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12 November 2015
Mobile County Man Sentenced to 46 Months for Role in Bank RobberyRead the Press Release
The United States Attorney Kenyen Brown announces that Carl D. Greene, Jr., a 20 year old resident of Mobile, Alabama was sentenced today to 46 months incarceration and ordered to pay restitution in the amount of $5400.00 to Century Bank on Grand Bay Wilmer Road in Grand Bay, Alabama. After completion of his incarceration, he will serve a term of supervised release of three years.
On August 13, 2015, Mr. Greene pled guilty pursuant to a plea agreement that noted he was one of two men that robbed two banks in the area during March of this year. One each occasion, Greene acted as the masked man who entered the banks and obtained the money after threatening to shoot the tellers if they did not comply. No actual gun was displayed or used. His accomplice acted as the getaway driver. The other bank robbery occurred at the Bancorp South Bank on Schilliger Road. All the money from that robbery was recovered.
Special agents of the Federal Bureau of Investigation along with Mobile, Alabama police officers investigated the case and presented it to the U.S. Attorney's Office for prosecution. The prosecutor assigned to the case is Assistant United States Attorney, Gina S. Vann.
Mobile County Man Sentenced to 46 Months for Role in Bank RobberyRead the Press Release
The United States Attorney Kenyen Brown announces that Jason Dixon, a 20 year old resident of Mobile, Alabama was sentenced today to 46 months incarceration and ordered to pay restitution in the amount of $5400.00 to Century Bank on Grand Bay Wilmer Road in Grand Bay, Alabama. After completion of his incarceration, he will serve a term of supervised release of three years.
On August 14, 2015, Mr. Dixon pled guilty pursuant to a plea agreement that noted he was one of two men that robbed two banks in the area during March of this year. One each occasion, his cohort acted as the masked man who entered the banks and obtained the money after threatening to shoot the tellers if they did not comply. No actual gun was displayed or used. Dixon acted as the getaway driver both times. The other bank robbery occurred at the Bancorp South Bank on Schilliger Road. All the money from that robbery was recovered.
Special agents of the Federal Bureau of Investigation along with Mobile, Alabama police officers investigated the case and presented it to the U.S. Attorney's Office for prosecution. The prosecutor assigned to the case is Assistant United States Attorney, Gina S. Vann.
Milford Psychiatrist and Office Employee Charged with Illegally Distributing NarcoticsRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, Michael J. Ferguson, Special Agent in Charge of the Drug Enforcement Administration for New England, and Milford Police Chief Keith Mello announced that LJUDMIL KLJUSEV, M.D., who has operated a psychiatry practice located at 227 Naugatuck Avenue in Milford, was arrested today on a federal criminal complaint charging him with distributing narcotics outside of the scope of professional practice, and money laundering. DUSAN BOSOTOV, who was employed by KLJUSEV, also was arrested on a charge of illegally distributing narcotics.
KLJUSEV, also known as “Dr. K.”, 51, was arrested this morning at his residence in Fairfield. He appeared this afternoon before U.S. Magistrate Judge Sarah A. L. Merriam in New Haven and is detained. BOSOTOV, 32, was arrested this morning at his residence in Clifton, New Jersey. He appeared before a U.S. magistrate judge in Newark and was released on a $200,000 bond. Although he was referred to as “Dr. B.,” BOSOTOV is not a licensed physician.
As alleged in the criminal complaint, KLJUSEV has been a high-volume prescriber of Adderall and Xanax to patients who pay for office visits and prescriptions in cash.
Adderall, which is classified as a Schedule II drug by the DEA, is the brand name for a drug containing a combination of amphetamine and dextroamphetamine, both of which are central nervous system stimulants. This combination of drugs is used to treat narcolepsy and attention deficit hyperactivity disorder (“ADHD”). Xanax, which is classified as a Schedule IV drug by the DEA, is a brand name for a drug containing Alprazolam, a benzodiazepine drug. Alprazolam is commonly used to treat anxiety disorders or panic disorders.
The investigation, which has included the use of confidential witnesses and an undercover officer posing as patients, revealed that KLJUSEV prescribed the drugs without a full medical examination of the patient, provided prescriptions without confirming conditions that would medically require treatment using these drugs and dispensed prescriptions in exchange for cash to patients who display substance abuse and addiction behaviors. KLJUSEV also directed non-physician employees, including BOSOTOV, to write prescriptions signed by KLJUSEV when KLJUSEV was out of the country. KLJUSEV then deposited the cash proceeds of his unlawful activities into a business account, which he used to fund his personal expenses, including mortgage payments, international travel, and clothing.
KLJUSEV and BOSOTOV are each charged with conspiracy to distribute and to possess with intent to distribute narcotics, an offense that carries a maximum term of imprisonment of 20 years. KLJUSEV also is charged with money laundering, an offense that carries a maximum term of imprisonment of 10 years.
U.S. Attorney Daly stressed that a complaint is only a charge and is not evidence of guilt. Charges are only allegations, and each defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This ongoing investigation is being conducted by the DEA’s New Haven Tactical Diversion Squad and the Milford Police Department. The DEA Tactical Diversion Squad includes officers from the Bristol, Greenwich, Hamden, Shelton, Vernon, West Hartford and Willimantic Police Departments. This case is being prosecuted by Assistant U.S. Attorneys Sarah Karwan and Avi Perry.
Methamphetamine Trafficker Sentenced to 11 Years in PrisonRead the Press Release
SACRAMENTO, Calif. — Miguel Sotelo, 41, of Sacramento, was sentenced today by United States District Judge Morrison C. England Jr. to 11 years in prison and a $25,000 fine for possessing methamphetamine with the intent to distribute it, United States Attorney Benjamin B. Wagner announced.
According to court documents, in April 2014, Sacramento County Sheriff’s detectives spotted a Honda Accord speeding northbound on Interstate 5 near Twin Cities Road in Sacramento County. Detectives stopped the car and spoke with the passenger, defendant Miguel Sotelo, who stated that the car belonged to his wife who was not present. Shortly afterward, a narcotic detection K9 unit alerted on the rear left wheel well. Officers later found more than 14 pounds of methamphetamine stored in two bags located in the car’s trunk. Officers also found $23,000 in cash.
Based on the amount of methamphetamine and currency found in the car, detectives executed a state search warrant at Sotelo’s business called “Sotelo’s Tree Care.” At the business, officers found about 266 grams of cocaine, a pistol and a digital scale.
This case was the product of an investigation by the Drug Enforcement Administration and the Sacramento County Sheriff’s Office. Special Assistant United States Attorney Josh F. Sigal prosecuted the case.
Sotelo has remained in custody since his arrest on April 9, 2014.
Maryland Man Admits Distributing Synthetic Drug that Caused Overdoses at Wesleyan UniversityRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that ZACHARY KRAMER, 22, of Bethesda, Maryland, pleaded guilty today in New Haven federal court to one count of conspiracy to possess with the intent to distribute, and to distribute, MDMA (“Molly”). The charge stems from an investigation into the distribution of controlled substances that caused multiple Wesleyan University students to overdose earlier this year.
According to court documents and statements made in court, in approximately September 2014, KRAMER, who was a student at Wesleyan in Middletown, Connecticut, began purchasing and reselling a substance he knew as “Molly” and which he believed to be ecstasy or MDMA, a Schedule I controlled substance. After obtaining bulk quantities of the drug from another student, KRAMER sold it in smaller quantities to students at Wesleyan.
