurred because corrupt employees doing the billing for JADM had engaged in embezzlement. In fact, JADM had no employees. Ramelmeier also falsely claimed that he could not provide Northrop Grumman with his billing records because his company computer files were corrupted.
On May 19, the first business day following his confrontation with the Northrop Grumman representatives, Ramelemeier used $82,626.54 of the fraud proceeds to pay off the entire mortgage balance on his residence. The next day, the post office box in Roanoke Rapids was closed.
United States Attorney Rod J. Rosenstein commended the FBI for its work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorneys Kathleen O. Gavin and Richard C. Kay, who prosecuted the case.
Somersworth Man Sentenced to 33 Months on Bank Robbery ChargeRead the Press Release
CONCORD, NEW HAMPSHIRE - Todd Elliott, 22, of Somersworth, New Hampshire, was sentenced in the United States District Court for the District of New Hampshire on one count of bank robbery, announced Acting United States Attorney Donald Feith. The Court imposed a term of 33 months imprisonment, three years of supervised release and full restitution to the victim bank.
Elliott walked into a Citizens Bank in Somersworth, New Hampshire, on November 10, 2014 and gave the teller a note demanding money. The teller gave Elliott a quantity of United States Currency as well as a dye pack resembling a stack of bills. As Elliott ran from the bank, the dye pack exploded which led to his apprehension shortly thereafter.
This case was investigated by the Somersworth Police Department and the Federal Bureau of Investigation. The case was prosecuted by Assistant United States Attorney Georgiana L. Konesky.
Silver Spring Contractor Indicted for Scheme to Fraudulently Obtain SBA 8(a) ContractRead the Press Release
Greenbelt, Maryland - A federal grand jury indicted Anthony Nwagbara Daniels, a/k/a “Tony Daniels,” age 59, of Silver Spring, Maryland, today on wire fraud charges arising from a scheme to defraud the United States by fraudulently obtaining a government contract.
The indictment was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Brigadier General Keith M. Givens, Commander Air Force Office of Special Investigations; Special Agent in Charge Robert Craig of the Defense Criminal Investigative Service (DCIS), Mid-Atlantic Field Office; and U.S. Small Business Administration (SBA) Inspector General Peggy E. Gustafson.
Daniels was the Chief Executive Officer of Danison, Inc., a general contracting company he formed in 2004. Danison had no full-time employees besides Daniels, but occasionally employed temporary help for construction-related jobs. On November 14, 2009, Danison was certified by the U.S. Small Business Administration (SBA) as an 8(a) Program business. In order to qualify for the 8(a) Program, businesses must be at least 51-percent owned and controlled by socially and economically disadvantaged individuals. Participants in the 8(a) Program were eligible to bid on sole source government contracts that were reserved for companies in the 8(a) Program.
According to the five-count indictment, from 2011 through 2014 Daniels engaged in a scheme to defraud the U.S. government. Specifically, in 2011, the U.S. Air Force sought a contractor for a demolition contract on Joint Base Andrews (JBA). The indictment alleges that Daniels formed an agreement with Individual A whereby Daniels’ company, Danison, would bid on the JBA demolition contract, and would subcontract with Individual A’s company to perform substantially all of the work on the contract. Individual A’s company had demolition experience, but was not eligible to bid on the project because the company’s annual revenues were too high. On September 29, 2011, JBA accepted Danison’s bid of $1,160,683.43 and awarded the contract to Danison.
The indictment alleges that Daniels emailed Air Force personnel, falsely assuring them that Danison was the prime contractor and was performing the majority of the work on the JBA demolition contract. In fact, Individual A’s company performed the work and Individual A prepared false invoices for electronic submission to the United States through Danison as if Danison had performed the work. Daniels approved and caused the submission of each invoice to the United States for payment. Daniels knew that the invoices were false because they failed to disclose that Individual A’s company performed the work and Daniels’ company was simply a pass-through for the billing. Daniels further knew that the invoices included costs and expenses for payment that were false.
Finally, the indictment seeks the forfeiture of at least $1,158,387.74, including $367,378.82 seized from bank accounts maintained by Daniels.
Daniels faces a maximum sentence of 20 years in prison for each of five counts of wire fraud. An initial appearance has not yet been scheduled.
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
The National Procurement Fraud Task Force was formed in October 2006 to promote the early detection, identification, prevention and prosecution of procurement fraud associated with the increase in government contracting activity for national security and other government programs. The Procurement Fraud Task Force includes the United States Attorneys= Offices, the FBI, the U.S. Inspectors General community and a number of other federal law enforcement agencies. This case, as well as other cases brought by members of the Task Force, demonstrate the Department of Justice’s commitment to helping ensure the integrity of the government procurement process.
