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16 November 2015
Leader of Portsmouth Bloods Gang Sentenced to 16 Years in PrisonRead the Press Release
NORFOLK, Va. – Theodore M. Vann, aka Flatline, 33, of Portsmouth, who was the highest-ranking member of the Gorilla Mafia Piru, a Bloods gang set based in Portsmouth, was sentenced today to 192 months in prison for conspiracy to distribute heroin and being a felon in possession of a firearm. In connection with this conviction, Vann forfeited two .38 caliber handguns, a 9MM Ruger P95 pistol, and a Hi-Point .40 caliber handgun.
Vann pleaded guilty on June 25, 2015. According to court documents, Vann, together with his fellow gang members, manufactured and distributed far in excess of one kilogram of heroin in Portsmouth from late 2013 to August 2014. Vann conspired with co-conspirators to distribute heroin in the Ghent area of Norfolk, Portsmouth, and other places throughout the Eastern District of Virginia. Vann travelled to New Jersey and to Richmond and Petersburg, Virginia, to purchase wholesale amounts of heroin that were later “cut” with additives in Portsmouth stash houses to increase their volume and profitability.
Vann also purchased wholesale amounts of heroin during the course of the conspiracy from Alonzo Outten, 35, of Portsmouth, who was sentenced to 30 years in prison on Nov. 4, 2015. Vann also purchased wholesale amounts of heroin from members of the Imperial Gangsta Bloods, whose leader, Christopher Smith, 32, of Portsmouth, was sentenced to life in prison on Oct. 30, 2015.
Special Agents from the FBI and officers from the Portsmouth Police Department conducted a series of undercover heroin and firearm purchases from the Gorilla Mafia Piru gang. In one surveillance video recorded in a Portsmouth “stash house,” Vann is seen “cutting” heroin with additives and placing it into gel capsules for street-level distribution. That day, Vann possessed approximately 390 grams of heroin, a large amount of U.S. currency, strainers, a cutting agent, capsules, and plastic bags.
Antwane Williams, the second-highest ranking member of the gang, was sentenced to 10 years in prison on Sept. 24, 2015. Jeffery Henry, an associate of the gang who helped expand its retail market and tested its heroin, was sentenced to 3 years in prison on Oct. 26, 2015.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Mark R. Herring, Attorney General of Virginia; and John S. Adams, Special Agent in Charge of the FBI’s Norfolk Field Office, made the announcement after sentencing by U.S. District Judge Raymond A. Jackson.
This case was investigated by the FBI’s Norfolk Field Office with the assistance of the Portsmouth Police Department. The case was prosecuted by Special Assistant U.S. Attorney John F. Butler, and Assistant U.S. Attorneys Joseph E. DePadilla and Andrew C. Bosse.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:15-cr-60.
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L.A. Man Who Hacked into Email Accounts and Obtained Nude Photos for ‘Revenge Porn’ Website Sentenced to Federal PrisonRead the Press Release
LOS ANGELES – A San Fernando Valley man who hacked into e-mail accounts to steal nude photos that were later posted on a well-known “revenge porn” website was sentenced today to 25 months in federal prison on computer crime and identity theft charges.
Charles Evens, 26, of Studio City, was sentenced today by United States District Judge Dolly M. Gee.
In addition to the prison term, which Evens will begin serving on January 29, Judge Gee ordered the defendant to pay a $2,000 fine, to perform 20 hours of community service and to pay $147.50 in restitution to one of the hacking victims.
Evens pleaded guilty in July to one count of unauthorized access to a protected computer to obtain information for purposes of private financial gain and one count of aggravated identity theft. In sentencing Evens today, Judge Gee imposed a one-month sentence for the computer hacking count and a mandatory two-year term for the identity theft count.
Evens obtained nude pictures that were posted on the revenge porn website, http://isanyoneup.com. The operator of that website – Hunter Moore, 29, of Woodland, California – pleaded guilty in February to the same two offenses that Evens admitted to. Judge Gee is scheduled to sentence Moore on November 30.
On his website, Moore posted nude and sexually explicit photos that had been submitted without the permission of victims. To obtain more photos for the website, Evens gained unauthorized access – in other words, hacked into – Google e-mail accounts. Moore sent payments to Evens in exchange for nude photos unlawfully obtained from the victims’ accounts. Moore then posted the illegally obtained photos on his website without the victims’ consent. Evens admitted that he hacked into email accounts belonging to hundreds of victims.
The investigation in this case was conducted by the Federal Bureau of Investigation.
Jury Finds Bloods Gang Member Guilty of Business Robberies, Weapons ChargesRead the Press Release
Memphis, TN – After a four-day trial, a federal jury found 20-year-old Khalil Davis guilty of two business robberies as well as brandishing and discharging a firearm in relation to a crime of violence. Edward L. Stanton III, U.S. Attorney for the Western District of Tennessee, announced the guilty verdict today.
According to evidence presented in court, in the early morning hours of January 26, 2014, 20-year-old Khalil Davis, a member of the Bloods street gang, entered a Circle K convenience store on Poplar Avenue masked in a bandana and armed with a firearm. Davis allegedly pointed the gun at the store clerk’s face and took money from both the cash register and safe. He then placed the gun to the female clerk’s head and forced her to perform oral sex on him before fleeing the scene.
On the same day, less than an hour later, Davis, along with a co-conspirator, 32-year-old Antonio Griffin, entered the Marathon Gas Station on Poplar Avenue. After Griffin approached the counter to make a purchase, Davis ran behind the counter and put a gun to the store clerk’s head. A struggle ensued between Davis and the clerk while Griffin grabbed money out of the cash register and fled the store. Davis was able to eventually release himself with the gun. As he exited the store, Davis fired one shot at the clerk.
In July 2015, Davis’ co-conspirator, Griffin, pled guilty to one count of committing a robbery affecting interstate commerce and one count of brandishing and discharging a firearm in relation to a crime of violence. He’s scheduled to be sentenced on Friday, November 20th before Judge Samuel H. Mays.
On Friday, November 13, 2015, a jury convicted Davis on two counts of committing a robbery affecting interstate commerce and two counts of brandishing and discharging a firearm in relation to a crime of violence.
Davis faces up to 20 years imprisonment on each robbery count. He faces a mandatory minimum sentence of 35 years on each weapon count.
Davis is scheduled to be sentenced by Judge Mays on Thursday, February 25, 2016.
The case was investigated by Safe Streets Task Force and the Memphis Police Department.
The case was prosecuted by Assistant U.S. Attorneys Samuel Stringfellow and Kevin Whitmore.
Jefferson County, WV man sentenced for failing to update sex offender registrationRead the Press Release
MARTINSBURG, WEST VIRGINIA – Convicted sex offender Ronald Kisner, II, 30, of Harpers Ferry, West Virginia, was sentenced today to 24 months in prison for failing to properly update his registration status, United States Attorney William J. Ihlenfeld, II, announced.
Kisner was convicted in November 2011 of “Abusive Sexual Assault” in the Northern District of West Virginia. As a result of that conviction, Kisner is required to register as a sex offender. He subsequently moved from West Virginia to Frederick County, Virginia without updating his sex offender registration. He pled guilty in August 2015 to one count of “Failure to Register.”
Assistant U.S. Attorney Attorney Paul Camilletti prosecuted the case on behalf of the government. The United States Marshals Service investigated.
Chief U.S. District Judge Gina M. Groh presided.
Identity Thieves Ordered to Federal PrisonRead the Press Release
HOUSTON – Two area men have been sentenced for their of engaging in a conspiracy to commit bank fraud and aggravated identity theft by using skimming devices on bank ATM machines in and around Houston, announced U.S. Attorney Kenneth Magidson. Bernard Nwachan Akwar, 28, of Houston, and Tokunbo Patrick Aiyewa, 28, of Sugar Land, both had pleaded guilty, admitting to the placement of skimming devices on bank ATM machines in order to obtain information from customer cards.
Today, U.S. District Judge Kenneth M. Hoyt handed Akwar a 24-month-term of imprisonment for his conviction for aggravated identity theft, while Aiyewa was ordered to serve a sentence of 15 months in federal prison for the conspiracy plus a consecutive sentence of 24 months for the aggravated identity theft conviction resulting in a total sentence of 39 months. They were each also ordered to pay $20,957.43 in restituition.
Aiyewa and Akwar were accused of installing skimming devices on bank ATM machines in the Houston area. Surveillance photos had captured images of both defendants at these machines, some of which revealed they attempted to disguise their identity by wearing a wig with dreadlocks. On two occasions in April and May 2014, the two men were observed placing a skimmer on ATM machines which resulted in their ability to obtain information from a total of 24 customer cards on those two days.
Once the skimming device was removed from the ATM, Aiyewa used a computer and encoding machine to download customer banking information and re-encoded used gift cards with the stolen information. Aiyewa and Akwar checked victims’ bank balances removed money from some of the accounts. In addition, the loaded gift cards and other debit cards were used to make purchases in the thousands of dollars.
Agents attempted to arrest Aiyewa and Akwar in the parking lot of the West Oaks Mall on May 21, 2014. Akwar was taken into custody, but Aiyewa attempted to flee. Aiyewa drove his car in the direction of an arresting agent who had to jump out of the way of the vehicle, leaving the parking lot at a high rate of speed. Later, he was found driving a different vehicle and agents followed him. He continued to drive erratically, running numerous stop signs. He was eventually stopped and agents found an unsecured five-year-old child in the back seat.
At the time of their arrests, Akwar was found in possession of numerous pre-paid debit cards that were acquired using the stolen customer information obtained through the skimming device, while agents discovered in Aiyewa’s possession several gift cards as well as a MasterCard debit card in the name of one of the victims. In addition, agents also found the same or a similar wig seen in the photos as they attempted to disguise themselves.
The investigation also revealed that a compromised card number had been used to purchase iPads which investigators observed being passed between Aiyewa and Akwar at the time of their arrest.
Akwar will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future. Aiyewa was allowed to remain on bond until Dec. 11, 2015, when he is required to surrender to federal authorities.
This investigation was conducted by the U.S. Secret Service and its Houston Area Fraud Task Force. Assistant U.S. Attorney Melissa Annis is prosecuting the case.
HCA Settles Allegations of Billing for Unnecessary Lab Tests and Double Billing for Fetal Testing for $2,000,000Read the Press Release
Contact Person: Jennifer Aldrich (803) 929-3000
COLUMBIA, South Carolina ---- United States Attorney Bill Nettles announced today that the United States Attorney's Office for the District of South Carolina with the State of Florida, settled claims of health care fraud with HCA Holdings, Inc. f/d/b/a HCA, Inc. f/d/b/a HCA – Hospital Corporation of America f/d/b/a Hospital Corporation of America and Parallon Business Solutions, LLC, West Florida Regional Medical Center, Inc. d/b/a West Florida Hospital; HCA Health Services of Florida, Inc. d/b/a Regional Medical Center Bayonet Point; HCA Health Services of Florida, Inc. d/b/a Oak Hill Hospital; and New Port Richey Hospital, Inc. d/b/a Medical Center of Trinity (“HCA”).
The United States and the State of Florida contended that HCA submitted laboratory claims for direct count low density lipids (LDL) when the tests were not ordered and/or not medically necessary at four hospitals in Florida: West Florida Hospital; Oak Hill Hospital; Regional Medical Center Bayonet Point; and Community Hospital of New Port Richie (Trinity Hospital). The United States and the State of Florida also contended that HCA submitted claims for fetal biophysical profiles with non-stress tests (CPT code 76818) and additionally submitted another claim for a standalone non-stress test (CPT code 59025) at Community Hospital of New Port Richie (Trinity Hospital) during the period from January 1, 2007 through September 26, 2014.
The investigation began with the filing of a whistleblower lawsuit called a qui tams lawsuit under the False Claims Act. The suit was filed by an employee of HCA and was captioned United States, the District of Columbia, the States of Florida, California, Colorado, Georgia, Indiana, Louisiana, Nevada, Oklahoma, Tennessee, Texas and Virginia ex rel. Kelly Oxendine v. HCA Holdings, Inc. f/d/b/a HCA, Inc. f/d/b/a HCA-Hospital Corporation of America f/d/b/a Hospital Corporation of America, and Parallon Business Solutions, LLC. The False Claims Act allows the government to recover actual damages and penalties of three times the actual damages and up to $11,000 per false claim. This settlement includes repayment of actual damages and penalties.
The False Claims Act allows individuals to file lawsuits with allegations that fraud has been committed against the federal government on behalf of the government. Whistleblowers, referred to as Relators in the False Claims Act, are entitled to share in any recovery received by the government. In this case, the relator will receive 20% of the funds of the settlement or $400,000 plus she is entitled to her costs and attorney fees.
Mr. Nettles said “This office has made a substantial commitment to combating fraud. Our commitment has made this district one of the leaders on behalf of the whistleblowers. We hope that those who commit fraud will recognize that it is our goal to make the consequences more than just the cost of doing business.”
This case was investigated by agents from U.S. Health and Human Resources Office of the Inspector General and the Defense Criminal Investigative Service.
If you suspect Medicare or Medicaid fraud please report it by phone at 1-800-447-8477 (1-800-HHS-TIPS), or E-Mail at [email protected].
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Grade School Teacher Arrested on Child Pornography ChargesRead the Press Release
PLANO, Texas — A 31-year-old Plano schoolteacher has been arrested on child exploitation charges in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.
Keith Oser, a 5th grade teacher at Legacy Charter School in Plano, was arrested on Friday, Nov. 13, 2015, and appeared today before U.S. Magistrate Judge Don D. Bush for an initial appearance.
Oser has been charged in a federal complaint with distribution of child pornography. Oser will return to court on Nov. 24, 2015 for detention and preliminary hearings.
This case is being prosecuted as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
If you have any information on this case, please contact Victim-Witness Coordinator Judy Daigle at the U.S. Attorney’s Office at 1-800-804-3547. The U.S. Attorney’s Office will take the necessary steps to protect all minors’ identities and confidential information.
This case is being investigated by the Federal Bureau of Investigation and the Plano Police Department and prosecuted by Assistant U.S. Attorney Marisa Miller.
It is important to note that an arrest, indictment, or complaint should not be considered as evidence of guilt and that all persons charged with a crime are presumed innocent until proven guilty beyond a reasonable doubt.
Four sentenced in multi-state heroin trafficking operation based in Baltimore, MarylandRead the Press Release
MARTINSBURG, WEST VIRGINIA – Four individuals were sentenced in federal court today for heroin trafficking, United States Attorney William J. Ihlenfeld, II, announced.
The defendants sentenced today participated in a heroin trafficking scheme based in Baltimore, Maryland. As part of the operation, a large group of individuals repeatedly traveled across state lines to the Baltimore area to procure heroin. The drug was then transported to various locations in Maryland, West Virginia, Virginia, and Pennsylvania for redistribution and sale. The operation was interrupted by a 163-count federal indictment following an investigation by the Eastern Panhandle Drug and Violent Crimes Task Force, a HIDTA-funded initiative, and the Federal Bureau of Investigation.
William Thomas Stine, 40, of Martinsburg, was sentenced today to 33 months in prison. He pled guilty in August 2015 to “Aiding and Abetting Possession with Intent to Distribute Heroin.”
Melissa Dawn Portrey, 47, of Harpers Ferry, West Virginia, was sentenced today to 15 months in prison. She pled guilty in August 2015 to “Aiding and Abetting Interstate Travel in Aid of Racketeering.”