In approximately December 2014, KRAMER became the primary supplier of MDMA at Wesleyan. KRAMER typically would sell the MDMA in .1 gram quantities for $20 each or he would sell it in 5-gram and 10-gram quantities for a discount, charging $100 or more, depending on the customer and the quantity. During this time period, KRAMER was still supplied by the same individual who provided KRAMER the MDMA in bulk quantities. In approximately January 2015, KRAMER purchased approximately 45 grams of MDMA from this supplier. He broke that quantity into 5 and 10-gram bags and distributed those bags to other students who planned to break down the MDMA into .1 gram capsules, sell those capsules to other Wesleyan students, and pay KRAMER for the quantity of the drug he had provided to them.
On February 21, 2015, 11 individuals, including 10 Wesleyan students, overdosed on a substance they believed was MDMA, and many were transported to the hospital. Two of the students were in critical condition, and one of the students had to be revived after his heart stopped. All of these students obtained the purported MDMA through individual distributers who were supplied directly by KRAMER.
Although KRAMER and some of his distributers destroyed the substance identified as Molly that they had in their possession, one of the distributers did not, and that substance was seized by law enforcement officers and sent to the toxicology laboratory for testing. Laboratory analysis confirmed that the powdered substance contained AB Fubinaca, a Schedule I controlled substance.
The charge of conspiracy to possess with the intent to distribute, and to distribute, MDMA carries a maximum term of imprisonment of 20 years and a maximum fine of $1 million. KRAMER is scheduled to be sentenced by U.S. District Judge Vanessa L. Bryant on February 10, 2016, in Hartford.
KRAMER has been released on bond since his federal arrest on May 22, 2015.
This matter is being investigated by the Drug Enforcement Administration and the Middletown Police Department, with the assistance of the State of Connecticut’s Forensic Science Laboratory.
U.S. Attorney Daly acknowledged the support and assistance of the Middlesex State’s Attorney’s Office, which is prosecuting several state cases stemming from these overdose events.
The federal case is being prosecuted by Assistant U.S. Attorney Robert M. Spector and Senior Assistant State’s Attorney Eugene Calistro, who has been cross-designated as a Special Assistant U.S. Attorney in this matter.
Manhattan U.S. Attorney Announces the Arrest of Two Venezuelan Nationals for Conspiring to ImportRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, and Mark Hamlet, Special Agent in Charge of the Special Operations Division of the United States Drug Enforcement Administration (“DEA”), today announced that EFRAIN ANTONIO CAMPO FLORES and FRANQUI FRANCISCO FLORES DE FREITAS were arrested in the Republic of Haiti on Tuesday and brought to the United States based on a charge that they conspired to import cocaine into the United States. CAMPO FLORES and FLORES DE FREITAS will be presented before U.S. Magistrate Judge James L. Cott later today.
According to the allegations in the Indictment[1], which was unsealed today in Manhattan federal court, CAMPO FLORES, 29, and FLORES DE FREITAS, 30, conspired with others between October 2015 and the present to violate U.S. narcotics laws prohibiting the importation of cocaine. Specifically, the Indictment charges CAMPO FLORES and FLORES DE FREITAS with conspiring to (i) import five or more kilograms of cocaine into the United States from a foreign country; and (ii) distribute five or more kilograms of cocaine knowing and intending that it would be imported into the United States. The charge in the Indictment carries a maximum penalty of life in prison. The maximum potential sentence in this case is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendants will be determined by a judge.
Mr. Bharara praised the outstanding investigative work of the DEA’s Special Operations Division, Bilateral Investigations Unit, and New York Strike Force. Mr. Bharara also thanked the DEA’s Port-au-Prince Country Office, U.S. Customs and Border Patrol's National Targeting Center, DEA’s Airwing, the Government of the Republic of Haiti and the Haitian National Police, and the U.S. Department of Justice’s Office of International Affairs for their ongoing assistance.
This prosecution is being handled by the Office’s Terrorism and International Narcotics Unit. Assistant U.S. Attorneys Emil J. Bove III, Mathew J. Laroche, Michael D. Lockard, and Brendan F. Quigley are in charge of the prosecution.
The charge contained in the Indictment is merely an accusation and the defendants are presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Indictment and the description of the Indictment set forth below constitute only allegations, and every fact described should be treated as an allegation.
Media AdvisoryRead the Press Release
The United States Attorney’s Office (USAO), the South Dakota Attorney General, and other law enforcement partner agencies will hold a press conference on Monday, November 16, 2015, at the Andrew W. Bogue Federal Building in Rapid City, South Dakota.
Discussed will be the sentencing of Andrew Hiipakka, a former middle school teacher convicted of Attempted Enticement of a Minor Using the Internet; the law enforcement collaboration that led to the prosecution; and continuing efforts to combat child pornography.
WHO: Sarah Collins: U.S. Attorney’s Office, Senior Litigation Counsel
Gregg Peterman: Supervisory Assistant U.S. Attorney
Marty Jackley: South Dakota Attorney General
Brent Gromer: Internet Crimes Against Children Task Force Commander
Captain James Johns: Rapid City Police Department, Criminal Investigation Division
Captain Corey Brubakken: Pennington County Sheriff’s Office
Mark Stewart: Homeland Security Investigations, Resident Agent in Charge
Michael Diaz: Homeland Security Investigations, Special Agent
WHAT: Press Conference
WHEN: Monday, November 16, 2015, at approximately 4:45 p.m. MST - or immediately following the sentencing. Sentencing is scheduled for 3:00 p.m. (Exact start time of press conference is dependent upon completion time of sentencing.)
WHERE: USAO Conference Room, located on the 2nd Floor of the Federal Building. Address is 515 Ninth Street, Rapid City.
SECURITY: All media must enter through the first floor lobby. Media will be required to go through security and present a government-issued photo ID. Audio and video recording devices are allowed only in the press conference location, and the use of these devices is prohibited anywhere else in the federal building.
Press inquiries regarding logistics should be directed to Ace Crawford at 605.341.1915 or 605.838.6092.
Lorain County and federal law enforcement work together to combat violent crime and drug traffickingRead the Press Release
Several indictments regarding drug trafficking and firearms crimes in Lorain County were recently unsealed in federal court as part of an ongoing coordinated enforcement initiative, law enforcement officials said.
The indictments were announced by U.S. Attorney Steven M. Dettelbach, Lorain County Prosecutor Dennis Will, Elyria Police Chief Duane Whitely, Lorain Police Chief Cel Rivera, Lorain County Sheriff Phil Stammitti, Drug Enforcement Administration Resident Agent in Charge Keith Martin, ATF Special Agent in Charge Donald J. Soranno and Federal Bureau of Investigation Special Agent in Charge Steven D. Anthony and the Lorain County Sheriff’s Drug Task Force.
Cases recently filed include:
Jason Vasquez, 37 of Lorain, was charged in a seven-count indictment with conspiracy to distribute heroin. He also faces charges for possessing a firearm and ammunition despite previous convictions for drug trafficking, felonious assault and intimidation. Vasquez is believed to be a major source of heroin and fentanyl in the Lorain County area.
Anetaeus Spencer, 33, of Lorain, was charged with one count of being a felon in possession of ammunition and several firearms, namely: a Rohm Arms 7.62 x 39 mm. rifle, a Taurus “Judge” .45LC/410GA revolver, a Smith and Wesson pistol, a Keltec .380 handgun and a Mossberg 12 gage shotgun. He was previously convicted of felony offenses which would prohibit him from possessing a firearm and ammunition. Spencer also sold quantities of crack and heroin, and had several thousand dollars on his person at the time of his arrest, according to the indictment.
Octavious Smith, 37, of Elyria, was indicted for possessing a 9 mm firearm and distributing heroin and crack cocaine in Lorain County. Smith was previously convicted of felony offenses which would prohibit him from possessing a firearm and ammunition.