United States Attorney Rod J. Rosenstein thanked the Air Force Office of Special Investigations, DCIS, and the SBA Office of Inspector General for their work in the investigation. Mr. Rosenstein praised Assistant U.S. Attorneys David I. Salem and Thomas H. Barnard, who are prosecuting the case.
Sanford Man Sentenced to 50 Years in Federal Prison for Producing and Receiving Child PornographyRead the Press Release
Orlando, Florida – United States District Judge Carlos E. Mendoza today sentenced Douglas Scheels (43, Sanford) to 50 years in federal prison for producing and receiving child pornography. He pleaded guilty on June 18, 2015.
According to court documents, from at least June 2014, and until his arrest on January 11, 2015, Scheels sought out, identified, communicated with, and sexually exploited several minor victims. He enticed two teenage girls from his neighborhood into producing child pornography, and sought out others. Using online communications, Scheels persuaded a minor to produce and send him explicit photos. He also communicated online with at least eight additional minors for the same purpose.
This case was investigated by the Federal Bureau of Investigation, the Seminole County Sheriff’s Office, and the Sanford Police Department. It was prosecuted by Assistant United States Attorney J. Bishop Ravenel.
This 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.
Philadelphia Man Charged with Theft of Government FundsRead the Press Release
Rannie Henley, Sr., 78, of Philadelphia, Pennsylvania, was charged by Information with one count of theft of government funds, announced United States Attorney Zane David Memeger. According to the Information, the defendant received retirement benefits intended for his mother, after his mother’s death in January 2011 until his fraud was discovered in February 2015. The defendant’s alleged actions resulted in a loss to the government of approximately $60,567.
If convicted, the defendant faces a substantial period of incarceration, up to three years of supervised release, restitution to the government of $60,567, a possible fine, and a $100 special assessment.
The case was investigated by the Social Security Administration, Office of Inspector General, and is being prosecuted by Special Assistant United States Attorney Amanda R. Reinitz.
Peter Foy Sentenced for Bankruptcy FraudRead the Press Release
The United States Attorney for the District of Vermont announced that Peter Foy, 62, of Alburg, was sentenced today in United States District Court in Burlington to one year of probation following his guilty plea to a charge that he concealed assets in his bankruptcy case. U.S. District Judge William K. Sessions III also ordered that Foy pay a fine of $3000.
On June 22, 2015, Foy pleaded guilty to a one-count information charging him with bankruptcy fraud. According to the charging document, in November 2014, Foy filed a chapter 7 bankruptcy petition in the United States Bankruptcy Court for the District of Vermont. The petition sought to discharge all of Foy's unsecured debts. In his petition and accompanying schedules, which Foy swore were complete and accurate, Foy was required to disclose all his assets and liabilities, including any real estate he owned. Foy did disclose the home he owned in Vermont, but not a second house he owned in Quebec, Canada. Foy had acquired sole title to that five-bedroom lakefront property in 2007. Before filing for bankruptcy, Foy had listed the Quebec house for sale at a price of nearly $340,000 (Canadian). Foy also failed to disclose to the Bankruptcy Court that the Canadian property had reportedly generated rental income of $22,500 in 2013 and $20,300 in 2014. A subsequent appraisal of the property showed that it had a fair market value of only about $204,000 and was encumbered by a mortgage of about $175,000.
This case was investigated by the Federal Bureau of Investigation. Foy is represented by Norman Blais. The prosecutor is Assistant U.S. Attorney Gregory Waples.
Pennsylvania Man Sentenced to 37 Months in Prison for Traveling to Engage in Illicit Sexual Conduct with a MinorRead the Press Release
WASHINGTON – Daniel Savage, 33, of Chester Springs, Pa., was sentenced today to 37 months in prison on a federal charge of traveling interstate to engage in illicit sexual conduct with a minor, announced U.S. Attorney Channing D. Phillips, Paul M. Abbate, Assistant Director in Charge of the FBI’s Washington Field Office, and Cathy L. Lanier, Chief of the Metropolitan Police Department (MPD).
Savage pled guilty in September 2015, in the U.S. District Court for the District of Columbia. He was sentenced by the Honorable Ketanji Brown Jackson. Upon completion of his prison term, Savage will be placed on 10 years of supervised release. He also will be required to register as a sex offender for 25 years.
According to the government's evidence, on April 14, 2015, Savage contacted an undercover officer with the FBI's Child Exploitation Task Force, who had posted an ad on a social network site. Over the next several days, Savage engaged in e-mail, phone, and text message conversations with the undercover officer, whom the defendant believed had access to a purported under-age boy. During this period of time, Savage arranged with the undercover officer to meet for the purpose of engaging in sexual acts with the child.
On April 18, 2015, Savage traveled from his residence in Pennsylvania to a pre-arranged meeting place in Washington, D.C. When he arrived at the meeting place, he was arrested.