Frederick Smitherman, 37, of Inwood, West Virginia, was sentenced today to 12 months in prison. He pled guilty in August 2015 to “Aiding and Abetting Interstate Travel in Aid of Racketeering.”
Brandon Lee Odell, 33, of Inwood, West Virginia, was sentenced today to 10 months in prison. He pled guilty in August 2015 to “Aiding and Abetting Attempted Possession with Intent to Distribute Heroin.”
In another matter, Timothy William Cook, 30, of Martinsburg, was sentenced today to 30 months in prison for heroin trafficking. He was discovered in May 2014 in possession of heroin in Berkeley County, West Virginia. He pled guilty to one count of “Possession with Intent to Distribute Heroin” following an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Berkeley County Sheriff’s Office.
Assistant U.S. Attorneys Anna Krasinski and Paul Camilletti prosecuted the cases on behalf of the government.
Chief U.S. District Judge Gina M. Groh presided.
Former U.S. Navy Lt. Commander and Catholic Priest Pleads Guilty to Child Pornography ChargesRead the Press Release
WILMINGTON, Del. – A former U.S. Navy Lt. Commander and ordained Catholic priest pleaded guilty in U.S. District Court for the District of Delaware to one count of production of child pornography and one count of distribution of child pornography, announced U.S. Attorney Charles M. Oberly III of the District of Delaware.
John Thomas Matthew Lee, 50, of Millsboro, Delaware, pleaded guilty today before Chief U.S. District Court Judge Leonard P. Stark of the District of Delaware. A sentencing hearing is scheduled for March 2, 2016 at 10:00 a.m. Lee is a registered sex offender following his 2007 conviction in a general court martial of sexually assaulting another Naval officer while serving as a Chaplain at its United States Naval Academy. Lee has been in custody since his November 3, 2014 arrest.
Following a series of CyberTipline reports from the National Center for Missing and Exploited Children, U.S. Immigration and Customs Enforcement-Homeland Security Investigations (ICE-HSI) agents were able to trace to Lee accounts that were being used to upload images of child pornography to several social networking sites. In executing a search warrant at Lee’s residence in Millsboro, agents found tens of thousands of child-pornography images on several of Lee’s electronic devices, including his phone. Via online messenger applications and text messages, Lee also used his phone to induce several juveniles to send him pornographic images of themselves. Lee uploaded at least one of these images to a publicly accessible social media site. He also traded other images of child pornography online with other adults.
U.S. Attorney Oberly stated, “I commend all the investigators and prosecutors who have played a role in bringing this second offender to justice. As a predator focusing his attention on children, Mr. Lee can expect to spend many years, if not the remainder of his life, in prison. The Government’s efforts to rid society of those who exploit and abuse children is of the highest priority and we will continue to seek out these criminals.”
This case is being investigated by the Department of Homeland Security, Homeland Security Investigations, and is being prosecuted by Assistant United States Attorney Edward J. McAndrew.
Former U.S. Navy Lt. Commander and Catholic Priest Pleads Guilty to Child Pornography ChargesRead the Press Release
A former U.S. Navy Lt. Commander and ordained Catholic priest pleaded guilty in U.S. District Court for the District of Delaware to one count of production of child pornography and one count of distribution of child pornography, announced Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division and U.S. Attorney Charles M. Oberly III of the District of Delaware.
John Thomas Matthew Lee, 50, of Millsboro, Delaware, pleaded guilty today before Chief U.S. District Court Judge Leonard P. Stark of the District of Delaware. A sentencing hearing is scheduled for March 2, 2016. Lee is a registered sex offender following his 2007 conviction in a general court martial of sexually assaulting another Naval officer. Lee has been in custody since his arrest on Nov. 3, 2014.
Following a series of CyberTipline reports from the National Center for Missing and Exploited Children, U.S. Immigration and Customs Enforcement-Homeland Security Investigations (ICE-HSI) agents were able to trace to Lee accounts that were being used to upload images of child pornography to several social networking sites. In executing a search warrant at Lee’s residence in Millsboro, agents found tens of thousands of child-pornography images on several of Lee’s electronic devices, including his phone. Via online messenger applications and text messages, Lee also used his phone to induce several juveniles to send him pornographic images of themselves. Lee uploaded at least one of these images to a publicly accessible social media site. He also traded other images of child pornography online with other adults.
This investigation was conducted by ICE-HSI Resident in Charge Wilmington, Delaware, with assistance from several other ICE-HSI regional offices to locate and interview the juvenile victims. This case is being prosecuted by Trial Attorney Herbrina D. Sanders of the Criminal Division’s Child Exploitation and Obscenity Section (CEOS) and Assistant U.S. Attorney Edward J. McAndrew of the District of Delaware.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Former PA National Guard Commander Sentenced to Probation for Job SchemeRead the Press Release
PITTSBURGH – A former Guardsmen officer at the 171st Air Refueling Wing in Coraopolis, Pa., has been sentenced in federal court to three years’ probation on his conviction of defrauding the United States Air Force and the Air National Guard of tens of thousands of dollars in military pay and benefits, United States Attorney David J. Hickton announced today.
Senior United States District Judge Gustave Diamond imposed the sentence on Gerard J. Mangis, 61, Glenshaw, Pa.
According to information presented to the court, Mangis, a Colonel and former Mission Support Group Commander at the 171st Air Refueling Wing, conspired with Robert St. Clair, a contract employee at the National Guard Bureau and former tech sergeant at the 171st, to defraud the United States Air Force in false claims for military pay between 2002 and 2011. In 2002, Mangis appointed St. Clair to a position at the 171st where Mangis arranged for St. Clair to be enlisted at the 171st in a “no show” position, and enable him to avoid performing required guardsman duties - such as drill weekends and physical tests - while earning valuable military pay and benefits. In exchange, using his authority at National Guard Bureau at Andrews AFB, St. Clair issued streams of military “workdays” to Mangis, which he used to accumulate excessive active and inactive duty military pay between 2006 and 2011.
Assistant United States Attorney Gregory C. Melucci prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the United States Air Force Office of Special Investigations and the Federal Bureau of Investigation for the investigation leading to the successful prosecution of Gerard J. Mangis.
Former Middle School Teacher Sentenced for Illegal Use of the InternetRead the Press Release
United States Attorney Randolph J. Seiler announced that a Rapid City, South Dakota, man convicted of Attempted Enticement of a Minor Using the Internet was sentenced on November 16, 2015, by Chief Judge Jeffrey L. Viken, U.S. District Court.
Andrew Hiipakka, age 28, was sentenced to 25 years of imprisonment, followed by life of supervised release, and ordered to pay a $100 special assessment to the Federal Crime Victims Fund. He is also ordered to forfeit an LG cell phone, two Toshiba laptop computers, one Cisco computer modem, one HP laptop computer, one Netger computer router, one Dell laptop computer, and one Apple iPhone.
Between November 2013 and August 2014, at Rapid City, Hiipakka knowingly received and possessed computer files containing images of child pornography.
During the execution of the search warrant, numerous items of evidence were located and seized, including several electronic storage devices and computers. Investigators found thousands of images of child pornography, many of which depicted children under the age of 12 years, and images of violence and sadism. There were also many instances of the Defendant distributing these images to other individuals utilizing the Internet.
In addition, investigators located over one thousand internet “chats” during which the Defendant would receive and distributes images of child pornography. During some of the chats, the Defendant would engage with persons he was told were under the age of 18, and he would convince them to expose their genitalia and perform sexual acts and then distribute those images to the Defendant.
This case also had international implications. Information from this investigation was sent to Homeland Security Investigations’ London attaché office, resulting in an 18-year sentence for a man manufacturing child pornography in England, who had been corresponding with Andrew Hiipakka.
The investigation was conducted by the South Dakota Internet Crimes Against Children Taskforce. Other law enforcement partners involved in the case were the Rapid City Police Department, Pennington County Sheriff's Office, and Homeland Security Investigations. Assistant U.S. Attorney Sarah Collins prosecuted the case.
Hiipakka was immediately turned over to the custody of the U.S. Marshal's Service.
Former Chief Financial Officer Found Guilty in Manhattan Federal Court of Misappropriating at Least $8 Million from Two Healthcare Services CompaniesRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced today that STEVEN RAWLINS, a former Chief Financial Officer to two healthcare services companies based outside Nashville, Tennessee, was found guilty today of engaging in a scheme to defraud that yielded over $8 million in ill-gotten gains. Following an 11-day trial conducted before U.S. District Judge Alison J. Nathan, a jury found that RAWLINS, as the acting Chief Financial Officer for both privately-held healthcare companies, abused his authority to withdraw company funds for payment of legitimate business expenses and tax obligations by, among other things, using such funds to pay personal expenses incurred by RAWLINS, his family, and his associates.
Manhattan U.S. Attorney Preet Bharara said: “As a unanimous jury has found, Steven Rawlins abused his position of trust to steal from the companies whose finances he was entrusted to manage. He siphoned off more than $8 million of company money and spent it lavishly on himself, his family, and his friends, paying for a 12,000-square-foot home, Tiffany jewelry, sports cars and Yankees luxury suites. Now he stands convicted by a jury of federal crimes.”
According to the Criminal Information filed on June 16, 2015, other court documents, and the evidence presented at trial:
In or around 2005, RAWLINS was retained as an outside consultant by a private healthcare services company, which is headquartered in Tennessee (“Company-1”), to assist with financing and accounting matters. RAWLINS’s responsibilities included securing financing for Company-1 and facilitating tax payments. During that time period, RAWLINS was retained by another private healthcare services company, which at the time had operations in Florida and New York (“Company-2”), to perform a similar role. As part of his responsibilities, RAWLINS was authorized to bill both Company-1 and Company-2 for legitimate business expenses incurred in connection with his services. By 2009, RAWLINS had been appointed as acting Chief Financial Officer for both companies.
RAWLINS abused his authority to withdraw company funds and ultimately misappropriated more than $8 million, which he used to pay personal expenses incurred by himself, his family, and his associates. For instance, as part of his responsibilities as a consultant to Company-1, RAWLINS represented that he would make the necessary tax payments owed by Company-1 to the State of Tennessee. From 2011 to 2012, RAWLINS withdrew approximately $850,000 from Company-1’s bank accounts, purportedly in order to pay Company-1’s outstanding tax liabilities to Tennessee. In reality, during that time period, Company-1 owed less than $85,000 in applicable Tennessee state taxes; RAWLINS converted the vast majority of the funds to his own use. Moreover, from 2011 to 2013, RAWLINS caused approximately $4 million to be withdrawn from a Company-1 bank account in order to pay bills associated with RAWLINS’s American Express credit card accounts. Those American Express accounts were in turn used to pay for numerous personal expenses incurred by RAWLINS, or those associated with him, including payments to a real estate development company that built RAWLINS a 12,000-square-foot home; payments for luxury suite access for the Tennessee Titans, Nashville Predators, and New York Yankees; payments for Tiffany jewelry; and payments to car dealerships including Ferrari, Porsche, Maserati, and Mercedes.
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RAWLINS, 58, of Brentwood, Tennessee, was convicted of one count of wire fraud, the sole count in the Information. He faces a maximum sentence of 20 years in prison, a maximum term of three years of supervised release, and a fine of the greatest of $250,000, or twice the gross pecuniary gain derived from the offense or twice the gross pecuniary loss to the victim. The maximum potential sentence in this case is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge. RAWLINS is scheduled to be sentenced on March 18, 2016.
Mr. Bharara praised the outstanding investigative work of the Federal Bureau of Investigation. He added that the investigation is continuing.
The charges were brought in connection with the President’s Financial Fraud Enforcement Task Force. The task force was established to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices, and state and local partners, it is the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets; and conducting outreach to the public, victims, financial institutions and other organizations. Since fiscal year 2009, the Justice Department has filed over 18,000 financial fraud cases against more than 25,000 defendants. For more information on the task force, please visit www.StopFraud.gov.
This case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant U.S. Attorneys Andrew Bauer and Andrew J. DeFilippis are in charge of the prosecution, and Margaret S. Graham is in charge of the forfeiture aspects of the case.
Former Bartow and Plant City Insurance Agent Sentenced for FraudRead the Press Release
Tampa, Florida – United States District Judge James D. Whittemore has sentenced Heidi Y. Calonge (34) to 18 months in federal prison, followed by 6 months of home detention, for bank fraud, wire fraud, and mail fraud. As part of her sentence, she was ordered to pay $150,371.10 in restitution to her victims. A forfeiture money judgment was also entered in the amount of $150,371.10, representing the proceeds of the fraud. She pleaded guilty on August 13, 2015.
According to court documents, Calonge was employed as the lead agent and manager of a small insurance company located in Plant City – “Express Insurance of Plant City.” In that capacity, she devised a scheme to defraud the owners out of bonus and commission checks from various insurance companies with whom the company did business. Calonge falsely posed as the company’s owner by opening a post office box in a similar corporate name, filing corporate paperwork, registering a similar fictitious name, and opening a personal bank account in that fictitious name in order to deposit checks rightfully owed to the true owners of the company. Calonge spent the fraud proceeds on personal items benefitting herself and her family, and to open another competing insurance agency.
This case was investigated by the U.S. Postal Inspection Service, the Federal Bureau of Investigation, and the Florida Department of Law Enforcement. It was prosecuted by Assistant United States Attorney Kelley C. Howard-Allen.
For-Profit College Company to Pay $95.5 Million to Settle Claims of Illegal Recruiting, Consumer Fraud and Other ViolationsRead the Press Release
The United States has reached a landmark global settlement with Education Management Corp. (EDMC), the second-largest for-profit education company in the country, the Department of Justice announced today. The $95.5 million settlement resolves allegations that EDMC violated federal and state False Claims Act (FCA) provisions by falsely certifying that it was in compliance with Title IV of the Higher Education Act (HEA) and parallel state statutes.
“This historic resolution exemplifies the Justice Department’s deep commitment to protecting precious public resources; to defending American consumers; and to standing up for those who are vulnerable to mistreatment, abuse, and exploitation,” said Attorney General Loretta E. Lynch. “Operating essentially as a recruitment mill, EDMC’s actions were not only a violation of federal law but also a violation of the trust placed in them by their students - including veterans and working parents - all at taxpayer expense. In the days ahead, we will continue working with our invaluable partners at the U.S. Department of Education, through initiatives like the inter-agency task force on for-profit education, to ensure that our nation’s aspiring learners are finding and gaining access to educational opportunities that are right for them.”
The primary allegation was that EDMC unlawfully recruited students, in contravention of the HEA’s Incentive Compensation Ban (ICB), by running a high pressure boiler room where admissions personnel were paid based purely on the number of students they enrolled. In addition to resolving these and other FCA claims, the global settlement also encompasses an investigation by a consortium of state Attorneys General, of consumer-fraud allegations involving deceptive and misleading recruiting practices.
“Now more than ever, a college degree is the best path to the middle class, but that path has to be safe for students,” said U.S. Education Secretary Arne Duncan. “This settlement should be a warning to other career colleges out there: We will not stand by while you profit illegally off of students and taxpayers. The federal government will continue to work tirelessly with state attorneys general to ensure that all colleges follow the law.”
EDMC, which is headquartered in Pittsburgh, Pennsylvania, operates nationwide under four post-secondary school brands: the Art Institutes, South University, Argosy University and Brown-Mackie College. Student enrollment across EDMC’s school brands exceeds 100,000 students.