Calvin L. Williams, 32, of Elyria, was indicted on one count of being a felon in possession of a weapon, namely a Glock 9 mm handgun. Williams also has pending state drug cases and was previously convicted of felony offenses which would prohibit him from possessing a firearm or ammunition.
Steve J. Hamilton, 24, of Lorain, was indicted on one count of being a felon in possession of a firearm, namely a Heritage MFG “Rough Rider” .22-caliber revolver. Hamilton was previously convicted of felony offenses which would prohibit him from possessing a firearm and ammunition.
These indictments are just the latest in the continuing efforts of the United States Attorney’s Office to work with local partners Lorain County to ensure those who repeatedly violate gun and drug laws in Lorain County are held accountable.
“These defendants’ days of selling drugs on the streets of Elyria and Lorain, or carrying firearms despite prior felony convictions, are over,” Dettelbach said. “These cases are a great example of what happens when agencies and departments combine their resources and expertise to work together. We will build off these successes and work to keep Lorain County safe.”
In prior cases the United States Attorney’s Office has prosecuted multiple Lorain County residents who ran afoul of gun and drug laws in cooperation with local law enforcement. These previous cases include:
Jeremy Mack, 38, of Elyria, was sentenced to life in prison after a jury convicted him of human trafficking, drug crimes and obstruction of justice.
Siarres Noble, 29, of Elyria was sentenced to 20 years in prison for distributing heroin and fentanyl, including fentanyl that caused the death of an Elyria resident last year.
John H. Allen, 49, of Lorain, was sentenced to more than 17 years in prison after being convicted of possession with the intent to distribute PCP and being a felon in possession of a firearm.
Anthony Paul Montoy, 40, and Fred Alston, 60, both of Elyria, were convicted of conspiracy to distribute kilograms of cocaine in the Lorain County area. Montoy was sentenced to 11 years in federal prison and Alston was sentenced to 8 years in federal prison.
Jerry Wells, 34, of Elyria, recently pleaded guilty to possession with the intent to distribute heroin, MDMA, marijuana and being a felon in possession of a firearm and ammunition. Wells was previously convicted of felony offenses which prohibited him from possessing a firearm and ammunition. He is awaiting sentencing.
Quentin Jackson, 24, of Elyria was recently convicted of felon in possession of a firearm. His sentencing is pending.
If convicted, each defendant’s sentence will be determined by the court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense, and the characteristics of the violation. In all cases, the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial, in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Lexington and Versailles Men Charged with Illegal Distribution of Fentanyl Resulting in a DeathRead the Press Release
LEXINGTON, Ky. — A Lexington man and a Versailles man have both been charged with unlawfully distributing a controlled substance resulting in an overdose death.
On November 5, 2015, a superseding federal indictment was returned against Luis Aguirre-Jerardo, of Lexington, and Gill Dewayne Garrett, of Versailles, charging both men with illegally distributing fentanyl resulting in a death. Garrett was named in the original indictment, returned on September 3, 2015.
Fentanyl is an extremely dangerous opioid, having a potency 30-50 times greater than heroin. According to the indictment, on or about July 1, 2015, Aguirre-Jerardo and Garrett unlawfully distributed fentanyl to a Woodford County woman who died as a result of using the drug they supplied. The indictment also alleges that, from approximately June 2015 until October 2015, Aguirre-Jerardo, Garrett, and two others, Allen P. White and Helaina Gracelyn Naehring, conspired to illegally distribute fentanyl, heroin, cocaine, and crack cocaine in Woodford County.
Fentanyl is the most potent opioid used in medical treatment and is occasionally diverted from legitimate sources for illicit use. However, most fentanyl sold on the street is manufactured for illicit use by drug cartels. Frequently, the drug user believes they are using heroin or narcotic pain pills because illicit fentanyl is often made to closely resemble those substances.
The Centers for Disease Control and Prevention recently warned of the increased presence of fentanyl on our streets and the resulting heightened risk of overdose fatalities. The DEA’s Office of Diversion Control reports a dramatic increase in the number of seizures of illicit fentanyl in recent years, indicating the rising availability of the drug on our streets. The reports indicate that 80% of fentanyl seizures in 2014 were concentrated in ten states. Kentucky was one of those “top ten” states.
This indictment is the result of an initiative launched by the Office of the United States Attorney for the Eastern District of Kentucky and the DEA. The initiative seeks to establish enhanced partnerships with participating state and local law enforcement gencies and county coroners, in order to aggressively investigate and prosecute illegal drug trafficking that results in an overdose. Under federal law, defendants guilty of illegal drug trafficking resulting in death or serious injury are subject to a mandatory minimum sentence of 20 years in federal prison. If the defendant has a prior felony conviction for a drug offense, the mandatory sentence is life imprisonment. The Versailles Police Department, a local partner in this initiative, investigated the case in conjunction with the DEA, leading to the charges against both the Lexington and Versailles defendants.
“Cases such as this one are precisely why we launched our initiative to partner with state and local law enforcement agencies in order to bring to justice the drug dealers who are causing so much damage in our region,” said Kerry B. Harvey, United States Attorney for the Eastern District of Kentucky. “The growing heroin problem, coupled with the introduction of substantial quantities of fentanyl to Lexington, Versailles, and other communities in Central Kentucky, marks a deadly turn in the drug threat confronting our region. Traffickers in heroin and fentanyl callously profit from the misery of others. With increasing frequency, the results are deadly. There is no stronger tool in our arsenal than the federal prosecution of drug traffickers whose criminal conduct results in an overdose. Effective use of that tool requires close cooperation between federal, state and local authorities. Our colleagues in the Versailles Police Department answered our call to action, and we are deeply appreciative. Because of their superb police work, these two defendants, who we allege to be purveyors of substantial quantities of deadly drugs, have been removed from the streets of Lexington and Versailles,” Harvey said.
U.S. Attorney Harvey; Joseph Reagan, Special Agent in Charge, DEA; and John Wilhoit, Chief of the Versailles Police Department, jointly announced the indictment.
Assistant U.S. Attorney Todd Bradbury is prosecuting the case on behalf of the federal government.
Aguirre-Jerardo and Garrett face a minimum of 20 years in federal prison and a maximum of life imprisonment. Any sentence following a conviction, however, would be imposed after the Court considers the U.S. Sentencing Guidelines and the applicable law.
An indictment is an allegation only. All defendants are presumed innocent and are entitled to a fair trial, at which the government must prove their guilt beyond a reasonable doubt.
Leon Convicted of PerjuryRead the Press Release
ALBANY, NEW YORK – Today, a federal jury trial culminated in the conviction of Edward A. Leon, 43, of St. Johnsville, New York, of two counts of making false declarations before a federal grand jury, announced United States Attorney Richard S. Hartunian and Delano A. Reid, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) New York Field Division.
Leon faces an aggregate maximum sentence of imprisonment of 10 years (5 years for each count of conviction), a $500,000 fine, and a term of supervised release of up to five years when he is sentenced on March 8, 2016 by United States District Judge Gary L. Sharpe.
The jury voted to convict on November 12, following a three-day trial. The perjury convictions are for two false declarations that Leon made in testimony before a grand jury conducting an investigation into the fire on May 2, 2013 at 438 Hulett Street in Schenectady, New York, which caused the deaths of David Terry and three young children, seriously injured another child, and destroyed the building and the personal property inside.
Leon falsely testified regarding his travel on May 2, 2013, claiming that he had driven straight from the Cumberland Farms in Palatine Bridge to work in Amsterdam, New York, when he had actually driven first to Schenectady, was driving on Hamilton Street near its intersection with Hulett Street, and was in the area of 438 Hulett Street at the time of the fire. Leon also falsely testified in denying that he had used a particular telephone to send text messages to David Terry, some of which were threatening, from April 25 to 29, 2013.