This case was brought as part of the Department of Justice's Project Safe Childhood initiative and investigated by the FBI's Child Exploitation Task Force, which includes members of the FBI's Washington Field Office and MPD. In February 2006, the Attorney General created Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the U.S. Attorney's Offices, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov
In announcing the sentence, U.S. Attorney Phillips, Assistant Director in Charge Abbate, and Chief Lanier praised the work of the MPD Detectives and Special Agents of the FBI Child Exploitation Task Force. They also commended the efforts of those who worked on the case from the U.S. Attorney’s Office, including Paralegal Specialists Joyce Arthur and Tiffany Jones, Victim/Witness Advocate Yvonne Bryant, and Assistant U.S. Attorneys Andrea L. Hertzfeld and Lindsay Suttenberg, who prosecuted the case.
Owners of Home Health Care Agency Found Guilty of Taking Part in $80 Million Medicaid FraudRead the Press Release
WASHINGTON –Florence Bikundi, and her husband, Michael Bikundi, the owners of Global Healthcare, Inc., a home care agency, have been found guilty by a jury of health care fraud, money laundering, and other charges stemming from a scheme in which they and others defrauded the District of Columbia Medicaid program of over $80 million.
The verdicts were announced by Channing D. Phillips, U.S. Attorney for the District of Columbia; Paul M. Abbate, Assistant Director in Charge of the FBI’s Washington Field Office; Nicholas DiGiulio, Special Agent in Charge of the U.S. Department of Health and Human Services, Office of Inspector General (HHS-OIG), for the region that includes Washington, D.C.; James M. Murray, Special Agent in Charge, Washington Field Office, U.S. Secret Service; and Daniel W. Lucas, Inspector General for the District of Columbia.
The verdicts were returned on Nov. 12, 2015, and followed more than four weeks of trial in the U.S. District Court for the District of Columbia. The Honorable Beryl A. Howell scheduled sentencing for Feb. 26, 2016. The charges carry statutory maximums of decades in prison. In addition to prison terms, Florence and Michael Bikundi are subject to a forfeiture money judgment equal to the total proceeds they acquired as a result of this scheme. Judge Howell also will determine if the Bikundis must forfeit $11 million seized from various bank accounts, their home in Mitchellville, Md., and five luxury vehicles.
“Over a period of more than four years, Florence and Michael Bikundi raided the Medicaid program of $80 million through massive and systematic fraud,” said U.S. Attorney Phillips. “The money they stole for their own benefit could and should have been used to help others who were truly in need. Instead, they used the proceeds to finance a lavish lifestyle, including a million-dollar home, a $140,000 Land Rover, a $120,000 Porsche, and a $75,000 Mercedes Benz. This prosecution reflects our determination to protect taxpayer dollars and the citizens of the District of Columbia. Together with our law enforcement partners, we will actively combat health care fraud.”
“These defendants defrauded government health care programs designed to provide for those in need,” said Assistant Director in Charge Abbate of the FBI. “The relentless work of agents, analysts, and prosecutors exposed this conspiracy to steal government funds and brought to justice those responsible. The FBI and our law enforcement partners will continue to work aggressively to prevent and uncover fraud targeting the Medicaid program and maintain the integrity of our nation’s health care system.”
“It’s outrageous that these fraudsters would steal tens of millions of Medicaid dollars meant to provide health care services to poor and disabled individuals just to enrich themselves,” said Special Agent in Charge DiGiulio, of the HHS Office of Inspector General. “Our agency is dedicated to uprooting such fraud schemes and bringing criminals to justice.”
“The recent verdicts in this Medicaid fraud case demonstrate the effectiveness of law enforcement partnerships in the dismantling of criminal enterprises defrauding American health care systems which ultimately impact American citizens,” said Special Agent in Charge Murray of the U.S. Secret Service. “This investigation and the resulting arrests should alert criminals that law enforcement will not cease to pursue them.”
“My Office is fully committed to defending the public from people seeking to defraud the District government,” said Inspector General Lucas of the District of Columbia. “This verdict demonstrates that the OIG plays a lead role, in concert with our District, state, and federal partners, in aggressively investigating and prosecuting health care providers who unlawfully enrich themselves at D.C. taxpayers’ expense. I would like to thank all of the staff from my Medicaid Fraud Control Unit for having tirelessly pursued this case since 2009. Without their tenacity through this long investigation and trial, the District would not be able to recoup the money fraudulently paid to Global and its principals.”
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Florence Bikundi, 52, also known as Florence Ngwe and Florence Igwacho, has been in custody since her arrest in February 2014. She was found guilty by the jury of 12 charges: one count of conspiracy to commit health care fraud; one count of conspiracy to commit money laundering, two counts of health care fraud; one count of Medicaid fraud; and seven counts of money laundering. Michael D. Bikundi, Sr., 63, was found guilty of 10 charges: one count of conspiracy to commit health care fraud; one count of conspiracy to commit money laundering, one count of health care fraud; and seven counts of money laundering.