“Companies cannot enrich their corporate coffers at the expense of students seeking a quality education, or on the backs of taxpayers who are funding our critical financial aid programs,” said U.S. Attorney David J. Hickton of the Western District of Pennsylvania. “Today’s global settlement sends an unmistakable message to all for-profit education companies: the United States will aggressively ferret out fraud and protect innocent students and taxpayer dollars from this kind of egregious abuse.”
The settlement resolves four separate FCA lawsuits filed in federal court in Pittsburgh, Pennsylvania, and Nashville, Tennessee, under the qui tam, or whistleblower, provisions of the act, which permit private individuals to sue on behalf of the government for false claims and to share in any recovery.
The United States and five states intervened and actively litigated one of those four whistleblower lawsuits, United States ex rel. Washington, in the Western District of Pennsylvania. The United States’ complaint in intervention alleged systemic violations of Title IV of the HEA’s ICB and parallel state provisions, which prohibit schools from paying recruiters based on their success in securing enrollments. Specifically, the United States and the plaintiff states claimed that from 2003 to the present, EDMC falsely certified to the U.S. Department of Education and various state offices of higher education that it was complying with the ICB, in order to be eligible to receive the federal grant and loan dollars that compose the majority of EDMC’s revenue. In reality, according to the United States’ complaint in intervention, EDMC was running a high pressure sales business and paid its recruiters based only on the number of students they enrolled. As a result of these allegedly false certifications, EDMC improperly enriched itself for more than 10 years with federal and state grant and loan dollars. More broadly, EDMC’s alleged conduct resulted in exactly the problems that Congress sought to curtail when it enacted the ICB: the enrollment of students in programs for which they lacked the necessary skills and qualifications, unsustainable student debt and default rates and schools’ pursuit of profits ahead of a legitimate educational mission.
“Improper incentives to admissions recruiters result in harm to students and financial losses to the taxpayers,” said Principal Deputy Assistant Attorney General Benjamin C. Mizer, head of the Justice Department’s Civil Division. “This settlement shows that by partnering productively, the federal government and the states’ Attorneys General can put a stop to this type of behavior.”
The global settlement with EDMC also resolves three additional federal FCA lawsuits in which the government did not intervene, all involving various violations of Title IV of the HEA by EDMC.
Finally, the global settlement resolves a consumer fraud investigation by a consortium of 40 state Attorneys General, into EDMC’s deceptive and misleading recruiting practices. The consumer fraud settlement requires EDMC to undertake various compliance obligations, including detailed disclosure obligations to students; prohibitions on deceptive or misleading recruiting practices and oversight by an administrator to ensure compliance.
“This civil enforcement action holds EDMC accountable for what we allege were unfair and deceptive recruitment and enrollment practices,” said Iowa Attorney General Tom Miller. “EDMC’s practices were unfair to our state’s students, and they were also unfair to our nation’s taxpayers who backed many of these federal student loans that were destined to fail. This is a rigorous agreement that not only provides some relief to a large number of former students through loan forgiveness, but helps ensure that the company will make substantial changes to its business practices for future students.”
The global settlement amount of $95.5 million reflects EDMC’s financial condition and current ability to pay. The settlement proceeds will be shared among the United States, the co-plaintiff states and the whistleblowers and their counsel in the four FCA cases, and includes funds allocated for the compliance expenses of the state consumer fraud settlement, including the costs of the administrator and the acquisition and use of a sophisticated voice analytics system to record and analyze recruiters’ calls with students. The United States will receive $52.62 million from the settlement, and will pay $11.3 million collectively to the relators in the four qui tam cases.
The FCA lawsuits were handled by Assistant U.S. Attorneys Michael A. Comber, Christy C. Wiegand, Paul E. Skirtich and Colin J. Callahan of the U.S. Attorney’s Office of the Western District of Pennsylvania, Assistant U.S. Attorney Christopher Sabis of the U.S. Attorney’s Office of the Middle District of Tennessee, and Trial Attorney Jay D. Majors of the Commercial Litigation Branch of the Civil Division of the Department of Justice, with assistance from the U.S. Department of Education’s Office of General Counsel and Office of Inspector General.
The cases are captioned United States ex rel. Washington et al. v. Education Management Corp., et al., Civ. No. 07-461 (WDPA); United States ex rel. Sobek v. Education Management Corp., et al., Civ. No. 10-0131 (WDPA); United States ex rel. Laukaitis et al. v. Education Management Corp., et al., Civ. No. 11-601 (WDPA); and United States ex rel. Rainwater v. Education Management Corp., et al., Case No. 3:12-CV-01008 (MDTN). The claims resolved by the settlement are allegations only, and there has been no determination of liability.
For-Profit College Company to Pay $95.5 Million to Settle Claims of Illegal Recruiting, Consumer Fraud and Other ViolationsRead the Press Release
WASHINGTON – The United States has reached a landmark global settlement with Education Management Corp. (EDMC), the second-largest for-profit education company in the country, the Department of Justice announced today. The $95.5 million settlement resolves allegations that EDMC violated federal and state False Claims Act (FCA) provisions by falsely certifying that it was in compliance with Title IV of the Higher Education Act (HEA) and parallel state statutes.
“This historic resolution exemplifies the Justice Department’s deep commitment to protecting precious public resources; to defending American consumers; and to standing up for those who are vulnerable to mistreatment, abuse, and exploitation,” said Attorney General Loretta E. Lynch. “Operating essentially as a recruitment mill, EDMC’s actions were not only a violation of federal law but also a violation of the trust placed in them by their students - including veterans and working parents - all at taxpayer expense. In the days ahead, we will continue working with our invaluable partners at the U.S. Department of Education, through initiatives like the inter-agency task force on for-profit education, to ensure that our nation’s aspiring learners are finding and gaining access to educational opportunities that are right for them.”
The primary allegation was that EDMC unlawfully recruited students, in contravention of the HEA’s Incentive Compensation Ban (ICB), by running a high pressure boiler room where admissions personnel were paid based purely on the number of students they enrolled. In addition to resolving these and other FCA claims, the global settlement also encompasses an investigation by a consortium of state Attorneys General, of consumer-fraud allegations involving deceptive and misleading recruiting practices.
“Now more than ever, a college degree is the best path to the middle class, but that path has to be safe for students,” said U.S. Education Secretary Arne Duncan. “This settlement should be a warning to other career colleges out there: We will not stand by while you profit illegally off of students and taxpayers. The federal government will continue to work tirelessly with state attorneys general to ensure that all colleges follow the law.”
EDMC, which is headquartered in Pittsburgh, Pennsylvania, operates nationwide under four post-secondary school brands: the Art Institutes, South University, Argosy University and Brown-Mackie College. Student enrollment across EDMC’s school brands exceeds 100,000 students.
“Companies cannot enrich their corporate coffers at the expense of students seeking a quality education, or on the backs of taxpayers who are funding our critical financial aid programs,” said U.S. Attorney David J. Hickton of the Western District of Pennsylvania. “Today’s global settlement sends an unmistakable message to all for-profit education companies: the United States will aggressively ferret out fraud and protect innocent students and taxpayer dollars from this kind of egregious abuse.”
The settlement resolves four separate FCA lawsuits filed in federal court in Pittsburgh, Pennsylvania, and Nashville, Tennessee, under the qui tam, or whistleblower, provisions of the act, which permit private individuals to sue on behalf of the government for false claims and to share in any recovery.
The United States and five states intervened and actively litigated one of those four whistleblower lawsuits, United States ex rel. Washington, in the Western District of Pennsylvania. The United States’ complaint in intervention alleged systemic violations of Title IV of the HEA’s ICB and parallel state provisions, which prohibit schools from paying recruiters based on their success in securing enrollments. Specifically, the United States and the plaintiff states claimed that from 2003 to the present, EDMC falsely certified to the U.S. Department of Education and various state offices of higher education that it was complying with the ICB, in order to be eligible to receive the federal grant and loan dollars that compose the majority of EDMC’s revenue. In reality, according to the United States’ complaint in intervention, EDMC was running a high pressure sales business and paid its recruiters based only on the number of students they enrolled. As a result of these allegedly false certifications, EDMC improperly enriched itself for more than 10 years with federal and state grant and loan dollars. More broadly, EDMC’s alleged conduct resulted in exactly the problems that Congress sought to curtail when it enacted the ICB: the enrollment of students in programs for which they lacked the necessary skills and qualifications, unsustainable student debt and default rates and schools’ pursuit of profits ahead of a legitimate educational mission.
“Improper incentives to admissions recruiters result in harm to students and financial losses to the taxpayers,” said Principal Deputy Assistant Attorney General Benjamin C. Mizer, head of the Justice Department’s Civil Division. “This settlement shows that by partnering productively, the federal government and the states’ Attorneys General can put a stop to this type of behavior.”
The global settlement with EDMC also resolves three additional federal FCA lawsuits in which the government did not intervene, all involving various violations of Title IV of the HEA by EDMC.
Finally, the global settlement resolves a consumer fraud investigation by a consortium of 40 state Attorneys General, into EDMC’s deceptive and misleading recruiting practices. The consumer fraud settlement requires EDMC to undertake various compliance obligations, including detailed disclosure obligations to students; prohibitions on deceptive or misleading recruiting practices and oversight by an administrator to ensure compliance.
“This civil enforcement action holds EDMC accountable for what we allege were unfair and deceptive recruitment and enrollment practices,” said Iowa Attorney General Tom Miller. “EDMC’s practices were unfair to our state’s students, and they were also unfair to our nation’s taxpayers who backed many of these federal student loans that were destined to fail. This is a rigorous agreement that not only provides some relief to a large number of former students through loan forgiveness, but helps ensure that the company will make substantial changes to its business practices for future students.”
The global settlement amount of $95.5 million reflects EDMC’s financial condition and current ability to pay. The settlement proceeds will be shared among the United States, the co-plaintiff states and the whistleblowers and their counsel in the four FCA cases, and includes funds allocated for the compliance expenses of the state consumer fraud settlement, including the costs of the administrator and the acquisition and use of a sophisticated voice analytics system to record and analyze recruiters’ calls with students. The United States will receive $52.62 million from the settlement, and will pay $11.3 million collectively to the relators in the four qui tam cases.
The FCA lawsuits were handled by Assistant U.S. Attorneys Michael A. Comber, Christy C. Wiegand, Paul E. Skirtich and Colin J. Callahan of the U.S. Attorney’s Office of the Western District of Pennsylvania, Assistant U.S. Attorney Christopher Sabis of the U.S. Attorney’s Office of the Middle District of Tennessee, and Trial Attorney Jay D. Majors of the Commercial Litigation Branch of the Civil Division of the Department of Justice, with assistance from the U.S. Department of Education’s Office of General Counsel and Office of Inspector General.
The cases are captioned United States ex rel. Washington et al. v. Education Management Corp., et al., Civ. No. 07-461 (WDPA); United States ex rel. Sobek v. Education Management Corp., et al., Civ. No. 10-0131 (WDPA); United States ex rel. Laukaitis et al. v. Education Management Corp., et al., Civ. No. 11-601 (WDPA); and United States ex rel. Rainwater v. Education Management Corp., et al., Case No. 3:12-CV-01008 (MDTN). The claims resolved by the settlement are allegations only, and there has been no determination of liability.
Federal Court Sentences California Man to 80 Months for Counterfeit Credit Card SchemeRead the Press Release
DES MOINES, IA - On November 13, 2015, Stephen Thomas, age 49, of Los Angeles, California, was sentenced by Chief District Judge John A. Jarvey to 80 months in prison for his role in leading a sophisticated counterfeit credit and debit card scheme in Iowa in February 2015, announced United States Attorney Nicholas A. Klinefeldt. Thomas was also ordered to pay restitution, to serve 3 years of supervised release following the period of imprisonment, and to pay a $300 special assessment to the Crime Victims Fund. Thomas previously pleaded guilty to the charges of conspiracy, access device fraud, and false statements to a federal official.
The investigation of this matter began as a result of a suspicious package that was delivered to a hotel in Des Moines. Law enforcement determined that the package contained counterfeit debit and credit cards that had been mailed from California to Thomas and others. Thomas and three co-defendants—Ronald Barre, Jr., Nakika Carter, and Richard Foust—left California together to execute the scheme across the Midwest. The group used counterfeit debit and credit cards to withdraw money from casinos in Minnesota and Iowa, and to purchase items at retailers. The counterfeit cards contained legitimate debit and credit card information encoded onto the strips of the back of the cards, but were embossed with the names of the defendants. 2
Thomas traveled with a California driver’s license in another person’s name, and provided a false name, date of birth, and social security number to law enforcement. At the time of his arrest, Thomas had an active arrest warrant for having escaped from federal custody.
Thomas’s co-defendants were previously sentenced for their roles in the scheme. Foust, age 58, received 24 months imprisonment; Carter, age 39, received 20 months’ imprisonment; and Barre, age 50, received 32 months’ imprisonment. All co-defendants are jointly and severally liable for restitution.
This investigation was conducted by the United States Postal Inspection Service, the United States Secret Service, the Des Moines Police Department, the Bloomington, Minnesota, Police Department, and the Iowa Department of Public Safety Division of Criminal Investigation. The case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
Federal Court Permanently Bars a Michigan and Illinois-Based Liberty Tax Service Franchisee from Preparing Federal Income Tax ReturnsRead the Press Release
The U.S. District Court for the Eastern District of Michigan has permanently barred a Liberty Tax Service franchise owner and his companies from preparing federal tax returns for others, the Justice Department announced today.
The civil injunction order prohibits Syed N. Ahmed and his companies from acting as federal tax return preparers and from owning, operating, or profiting from tax-return preparation businesses. Ahmed and his companies agreed to the entry of the injunction but did not admit the allegations in the civil complaint against them.
According to the complaint, Ahmed and his businesses operated at least 10 Liberty Tax Service franchise locations in the Detroit, Michigan, and Chicago, Illinois, areas. The complaint alleged that the defendants’ employees prepared federal income tax returns containing false information in order to illegally generate higher tax refunds or higher refundable credits for their customers. The government alleged that defendants improperly obtained inflated tax refunds and refundable credits for customers by preparing tax returns that included, among other things, false or inflated Schedule C (Profit or Loss From Business) income and expenses, bogus dependents, false filing statuses, improper education credits and false itemized deductions.
The lawsuit further alleged that the defendants’ Liberty Tax franchises prepared 17,759 federal income tax returns between 2010 and 2013. According to the complaint, defendants’ conduct cost the U.S. Treasury $2.8 million, based on audit adjustments the Internal Revenue Service (IRS) made to tax returns for 2010 to 2013 prepared and filed by Ahmed’s Liberty Tax Service franchises. The total harm to the government could be much higher, the complaint states.
Return preparer fraud is one of the IRS’s Dirty Dozen Tax Scams for 2015. The IRS has some tips on its website for choosing a tax preparer and has launched a free directory of federal tax preparers. In the past decade, the Justice Department’s Tax Division has obtained injunctions against hundreds of unscrupulous tax preparers and tax scheme promoters. Information about these cases is available on the Justice Department’s website. An alphabetical listing of persons enjoined from preparing returns and promoting tax schemes can be found on this page. If you believe that one of the enjoined persons or businesses may be violating an injunction, please contact the Tax Division with details.