“The defendant’s perjury was a flagrant affront to the integrity of our system of justice and the fact-finding process,” stated U.S. Attorney Richard S. Hartunian. “He intentionally impeded the investigation into an arson murder, with very significant consequences. Neither the defendant’s crime nor the passage of time have dimmed our resolve to secure justice for the victims and their families. We are grateful for the outstanding work and dedication of the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Schenectady Police Department, and of the Schenectady Fire Department.”
This case was investigated by the ATF, the Schenectady Police Department, and the Schenectady Fire Department. The case is being prosecuted by First Assistant U. S. Attorney Grant C. Jaquith and Assistant United States Attorney Wayne A. Myers.
Further questions or inquiries may be directed to First Assistant U.S. Attorney Jaquith at 518-431-0247.
The ATF is offering a reward of up to $12,000 for information leading to the arrest and conviction of the person(s) responsible for the arson that occurred on May 2, 2013 at 438 Hulett Street in Schenectady, resulting in personal injury and death. All information will be treated confidentially and the callers will remain anonymous if requested. Anyone having information should call the ATF Albany Field Office at 518-431-4182, or email [email protected].
Last Members of Harvery Hustlers Federal Indictment Plead Guilty to Drug Dealing and Murder ChargesRead the Press Release
U.S. Attorney Kenneth A. Polite announced that JOEQUELL LEWIS, age 28, ANDRE ADDISON, age 24, and TERRENCE KELLEY, age 29, all of the Waggaman/Avondale areas, pled guilty this week to conspiring to distribute heroin and/or crack cocaine. KELLEY also pleaded guilty to murdering a man to further his group’s drug trafficking activities and admitted to his role in two other shootings where the victims lived. The three men were the last defendants in a twelve-defendant federal indictment charging drug and gun conspiracies, multiple shootings, and four murders against an off-shoot of the Harvey Hustlers gang.
LEWIS and KELLEY pled guilty to count one of the Superseding Indictment, which charges twelve defendants with trafficking more than a kilogram of heroin and 280 grams or more of crack cocaine. The charge carries a mandatory minimum sentence of at least ten years up to life in prison. KELLEY also pled guilty to Count 12, charging him and three others with causing the death of a man through the use of firearms, which is punishable to any term of years up to life in prison. ADDISON pled guilty to a one-count superseding Bill of Information charging him with conspiring to distribute 28 grams or more of crack cocaine. U.S. District Judge Lance M. Africk set sentencing for all three defendants on February 18, 2016.
According to court documents, LEWIS, ADDISON, and KELLEY were part of a drug trafficking organization that moved significant quantities of heroin and cocaine base on the West Bank. Beginning in 2012, the group engage in a series of violent acts, beginning with a drive by shooting into a another vehicle where the driver and his front seat passenger were shot with an AK-47 while two young children, who were not hit, were in the back seat. The group is alleged to have participated in four additional shootings, two of which ended in death. KELLEY pleaded guilty to the murder of Emeal Washington and admitted to his participation in two other shootings. Other defendants had previously pled guilty and admitted their roles in the murder of Doreatha Richardson. In addition to the shootings and drug conspiracy, members of the group are charged with a weapon conspiracy, in addition to several substantive distribution counts.
HARRY SMOOT, ISAAC SMITH, RICHARD THOMAS, TERRELL WADE, LANCE SINGLETON, FRANKIE HOOKFIN, CLIFFORD SONNIER, and CHRISTOPHER BROWN have previously pled guilty and are awaiting sentencing. KELLEY, LEWIS, and ADDISON were scheduled for trial on November 16, 2015, and were the last defendants to pled guilty. Their pleas resolve the pending federal indictment, but several additional members of the Harvey Hustlers are still being prosecuted in Jefferson Parish.
The Superseding Indictment is a 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. 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.
Assistant United States Attorneys Greg Kennedy, David Haller, and Myles Ranier and Special Assistant United States Attorney Collin Sims, who is a former Assistant United States Attorney and the Criminal Chief at the St. Tammany Parish District Attorney’s Office, are in charge of the prosecution.
Kent County Tax Return Preparer, Andres Orrego-Hernandez, Pleads Guilty to Conspiracy to Defraud the Government and Aiding in the Filing of A False Tax ReturnRead the Press Release
GRAND RAPIDS, MICHIGAN – Grand Rapids resident Andres Orrego-Hernandez, age 30, pled guilty to conspiracy to defraud the government and aiding in the filing of a false tax return, U.S. Attorney Patrick A. Miles, Jr. announced today. U.S. Attorney Miles was joined in the announcement by Special Agent in Charge Jarod J. Koopman, IRS– Criminal Investigation.
According to the plea agreement filed with the court, Orrego-Hernandez admitted his role in the conspiracy that ran between January 2010 and May 2011 and in aiding and assisting in the preparation of false and fraudulent federal income tax returns. The returns filed inflated income and/or the number of dependents to qualify for the earned income credit and/or inflated or claimed entirely false deductions or credits to qualify for larger refunds, such as credits for qualified education expenses. Orrego-Hernandez directed the portion of the client refunds attributable to his criminal activity to bank accounts he controlled. Orrego-Hernandez’s actions defrauded the United States of well in excess of $67,682.
Orrego-Hernandez pled guilty before U.S. Magistrate Judge Phil Green but will be sentenced by U.S. District Judge Paul L. Maloney in approximately three months. Judge Maloney will determine the total amount of the loss to the government as a result of Orrego-Hernandez’s criminal activity. He faces up to five years in prison on the conspiracy conviction and up to three years in prison on the conviction for aiding and abetting the filing of a false tax return.
"We cannot allow special credits, such as qualified education expenses, to be abused by people like Orrego-Hernandez. Each of us must be vigilant when using a return preparer," said Special Agent in Charge Jarod J. Koopman. "Taxpayers should review their return for accuracy before it is filed."
This case was investigated by Special Agents of IRS-Criminal Investigation and Assistant U.S. Attorney B. Rene Shekmer prosecuted the case.
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Justice Department Announces Two Banks Reach Resolutions Under Swiss Bank ProgramRead the Press Release
The Department of Justice announced today that Banque Internationale à Luxembourg (Suisse) SA (BIL Switzerland) and Zuger Kantonalbank (ZGKB) have reached resolutions under the department’s Swiss Bank Program. These banks will collectively pay penalties totaling more than $13 million and continue to cooperate with the department.
“The agreements reached today reflect the department’s continued commitment to reaching resolutions with those Swiss banks that satisfy the requirements of the Program, including detailed disclosures of their illegal conduct in connection with U.S.-related accounts,” said Acting Assistant Attorney General Caroline D. Ciraolo of the Justice Department’s Tax Division. “Taxpayers are on notice that attempting to hide their foreign accounts in insurance wrappers and other such vehicles in order to evade their U.S. tax obligations is criminal conduct, and we are vigorously pursuing these cases.”
The Swiss Bank Program, which was announced on Aug. 29, 2013, provides a path for Swiss banks to resolve potential criminal liabilities in the United States. Swiss banks eligible to enter the program were required to advise the department by Dec. 31, 2013, that they had reason to believe that they had committed tax-related criminal offenses in connection with undeclared U.S.-related accounts. Banks already under criminal investigation related to their Swiss-banking activities and all individuals were expressly excluded from the program.
Under the program, banks are required to:
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Make a complete disclosure of their cross-border activities;
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Provide detailed information on an account-by-account basis for accounts in which U.S. taxpayers have a direct or indirect interest;
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Cooperate in treaty requests for account information;
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Provide detailed information as to other banks that transferred funds into secret accounts or that accepted funds when secret accounts were closed;
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Agree to close accounts of accountholders who fail to come into compliance with U.S. reporting obligations; and
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Pay appropriate penalties.