According to evidence presented at trial, Florence Bikundi, a former nurse, and her husband owned Global Healthcare, Inc. According to the government’s evidence, Florence Bikundi was not entitled to take part in the Medicaid program and fraudulently got approval as a provider. Then, the government’s evidence showed, she and her husband led a scheme to bill Medicaid for services that never were provided – recruiting others, including family members, into the scam, and creating fraudulent paperwork to hide the illegal activity.
The D.C. Medicaid program is funded jointly by District of Columbia tax dollars and federal tax dollars. Medicaid provides for home care services to be performed by personal care aides, working for eligible home care agencies. Doctors or advanced practice registered nurses must examine beneficiaries and authorize them to receive these services. The aides are to follow a plan of care and assist Medicaid beneficiaries in performing activities of daily living, such as getting in and out of bed, bathing, dressing, keeping track of medication, and so forth.
In 1999, Florence Bikundi went by her maiden name of Florence Igwacho. In August 1999, the Virginia Board of Nursing revoked the nursing license of Florence Igwacho. In March 2000, the U.S. Department of Health and Human Services, Office of Inspector General notified Florence Igwacho in writing that she was excluded from participation in Medicare, Medicaid, and all federal health care programs due to the revocation.
Florence Bikundi subsequently concealed her past – namely, the Medicaid exclusion and the revocation of her nursing license - when she applied for a Medicaid provider number for Global Healthcare in June 2009 using the name of Florence Bikundi. She also used three forged signatures on her Medicaid provider application. Florence Bikundi married Michael Bikundi in September 2009.
From August 2009 through February 2014, Florence and Michael Bikundi used Global HealthCare to carry out a massive fraud, the government’s evidence showed. Year after year, the D.C. Medicaid program was billed for personal home health aide services that were not provided to Medicaid beneficiaries. Phony time sheets, patient files and employment files were created. Global Healthcare generated increasing amounts of payments as the years continued, going from roughly $1.35 million in 2009 to $14.27 million in 2011 to $27.16 million in 2013.
According to the government’s evidence, the Bikundis used the proceeds to finance a lavish lifestyle. In just over three years, they spent $1.3 million to purchase and renovate a newly built home. They also used the proceeds for a $140,000 Land Rover, a $120,000 Porsche, a $75,000 Mercedes Benz, a $70,000 Cadillac and a $36,000 BMW.
Seven others earlier pled guilty to charges in the investigation, including Florence Bikundi’s son, and Florence Bikundi’s two sisters.
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Bikundi was among 25 people charged in February 2014 following a wide-ranging investigation that uncovered numerous, separate schemes involving fraud, kickbacks, and false billings in the growing field of home care services for D.C. Medicaid beneficiaries. So far, 23 defendants have either pled guilty or been found guilty of charges. Those pleading guilty include people who worked as personal care aides in the home care industry, patient recruiters who demanded money for access to Medicaid beneficiaries, and others.
The various investigations were conducted by the FBI’s Washington Field Office; the U.S. Department of Health and Human Services, Office of Inspector General; the U.S. Secret Service; the Medicaid Fraud Control Unit of the District of Columbia’s Office of the Inspector General; the Internal Revenue Service-Criminal Investigation; the U.S. Immigration and Customs Enforcement (ICE) Office of Homeland Security Investigations (HSI); the Office of Labor Racketeering and Fraud Investigations, Office of Inspector General, Department of Labor; the Social Security Administration, Office of Inspector General, and the Medicaid Fraud Control Unit of the Maryland Attorney General’s Office. Assistance was provided by the District of Columbia’s Department of Health Care Finance and other agencies.
This case was prosecuted by Assistant U.S. Attorneys Lionel A. André, Anthony Saler, and Michelle Bradford, of the Office’s Fraud and Public Corruption Section. Assistant U.S. Attorney Christopher B. Brown, of the Asset Forfeiture and Money Laundering Section, is assisting during the forfeiture proceedings. Criminal Investigator Nicole Hinson, also of the U.S. Attorney’s Office, was the prosecution’s law enforcement representative during the trial.
Assistance in this case and the other investigations was provided by Arvind K. Lal, Chief of the Asset Forfeiture and Money Laundering Section; Assistant U.S. Attorneys Zia Faruqui, Ted Radway, Michael Friedman, Chrisellen Kolb, and Michelle Zamarin; Financial Analyst Bryan J. Snitselaar; Deputy U.S. Marshal Wayne Rollock of the U.S. Marshals Service; Paralegal Specialists Toni Donato, Donna Galindo, Krishawn Graham, Tasha Harris, Corinne Kleinman, and Kristy Penny; Legal Assistants Angela Lawrence, Jessica McCormick, and Christopher Samson; Litigation Support Specialist Ron Royal, and former Forensic Accountant Maria Boodoo.