El Salvadoran Men Arrested in New Mexico on Federal Cocaine Trafficking ChargesRead the Press Release
ALBUQUERQUE – Jose Remberto Guzman-Dominguez, 33, and Miguel Angel Rodriguez-Flores, 47, both of El Salvador, made their initial appearances today in federal court in Las Cruces, N.M., on a criminal complaint charging them with possession of cocaine with intent to distribute. Both men remain in federal custody pending a preliminary hearing and a detention hearing which have not yet been scheduled.
Guzman-Dominguez and Rodriguez-Flores were arrested on Nov. 14, 2015, on a criminal complaint after officers of the New Mexico Motor Transportation Police allegedly found approximately 124 pounds (56.36 kilograms) of cocaine in their tractor trailer during a routine inspection at the port of entry on Interstate 10 near Lordsburg, N.M.
If convicted of the charge in the criminal complaint, Guzman-Dominguez and Rodriguez-Flores each face a maximum statutory penalty of not less than ten years or more than life in federal prison. Charges in criminal complaints are merely accusations and defendants are presumed innocent unless found guilty in a court of law.
This case was investigated by the Border Enforcement Security Taskforce of Homeland Security Investigations, the New Mexico Motor Transportation Police and the New Mexico State Police. Assistant U.S. Attorney Renee L. Camacho of the U.S. Attorney’s Las Cruces Branch Office is prosecuting the case.
El Paso Man Arraigned in New Mexico on Federal Drug Trafficking ChargesRead the Press Release
ALBUQUERQUE – An El Paso, Texas, man was arraigned this morning in federal court in Las Cruces, N.M., on a 45-count indictment charging a total of 20 defendants with drug trafficking, money laundering and immigration offenses. During this morning’s proceedings, Pablo Alberto Arana-Delgado, 34, a naturalized citizen of the United States, entered a not guilty plea to the indictment and was ordered detained pending trial.
The indictment, which was filed on Oct. 14, 2015, alleges that Arana-Delgado and his 19 co-defendants were members of a major drug trafficking organization that imported large amounts of cocaine, marijuana and heroin from Mexico into the United States. It alleges that members of the conspiracy distributed the cocaine, marijuana and heroin in Albuquerque and other places in the United States, and smuggled drug proceeds from the United States to Mexico. According to the indictment, the conspiracy operated in Doña Ana, Luna and Bernalillo Counties from Oct. 2014 through Oct. 2015. The indictment also includes forfeiture provisions seeking a money judgment of $1,100,000, which represents the amount of money allegedly derived from the offenses charged in the indictment.
The indictment is the result of an investigation by the DEA, FBI and U.S. Border Patrol that was designated as part of the Organized Crime Drug Enforcement Task Force (OCDETF) program. The OCDETF program combines the resources and unique expertise of federal agencies, along with their local counterparts, in a coordinated effort to disrupt and dismantle major drug trafficking organizations. During the course of the investigation, law enforcement officers seized and purchased 6.2 kilograms of cocaine, 2.9 kilograms of methamphetamine, 1039.9 kilograms of marijuana and 351 grams of heroin. They also seized $267,030.00 in alleged drug proceeds and other assets valued at approximately $153,000.00.
To date, nine of the 20 defendants are in federal custody. The remaining 11 defendants are fugitives and presumed to be in Mexico.
The case was investigated by the Las Cruces offices of the DEA and FBI, and the U.S. Border Patrol. Assistant U.S. Attorneys Selesia L. Winston and Renee L. Camacho of the U.S. Attorney’s Las Cruces Branch Office are prosecuting the case.
Indictment in United States v. Estopellan-Torres, et al., 15-CR-33648-RB
Summary of the Charges
Count 1 of the Indictment charges all 20 defendants with conspiracy to distribute cocaine, marijuana and heroin in Doña Ana, Luna and Bernalillo Counties, N.M., and elsewhere between Oct. 2014 and Oct. 2015. For five of the defendants, the maximum statutory penalty for a conviction on this count is imprisonment for not less than ten years or more than life. For seven defendants, the maximum statutory penalty for a conviction on this count is imprisonment for not less than five years or more than 40 years. For eight of the defendants, the maximum statutory penalty for a conviction on this count is not more than 20 years of imprisonment.
Count 2 charges 14 of the defendants with conspiracy to launder money. The statutory penalty for a conviction on this count is imprisonment for 20 years.
Count 3 charges one defendant with distributing cocaine in Doña Ana County, N.M., on Oct. 9, 2014. The maximum statutory penalty for a conviction on this count is imprisonment for not less than five years and not more than 40 years.
Counts 4, 15, 22, 26-28, 33, 35 and 40-41 charge certain defendants with possession of marijuana with intent to distribute between Jan. 16, 2015 and Aug. 2015, in Luna and Bernalillo Counties, N.M. The maximum statutory penalty for a conviction on each of these counts is imprisonment for not more than five years.
Count 5 charges two defendants with possession of more than 500 grams of cocaine with intent to distribute on Jan. 16, 2015, in Luna County, N.M. The maximum statutory penalty for a conviction on this count is imprisonment for not less than five years or more than 40 years.
Counts 6-7, 25, 29, 31, 37, 39 and 43 charge certain defendants with using communications devices (telephone) to facilitate drug trafficking crimes. The maximum statutory penalty for a conviction on each of these counts is imprisonment for not more than four years.
Counts 8, 11-12, 14, 17-20, 23, 30, 34 and 38 charge certain defendants with international money laundering. The maximum statutory penalty for a conviction on each of these counts is imprisonment for 20 years.
Count 9 charges three defendants with possession of more than five kilograms of cocaine with intent to distribute in Bernalillo County, N.M., on Jan. 2, 2015. The maximum statutory penalty for a conviction on this count is imprisonment for not less than ten years or more than life.
Counts 10, 16 and 24 charge certain defendants with distribution of marijuana in Bernalillo County, N.M., on Feb. 2, 2015, March 27, 2015, and June 24, 2015. The maximum statutory penalty for a conviction on each of these counts is imprisonment for not more than five years.
Counts 13, 21, 32 and 36 charge certain defendants with possession of more than 50 kilograms of marijuana with intent distribute in Luna, Bernalillo and Doña Ana Counties, N.M., on Feb. 24, 2015, May 20, 2015, July 17, 2015, and Aug. 12, 2015. The maximum statutory penalty for a conviction on each of these counts is imprisonment for 20 years.
Count 42 charges two defendants with possession of more than 100 grams of heroin with intent to distribute in Bernalillo County, N.M., on Aug. 18, 2015. The maximum statutory penalty for a conviction on each of these counts is imprisonment for not less than five years or more than 40 years.
Counts 44 and 45 each charge a defendant with illegal reenter into the United States after having been deported. The maximum statutory penalty for a conviction on each of these counts is imprisonment for ten years.
Charges against Defendants
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Edgar Estoppellan-Torres, a Mexican national, is charged in Counts 1, 2, 21, 22, 23, 27, 28, 30 and 32.Estoppellan-Torres has yet to be arrested and is considered a fugitive.
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Ignacio Villalobos-Salinas, 29, a Mexican national, is charged in Counts 1 through 12 and 16 through 20. Villalobos-Salinas has yet to be arrested and is considered a fugitive.
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Angel Daniel Silva-Silva, 30, a Mexican national, is charged in Counts 1, 10, 15, and 31.Silva-Silva has yet to be arrested and is considered a fugitive.
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Rene Amaya-Rivas, 26, a Mexican national who was residing in Odessa, Texas, is charged in Counts 1, 2, 5, 8, 14 and 15.Amaya-Rivas was arrested in Oct. 2015, in Amarillo, Texas.
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Rigoberto Estoppellan-Torres, 34, a Mexican national, is charged in Counts 1 and 4.Estoppellan-Torres has yet to be arrested and is considered a fugitive.
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Jesus Muñoz-Lechuga, 35, a Mexican national, is charged in Counts 1, 2, 6, 7, 9, 11, 12, 16 through 23, 25, 27 through 32, 34 and 44.Muñoz-Lechuga has yet to be arrested and is considered a fugitive.
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Emilio Delgado-Olivas, 42, a Mexican national, is charged in Counts 1, 2, 22, 24, 25, 26, 33, 34, 37, 39, 40, 41, 42, 43 and 45. Delgado-Olivas has yet to be arrested and is considered a fugitive.
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Pablo Alberto Arana-Delgado, 34, a Mexican national who was residing in El Paso, Texas, is charged in Counts 1, 9, 21, 27, 32 and 36.Arana- Delgado was arrested on Oct. 23, 2015, and has been in federal custody since that time.
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Elier Gabriel Jaime-Castillo, 34, a Mexican national illegally present in the United States, is charged in Counts 1, 2, 20, 21, 30 and 39 through 43.Jaime-Castillo was arrested on Sept. 1, 2015, on a criminal complaint and has been in federal custody since that time.
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Amado Acevedo-Gonzalez, 35, a Mexican national illegally in the United States, is charged in Counts 1, 28 and 29. Acevedo-Gonzalez was arrested on Oct. 15, 2015, and has been in federal custody since that time.
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Mauricio Ledezma, 22, of Albuquerque, N.M., is charged in Counts 1, 2 and 8.Ledezma was arrested on Oct. 15, 2015, and has been in federal custody since that time.
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Cerbando Carbajal, 19, of Columbus, N.M., is charged in Counts 1, 2 and 14.Carbajal was arrested on Oct. 23, 2015, and has been in federal custody since that time.
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Emilia Quezada, 30, a U.S. citizen who was residing in Chihuahua, Mexico, is charged in Counts1, 2, 12, 17 through 20 and 23.Quezada was arrested on Oct. 23, 2015, and has been in federal custody since that time.
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George A. Taylor, 54, of Deming, N.M., is charged in Counts 1, 2 and 33 through 35.Taylor was arrested on was arrested on Oct. 20, 2015, and has been in federal custody since that time.
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Grisel H. Majalca, 31, of Columbus, N.M. is charged in Counts 1, 2, 37 and 38.Majalca was arrested on was arrested on Oct. 25, 2015, and is on conditions of release and under pretrial supervision.
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Jesus Gilberto Varela-Sanchez, 27, a Mexican national, is charged in Counts 1 and 15.Varela-Sanchez has yet to be arrested and is considered a fugitive.
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Leonardo Martinez-Olivas, 48, a Mexican national, is charged in Counts 1, 2 and 11. Martinez-Olivas has yet to be arrested and is considered a fugitive.
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Carlos Adrian Ortega-Acevedes, 24, a Mexican national, is charged in Counts 1, 2 and 11.Ortega-Acevedes has yet to be arrested and is considered a fugitive.
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Neftali Garcia-Torres, 19 a Mexican national, is charged in Counts 1 and 13.Garcia-Torres has yet to be arrested and is considered a fugitive.
Charges in indictments are merely accusations and defendants are presumed innocent unless found guilty beyond a reasonable doubt.
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Drug Courier Sentenced to Prison After 111 MPH Chase with Highway PatrolRead the Press Release
TOPEKA, KAN. – A drug courier who was clocked at 111 miles per hour while trying to outrun the Kansas Highway Patrol was sentenced Monday to 47 months in federal prison, U.S. Attorney Barry Grissom said.
Miguel Torres, 22, Kansas City, Mo., pleaded guilty to possession with intent to distribute methamphetamine. In his plea, Torres admitted that on March 14, 2015, a Kansas Highway Patrol trooper attempted to stop his BMW as he was driving westbound on Interstate 70 in Geary County. During the chase, the trooper measured Torres’ speed as high as 111 miles per hour. After Torres stopped, the trooper found approximately 22 pounds of methamphetamine in the truck of the car. Investigators learned that Torres was paid $6,000 to drive the drugs from Riverside Calif., to the Kansas City area.
Grissom commended the Kansas Highway Patrol, the Drug Enforcement Administration and Assistant U.S. Attorney Duston Slinkard for their work on the case.
Coastesville Woman Sentenced for Using Fake Retirment Accounts to Defraud ComcastRead the Press Release
PHILADELPHIA - Laura Wayne, 38, of Coatesville, Pennsylvania, was sentenced today to 36 months in prison for seven counts of wire fraud in connection with her embezzlement from Comcast employee retirement accounts. Wayne was an administrator of the employee retirement accounts at the Comcast Corporation when she created dummy retirement accounts and used those accounts to defraud Comcast of approximately $124,876.
From April of 2013 through January of 2014, Wayne used the names, dates of birth, and social security numbers of her family and relatives, to create what appeared to be 401(k) retirement accounts managed by Fidelity Company for the benefit of Comcast employees. She used her access to Comcast records to fraudulently fund each account for the maximum amount allowed by law and to obtain the matching funds from Comcast. She then created fake user names and passwords to transfer all of the money in the dummy Fidelity accounts to her personal bank accounts. When she was caught, she lied to both Comcast and an FBI agent and falsely claimed that she had paid the money back.
In addition to the prison term, U.S. District Court Judge Wendy Beetlestone ordered restitution in the amount of $124,876, three years of supervised release, restitution, and a $700 special assessment.
The case was investigated by the Federal Bureau of Investigation and was prosecuted by Assistant United States Attorney Laurie Magid.
Centralia Woman Sentenced for Drug ConspiracyRead the Press Release
Stephen R. Wigginton, United States Attorney for the Southern District of Illinois, announced that Sara Rose Davis, 34, of Centralia, Illinois, was sentenced on November 13, 2015, to 4 years in federal prison, 4 years’ supervised release, a $200 fine, and a $100 special assessment following her guilty plea in May to Conspiracy to Manufacture and Distribute Methamphetamine in violation of federal law. The offense took place in Marion and Clinton Counties. Supervised release follows service of the term of imprisonment. There is no parole in the federal system.
Court documents establish that at least from the summer of 2012, through and including October 2, 2014, Davis obtain the ingredients necessary to manufacture methamphetamine, including pseudoephedrine tablets, and provided them to others to use in the manufacture of methamphetamine.
Information leading to the charge against Davis and 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.
Buffalo Man Pleads Guilty to Gun ChargeRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051
BUFFALO, N.Y.-U.S. Attorney William J. Hochul Jr. announced today that Filip Caruso, 50, of Buffalo, NY, pleaded guilty to being a felon in possession of a firearm before U.S. District Judge Richard J. Arcara. The charge carries a maximum penalty of 10 years in prison and a $250,000 fine.Assistant U.S. Attorneys Caleb J. Petzoldt and George C. Burgasser, who are handling the case, stated that on February 25, 2014, a vehicle being driven by the defendant was stopped on South Division St. in the City of Buffalo. As he was being pulled over, Caruso handed a fully loaded .32 caliber revolver to a passenger riding in the car to evade detection. Officers noticed the defendant was wearing a holster which would fit the handgun. Caruso then asked the passenger to lie to a Federal Grand Jury about his possession of the revolver.
The plea comes as jury selection was about to begin in the defendant’s trial.
The plea is the result of an investigation by the Federal Bureau of Investigation Safe Streets Task Force, under the direction Special Agent in Charge Adam S. Cohen and the Buffalo Police Department, under the direction of Commissioner Daniel Derenda. The task force includes representatives of the Amherst Police Department; the Buffalo Police Department; U.S. Border Patrol, the Bureau of Alcohol, Tobacco, Firearms, and Explosives; the Cheektowaga Police Department; the Erie County Sheriff’s Department; the Hamburg Police Department; the Lancaster Police Department; the Niagara Frontier Transportation Authority Police; the New York State Department of Correctional Services; the New York State Police; and U.S. Immigration and Customs Enforcement, Homeland Security Investigations.
Sentencing is scheduled for February 22, 2016 at 12:30 p.m. before Judge Arcara.