Swiss banks meeting all of the above requirements are eligible for a non-prosecution agreement.
According to the terms of the non-prosecution agreements signed today, each bank agrees to cooperate in any related criminal or civil proceedings, demonstrate its implementation of controls to stop misconduct involving undeclared U.S. accounts and pay penalties in return for the department’s agreement not to prosecute these banks for tax-related criminal offenses.
BIL Switzerland is a Swiss private bank with offices in Zurich and Geneva. BIL Switzerland is wholly owned by Banque Internationale à Luxembourg, a Luxembourg bank founded in 1856. In 1996, BIL Switzerland’s ultimate parent underwent a merger to form the Dexia Group, headquartered in Belgium. In connection with this merger, BIL Switzerland was renamed Dexia Privatbank (Schweiz) AG. In 2011, the Dexia Group dissolved, and BIL Switzerland came under new ownership, at which time it reverted to the BIL Switzerland name. BIL Switzerland provided private banking and asset management services principally through private bankers based in Zurich, Geneva and Lugano, Switzerland.
BIL Switzerland opened, maintained, serviced and profited from accounts that were held or beneficially owned by U.S. taxpayer clients. BIL Switzerland opened several accounts for U.S. taxpayers who were leaving other Swiss banks that were being investigated by the department, including UBS and Credit Suisse.
BIL Switzerland offered a variety of traditional Swiss banking services – including hold mail and numbered accounts – that assisted and enabled certain of its U.S. taxpayer clients to conceal their assets and income, file false federal tax returns with the Internal Revenue Service (IRS) and evade their U.S. tax obligations. BIL Switzerland also provided Swiss travel cash cards to U.S. clients, enabling them to access and spend funds from undeclared accounts in the United States.
In the period since Aug. 1, 2008, BIL Switzerland maintained at least 145 accounts, comprising an aggregate value of more than $64 million, that were owned by insurance companies and which held assets relating to insurance products that were issued to U.S. taxpayer clients of the respective insurance companies. Such accounts, known commonly as insurance-wrappers, were titled in the names of insurance companies, but were funded with assets that were transferred to the accounts for the beneficial owners of the insurance products (the policy holders). The assets in these accounts, while titled in the names of insurance companies, were managed by external asset managers for the ultimate benefit of the policy holders, through powers of investment that were given by the insurance companies to the external asset managers.
The assets of some insurance-wrapper accounts originated from undeclared accounts at BIL Switzerland. These undeclared accounts were closed, and their assets were transferred to newly-opened accounts at BIL Switzerland in the name of an insurance company and managed by various external asset managers. At account opening, the new accounts held the same assets that the U.S. taxpayer clients had previously held directly at BIL Switzerland. One of the undeclared accounts did not hold U.S. securities, but the recipient insurance-wrapper account acquired U.S. securities at a later date.
In addition to the 145 insurance-wrapped accounts, BIL Switzerland also acted as a custodian to more than 30 U.S.-related accounts, comprising an aggregate value of approximately $83 million, that were maintained by external asset managers for U.S. taxpayers.
BIL Switzerland closed U.S.-related accounts in ways that concealed the U.S. beneficial owners of those accounts. Upon request of the accountholders, BIL Switzerland removed the names of its U.S. taxpayer clients from joint accounts, leaving only non-U.S. persons as accountholders, or moved their assets into new BIL Switzerland accounts that were held in the names of non-U.S. persons, including non-U.S. relatives. BIL Switzerland thereafter treated the recipient accounts as non-U.S.-related accounts, despite some relationship managers continuing to take and execute instructions given directly from the U.S. taxpayers formerly associated with the accounts, or the U.S. taxpayer clients retaining effective beneficial ownership over the transferred funds.
BIL Switzerland maintained three accounts, beneficially owned by two different U.S. taxpayers, that held U.S. securities in the names of three offshore entities. The U.S. taxpayer’s interest in each of these accounts was not reported to the IRS even though BIL Switzerland knew or had reason to know that such offshore entity accounts were operated without strict adherence to corporate formalities. Two of the offshore entities were organized in the British Virgin Islands, and the third was organized in the United Arab Emirates. In effect, these offshore entities were used by the U.S. taxpayer beneficial owners as sham, conduit or nominee entities. BIL Switzerland relationship managers associated with these accounts, while outside the United States:
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Met with or took instructions from the U.S. taxpayer beneficial owners of these offshore entity accounts, instead of the directors or other authorized parties of the account;
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Acted on instructions from an external asset manager, who received them directly from a U.S. taxpayer, without first knowing whether corporate formalities were observed;
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Followed instructions that allowed a U.S. taxpayer to withdraw cash directly from the account, despite such withdrawals being contrary to the corporate purposes of the entity that owned the account; and
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Executed transactions that allowed a U.S. taxpayer to make several significant wire transfers to unaffiliated Swiss banks for the U.S. taxpayer’s personal use or benefit, without first knowing or inquiring whether corporate formalities were satisfied.
BIL Switzerland accepted certifications from the directors of these entities that falsely declared that the entity was the beneficial owner of the assets deposited in the accounts.
From 2001 through February 2010, BIL Switzerland had a wholly-owned subsidiary, Experta AG, a Swiss company. Experta AG provided a number of services, including accounting services, legal and tax advice, as well as the creation and management of entities such as offshore corporations, trusts and foundations. During the time that Expert AG was affiliated with BIL Switzerland, Experta AG provided services that assisted and enabled certain U.S. taxpayers in the concealment of their assets and income and in the evasion of their U.S. tax obligations.
BIL Switzerland has fully cooperated with the department in relation to the Swiss Bank Program. Among other things, BIL Switzerland required its relationship managers to submit declarations setting forth their knowledge concerning the U.S. taxpayer status of each account that they managed. BIL Switzerland also reviewed leaver lists from other banks to identify additional U.S.-related accounts.
Since Aug. 1, 2008, BIL Switzerland maintained 267 U.S.-related accounts having a maximum aggregate dollar value in excess of $182 million. BIL Switzerland will pay a penalty of $9.71 million.
ZGKB was founded in 1892 and is headquartered in Zug, Switzerland. Organized under the laws of the canton of Zug, all of ZGKB’s 14 branches are located within the canton. The canton owns 51 percent of ZGKB and guarantees its deposits.
From at least 2001 to 2012, ZGKB opened and maintained accounts for certain of its U.S. clients while aware of the risk that such clients were not declaring income earned in these accounts or the existence of such accounts. In doing so, ZGKB ignored red flags of wrongful intent on the part of U.S. clients who sought to open such accounts. ZGKB offered a variety of traditional Swiss banking services – including hold mail and numbered accounts – that it knew could assist, and did assist, U.S. taxpayers in concealing their identity from the IRS by minimizing the paper trail associated with their undeclared assets and income. ZGKB also accepted funds from a small number of UBS accountholders who had likely been forced to close their UBS accounts because of a U.S. tax-fraud investigation of UBS.
ZGKB assisted its U.S. clients in sending money to themselves, relatives, business partners, or other businesses in the United States by issuing checks drawn on a ZGKB account at a bank in New York. In one case, the accountholder requested and received checks in excess of $90,000 on several occasions. ZGKB cashed out the balances of U.S. residents’ accounts in substantial amounts. In one instance, at the request of the U.S. client, ZGKB permitted the client to withdraw the entire account balance of approximately $665,000 in cash. For several U.S. accountholders, ZGKB transferred funds from their accounts in multiple withdrawals – for example, 12 in one month – of amounts just under $10,000. In at least one case, ZGKB was instructed to do so in order to evade a report to the IRS.