Operators of Ponzi involving Non-Existent ATMs that Cost Victims over $135 Million in Losses Sentenced to up to Decade in PrisonRead the Press Release
LOS ANGELES – Concluding one of the largest Ponzi schemes ever seen in Southern California, two men who operated a Calabasas firm at the center of a scam that cost victims approximately $135 million were sentenced today, with one man being ordered to serve nine years, and the other a decade, in federal prison.
Joel Barry Gillis, 75, of Woodland Hills, was sentenced to 120 months in federal prison, and Edward Wishner, 77, also of Woodland Hills, was sentenced to 108 months in prison in relation to a 13-year-long scheme they operated through their company, Nationwide Automated Systems, Inc. (NASI).
Gillis and Wishner used NASI to collect hundreds of millions from thousands of investors who were falsely told their money would be used to purchase profitable automated teller machines that would generate annual profits of at least 20 percent. More than 1,300 investors lost money when the scheme collapsed last year.
United States District Judge S. James Otero sentenced the two defendants, citing the “staggering losses suffered by the victims.” Taking into account the “major magnitude” of the scheme, Judge Otero said he issued sentences less that those called for under the United States Sentencing Guidelines after considering the defendants’ ages, their early guilty pleas in the case and their attempts to help a court-appointed receiver identify remaining assets that could be used to repay victims.
Judge Otero scheduled a restitution hearing for February 1, 2016 and ordered the defendants to begin serving their sentences on December 28.
Gillis and Wishner each pleaded guilty in January to conspiracy, two counts of mail fraud and one count of wire fraud.
“This scheme had a devastating effect on hundreds of victims who lost their hard-earned money to the two defendants,” said United States Attorney Eileen M. Decker. “The lies and deception used by these defendants have earned them long prison sentences. Today’s significant sentences should be a warning to those who make false promises to rob victims of their livelihood and retirement funds.”
According to documents filed in United States District Court, Gillis and Wishner owned and operated NASI, which they claimed would place, operate and maintain ATMs in high-traffic locations, such as hotels, casinos and convenience stores. NASI claimed that it operated approximately 31,000 ATMs and was involved in more than $1 billion in ATM transactions every month.
Victim-investors paid a flat amount – typically $12,000, but in some cases as much as $19,800 – to buy a specific ATM that was to be installed at a specific location. Gillis and Wishner told victim-investors that NASI would lease back the ATMs and pay investors 50 cents for each transaction performed at their particular ATM, guaranteeing annual returns of at least 20 percent on each ATM.
NASI did make monthly payments to investors, but that money came from other investors. While NASI did operate a small number of ATMs – no more than 250, which were owned by the company and not investors – the overall operation was a sham.
“These sentences should serve as a deterrent to other would-be white-collar criminals, yet it cannot rectify the damage done to the lives of over 1,300 victims,” said David Bowdich, Assistant Director in Charge of the FBI’s Los Angeles Field Office. “I strongly urge investors to question and do their due diligence when the stated returns are seemingly too good to be true.”
Gillis and Wishner prevented investors from discovering the fraudulent nature of the business by providing bogus monthly reports to the investors that falsely detailed the supposed performance of the investors’ ATMs. Gillis and Wishner also included a “non-interference” provision in the lease agreements that prohibited victim-investors from visiting the locations where their ATMs were supposedly located.
But, even as the Ponzi was collapsing, Gillis and Wishner continued to raise another $15 million from victim-investors.
“When Gillis and Wishner’s Ponzi scheme collapsed, the victim-investors suffered irreparable financial harm, leaving them struggling to make ends meet, facing retirement bereft of assets, and unable to pay for necessary health care or provide for family members’ medical expenses, education, and other needs,” prosecutors wrote in a sentencing memorandum filed with the court. “These victims included individuals from whom Gillis and Wishner had solicited ‘investments’ even after the Securities and Exchange Commission had served NASI with a subpoena signaling NASI’s imminent shut-down.”
Several victims testified during today’s lengthy sentencing in United States District Court. “Because of their excessive greed, they elected to hurt many people,” one victim said to Judge Otero. Another victim broke down when describing how he and his family has lost their life savings and were forced to sell their home of 20 years, concluding: “We were stripped of our sense of community and dignity.”
This case was investigated by the Federal Bureau of Investigation. The U.S. Securities and Exchange Commission provided substantial assistance in the matter.
The SEC filed a civil lawsuit in relation to the NASI scheme in October 2014 September (see: http://www.sec.gov/litigation/litreleases/2014/lr23106.htm).