Brooklyn, New York, Man Sentenced to Four Years in Prison for Traveling to New Jersey to Violently Extort Divorce Consent from Recalcitrant HusbandRead the Press Release
TRENTON, N.J. – A Brooklyn, New York, man was sentenced today to 48 months in prison for crossing state lines as part of a plan to violently coerce a recalcitrant husband to grant his wife a religious divorce, U.S. Attorney Paul J. Fishman announced.
Moshe Goldstein, 32, previously pleaded guilty before U.S. District Judge Freda L. Wolfson to an information charging him with traveling in interstate commerce to commit extortion. Judge Wolfson imposed the sentence today in Trenton federal court.
According to documents filed in this case and statements made in court:
On Oct. 9, 2013, Moshe Goldstein and a group of conspirators – including his brother Avrohom Goldstein, 36, his father, Jay Goldstein, 61, David Hellman, 33, Simcha Bulmash, 32, Binyamin Stimler, 40, Sholom Shuchat, 31, all of Brooklyn, and Ariel Potash, 42, of Monsey, New York – traveled from New York to a warehouse in Edison, New Jersey, with the intent of forcing a Jewish husband to give his wife a “get,” a document which, according to Jewish Law, must be presented by a husband to his wife to effect their divorce.
During his plea hearing, Moshe Goldstein admitted that when he and the other conspirators arrived at the warehouse, they met with an individual who, unbeknownst to them, was an undercover FBI agent posing as the “husband’s” brother in law. They discussed a plan and prepared to confine, restrain and threaten the victim.
The group was then arrested by a team of FBI agents and charged by criminal complaint – along with rabbis Mendel Epstein, 70, of Lakewood, New Jersey, and Martin Wolmark, 57, of Monsey – in connection with the scheme.
Moshe Goldstein also admitted that on Aug. 22, 2011, he and others went to a residence in Brooklyn where they restrained, assaulted and injured another recalcitrant husband and his roommate in an attempt to extort a divorce from the husband.
In addition to the prison term, Judge Wolfson sentenced Moshe Goldstein to serve two years of supervised release.
Avrohom Goldstein, Hellman, Bulmash, Potash and Shuchat each pleaded guilty to one count of traveling in interstate commerce to commit extortion. Hellman and Bulmash are scheduled for sentencing on Nov. 17, 2015. Avrohom Goldstein, Potash and Shuchat are scheduled for sentencing Nov. 19, 2015. Wolmark, who pleaded guilty to conspiracy to travel in interstate commerce to commit extortion, is scheduled for sentencing on Dec. 14, 2015.
Epstein, Jay Goldstein and Stimler were all convicted at trial on April 21, 2015. Epstein, who was convicted of conspiracy to commit kidnapping, is scheduled for sentencing on Dec. 15, 2015. Stimler and Jay Goldstein, both convicted of conspiracy to commit kidnapping and attempted kidnapping, are scheduled for sentencing on Dec. 15, 2015 and Dec. 16, 2015, respectively.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Richard M. Frankel in Newark, for the investigation leading to today’s sentencing. He also thanked the Lakewood, New Jersey, Police Department for its role.
The government is represented by Assistant U.S. Attorneys R. Joseph Gribko and Sarah Wolfe of the U.S. Attorney’s Office in Trenton.
Defense counsel: Roger Stavis Esq., New York
Boone County man pleads guilty in Federal court to illegally possessing a firearmRead the Press Release
CHARLESTON, W.Va. – United States Attorney Booth Goodwin announced today that Blain Salmons, Jr., 40, of Alum Creek, West Virginia, entered a guilty plea in federal court in Charleston to being a felon in possession of a firearm. On October 29, 2015, Salmons was arrested by the Boone County Sheriff’s Department. At the time of his arrest, police determined that Salmons had been hunting out of season and was in possession of a Glenfield Model 30A, 30-30 rifle. Salmons was prohibited from possessing any firearm under federal law because of a 1997 felony conviction in Kanawha County Circuit Court for kidnapping and aggravated robbery.
Salmons faces up to ten years in federal prison and a fine of up to $250,000 when he is sentenced on February 29, 2016.
This case was investigated by the Boone County Sheriff’s Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant United States Attorney Timothy D. Boggess is in charge of the prosecution.
The prosecution is part of Project Safe Neighborhoods. Project Safe Neighborhoods is a nationwide commitment to reduce gun crime in the United States by working with existing local programs that target gun crime.
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Baltimore Woman Admits to Arranging a Murder-For-HireRead the Press Release
Baltimore, Maryland – Maria Felix-Pichardo, age 25, of Baltimore, pleaded guilty today to use of an interstate commerce facility in the commission of a murder-for-hire.
The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein and Special Agent in Charge William P. McMullan of the Bureau of Alcohol, Tobacco, Firearms and Explosives - Baltimore Field Division (ATF).
According to her plea agreement, in May 2015 Feliz-Pichardo contacted a confidential informant (CI) working for ATF and asked the CI to find someone who would kill the wife of her baby's father. The CI said he could refer Feliz to a professional killer, and subsequently introduced Feliz-Pichardo to an undercover ATF agent (UC) posing as the purported “hitman.”
Between June and July 2015, Feliz-Pichardo and the UC communicated via cellphone and text message about the planned murder and met in-person several times at locations in Baltimore City. During these meetings, Feliz-Pichardo promised to pay the UC $2,000 to murder the intended victim, and provided the victim’s address and license plate number. Feliz-Pichardo also provided a picture of the victim and suggested how the murder should be committed. Each of these meetings was arranged by cellphone and text messaging. Feliz-Pichardo also used her cellphone to research the victim on social media sites and to provide the pictures of the victim to the UC.
On July 13, 2015, Feliz-Pichardo met the UC, provided $700 to commit the murder and promised to provide an additional $1,300 once the murder was complete. Feliz-Pichardo was then arrested and subsequently interviewed. During that interview, Feliz-Pichardo admitted to contracting the UC to kill the intended victim.
Felix-Pichardo faces a maximum sentence of 10 years in prison. U.S. District Judge James K. Bredar has scheduled sentencing for February 18, 2016.
United States Attorney Rod J. Rosenstein commended ATF and thanked Assistant U.S. Attorney Clinton J. Fuchs, who is prosecuting the case.
Another Member of Centralia Meth Conspiracy SentencedRead the Press Release
Stephen R. Wigginton, United States Attorney for the Southern District of Illinois, announced that Michael A. Flanagan, 43, of Centralia, Illinois, was sentenced today for his role in a Conspiracy to Manufacture and Distribute Methamphetamine in Clinton and Marion Counties. Flanagan was sentenced to 110 months in federal prison, to be followed by 4 years of supervised release, a $200 fine, and a $100 special assessment. There is no parole in the federal system.
Flanagan plead guilty to the charges on July 31, 2015. Flanagan has been in custody since his arrest on January 6, 2015. Also charged in the Conspiracy were Dusty Jo Gambill, James Perry Horton, David Leroy Altom, Jayme Lee Barnes and Kathy Sue Tomes. Horton, Altom, and Tomes have pleaded guilty and are awaiting sentencing. Barnes and Gambill were previously sentenced for their roles in the conspiracy.
Information leading to the charges against Flanagan 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.
28 Charged in $9.5 Million Fraudulent Billing Health Care Fraud Scheme to Siphon and Steal Money from Workers' Compensation ProgramRead the Press Release
DALLAS — Twenty-eight defendants, from the Dallas-Fort Worth metroplex, have been charged with various crimes related to their roles in a massive health care fraud scheme that involved bribes, unnecessary medical treatment, fraudulent billing, and the falsification of medical documents to fraudulently bill the federal government, through the Department of Labor’s (DOL) Office of Worker Compensation Programs (OWCP), more than $9.5 million. U.S. Attorney John Parker of the Northern District of Texas made the announcement today.
The criminal felony Information filed today charges 21 claimants, four doctors or medical providers, a senior claims examiner at DOL, a claims representative, and a medical provider’s employee in the scheme. Signed plea papers were filed today for each of the 28 defendants indicating their intent to plead guilty. Arraignment dates have not yet been set for those pleas.
“These charges are the result of a two-year investigation led by special agents with the U.S. Postal Service Office of Inspector General and the Department of Labor Office of Inspector General,” said U.S. Attorney Parker. “Their dogged determination and skilled investigative techniques were crucial in exposing and dissecting this sprawling corruption scheme. This office will continue to vigorously pursue those who fraudulently obtain benefits at the expense of those who have a legitimate need.”
According to the filed Information and plea papers, the 28 below-listed defendants, and others yet uncharged, engaged in a complex and sprawling health care fraud scheme designed to improperly siphon and steal money from DOL’s OWCP:
Larry Washington, 63, of Desoto
Dr. Robert Mandell, 72, of Plano
Ifeyani “Tim” Egbuchunam, 60, of Plano
Henrietta Price, 51, of Cedar Hill
David Banda, 33, of Duncanville
Willie Atkins, 71, of Lancaster
Perry Rowell, 55, of Garland
McArthur Baker, 68, of Dallas
Doris Berry, 52, of Dallas
Byron Bonds, 43, of Mesquite
Michael Bowen, 58, of Dallas
Patricia Brown, 62, of Benbrook
Calandra Cumby, 44, of Dallas
Tonya Evans, 51, of Dallas
Darrell Glasco, 50, of Dallas
Regina Howard, 61, of Desoto
Willard Johnson, 64, of Desoto
Palante McClain, 47, of Cedar Hill
Rhonda McCoy, 47, of Arlington
Vontril McClemore, 61, of Carrollton
Regina Mitchell, 58, of Dallas
Wanda Proctor, 62, of Duncanville
Rhonda Sanders, 50, of Dallas
Clarinda Scott, 56, of Arlington
Patricia Skinner, 59, of Desoto
Janyce Ingram, 53, of Desoto
Brenda Hall, 65, of Dallas
Cassandra Sims, 60, of Dallas
In total, the defendants were able to collectively fraudulently bill the federal government through the OWCP for more than $9.5 million and receive more than $8.7 million in government payments based on their fraudulent billing. The DOL made approximately $11.4 million in payments to these claimants for their compensation and medical services. As a result of the guilty pleas associated with the Information, the government anticipates that it will prevent the payment of an estimated $11 million in future payments to the claimant defendants.
The scheme began with former or current government employees – U.S. postal employees or Veterans Affairs (VA) employees – who claimed that they had been injured during the course of their work duties. Each of these claimants claimed they had suffered an on-the-job injury, ranging from strains to trigeminal neuralgia, which prevented them from returning from work.
Under OWCP, these “claimants” could receive workers’ compensation payments (typically between 66% and 75% of pre-disability wages, tax free) and paid medical treatment, if a qualified doctor deemed the medical services necessary to treat the injury and if the injury prevented the claimant from working.
A DOL claims examiner would review the claim and its documentation, and either approve or reject the claim. In certain circumstances, if an on-the-job injury caused permanent damage, a claimant could have received a “scheduled award” – that is, a lump sum payment meant to compensate that individual for their injury. These awards often amounted to several hundred thousand dollars. Claimants often sought the help of professionals, typically former DOL claims examiners in filing their claims and in getting their claims approved. These “claims representatives” either charged claimants a percentage of any paid claim or a flat rate fee. When doctors or other medical providers treated the claimants, they could bill OWCP for their work if they submitted the proper documentation and certification.
Larry Washington was a licensed professional counselor and ran businesses known as AAA Mental Health, LLC, Mind Spa, Inc., Solutions Health and Rehabilitation, and Convergence Emergence Diversion. Through these businesses, Washington purportedly provided patients with counseling, pain management, chiropractic services, physical therapy and massage services. He sought out and recruited his patients who were former postal and VA employees who had suffered on-the-job injuries that prevented them from returning to work. Washington knew that even though these individuals had once suffered a work-related injury, their injuries were not severe enough to warrant continued OWCP payments.
Washington also billed for services that he allegedly provided to patients in Dallas when he was traveling and not even present in Dallas. He also billed for services he allegedly provided to patients while he was in the hospital during that time for his own medical treatment. Washington also asked claimants to falsify medical documentation, indicating they had received services on days when, in fact, they had not. Upon completion and submission of the forms, the claimants received $100 for each of the forms they completed.
Dr. Robert Mandell was a licensed psychologist with more than 35 years of experience in treating patients. He is also the President, CEO, Clinical Director, and part owner of AAA Mental Health, LLC, which maintained offices in Richardson, Texas. He prepared fraudulent psychological reports to be submitted to OWCP. These psychological reports were crucial to the scheme because for claimants to receive the proper upgrades and certifications, they needed a diagnosis and certification related to their mental state as it related to their physical injury. In many, the alleged mental aspect of the injury is what caused a lengthy delay to return to work.
Henrietta Price and Willie J. Atkins were licensed professional counselors and provided counseling services at Mind Spa, Inc. Price also treated patients under her own company, Lifeline Counseling. Atkins ran his own practice, Atkins Counseling Center.
Perry Rowell was a Senior Claims Examiner at the OWCP. With more than 22 years of federal government service, Rowell was assigned to the Dallas District Office. For years, he accepted monthly cash bribes, totaling $24,000, from Ifeanyi “Tim” Egbuchunam, a former DOL claims examiner who represented claimants before the OWCP. In return, Rowell expedited payments and decisions and immediately responded to Egbuchunam’s telephone calls about technical case status questions.
Defendant David Banda worked at Mind Spa, Inc. in February 2009 and served as an office administrator and biller for Washington’s businesses; he reported directly to Washington.
Washington, Mandell, Price, Banda and Atkins are each charged with one count of conspiracy to commit health care fraud. That offense, upon conviction, carries a maximum statutory penalty of 10 years in federal prison and a $250,000 fine.
Egbuchunam is charged with one count of bribery of a public official. That offense, upon conviction, carries a maximum statutory penalty of 15 years in federal prison and a $250,000 fine.
Rowell is charged with one count of bribery received by a public official. That offense, upon conviction, carries a maximum statutory penalty of 15 years in federal prison and a $250,000 fine.
Baker, Berry, Bonds, Bowen, Brown, Cumby, Evans, Glasco, Howard, Johnson, McClain, McCoy, McClemore, Mitchell, Proctor, Sanders, Scott, Skinner, Ingram, Hall and Sims are also each charged with making a false statement or fraud to obtain federal employees’ compensation. That offense, upon conviction, carries a maximum statutory penalty of one year in federal prison and a $250,000 fine.
The investigation was led by the U.S. Postal Service Office of Inspector General, and the Department of Labor Office of Inspector General, with assistance from Internal Revenue Service Criminal Investigation, U.S. Treasury Office of Inspector General, Social Security Administration Office of Inspector General/Cooperative Disability Investigations Unit, and the U.S. Department of Veterans Affairs Office of Inspector General.
Assistant U.S. Attorney P.J. Meitl and Special Assistant U.S. Attorneys Jennifer Bray and Nicola Dana are in charge of the prosecution.
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13 Individuals Charged with Drug Trafficking in the Municipalities of Aguadilla and QuebradillasRead the Press Release
SAN JUAN, Puerto Rico – On November 12, 2015, a federal grand jury in the District of Puerto Rico returned an indictment charging 13 individuals with conspiracy to possess with intent to distribute controlled substances, announced Rosa Emilia Rodríguez-Vélez, United States Attorney for the District of Puerto Rico. The Drug Enforcement Administration and the Puerto Rico Police Department (PRPD), Aguadilla Strike Force, are in charge of the investigation with the collaboration of the FBI.