Since Aug. 1, 2008, ZGKB maintained and serviced 434 U.S.-related accounts having a maximum aggregate dollar value of $220 million. ZGKB will pay a penalty of $3.798 million.
In accordance with the terms of the Swiss Bank Program, each bank mitigated its penalty by encouraging U.S. accountholders to come into compliance with their U.S. tax and disclosure obligations. While U.S. accountholders at these banks who have not yet declared their accounts to the IRS may still be eligible to participate in the IRS Offshore Voluntary Disclosure Program, the price of such disclosure has increased.
Most U.S. taxpayers who enter the IRS Offshore Voluntary Disclosure Program to resolve undeclared offshore accounts will pay a penalty equal to 27.5 percent of the high value of the accounts. On Aug. 4, 2014, the IRS increased the penalty to 50 percent if, at the time the taxpayer initiated their disclosure, either a foreign financial institution at which the taxpayer had an account or a facilitator who helped the taxpayer establish or maintain an offshore arrangement had been publicly identified as being under investigation, the recipient of a John Doe summons or cooperating with a government investigation, including the execution of a deferred prosecution agreement or non-prosecution agreement. With today’s announcement of these non-prosecution agreements, noncompliant U.S. accountholders at these banks must now pay that 50 percent penalty to the IRS if they wish to enter the IRS Offshore Voluntary Disclosure Program.
“Today’s resolutions with Banque Internationale á Luxembourg (Suisse) SA and Zuger Kantonalbank under the Swiss Bank Program send a clear message,” said acting Deputy Commissioner International David Horton of the IRS Large Business & International Division. “U.S. taxpayers cannot evade their taxes by setting up undisclosed offshore accounts. In partnership with the Department of Justice, we will continue our successful efforts to track these taxpayers and their hidden accounts down.”
Acting Assistant Attorney General Ciraolo thanked the IRS and in particular, IRS-Criminal Investigation and the IRS Large Business & International Division for their substantial assistance. Ciraolo also thanked Paul G. Galindo and Brian D. Bailey, who served as counsel on these matters, as well as Senior Counsel for International Tax Matters and Coordinator of the Swiss Bank Program Thomas J. Sawyer, Senior Litigation Counsel Nanette L. Davis and Attorney Kimberle E. Dodd of the Tax Division.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
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Jamestown Man Sentenced on Drug ChargesRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051
BUFFALO, N.Y.–U.S. Attorney William J. Hochul, Jr. announced today Ismael Burgos, 53, Jamestown, NY, who was convicted of attempted possession with intent to distribute cocaine, was sentenced to 30 months in prison by U.S. District Judge Elizabeth A. Wolford.Assistant U.S. Attorney Caleb J. Petzoldt, who handled the case, stated that on January 27, 2015, the defendant attempted to receive a package from Puerto Rico via U.S. Mail. The package was deemed to be suspicious and investigators determined that it contained a quantity of cocaine. The cocaine was secreted inside a child’s booster safety seat.
The sentencing is the culmination of an investigation on the part of the United States Postal Inspection Service, under the direction of Shelly Binkowski, Inspector in Charge, Boston Division, and the Drug Enforcement Administration, under the direction of Special Agent in Charge James J. Hunt, New York Field Office.
Iowa Summit Discusses Heroin CrisisRead the Press Release
CEDAR RAPIDS - Over the last two decades, a perfect storm has led to skyrocketing rates of opiate painkiller addiction and subsequent drug overdoses. Patients have increasingly abused addictive opioid pain-killers, and then transitioned to heroin, which may be cheaper and more accessible but often times more deadly.
The United States Attorney’s Offices for the Northern and Southern Districts of Iowa and the University of Iowa’s College of Public Health Injury Prevention Research Center (IPRC) hosted its first-ever summit today to discuss interagency collaboration on this critical public health issue. Around 200 professionals from the fields of law enforcement, medicine, treatment, and public health attended the summit at the University’s College of Public Health.
Nationally, drug overdoses caused 44,000 deaths in 2013, and over two million people misused prescription drugs. Iowa is not immune and has experienced alarming trends. From 2000 to 2013, the number of Iowans dying from prescription medication overdoses increased by 20 times. During that same timeframe, heroin overdose deaths increased from one to 20 per year.
A solution to this epidemic requires a coordinated effort by prevention specialists, treatment professionals, law enforcement and the entire medical community.
United States Attorney for Northern District of Iowa Kevin W. Techau offered his assessment of the importance of the summit, stating, “Heroin and opioid abuse takes a huge toll with Iowans every day. This summit is an excellent opportunity for the professionals who deliver treatment and prevention programs to come together with law enforcement to build partnerships that can effectively work together to impact these issues.”
Award winning journalist, Sam Quinones, was the keynote speaker at the summit. His new book, “Dreamland: The True Tale of America’s Opiate Epidemic,” chronicles the rapid rise of prescription painkiller and heroin use in small town America. Federal and local authorities all over the county report the biggest drug epidemic today does not come from methamphetamines or cocaine, but heroin. Quinones stated, “It should not be viewed as just an inner-city problem because huge profits are being made in suburbs across this country, and Iowa is not immune to this threat.”
Potential solutions to the national epidemic were highlighted at the summit, which included Prescription Drug Monitoring Programs (PDMPs). This program educates prescribers and tracks overuse of prescriptions through state-run electronic databases. Another solution is the use of Naloxone, a drug that counteracts opiate overdoses. Some state PDMPs require prescribers to report the dispensing of controlled prescription drugs to patients, and this information could be shared more broadly.
Additional education, greater access to treatment, enhanced prescription drug take-back programs, and oversight of pain clinics can also be part of the solution to this complex problem.
Dr. Corinne Peek-Asa, Director of the University of Iowa Injury Prevention Research Center said, “Interagency collaboration by law enforcement, the courts, healthcare, substance abuse treatment, public health, and education, among others, is essential to stem this growing tide of heroin and opioid abuse.”
Learn more about today’s heroin epidemic by visiting the Centers for Disease Control and Prevention at: http://www.cdc.gov/vitalsigns/heroin.
Follow us on Twitter @USAO_NDIA.
Interagency group taking data-driven approach to combat health care fraudRead the Press Release
FAIRMONT, WEST VIRGINIA – State and federal law enforcement leaders joined United States Attorney William J. Ihlenfeld, II today to announce the formation of a working group that is taking a data-driven approach to the prevention of health care fraud in West Virginia.
According to Ihlenfeld, the multi-jurisdictional group is proactively evaluating the health care reimbursement data of medical providers in northern West Virginia. By using advanced statistical analysis, investigators are able to identify potentially fraudulent billing patterns and uncover waste and abuse more efficiently.
“Health care fraud continues to be a significant problem in West Virginia and throughout the country and it costs taxpayers tens of billions of dollars every year,” said Ihlenfeld. “Ultimately, health care fraud increases the cost of medical care for everyone and undermines our existing health care programs. The fraud detection tools that we’re using allow us to identify sophisticated schemes that may have escaped scrutiny in the past.”
Agencies involved in the effort include the United States Department of Health and Human Services (HHS), the Drug Enforcement Administration (DEA), the Federal Bureau of Investigation (FBI), the Internal Revenue Service Criminal Investigations (IRS-CI), the West Virginia Medicaid Fraud Control Unit, the Ohio Medicaid Fraud Control Unit, the West Virginia Office of the Insurance Commission, and the Ohio Bureau of Workers’ Compensation.
The northern West Virginia working group is led by Assistant U.S. Attorney Sarah Montoro.
On Thursday, Ihlenfeld also announced that the United States has settled allegations that a Fairmont physician fraudulently requested reimbursement for medical services that were not actually rendered. Dr. Samer Kuzbari has paid $440,232 to resolve accusations that he submitted false claims to various health care benefit programs, including Medicare, Medicaid, TRICARE, and the Federal Employees Health Benefit Program.