Ohio man sentenced in Federal court for role in oxycodone distributionRead the Press Release
HUNTINGTON, W.Va. – Joseph Cremeans, 28, of Chesapeake, Ohio, was sentenced today in federal court in Huntington, West Virginia, to three years and one month in federal prison for conspiracy to distribute oxycodone and oxymorphone, announced United States Attorney Booth Goodwin. Cremeans, who previously pleaded guilty to the federal conspiracy charge in August 2015, admitted to travelling to Georgia on four occasions with other individuals to unlawfully obtain prescription medications. Cremeans then transported the illicit prescriptions back to West Virginia to be sold for profit in Huntington. On each trip, Cremeans admitted to obtaining and transporting more than 100 thirty milligram oxycodone pills.
The successful prosecution of Cremeans and his criminal associates was the result of the investigative efforts of the Huntington Violent Crime and Drug Task Force.
This case is being prosecuted as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs and heroin. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal pill trafficking, eliminating open air drug markets, and curtailing the spread of opiate painkillers and heroin in communities across the Southern District.
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North Carolina Man Pleads Guilty to Theft and Embezzlement from the Passamaquoddy TribeRead the Press Release
Contact: F. Todd Lowell
Assistant United States Attorney
Tel: (207) 945-0373Bangor, Maine: United States Attorney Thomas E. Delahanty II announced that Stephen E. Crawford, 68, of Beaufort, North Carolina, pleaded guilty today in U.S. District Court to stealing and embezzling funds from the Passamaquoddy Tribe at Pleasant Point.
Court records show that between February 2003 and February 2012, the defendant served as the tribe’s environmental director. Between 2006 and 2012, the defendant fraudulently obtained and stole about $25,000 from the tribe by submitting fraudulent travel expense reports and supporting documentation.
The defendant faces up to five years in prison and a $250,000 fine. He will be sentenced after the completion of a presentence investigation report by the U.S. Probation Office.
The case was investigated by the U.S. Environmental Protection Agency, Office of Inspector General.Mill Owner Pleads Guilty to Violating the Lacey Act with Purchases and Sales of Figured Maple from National ForestRead the Press Release
A Winlock, Washington wood buyer and his lumber mill pleaded guilty today in U.S. District Court in Tacoma to violating the Lacey Act for trafficking in Big Leaf Maple cut on national forest land, announced U.S. Attorney Annette L. Hayes. Wood buyer HAROLD CLAUSE KUPERS, 48, and his company J & L TONEWOODS admitted purchasing multiple cuts of wood without requiring the seller to show a valid Specialized Forest Products Permit. In his plea agreement KUPERS admits he suspected the wood had been illegally cut in the Gifford Pinchot National Forest. KUPERS faces up to five years in prison, a $250,000 fine and at least $159,000 in restitution when sentenced by U.S. District Judge Benjamin H. Settle on February 8, 2016.
According to the plea agreement, in April 2012, law enforcement officers with the U.S. Forest Service met with KUPERS and specifically informed him that he was required by Washington law to review Specialized Forest Products Permits for all persons from whom he purchased maple. Despite being put on notice, between April 2012 and March 2014, KUPERS continued to purchase figured maple without requiring the harvesters to display a Specialized Forest Products permit. KUPERS then sold this figured maple to purchasers in interstate commerce for total revenues of $499,414. For example one shipment of maple was sold in May 2012 to PRS Guitars in Maryland for $21,395.
Three men who illegally cut the wood were charged with theft of government property and damaging government property for illegally harvesting the maple trees in the Gifford Pinchot National Forest in November and December 2011 and May 2012. Ryan Justice, 28, of Randle, Washington, has pleaded guilty to theft of government property and is scheduled for sentencing on December 7, 2015. James Miller, 36, of Morton, Washington and Kevin Mullins, 56, of Packwood, Washington are scheduled for trial January 12, 2016.
The case is being investigated by the U.S. Forest Service. The case is being prosecuted by Assistant United States Attorney Seth Wilkinson.
Milford Resident Pleads Guilty to Drug and Gun ChargesRead the Press Release
Contact: Joel B. Casey
Assistant United States Attorney
Tel: (207) 945-0373Bangor, Maine: United States Attorney Thomas E. Delahanty II announced that Edwin Hamel, 59, of Milford, Maine pleaded guilty today U.S. District Court to conspiring to distribute and possess with the intent to distribute bath salts and to being a felon in possession of firearms.
According to court records, between about January 2012 and March 2014, the defendant conspired with others to distribute the bath salts MDPV and Alpha-PVP in Penobscot County. He obtained the drugs from China by ordering them over the internet. He and others following his instructions wired payments for them to China. The drugs were shipped by U.S. International Express Mail to the defendant and others where they were re-packaged for distribution and sold for $100 or more per gram.
In addition, the defendant possessed two Remington Model 700LH Bolt Action rifles which he acquired in exchange for bath salts. They were recovered by law enforcement agents on March 11, 2014 when the defendant was arrested. The defendant was prohibited from possessing the firearms because he had a prior felony marijuana trafficking conviction.