The indictment alleges that beginning in 2009, the organization distributed heroin, crack, cocaine, and marihuana within 1,000 feet of a real property comprising the Cuesta Vieja Public Housing Project in Aguadilla and the Guarionex Public Housing Project in Quebradillas, all for financial gain and profit.
The 13 defendants are: Ariel Echevarría-Irizarry, aka “Gongo;” Ángel Ramón Serrano-Carmona, aka “Buggy;” Natanael Gómez-Willis, aka “Naty;” Pedro Bonilla-Espinosa, aka “Peter;” Jorge L. Soberal-Mercado, aka “Soberal;” Luis O. Rivera-Méndez, aka “Coco;” Mariela González-Román; Christian Jonás Acevedo-Román, aka “Pirata;” Waleska T. De Jesús, aka “Wally;” José Colón De Jesús, aka “Gandul;” Xiomara Mendoza-Canaca, aka “Xiomy;” Raymond Vega-Flores, aka “Kile;” and Walter Ferrer-Merrit.
The 13 defendants acted in different roles in order to further the goals of their organizations, to wit: leaders, drug point owners, suppliers, runners, enforcers, sellers, facilitators, and look-outs. Some defendants possessed firearms to protect the members of the drug trafficking organizations, the narcotics, the proceeds derived from the sales, and to further accomplish the goals of the conspiracies. Some of the defendants and their co-conspirators would tattoo themselves and wear clothing items with the logo of the organization.
Assistant U.S. Attorney María L. Montañez is in charge of the prosecution of the case. If convicted the defendants face a minimum sentence of 10 years, and up to life in prison. Indictments contain only charges and are not evidence of guilt. Defendants are presumed to be innocent until and unless proven guilty.
13 November 2015
Woman Sentenced to Time Served for Illegally Re-Entering the United States from MexicoRead the Press Release
A woman who used false identification documents to obtain employment was sentenced on November 9, 2015, to time served.
Ostolia Collazo-Pena, age 43, from Mexico, received the prison term after a September 1, 2015, guilty plea to one count of fraud and misuse of visas, permits, and other documents.
In a plea agreement, Collazo-Pena admitted she presented a fraudulent Green Card and Social Security Card to apply for a job in Sioux City, Iowa, on June 11, 2014. Collazo-Pena came to the attention of authorities when the victim whose social security number Collazo-Pena had been using alerted the Social Security Administration that her disability social security payments for her two disabled children had been disrupted.
Collazo-Pena was sentenced in Sioux City by United States District Court Judge Mark W. Bennett. Collazo-Pena was sentenced to time served. She must serve a 1-year term of supervised release. There is no parole in the federal system.
The case was prosecuted by Assistant United States Attorney Kevin C. Fletcher and investigated by the Office of the Inspector General, Social Security Administration and Homeland Security Investigations.
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is 15-CR-4002.
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Westbank Gang Members Plead GuiltyRead the Press Release
U.S. Attorney Kenneth A. Polite announced that GLEN HOUSTON, age 22; SAVANNAH HOUSTON, age 25; JARRIN HARRIS, age 21; DENVER LONDON, age 22; JOESIA WILSON, age 27, and BRITTANY CONNER, age 22, all of the Harvey/Marrero area, pled guilty today to various charges, including conspiring to distribute more than 280 grams of crack cocaine, as well as conspiracy to possess firearms in furtherance of drug trafficking.
According to court documents, all defendants were members and/or associates of the “Harvey Hustlers” gang. The Harvey Hustlers gang has been under investigation by the Federal Bureau of Investigation (“FBI”) and the Jefferson Parish Sheriff’s Office (“JPSO”) since 2009. The Harvey Hustlers operated in the Eastern District of Louisiana, primarily on the Westbank of Jefferson Parish, including in the Harvey, Scottsdale, Avondale, and Waggaman areas. Other members of the Harvey Hustlers have previously been indicted and convicted in the United District Court for the Eastern District of Louisiana in United States v. Melvin Hudson, et al., 10-329, “F,” and United States v. Harry Smoot, et al., 14-168, “I.”
All defendants pled guilty to Count 1 of the Indictment which charges participating in a conspiracy to possess with intent to distribute 280 grams or more of cocaine base (“crack cocaine”), in violation of Title 21, United States Code, Sections 841(b)(1)(A) and 846. The maximum penalties for this offense are a minimum sentence of 10 years in prison and a maximum of life imprisonment and/or a maximum fine of $10,000,000. Additionally, defendants GLEN HOUSTON, SAVANNAH HOUSTON, JARRIN HARRIS, DENVER LONDON, and JOESIA WILSON pled guilty to Count 2 of the indictment, participating in a conspiracy to use and carry, and possess firearms in furtherance of the drug conspiracy, in violation of Title 18, United States Code, Section 924(o). The maximum penalties for this offense are 20 years in prison and/or a maximum fine of $250,000. All defendants are also subject to serve a term of supervised release upon completion of their sentences.
U.S. District Judge Jane Triche Milazzo set sentencing for all six defendants on February 18, 2015.
This case was prosecuted by Assistant United States Attorney Myles Ranier and is the product of an ongoing investigation into the violent acts in furtherance of the drug trafficking by the Harvey Hustler gang and its various offshoots on the West Bank of Jefferson Parish. It represents the continued coordinated effort of the federal and state law enforcement authorities within the Multi-Agency Gang Unit (“MAG”), including the United States Attorney’s Office, the Jefferson Parish District Attorney’s Office, Special Agents of the Federal Bureau of Investigation, and officers of the Jefferson Parish Sheriff’s Office.
Watertown Man Sentenced to 130 Months in Prison for Armed RobberyRead the Press Release
SYRACUSE, NEW YORK – Robert A. Williams, 24, of Watertown, NY, was sentenced yesterday to serve 130 months imprisonment followed by 5 years of supervised release in connection with the armed robbery of a convenience store in Watertown, announced U.S. Attorney Richard S. Hartunian. On July 8, 2014 Williams pled guilty in U.S. District Court to using and carrying a sawed-off shotgun during and in relation to a crime of violence, and being a felon in possession of firearms and ammunition.
In July 2013, Robert Williams and Robert Mono stole four shotguns, a rifle, and ammunition from a residence in Lewis County. Williams and Mono used a hacksaw to cut down the barrels and stocks of the four shotguns. On July 31, 2013, Williams and Yarbrough Latulas entered a Sunoco located at 1222 Washington Street, Watertown, New York where WILLIAMS pointed one of the stolen sawed-off 12 gauge shotguns at the store clerk and stated “give me your money.” The clerk then opened the cash register and handed over $513.00 in cash. Yarbrough Latulas stole $395.00 in tobacco products from behind the counter and instructed the clerk to get on the floor.
Yarbrough Latulas was convicted after trial in U.S. District Court for interference with interstate commerce by robbery, and using and carrying a sawed-off shotgun during and in relation to a crime of violence. He was sentenced on November 5, 2015 to eighteen years in prison. Robert Mono pled guilty in U.S. District Court to being a felon in possession of firearms and ammunition and was sentenced on October 14, 2015 to nine years in prison.
This prosecution resulted from an investigation conducted by the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives, Syracuse, New York, the Watertown Police Department and the Metro-Jefferson Drug Task Force. The case was prosecuted by Assistant United States Attorneys Ransom P. Reynolds and Nicolas Commandeur.Washington, DC Man Sentenced to 15 Years in Prison for Carjacking of a Pregnant Annapolis WomanRead the Press Release
Baltimore, Maryland – U.S. District Judge J. Frederick Motz sentenced Cornell Louis Robinson, age 44, of Washington, D.C., today to 15 years in prison followed by three years of supervised release for charges related to the armed carjacking of a couple who were about to enter their vehicle to go to the hospital because the woman was in labor. A federal jury convicted Robinson on July 29, 2015.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Kevin Perkins of the Federal Bureau of Investigation; Annapolis Police Chief Michael A. Pristoop; and Anne Arundel County State’s Attorney Wes Adams.
According to evidence presented during Robinson’s three-day trial, on March 2, 2014, at approximately 4:30 a.m. Robinson, co-defendant Devery Kelley, and others approached two individuals on Copeland Street in Annapolis, Maryland, as they were getting into their car. The victims were planning to go to the hospital because the woman was in labor. The male victim fled from the car and called the police. Witnesses testified that Robinson and Kelley were both armed and forced the woman at gunpoint to accompany them to an apartment building nearby, demanding money. The woman repeatedly told them that she was in labor and did not have the key to the apartment, only the car key. Robinson and other robbers took her, continuing to hold her at gun point, and tried to get her to open an apartment. The victim again told the robbers that she did not have a key to the apartment. When it became clear that she could not get into the apartment, Robinson took the key to the car and left in the victim’s car.
The robbers, driving the stolen car, were followed by officers from the Annapolis Police Department. Witnesses testified that at the corner of Tyler Avenue and Hilltop Lane a handgun was thrown out of the window of the car, but was recovered by police. On Tyler Avenue Robinson and Kelly both got of the car and ran away, but were arrested nearby.
Deverey Hasani-Jarod Kelley, age 25, of Glen Burnie, Maryland, pleaded guilty to his role in the crime and was sentenced to five years in prison.
United States Attorney Rod J. Rosenstein commended the FBI, Annapolis Police Department, and Anne Arundel County State’s Attorney’s Office for their work in the investigation and prosecution. Mr. Rosenstein thanked Assistant U.S. Attorneys Bonnie S. Greenberg and Patricia C. McLane, who prosecuted the case.
Washington, D.C. Area Saxophonist Sentenced for Defrauding Montana CharityRead the Press Release
MISSOULA – Donald “Ski” Johnson, 49, of Silver Spring, Maryland, was sentenced yesterday to five years of probation, with six months spent under house arrest, for wire fraud. In July, a jury convicted Johnson following a two-day federal trial in Butte, Montana and determined that Johnson had defrauded Big Brothers Big Sisters of Gallatin County, Montana, by misrepresenting himself as a Grammy-nominated artist soliciting funds for a children’s cancer foundation. In reality, Johnson was never nominated for a Grammy and used money in the foundation’s account for his personal expenses. Chief U.S. District Court Judge Dana L. Christensen issued the sentence.
At trial, Assistant United States Attorney Chad C. Spraker presented evidence that in May 2012, Johnson contacted a large Montana resort using the alias Kevin Wright. The resort was partnering with Big Brother Big Sisters to put on a charity celebrity golf tournament. “Wright” claimed he was a Sony Records representative and an agent of Grammy-nominated saxophonist Ski Johnson. He also claimed that Johnson ran a charity known as the Jazz for Life Foundation, a children’s cancer charity. “Wright” stated that Johnson would donate two Grammy tickets to Big Brothers Big Sisters with one half of the proceeds going to Big Brothers Big Sisters and the other half going to Jazz for Life. Grammy tickets may not be transferred or resold, and Grammy tickets provide that tickets obtained in contravention of their terms will not be honored, and their holders shall be deemed trespassers. Big Brothers Big Sisters paid for Johnson and his associate’s travel expenses, lodging, food, and green fees. Big Brothers Big Sisters held the tournament in July 2012 and auctioned the tickets for a bid of $6,000. Big Brothers Big Sisters stopped the transaction after learning of Johnson’s true identity.
In making its sentencing recommendations, the United States noted that Johnson had perpetrated similar frauds previously between 2011 and 2014. In one instance he organized a black-tie charity gala and promised the attendance of numerous celebrities, none of whom had ever committed to attend. Johnson ultimately canceled the event, but not before the PayPal account associated with Jazz for Life had received nearly $14,000 in proceeds. Johnson also used the approach he employed with Big Brothers Big Sisters on many other occasions. The United States urged the court to consider the losses associated with these frauds in its sentencing determination and argued that they were perpetrated as part of a common scheme. The United States pointed out that of the $120,000 deposited in the Jazz for Life Account between July 2012 and December 2013, only $20 was actually contributed to a charity. The United States also argued that losses included tens of thousands dollars expended by various charities on Johnson and his associates for travel expenses and other perks as a result of Johnson’s false representations.
Assistant U.S. Attorney Chad C. Spraker prosecuted the case, which was investigated by the Federal Bureau of Investigation and the Internal Revenue Service.
Washington Park Man Sentenced for Firearm OffenseRead the Press Release
The United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today that Devonte T. Franklin, 22, of Washington Park, Illinois, was sentenced in federal district court on November 10, 2015 to 30 months in prison, to be followed by two years of supervised release, a $150 fine, and a $100 special assessment, for unlawful possession of a firearm by a previously convicted felon.
Court proceedings revealed that on June 5, 2014, law enforcement officers conducted a traffic stop and observed the occupants not wearing their seat belts. Officers asked all passengers if guns were in the car, with no response from Franklin, who was in the back seat behind the driver. A search of Franklin subsequently revealed a Tec-22 semi-automatic pistol in Franklin’s front waistband. The firearm was loaded with one round in the chamber and had a large capacity magazine with the ability to hold thirty rounds.
This investigation was conducted by the Metropolitan Enforcement Group of Southwestern Illinois (MEGSI) and was prosecuted by Assistant United States Attorney Jonathan Drucker.
Washington Man Sentenced on Drug and Prostitution ChargesRead the Press Release
MISSOULA – Frederick Glen Johnson, 47, of Spokane Valley, Washington, was sentenced today in Missoula federal court for drug and prostitution-related racketeering crimes. In June, Johnson pleaded guilty to one count of conspiracy to possess with the intent to distribute methamphetamine and heroin and one count of interstate travel in aid of racketeering before U.S. Magistrate Judge Jeremiah Lynch. Chief U.S. District Court Judge Dana Christensen Sentenced Johnson to 120 months in prison on the conspiracy to distribute charge and 60 months on the racketeering charge. The sentences will run concurrently. Following his release, Johnson will be subject to five years of supervised release for the drug charge and three years for the racketeering charge, also to run concurrently.
In an offer of proof filed by Assistant U.S. Attorney Cyndee Peterson, the government stated that if the case had proceeded to trial, the government would have demonstrated that between February and November of 2014, Johnson possessed and entered into an agreement with co-conspirators to distribute 50 grams or more of methamphetamine and 100 grams or more of heroin. During these transactions, Johnson brandished a .25 caliber semi-automatic handgun. In addition, between June and August of 2014, Johnson traveled in interstate commerce with the intent to promote, manage, establish, carry on or facilitate prostitution. The government was prepared to prove that during this time period, Johnson traveled between Spokane, Washington, and Missoula, Montana, with five women. While in Missoula, Johnson drove the women to meet customers and would ensure their safety during the meetings, in order to facilitate the crime of prostitution. Johnson is the third of four co-conspirators to be sentenced in this prostitution and drug-running operation.
This case was prosecuted by Assistant U.S. Attorney Cyndee Peterson and investigated by the Federal Bureau of Investigation, Montana Violent Crime Task Force, Missoula Street Crimes Unit, Drug Enforcement Administration, and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Veterans’ Cemetery Worker Ordered to Serve Veterans, Probation for Stealing GravestonesRead the Press Release
PROVIDENCE, R.I. – Kevin Maynard, 59, of Charlestown, R.I., a former employee at the Rhode Island Veteran’s Memorial Cemetery in Exeter, was ordered today to perform 200 hours of community service in the service of veterans as part of his sentence of 12 months’ probation for stealing granite gravestones and other items from the Veterans’ Memorial Cemetery, announced United States Attorney Peter F. Neronha; Jeffrey Hughes, Special Agent in Charge, Department of Veterans Affairs, Office of Inspector General (VA OIG), Northeast Field Office; and Colonel Steven G. O’Donnell, Superintendent of the Rhode Island State Police.