The settlement addressed claims against Kuzbari and the Kuzbari Clinic arising under the False Claims Act, a law which allows the government to sue health care providers who submit false claims to federal health care benefit programs. The settlement resolves potential civil and administrative monetary claims, but does not preclude criminal charges.
“Medicare, TRICARE, and other programs depend upon doctors to honestly report the work that they do,” said Ihlenfeld. “When a doctor claims reimbursement for a treatment that he didn’t provide then it’s the taxpayers who are cheated. We will continue to work with our law enforcement partners to protect the integrity of all federal health care programs.”
Assistant U.S. Attorney Alan G. McGonigal represented the government in the Kuzbari matter. The U.S. Department of Health and Human Services Office of Inspector General, the U.S. Officer of Personnel Management Office of Inspector General, and the West Virginia Insurance Commission investigated.
Hudson County, New Jersey, Man Admits Leading Armed Robbery Spree of Banks and Restaurants in Bergen and Hudson CountiesRead the Press Release
NEWARK, N.J. – A Hudson County, New Jersey, man today admitted his role in an armed robbery spree of banks and commercial establishments in Bergen and Hudson counties in July 2013, U.S. Attorney Paul J. Fishman announced.
Gary Bohanan, 46, of North Bergen, New Jersey, pleaded guilty before U.S. District Judge Claire C. Cecchi in Newark federal court to one count of conspiracy to commit armed bank robberies and Hobbs Act robberies, two counts of armed bank robbery, and two counts of armed Hobbs Act robbery.
According to documents filed in this case and statements made in court:
On July 10, 2013, Bohanan and Ramon Lopez, 25, of Union City, who were both wearing masks, entered a McDonald’s restaurant in North Bergen. Bohanan brandished a handgun and demanded money from the employees of McDonald’s. Bohanan and Lopez then took $1,600 in cash from the cash registers and fled in a car driven by Josephine Chenet, 45, formerly of North Bergen.
On July 18, 2013, Bohanan, Angel Feliu, 22, of North Bergen, Lopez, and Chenet watched Le Chateau restaurant in West New York, New Jersey, for the purpose of robbing it. Bohanan and the other individuals waited for a restaurant employee to close the restaurant, followed her home, and then robbed her at gunpoint of $6,000 in cash, representing the proceeds from the restaurant.
On July 22, 2013, Bohanan, Feliu and Chenet robbed the Sovereign Bank (now Santander Bank) in Secaucus, New Jersey. Both men wore latex gloves and masks. Once inside the Sovereign Bank, Bohanan brandished a black handgun, jumped over the counter and proceeded to empty two drawers of money into a black bag, while pointing the handgun at bank tellers. As Bohanan emptied the drawers, Feliu stood guard. Bohanan and Feliu then fled the bank and shared the proceeds of the robbery with Lopez and Chenet.
On July 26, 2013, Bohanan, Feliu and Chenet robbed the TD Bank, located in Fairview, New Jersey. Bohanan and Feliu entered the bank at 9:48 a.m. Bohanan and Feliu both wore latex gloves and masks. Feliu, however, was captured by the bank’s video surveillance system before he put the mask on his face. During the robbery, Feliu brandished a knife at employees and customers, and Bohanan brandished what appeared to be a black handgun, but what was later identified as an air pistol. Bohanan then jumped over the counter and emptied two drawers of money into a black bag, while pointing the air pistol at bank tellers. As Bohanan emptied the drawers, Feliu stood guard and held bystanders back by brandishing the knife. After the robbery, Bohanan and Feliu fled on foot; however, they were followed by concerned citizens and victims of the bank robbery. Bohanan then came upon a van, pointed the air pistol at the driver, and ordered the driver out of the van. Bohanan then attempted to flee the area by driving away in the van, but he crashed it into a nearby structure. Bohanan was found hiding under a truck and arrested in possession of a black bag containing an air pistol and money covered with red dye.
The two counts of armed bank robbery to which Bohanan pleaded guilty each carry a maximum penalty of 25 years in prison and a fine of $250,000. The two counts of Hobbs Act robbery each carry a maximum penalty of 20 years in prison. The count of conspiracy carries a maximum penalty of five years in prison. Sentencing is scheduled for Feb. 24, 2016.
Feliu previously pleaded guilty to one count of conspiracy to commit armed bank robberies and Hobbs Act robberies and two counts of armed bank robbery. Lopez previously pleaded guilty in a separate proceeding to one count of conspiracy to commit armed bank robberies and Hobbs Act robberies and two counts of Hobbs Act robberies. Bohanan, Feliu, and Lopez are detained pending sentencing. Charges that had been pending against Chenet for her role in the robberies were dismissed following her death on June 22, 2014.
U.S. Attorney Fishman praised special agents of the FBI, under the direction of Special Agent in Charge Richard M. Frankel, with the investigation leading to today’s guilty plea. He also thanked the Fairview, North Bergen and Secaucus police departments for their contributions to the case.
The government is represented by Assistant U.S. Attorney Francisco J. Navarro of the U.S. Attorney’s Office Criminal Division in Newark.
Defense counsel: Carl J. Herman Esq., West Orange, New Jersey
Houma Postal Worker Indicted for Theft of MailRead the Press Release
U.S. Attorney Polite announced that ELVIRA DUTHU DUPLANTIS, age 50, of Houma, was indicted today for Theft of Mail.
According to the Indictment, as a result of a complaint from the Postmaster of the Houma Post Office regarding missing mail, the United States Postal Service, Office of Inspector General initiated an investigation into DUPLANTIS, who was a letter carrier assigned to the Houma Post Office. The investigation determined that DUPLANTIS stole approximately 113 gift cards, which included Visa debit cards and gift cards for major retail stores and restaurants, with a total value of over $3,200.
If convicted, DUPLANTIS faces a maximum penalty of five years imprisonment, followed by up to three years of supervised release, and a $250,000 fine.
Max Eamiguel, Special Agent in Charge, Office of Inspector General, U.S. Postal Service, Southern Area Field Office, stated, “Postal employees take great pride in their work for the American public. This type of criminal behavior is unacceptable and does not reflect the careful efforts of the thousands of professional, dedicated employees in our workforce. We will continue to vigorously pursue those individuals who violate the public’s trust.”
U.S. Attorney Polite reiterated that the Indictment is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
U.S. Attorney Polite praised the work of the U.S. Postal Service, Office of Inspector General. Fraud Unit Chief, Assistant U. S. Attorney Brian M. Klebba is in charge of the prosecution.
Honduran National Pleads Guilty to Illegally ReentryRead the Press Release
U.S. Attorney Kenneth A. Polite announced that JIMY NAHUN NUÑEZ-IZAGUIRRE, age 31, a citizen of Honduras, pled guilty today to a one-count Bill of Information for illegal reentry of removed alien.
According to the Indictment, on or about October 1, 2015, NUÑEZ-IZAGUIRRE was found in the United States after having been officially deported and removed on or about July 25, 2008.
NUÑEZ-IZAGUIRRE faces a maximum term of imprisonment of two years and a fine of $250,000, one year supervised release after imprisonment, and a $100 special assessment. U.S. District Judge Lance M. Africk set sentencing for December 12, 2015.
U.S. Attorney Polite praised the work of the United States Department of Homeland Security, Immigration Enforcement in investigating this matter. Assistant United States Attorney Irene González is in charge of the prosecution
Hartford Man Pleads Guilty to MurderRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that JIMEL FRANK, also known as “30” and “Velly,” 28, of Hartford, pleaded guilty today before U.S. District Judge Janet Bond Arterton in New Haven to committing the murder of Anthony Parker of Hartford in April 2011.