The defendant faces up to 20 years in prison, a $1,000,000 fine and supervised release of between three years and life on the drug conspiracy charge. He faces up to 10 years in prison, a $250,000 fine and three years of supervised release on the gun charge. He will be sentenced after the completion of a presentence investigation report by the U.S. Probation Office.
The case was investigated by the Maine Drug Enforcement Agency; the U.S. Postal Inspection Service; the Bureau of Alcohol, Tobacco, Firearms and Explosives; and U.S. Immigration and Customs Enforcement’s Homeland Security Investigations.Mexican national sentenced to 14 months in prison for illegally reentering the United StatesRead the Press Release
SHREVEPORT, La. – United States Attorney Stephanie A. Finley announced that a Mexican national was sentenced last week to 14 months in prison for reentering the country after having been previously deported twice.
Jesus Isas-Medina, 41, of Guadajara, Mexico, was sentenced Thursday by U.S. District Judge S. Maurice Hicks Jr. on one count of illegal reentry after being deported. According to evidence presented at the July 28, 2015 guilty plea, Bossier Parish Sheriff’s deputies arrested the defendant on April 6, 2015. Upon further investigation, it was learned that Isas-Medina had been previously deported in April of 2001 and July of 2012.
The U.S. Immigrations and Customs Enforcement-Immigration Enforcement and the Bossier Parish Sheriff’s Office conducted the investigation. Assistant U.S. Attorney Seth D. Reeg prosecuted the case.
Member of Centralia Meth Conspiracy SentencedRead the Press Release
Stephen R. Wigginton, United States Attorney for the Southern District of Illinois, announced that David Leroy Altom, 41 of Centralia, Illinois, was sentenced today to 6 and ½ years (78 months) in federal prison, 4 years’ supervised release, a $200 fine and a $300 special assessment for his role in a Conspiracy to Manufacture and Distribute Methamphetamine in Clinton and Marion Counties. There is no parole in the federal system.
Altom was ordered to self-surrender to the federal prison facility where he is designated for service of sentence.
Information leading to the charges against Altom and the others was obtained in an investigation conducted by the FBI, the Marion County Sheriff’s Office, and the Clinton County Sheriff’s Department, assisted by the Illinois State Police Methamphetamine Response Team, and the Centralia Police Department. The case is being handled by Assistant United States Attorney Kit Morrissey.
Man Pleads Guilty to eBay and PayPal Scheme to Steal Special Agent’s IdentityRead the Press Release
ALEXANDRIA, Va. – Rohit Jawa, 25, formerly of Cincinnati, Ohio, pleaded guilty today to an indictment charging him with eight counts of wire fraud and one count of aggravated identity theft.
Based on court documents, from at least February 2013 through June 16, 2015, the defendant devised and executed a complex identity theft scheme to defraud financial institutions, insurance companies, and others. The defendant managed numerous PayPal accounts that were engaged in a scheme to defraud eBay buyers and eBay’s third-party parcel insurance company. During this period, the defendant repeatedly transferred money representing the proceeds of his fraud scheme from and between accounts he controlled in victim names to accounts he controlled in his own name. In connection with this scheme, the defendant stole the identity of a Special Agent of the United States Postal Service Office of Inspector General (USPS-OIG), and then used that identity to fraudulently gain access to law enforcement databases from which he stole personal identifying information of multiple victims. The defendant then used the identifying information of those individuals to open further fraudulent financial accounts in their names, without their knowledge or consent.
Jawa was indicted by a federal grand jury on Aug. 13, 2015. Jawa faces a mandatory minimum of two years in prison and a maximum penalty of 20 years in prison when sentenced on Feb. 12, 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; Paul M. Abbate, Assistant Director in Charge of the FBI’s Washington Field Office; and Zane E. Bridges, Chief of Digital Investigative Services for USPS-OIG, made the announcement after the plea was accepted by U.S. District Judge Anthony J. Trenga.
This case was investigated by the FBI’s Washington Field Office Cyber Task Force. Assistant U.S. Attorney Whitney Dougherty Russell is 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-239.
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Loan Fraud Defendant’s Lies and False Documents Qualify Him for Five Years in PrisonRead the Press Release
Assistant U.S. Attorneys Emily Allen (619) 546-9738 or Mark Conover (619) 546-6763
NEWS RELEASE SUMMARY – August 28, 2015
SAN DIEGO – Solomon Gordon Raymond, also known as Paul Anthony Raymond, was sentenced today to 57 months in custody by U.S. District Judge Roger T. Benitez for lying to banks on a series of business loan applications he used to take almost $500,000.
In addition to punishing Raymond for his fraudulent crimes, Judge Benitez increased Raymond’s sentence for the lies he told during testimony at his May 2015 trial. During the hearing, Judge Benitez described the defendant as “one of the worst conmen I have ever seen.” Raymond was taken into custody at today’s sentencing hearing to immediately begin serving his sentence.