The sentence was imposed by U.S. District Court Chief Judge William E. Smith. Maynard pleaded guilty on July 28, 2015, to theft of government property.
According to court documents, over a lengthy period of time, Maynard removed worn or broken grave markers from the cemetery and brought them to his Charlestown residence. On April 23, 2015, a VA-OIG agent and a Rhode Island State Police detective accompanied Maynard to his home where investigators discovered at least 150 veterans’ grave markers being used as flooring for a shed and two make-shift garages. Investigators also located additional markers on the property and a box of American flags belonging to the Veterans’ Cemetery.
According to Government regulations, all Government-furnished headstones/markers/ medallions remain the property of the United States Government in perpetuity and that the “destruction, mutilation, defacement, injury, or removal of any monument, gravestone, or other structure within the limits of any national cemetery is prohibited.”
The case was prosecuted by Assistant U.S. Attorney John P. McAdams.
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Contact:
Jim Martin (401) 709-5357
email: [email protected]
on Twitter @USAO_RI
U.S. Attorney’s Office Adopts New Policy Aimed at Seeking Greater Penalties in Prosecution of Heroin CasesRead the Press Release
HARRISBURG – The United States Attorney’s Office for the Middle District of Pennsylvania today announced a new policy for bringing more severe charges against persons who distribute heroin in Central Pennsylvania and for tougher sentencing recommendations by federal prosecutors in heroin cases.
U.S. Attorney Peter Smith said that, “heroin today is not a life style or a business – it is a killer. The steep increase in heroin trafficking and the alarming rise in deaths due to heroin overdoses, particularly in young people, are a state-wide and national problem, but also a deep personal tragedy for many families. Much of what must be done will be through education, additional funding, medical help, counseling and rehabilitation. But those who sell or otherwise put heroin in the hands of others, are knowingly dealing in possible death or serious harm to users and should pay heavily for their greed and callous indifference. The new policy is intended to emphasize that point.”
The guidance to Assistant U.S. Attorneys in the District’s three offices (Harrisburg, Scranton and Williamsport) for heroin cases includes the following:
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In heroin cases, all available charges should be considered.In addition to charges under the Controlled Substance laws and firearms charges, particular attention should be paid to statutes relating to continuing criminal enterprises; maintaining drug-involved premises; endangering human life while illegally manufacturing controlled substances; distribution to persons under age 21; distribution or manufacturing in or near schools and colleges and employing children to distribute drugs near schools or playgrounds and other prohibited places; and employment or use of persons under 18 years of age in drug operations.
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Money laundering charges and forfeiture allegations should be part of all charges where there is evidence of substantial proceeds from the illegal activity and/or assets that can be seized and forfeited.
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Many heroin cases involve defendants with ties to large-scale drug trafficking organizations, gangs, or cartels.Many defendants in heroin cases are leaders, organizers, managers, or supervisors of others within an organization.Other defendants have significant criminal histories or use violence, weapons, and minors in the operation of their business.These factors indicate that a drug weight should be charged that will trigger a mandatory minimum sentence when a reasonable argument can be made that it applies.
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The evidence must be analyzed as to each defendant individually.A defendant is responsible for drugs involved in his own activities or those he encouraged others to undertake.A defendant is also responsible for drugs involved in the activities of co-conspirators if those acts are "reasonably foreseeable."We will charge defendants in heroin cases accordingly when the argument can be made that reasonable foreseeability applies to the scope of that particular defendant’s responsibility.
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Repeat offenders, particularly those involved in heroin trafficking, are appropriate candidates for sanctions which generally double any applicable mandatory minimum sentence.When a defendant involved in heroin trafficking is a repeat offender and the conduct falls within the sanctions, we should not hesitate to seek the enhancement.
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Because of the seriousness of heroin-related offenses, plea agreements that call for dismissal of the most serious charges in heroin cases are highly disfavored and will only be approved in the most extraordinary circumstances.Defendants who wish to reduce their sentence must fully cooperate and then they should not expect a sentencing reduction of more than fifty percent from the otherwise applicable mandatory minimum sentence or guideline range, whichever is higher.
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Because heroin cases present a greater risk of harm to individuals and the community, we will advocate for applicable guidelines enhancements that will increase the sentence.These include possession of a dangerous weapon; use of violence; maintaining drug premises; aggravating role; use of a minor; obstruction of justice; commission of offense while on release; and criminal livelihood.
In addition to seeking enhancements, there may be heroin cases where a sentence at the high end of the applicable guideline range or even an upward departure above the guideline range is called for.
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Under the federal sentencing guidelines, the decision to recommend a guideline departure based upon a defendant's "substantial assistance" to law enforcement is one of the most significant judgments facing any prosecutor.Heroin cases should be treated no differently than any other cases in this respect.We should make an assessment of the significance and usefulness of the defendant's assistance in making our recommendation to the court for a sentence departure on this basis.When defense counsel seeks a variance below the applicable guideline range in a heroin case, we will generally oppose that request unless extraordinary circumstances exist.
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A sentencing memorandum should be filed by the prosecution in heroin cases, particularly when we are advocating for a sentence more serious than otherwise would be imposed if another drug was involved in the offense of conviction.In order to support and strengthen our approach to these cases, when appropriate we will include the grim statistics and other information that reflect the current nationwide heroin epidemic.
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U.S. Attorney Departure AnnouncementRead the Press Release
Michael J. Moore has announced his resignation as the United States Attorney for the Middle District of Georgia. Mr. Moore submitted his resignation to the President on Monday, November 9, 2015.
Mr. Moore was appointed to the position by President Barack Obama on October 6, 2010. Mr. Moore served on the Terrorism and National Security Subcommittee, the White Collar/Fraud Subcommittee, the Criminal Practice Subcommittee, and the Health Care Fraud Working Group of the Attorney General’s Advisory Committee.
As United States Attorney, Mr. Moore oversaw the prosecution of several matters involving national security, including export cases involving individuals who were selling military parts and supplies to terrorist organizations. He oversaw the prosecution against Con Agra, resulting in the largest criminal fine ever imposed for food safety violations. He also oversaw the prosecution of Stewart and Michael Parnell for their involvement in the deadly salmonella outbreak in connection with Peanut Corporation of America, resulting in record-setting prison sentences for their roles as corporate executives. Mr. Moore recently announced the indictment of 37 individuals for their involvement in a multi-state sex trafficking ring, an investigation that freed 15 women from sexual slavery. During his tenure, he took an aggressive approach to prosecuting violent criminals as well as corrupt public officials.
Mr. Moore was responsible for the Middle District of Georgia’s dramatic increase in health care fraud investigations and the successful pursuit of those making false or inflated claims to the United States.
Mr. Moore took an active role in civil rights matters and investigations. He oversaw numerous cases involving the brutal mistreatment of arrestees and prison inmates. He helped bring to conclusion a longstanding school desegregation order and personally mediated a landmark settlement guaranteeing adequate representation for children and individuals in the Superior Courts.
“As U.S. Attorney for the Middle District of Georgia, Michael J. Moore has been a faithful advocate for the people of his district and an outstanding guardian of our nation’s laws,” said Attorney General Loretta Lynch. “During his tenure, Michael helped lead the successful prosecution of a multi-state sex trafficking ring; held food companies accountable for knowingly selling dangerously tainted products; made Georgia’s Middle District a leader in combatting health care fraud; and promoted civil rights and equal opportunity, both within his office and in his district at large. He has fulfilled his responsibilities with tireless devotion, unimpeachable integrity, and exemplary skill, and his leadership and commitment have made a significant contribution to the cause of justice and the rule of law. I thank him for his distinguished service, and I look forward to all he will achieve in the years to come.”
“Even now, as I prepare for what is to come, I am overwhelmed with gratitude for the incredible honor of representing the United States of America. I want to thank the President for the trust he placed in me. I also thank both Attorney General Lynch and former Attorney General Holder for their leadership and friendship over these last five years. I have had the great pleasure of working alongside a staff of outstanding and dedicated public servants. I want to thank our federal, state, and local law enforcement partners. Together we have accomplished much; together we have made a difference. I will forever be grateful for the honor of serving the nation as the United States Attorney,” said United States Attorney Michael J. Moore.
U.S. Attorney Alicia Limtiaco Attends 2015 NAPABA ConventionRead the Press Release
ALICIA A.G. LIMTIACO, U.S. Attorney for the Districts of Guam and the Northern Mariana Islands (NMI), was invited to participate as a panel member at the 2015 National Asian Pacific American Bar Association (NAPABA) Convention which was held on November 3-6, 2015 in New Orleans. U.S. Attorney Florence Nakakuni for the District of Hawaii and U.S. Attorney Carter Stewart for the Southern District of Ohio were also invited as panel members. The panel was entitled, “U.S. Attorney Roundtable: Understanding The Federal Prosecutor,” and described as follows: Post-financial crisis, government regulators have placed renewed focus on criminal and civil enforcement. Federal prosecutions and regulatory actions are among the most challenging matters affecting your company or law firm. Successful resolution of these cases requires an understanding of the thinking and motivation of the federal regulator prosecuting your case. In an inaugural panel for NAPABA, U.S. Attorneys Carter Stewart (S.D. Ohio), Florence Nakakuni (D. Hawaii) and Alicia Limtiaco (D. Guam, D. NMI) will discuss the process, and the factors they consider, in initiating and resolving cases handled in their district. The panelists will also discuss their backgrounds, management policies, and developments at the Department of Justice.
NAPABA is the national voice for the Asian Pacific American legal profession. They promote justice, equity, and opportunity for Asian Pacific Americans. They foster professional development, legal scholarship, advocacy and community involvement. Since its inception in 1988, NAPABA has been at the forefront of national and local activities in the areas of civil rights, combating anti-immigrant backlash and hate crimes, increasing the diversity of the federal and state judiciaries, and professional development.
NAPABA represents the interests of over 40,000 attorneys and approximately 70 national, state, and local bar associations. Its members include solo practitioners, large firm lawyers, corporate counsel, legal services and non-profit attorneys, and lawyers serving at all levels of government. NAPABA engages in legislative and policy advocacy, promotes APA political leadership and political appointments, and builds coalitions within the legal profession and the community at large. NAPABA also serves as a resource for government agencies, members of Congress, and public service organizations about APAs in the legal profession, civil rights, and diversity in the courts.
Photos taken at the Convention:
U.S. Attorney Alicia Limtiaco with U.S. Attorney Carter Stewart from the Southern District of Ohio and U.S. Attorney Florence Nakakuni from the District of Hawaii U.S. Attorney Alicia Limtiaco with NAPABA 2015 President Jin Y. Hwang U.S. Attorney Alicia Limtiaco with U.S. Department of Justice Community Relations Service Director Grand H. LumU.K. Man Arraigned on Conspiracy to Illegally Export Restricted Chemical Laboratory Equipment to SyriaRead the Press Release
Ahmad Feras Diri, 42, of London, was arraigned today on charges alleging a conspiracy to illegally export laboratory equipment, including items used to detect chemical warfare agents, from the United States to Syria.
The announcement was made by Assistant Attorney General for National Security John P. Carlin, U.S. Attorney Peter J. Smith of the Middle District of Pennsylvania, Special Agent in Charge John Kelleghan of the U.S. Immigration and Customs Enforcement-Homeland Security Investigations (ICE-HSI) Philadelphia Office and Special Agent in Charge Sidney Simon of the U.S. Commerce Department’s Office of Export Enforcement (OEE) New York Field Office.
The indictment was returned by a Scranton, Pennsylvania, grand jury on Nov. 20, 2012, and charges Diri; Mowea Diri, Ahmad’s brother and a citizen of Syria; d-Deri Contracting & Trading, a business located in Syria; and Harold Rinko, a U.S. citizen, with criminal conspiracy, wire fraud, illegal export of goods, money laundering and false statements. On Sept. 16, 2014, Rinko pleaded guilty to the criminal conspiracy charge before U.S. District Judge Edwin M. Kosik of the Middle District of Pennsylvania.
On March 14, 2013, Diri was arrested by the Metropolitan Police in London in connection with the charges in the Middle District of Pennsylvania, and was extradited to the United States by the United Kingdom on Nov. 12, 2015. Diri appeared before U.S. Magistrate Judge Karoline Mehalchick of the Middle District of Pennsylvania today and pleaded not guilty to the indictment.
The indictment alleges that from 2003 until Nov. 20, 2012, the three men conspired to export items from the United States through third party countries to customers in Syria without the required U.S. Commerce Department licenses.
According to the indictment, the conspirators prepared false invoices that undervalued and mislabeled the goods being purchased and listed false information regarding the buyers’ identity and geographic location. The indictment alleges that the items were to be shipped from the United States to Jordan, the United Arab Emirates and the United Kingdom, and thereafter transshipped to Syria.
According to the indictment, the items allegedly included: a portable gas scanner used for detection of chemical warfare agents by civil defense, military, police and border control agencies; a handheld instrument for field detection and classification of chemical warfare agents and toxic industrial chemicals; a laboratory source for detection of chemical warfare agents and toxic industrial chemicals in research, public safety and industrial environments; a rubber mask for civil defense against chemicals and gases; a meter used to measure chemicals and their composition; flowmeters for measuring gas streams; a stirrer for mixing and testing liquid chemical compounds; industrial engines for use in oil and gas field operations; and a device used to accurately locate buried pipelines.
“According to the charges in the indictment, Ahmad Feras Diri conspired with his brother and others to evade U.S. export laws and illegally send chemical laboratory equipment to Syria,” said Assistant Attorney General Carlin. “These violations of U.S. export law threaten our national security, and we will continue to hold accountable those who seek to circumvent restrictions. I want to thank the agents, analysts, prosecutors and our U.K. law enforcement counterparts who are responsible for the arrest and charges in this case.”
“This extradition demonstrates HSI’s commitment to use all its resources to prevent sensitive and restricted technology from being exported to Syria through the black market,” said Special Agent in Charge Kelleghan. “No good comes of illegal exports to Syria, especially during this time of gross misgovernment and civil strife. As the principal enforcer of export controls, HSI will continue to do everything in its power to ensure that sensitive technology doesn't fall into the wrong hands in Syria. I applaud our colleagues at the Department of Commerce, the U.S. Attorney’s Office for the Middle District of Pennsylvania, along with our law enforcement counterparts in the United Kingdom. This coordinated effort helped us make this complex investigation a success.”
“I commend our colleagues from HSI and the United Kingdom, and the U.S. Attorney’s Office, for their outstanding work with the Commerce Department on this case,” said Special Agent in Charge Simon. “Our special agents work tirelessly every day to pursue those who flout our export control laws and attempt to supply rogue regimes with technology that threatens our national security. OEE will seek and arrest violators wherever located, worldwide, and we will continue to leverage our unique authorities as the only federal law enforcement agency exclusively dedicated to enforcing dual-use export violations.”
Pursuant to regulations of the U.S. Department of Commerce’s Export Administration, a license is required to export goods and services from the United States to Syria, excepting limited and certain categories of humanitarian food and medicine.
Indictments are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
The case is being investigated by ICE-HSI and U.S. Commerce Department’s OEE New York Field Office. The Justice Department’s Office of International Affairs also provided significant assistance. The case is being prosecuted by Assistant U.S. Attorney Todd K. Hinkley of the Middle District of Pennsylvania and Trial Attorney Mariclaire Rourke of the National Security Division’s Counterintelligence and Export Control Section.