Raymond was convicted by a jury of lying on several loan applications he submitted to Wells Fargo Bank, Bank of America, and the Bank of Escondido. Each application contained numerous false statements and omissions regarding Raymond’s financial and business affairs, criminal history, and other aspects of his creditworthiness. Evidence presented at trial established that Raymond was able to trick the banks into believing that he was a good candidate for the loans by strategically using a second social security number that was unmarred by his bad credit history and multiple prior bankruptcy filings. Indeed, even though he had exited bankruptcy just a few months before his first loan application, Raymond falsely claimed to the lender that he had not undergone bankruptcy. Raymond also lied about his criminal history, falsely claiming to the banks that he had never been arrested or convicted of a crime.
Evidence at trial showed that Raymond told extraordinary falsehoods about his finances. For example, he claimed that his income ranged from $308,841 to $543,933; in fact, his true income was only a fraction of these amounts. To support his false claims he submitted fraudulent tax returns that appeared to have been filed with the IRS. At trial, the government proved that the file stamps on these tax returns were completely fabricated, and that the returns had never been submitted to the IRS.
Raymond also submitted forged bank and brokerage account statements to support his Bank of Escondido application, showing balances close to $400,000 in each account. In fact, the balances in these accounts were substantially lower, with one account even having less than $100.
Just three days after Raymond collected the last payment of his nearly half million dollars from his fraudulent loans, he filed for bankruptcy, attempting to wipe away his obligation to repay these loans. Raymond has left the banks and the U.S. Small Business Administration (which guaranteed the loans) with hundreds of thousands of dollars in losses.
“Mr. Raymond’s string of lies and deceptions not only defrauded these banks – they also victimized the taxpayers whose funds are used to support business loans to deserving small businesses. We are pleased that they jury saw through the additional lies he told at trial, and that he was appropriately punished for his misconduct,” said U.S. Attorney Laura Duffy.
U.S. District Judge Benitez also ordered Raymond to repay the victims $729,192 in restitution.
DEFENDANTS
Solomon Gordon Raymond (a.k.a. Paul Anthony Raymond ) Age: 54
Golden Valley, Minnesota
SUMMARY OF CHARGES
Four counts of False Statement in a Loan and Credit Application, in violation of 18 U.S.C. § 1014.
Maximum penalty: Thirty years in prison, $1,000,000 fine, restitution, and $100 special assessment, per count.
AGENCIES
Federal Bureau of Investigation
Small Business Administration Office of Inspector General
Social Security Administration Office of Inspector General
Treasury Inspector General for Tax Administration
Lilburn Man Sentenced to Prison for Hoax Bomb Threat and Threatening a Federal AgentRead the Press Release
ATLANTA - Maksim Mikhaiov Pikulev was sentenced to seven months in prison after pleading guilty to falsely reporting a plot to obtain bombs that would be detonated at a local Wal-Mart and threatening an FBI Special Agent.
“Law enforcement officers who serve and protect the citizens of this district should not be subjected to threats of violence,” said U.S. Attorney John Horn. “Not only did Pikulev report a false bomb threat, which diverted critical law enforcement resources, but after the FBI agent investigating the matter discovered his claim was a hoax, Pikulev threatened to kill the agent.”
J. Britt Johnson, Special Agent in Charge, FBI Atlanta Field Office, stated: “Today’s sentencing in federal court should make it very clear to Mr. Pikulev that the U.S. Government takes bomb threats and threats to its federal agents very seriously. It is hoped that Mr. Pikulev will use his time in prison to reflect on his poor decisions that led to his criminal acts.”
According to United States Attorney Horn, the charges and other information presented in court: On October 17, 2014, Pikulev called Atlanta’s FBI office and falsely reported that two men asked him to build a bomb to blow up a local Wal-Mart. During the investigation, Pikulev stated that he planned to deliver two bombs in his possession to the unknown males and to record the transaction for the FBI. But when an FBI Agent requested to see the bombs, Pikulev refused. The FBI eventually determined that the matter was a hoax.
On December 7, 2014, Pikulev placed a call to the FBI office located in Washington DC. During that recorded call, Pikulev said that he wanted to make a complaint against FBI-Atlanta agents. Pikulev became agitated and angry during the call after he was told to call the Atlanta Division to make his complaint. Pikulev refused to call the FBI Atlanta office and threatened to kill the FBI agent who investigated his bomb hoax.
Pikulev, a/k/a Max, 30, of Lilburn, Ga., has been sentenced to seven months in prison to be followed by three years of supervised release. Pikulev was convicted on these charges on August 14, 2015, after he pleaded guilty.
This case was investigated by the Federal Bureau of Investigation.
Assistant United States Attorney Tracia M. King prosecuted the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.