Diri Indictment
Two Plead Guilty in Lucrative Kickback and Medicare Fraud SchemeRead the Press Release
Jackson, TN – A married couple has pled guilty to partaking in a scheme to defraud Medicare of more than $400,000 by making fraudulent medical equipment orders and paying illegal kickbacks. Four defendants were previously indicted in the scheme — three in February 2015 and one in October 2015. Edward L. Stanton III, U.S. Attorney for the Western District of Tennessee, announced the guilty pleas today.
According to evidence presented in court, Dennis Sensing, 62, and Brenda Sensing, 45, both of New Albany, Mississippi partook in a lucrative health care and kickback fraud scheme between 2011 and 2013. The conspiracy also involved another married couple, Sandra and Calvin Bailey, as well as their son, Bryan Bailey, and accomplice, Cindy Mallard.
According to the charging documents, the Sensings operated the Adult and Children Medical Clinic in Guntown, Mississippi while also working as salespersons for Jaspan Medical Systems, a durable medical equipment company with an office in Jackson, Tennessee. Although Brenda Sensing was listed as a Jaspan employee paid via sales commissions, the commissions paid to her were actually for sales by Dennis Sensing. Pay was arranged to go to Brenda Sensing to avoid tax obligations incurred by her husband.
In their pleas, the Sensings admitted to paying illegal referral fees to Guntown, Mississippi residents, labeled "runners," to identify Medicare cardholders. Dennis Sensing would then market power wheelchairs and back braces to the cardholders. The Sensings also admitted to forging medical records and signatures of a nurse practitioner on medical records to create the appearance that cardholders had been evaluated by a medical provider for medical equipment when, in fact, no provider evaluated the cardholder. Some of the cardholders had no need for the medical equipment.
Nevertheless, the Sensings sent the forged records to Jaspan, which later used the records to obtain payments from Medicare for the equipment.
In February 2015, Calvin Bailey, Sandra Bailey, and Mallard were indicted for conspiracy to commit health care fraud and to pay illegal kickbacks in connection with health care services. Sandra Bailey was also indicted on multiple counts of health care fraud and paying illegal kickbacks to health care providers and patient-referral sources.
In October 2015, the indictment was superseded to add the Baileys’ son, Bryan Bailey, as a fourth defendant, and name the Sensings as persons involved in the conspiracy. Bryan Bailey was indicted for conspiracy to commit health care fraud and to pay illegal kickbacks in connection with health care services. He was also charged with wire fraud.
According to plea agreements entered by the Sensings, medical equipment orders resulting from illegal kickbacks and fraud made by the Sensings resulted in payments by Medicare in an amount between $400,000 and $1,000,000.
On Thursday, the Sensings individually pled guilty before Chief Judge J. Daniel Breen to one count of conspiracy to commit health care fraud and pay illegal kickbacks.
The defendants face individual sentences of up to five years imprisonment and a fine of up to $250,000.
Both defendants are scheduled to be sentenced on February 11th at 10 a.m. before Chief Judge Breen.
The case is being investigated by the Department of Health and Human Services - Office of the Inspector General, Federal Bureau of Investigation, and Tennessee Bureau of Investigation.
The case is being prosecuted by Assistant U.S. Attorney John Fabian on the government’s behalf.
Two Donna, Texas, School Board Members Indicted on Bribery and Attempted Extortion ChargesRead the Press Release
The U.S. District Court for the Southern District of Texas unsealed an indictment today charging two elected members of the School Board of Donna, Texas, with bribery and attempted extortion in connection with a services contract held by the Donna Independent School District (DISD). A private citizen who served as a middleman in the scheme also was charged.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division and U.S. Attorney Kenneth Magidson of the Southern District of Texas made the announcement.
Eloy Infante, 53, Elpidio Yanez Jr., 45, and Adrian Guerrero, 50, all from Donna, were charged in a four-count indictment returned on Oct. 27, 2015, in the Southern District of Texas with one count of conspiracy, one count of attempted extortion and two counts of federal programs bribery. Infante and Yanez are both members of the Donna School Board and Guerrero is a private citizen.
According to the indictment, from February 2015 through May 2015, the defendants allegedly attempted to extort, and solicited and accepted bribes from, an individual whose company provided services to the DISD. Specifically, the indictment alleges that the defendants informed the individual that, in order for his company to keep its contract with the DISD, he needed to pay Infante and Yanez $10,000 each. The indictment alleges that both Infante and Yanez accepted partial payment of the $10,000, and that Guerrero served as the middleman for one of the payments.
The charges and allegations contained in the indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
This case was investigated by the FBI. The case is being prosecuted by Trial Attorney Monique Abrishami of the Criminal Division’s Public Integrity Section and Assistant U.S. Attorney Leo J. Leo III of the Southern District of Texas.
Two Donna School Board Members Indicted on Bribery and Attempted Extortion ChargesRead the Press Release
McALLEN, Texas - The U.S. District Court for the Southern District of Texas unsealed an indictment today charging two elected members of the School Board of Donna with bribery and attempted extortion in connection with a services contract held by the Donna Independent School District (DISD). A private citizen who served as a middleman in the scheme also was charged.
U.S. Attorney Kenneth Magidson and Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division made the announcement.
Eloy Infante, 53, Elpidio Yanez Jr., 45, and Adrian Guerrero, 50, all from Donna, were charged in a four-count indictment returned Oct. 27, 2015, with one count of conspiracy, one count of attempted extortion and two counts of federal programs bribery. Infante and Yanez are both members of the Donna School Board and Guerrero is a private citizen.
According to the indictment, from February 2015 through May 2015, the defendants allegedly attempted to extort, and solicited and accepted bribes from, an individual whose company provided services to the DISD. Specifically, the indictment alleges that the defendants informed the individual that, in order for his company to keep its contract with the DISD, he needed to pay Infante and Yanez $10,000 each. The indictment alleges that both Infante and Yanez accepted partial payment of the $10,000, and that Guerrero served as the middleman for one of the payments.
This case was investigated by the FBI. Assistant U.S. Attorney Leo J. Leo III and Trial Attorney Monique Abrishami of the Criminal Division’s Public Integrity Section are prosecuting the case.
An indictment is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.Two Charged with Hiding a FugitiveRead the Press Release
ERIE, Pa. - Two former residents of Erie, Pennsylvania have been indicted by a federal grand jury in Erie on charges of concealing a person from arrest and accessory after the fact, United States Attorney David J. Hickton announced today.
The two-count indictment, returned on Nov. 10 and unsealed today, named Damonique Shakara Henderson, 23, and Sasia V. Jones, 28, as defendants.
According to the indictment presented to the court, between Feb. 26, 2015 and May 20, 2015, Henderson and Jones harbored and concealed Ricky Rashad Pullium, a person who had an outstanding arrest warrant for a charge of possession of a firearm by a convicted felon, in order to prevent the discovery and arrest of Pullium. Henderson and Jones are also charged with being accessories after the fact by receiving, relieving, comforting and assisting Pullium in order to hinder and prevent Pullium’s apprehension, trial and punishment. According to information presented to the Court, the defendants are alleged to have harbored Pullium fully knowing that he was wanted on the federal charges, in part, by renting a vehicle for him, transporting him out of the Erie area to prevent his discovery and arrest, and by providing further assistance to Pullium in order to hinder his apprehension.
The law provides for a maximum total sentence of 10 years in prison, a fine of $375,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendants.
Assistant United States Attorney Marshall J. Piccinini is prosecuting this case on behalf of the government.
The United States Marshals Service, the Federal Bureau of Investigation, and the Pennsylvania State Police conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Texas Resident Convicted of Tax FraudRead the Press Release
Manager of North Carolina Tax Preparation Business Underreported Net Profits
A Fulshear, Texas, woman was convicted yesterday in the U.S. District Court for the Southern District of Texas, after a four-day trial, of three counts of filing false federal tax returns and one count of corruptly endeavoring to obstruct the Internal Revenue Service (IRS), announced Acting Assistant Attorney General Caroline D. Ciraolo of the Justice Department’s Tax Division.
According to the evidence presented at trial, Tamny Denise Westbrooks, 52, was the day-to-day manager of JATS Tax Service, a tax preparation business located in Charlotte, North Carolina. Westbrooks, who worked for JATS as an independent contractor, underreported her net profits by inflating her business expenses for tax years 2007, 2008 and 2009. She also obstructed and impeded the IRS by filing false tax returns for herself and others and by paying workers in cash while failing to file the required W-2 or 1099 forms reporting their compensation.
U.S. District Judge Ewing Werlein Jr. of the Southern District of Texas set Westbrooks’ sentencing for March 18, 2016. Westbrooks faces a statutory maximum sentence of three years in prison and a fine of up to $250,000 for each count of conviction.
Acting Assistant Attorney General Ciraolo commended special agents of IRS-Criminal Investigation, who investigated the case and Trial Attorneys Sean P. Beaty and Mara A. Strier of the Justice Department’s Tax Division, who are prosecuting the case. Acting Assistant Attorney General Ciraolo also thanked the U.S. Attorney’s Office of the Southern District of Texas for their substantial assistance.
State of Alabama Agrees to Resolve Claims of National Voter Registration Act ViolationsRead the Press Release
The Department of Justice announced today that it has entered an agreement with the state of Alabama and state officials to resolve claims that Alabama failed to provide voter registration opportunities required by Section 5 of the National Voter Registration Act of 1993 (NVRA).
Section 5 of the NVRA, also known as the “motor voter” provision, requires states to provide voter registration opportunities for federal elections when people apply for or seek to renew driver’s licenses or other identification documents through state motor vehicle offices.
The department’s investigation, conducted by the Civil Rights Division, found widespread noncompliance with the requirements of Section 5 of the NVRA in the state of Alabama. Applications for Alabama driver’s licenses, learner’s licenses, identification cards and vessel licenses did not serve as applications for voter registration with respect to elections for federal office, as required by the NVRA. Moreover, the procedures by which citizens notify motor vehicle authorities that their address has changed did not serve as notification of a change of address for voter registration purposes, as the NVRA requires.
“Voting is the cornerstone of our democracy,” said Principal Deputy Assistant Attorney General Vanita Gupta, head of the Civil Rights Division. “We commend the state of Alabama for working quickly and cooperatively with the department to ensure that eligible Alabama citizens can register to vote and update their registration information through motor vehicle agencies, with the convenience they deserve and the ease of access the law requires.”
Under the terms of the settlement, Alabama will fully integrate a voter registration opportunity into all applications for driver’s licenses and other identification documents, including renewal applications, both in person and online. Alabama will also ensure that change of address information submitted for driver’s license purposes will be used to update voters’ address information unless the voter declines to update her voter registration. In order to provide a voter registration opportunity for Alabama residents who did not receive the opportunity to register when last applying for or renewing a driver’s license or other identification document, Alabama will contact all eligible voters who are not currently registered to vote at the address associated with a driver’s license or other identification document. Alabama is beginning to implement interim procedures that will increase voter registration opportunities while the state integrates voter registration into its electronic motor vehicle systems.
“It is essential for every citizen in our democracy to have a full opportunity to exercise his or her right to vote,” said U.S. Attorney Joyce White Vance of the Northern District of Alabama. “The agreement concluded today between the Justice Department and the state of Alabama moves our state forward towards compliance with the ‘motor-voter’ Act, which was enacted in 1993, and will make it easier for citizens to register and maintain their voter registration while applying for and renewing drivers' licenses. We appreciate the dedication from our colleagues in the Civil Rights Division as well as Alabama Attorney General Luther Strange’s commitment to achieving compliance with section 5 of the NVRA.”
“I would like to commend the state of Alabama for their good faith negotiations and for ensuring full implementation of the ‘motor voter’ provision,” said U.S. Attorney George L. Beck Jr. of the Middle District of Alabama. “I would also applaud the commitment by the Secretary of State, the Alabama Law Enforcement Agency, the Alabama Attorney General and the Governor for their diligent efforts, committing resources and designing software to provide access to voter registration through the driver’s license process.”
“There is no more fundamental right of citizenship in our democracy than the right to vote,” said U.S. Attorney Kenyen R. Brown of the Southern District of Alabama. “I am pleased that the state of Alabama has taken steps to come into compliance with the requirements of the law as it relates to the National Voter Registration Act.”
More information about the NVRA and other federal voting laws is available on the Department of Justice website at www.justice.gov/crt/about/vot/. Complaints about voter registration practices may be reported to the Civil Rights Division’s Voting Section at 1-800-253-3931.
Alabama MOU
Springfield, Missouri, Woman Pleads Guilty to Heroin DistributionRead the Press Release
MUSKOGEE, OKLAHOMA - The United States Attorney’s Office for the Eastern District of Oklahoma, announced that AMBER LYNN BRAKE, age 24, of Springfield, Missouri, pled guilty to POSSESSION WITH INTENT TO DISTRIBUTE HEROIN, in violation of Title 21, United States Code, Sections 841(a)(1) and 841(b)(1)(B), punishable by not less than 5 years or more than 40 years imprisonment, up to a $5,000,000.00 fine or both.
The Indictment alleged that on or about December 2, 2014, within the Eastern District of Oklahoma, the defendant did knowingly and intentionally possess with intent to distribute 100 grams or more of a mixture or substance containing a detectable amount of Heroin, a Schedule I Controlled Substance.
The charges arose from an investigation by the Atoka County Sheriff’s Department and the Drug Enforcement Administration.
The Honorable Steven P. Shreder, Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, accepted the guilty plea and ordered the completion of a presentence report. Sentencing will be scheduled following its completion. The defendant will remain in the custody of the United States Marshal Service pending sentencing.
Assistant United States Attorney Shannon Henson represented the United States.
Six Tulare County Residents Indicted on Drug Trafficking and Firearms ChargesRead the Press Release
FRESNO, Calif. — A federal grand jury returned a 20-count indictment today against Rudolfo Delgadillo, 35, of Woodlake; Alejandro Zavala, 22, of Cutler; and Fabian Magana, 24, of Orosi, charging them with conspiracy to distribute and possess with intent to distribute methamphetamine and various other drug trafficking and firearms offenses. The grand jury also returned a separate eight-count indictment against Josh Soto, 34, of Salinas Valley Prison; Desarae Granillo, 22, and Salina Granillo, 24, both of Visalia, charging them with conspiring to distribute methamphetamine, distribution of methamphetamine and possession with intent to distribute methamphetamine, United States Attorney Benjamin B. Wagner announced.
The cases are the product of an investigation of the Federal Bureau of Investigation, the United States Postal Inspector Service, California Department of Justice Special Operations Unit, the Tulare County Sheriff’s Office, the Tulare Police Department, the Visalia Police Department, the Tulare Area Regional Gang Enforcement Team (TARGET), and the California Highway Patrol (CHP). Assistant United States Attorney Kimberly A. Sanchez is prosecuting both cases.
Rudolfo Delgadillo, Alejandro Zavala, Josh Soto, and Desarae Granillo are in custody. Fabian Magana and Salina Granillo have been ordered released.
If convicted, Delgadillo, Zavala, and Magana face a maximum sentence of life in prison. If convicted, Soto faces a maximum penalty of 80 years in prison, Desarae Granillo faces a maximum penalty of 220 years in prison, and Salina Granillo faces a maximum penalty of 40 years in prison. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.