This matter stems from a long-term investigation being conducted by the FBI’s Northern Connecticut Violent Crimes Task Force, DEA and Hartford Police Department into narcotics trafficking by members and associates of the Westhell and Team Grease groups and group-related violent activity. The Cold Case Unit of the Office of the Chief State’s Attorney is actively participating in the investigation.
At approximately 10:47 a.m. on the morning of April 6, 2011, the Hartford Police Department received a report of shots fired in the vicinity of 15 Thomaston Street in the Blue Hills Section of Hartford. Officers responding to the scene located Anthony Parker, also known as “Smooth,” 24, seated in the driver’s seat of a vehicle in the driveway of 15 Thomaston Street. Parker was unconscious and suffering from multiple gunshot wounds. Parker was transported by ambulance to Saint Francis Hospital where he ultimately succumbed to his injuries and was pronounced deceased.
FRANK was a member of the Wall Street group, which later became generally known as “Team Grease.” In pleading guilty, FRANK admitted that he and another individual, who were both armed with 9mm handguns, opened fire on Parker from opposite sides of the vehicle in which he was seated.
FRANK pleaded guilty to one count of committing a Violent Crime in Aid of Racketeering, namely the murder of Anthony Parker. Judge Arterton scheduled sentencing for February 5, 2016, at which time FRANK faces a maximum term of life imprisonment.
FRANK has been detained since his arrest on February 19, 2015.
The homicide of Anthony “Smooth” Parker was included in cold case playing cards sold to inmates in Connecticut’s state correctional facilities. Each card in the deck features a photograph and brief details about a homicide or missing person case and lists telephone, mail and e-mail contacts that inmates can use to supply information.
This investigation is being conducted by the FBI’s Northern Connecticut Violent Crimes Task Force, DEA, Hartford Police Department and Cold Case Unit of the Office of the Chief State’s Attorney. The FBI Task Force includes members of the Hartford Police Department, East Hartford Police Department, Connecticut State Police and Connecticut Department of Correction.
The case is being prosecuted by Assistant U.S. Attorneys John H. Durham and Peter S. Jongbloed, and Supervisory Assistant State’s Attorney Patrick Griffin, who has been cross-designated as a Special Assistant U.S. Attorney in this matter.
Gretna Man Pled Guilty to Transferring False Social Security CardsRead the Press Release
U.S. Attorney Kenneth A. Polite announced that FROILAN IGNACIO MIRANDA-RAMOS, age 30, of Gretna, pled guilty today to four counts of transferring false Social Security cards.
According to court documents, MIRANDA-RAMOS sold counterfeit Social Security cards on four separate occasions to confidential informants working with the Department of Homeland Security.
MIRANDA-RAMOS faces a maximum term of imprisonment of fifteen years, a maximum fine of $250,000, a maximum term of supervised release of three years, and a mandatory $100 special assessment. U.S. District Judge Sarah S. Vance set sentencing for December 16, 2015.
U.S. Attorney Polite praised the work of the United States Department of Homeland Security in investigating this matter. Assistant U.S. Attorney Spiro G. Latsis is in charge of the prosecution.
Franklin, Kentucky, Physician Charged with Illegal Distribution of Controlled SubstancesRead the Press Release
Allegedly prescribed opiate pain medications outside the course of professional medical practice and without a legitimate medical purpose.
BOWLING GREEN, Ky. – A Franklin, Kentucky, physician was recently charged by federal Information with the illegal distribution of controlled substances by way of prescribing opiate pain medications outside of the course of professional medical practice and without a legitimate medial purpose, announced U.S. Attorney John E. Kuhn, Jr.
Roy D. Reynolds, a doctor practicing in Franklin, Kentucky, in Simpson County, was charged by federal Information on November 10, 2015 in Bowling Green. According to the Information, between February 2009 and April 2011, defendant Reynolds knowingly and intentionally prescribed oxycodone, a Schedule II controlled substance, and Xanax, a Schedule IV controlled substance, to J.H. outside the course of professional medical practice.
Further, between July 2010 and December 2011, Dr. Reynolds is charged with repeatedly prescribing hydrocodone, a Schedule III controlled substance at the time, and Xanax and clonazepam, Schedule IV controlled substances, to J.R., outside the course of professional medical practice and without a legitimate medical purpose.
If convicted at trial, Reynolds could be sentenced to no more than 30 years in prison, followed by a three year period of supervised release and fined $1.5 million.
This case is being prosecuted by Assistant United States Attorney David Weiser and is being investigated by the Federal Bureau of Investigation (FBI) and Kentucky State Police.
Fort Myers Man Sentenced to 8 Years for Possession and Distribution of Child PornographyRead the Press Release
Fort Myers, Florida – U.S. District Judge John E. Steele today sentenced David Erdman (51, Fort Myers) to eight years in federal prison, followed by a lifetime of supervision, for possessing and distributing child pornography. He pleaded guilty on August 14, 2015.
According to court documents, during an FBI investigation into individuals who were using peer-to-peer software to share child pornography files, an agent connected with Erdman’s computer and downloaded child pornography files. On February 20, 2014, a federal search warrant was executed at Erdman’s residence. A forensic analysis of his laptop revealed an extensive collection of images and videos depicting child pornography. During an interview with agents, Erdman admitted to searching for child pornography since approximately 2000.
This case was investigated by the Federal Bureau of Investigation. It was prosecuted by Chief Assistant United States Attorney Jesus M. Casas.
It is another case brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Former Real Estate Developer Sentenced to Prison for Orchestrating Massive Mortgage FraudRead the Press Release
BOSTON – A former real estate developer was sentenced today to 135 months in prison in connection with a multi-year, multi-property mortgage fraud scheme in Boston.
Michael David Scott, 51, of Mansfield, was sentenced by U.S. District Court Judge Richard G. Stearns to 135 months in prison, five years of supervised release, and ordered to pay restitution of over $11,374,201and to forfeit $7,413,712. In June 2015, Scott pleaded guilty to counts of 32 counts of wire fraud, 14 counts of bank fraud, and 22 counts of money laundering.
From September 2006 to April 2008, Scott, a former realtor and developer, arranged to purchase multi-family residences and then sold individual condominium units in the buildings to straw buyers recruited by him and his co-conspirators, Jerold Fowler and Thursa Raetz. Scott and his co-conspirators fraudulently recruited straw buyers to purchase condominium units in Roxbury and Dorchester with promises that the buyers would not have to make down payments, pay any funds at the closing, or be responsible for mortgage payments, but would share in profits when the units were resold. In order to obtain mortgage loans in the names of the straw buyers, Scott submitted mortgage loan applications that falsely represented key information, such as the buyers’ income, personal assets, down payment, and intention to reside in the condominiums. The mortgage lenders (nine national mortgage companies and one local bank) were led to believe that the straw buyers had made substantial down payments and paid substantial sums at closings.
Fowler, 31, and Raetz, 40, both of Norfolk, Va., pleaded guilty to two counts of wire fraud in June 2015 and are schedule to be sentenced on Nov. 20 and Nov. 19, 2015, respectively.
United States Attorney Carmen M. Ortiz; Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; and William P. Offord, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigations in Boston, made the announcement today. The case is being prosecuted by Assistant U.S. Attorneys Victor A. Wild of Ortiz’s Economic Crimes Unit and Ryan M. DiSantis of Ortiz’s Public Corruption Unit.
Former Pharma Company Manager Pleads Guilty to Criminal HIPAA ViolationRead the Press Release
BOSTON – A former district manager for pharmaceutical company Warner Chilcott pleaded guilty today in connection with wrongfully accessing patients’ protected personal health information.
Landon Eckles, 30, of Huntersville, N.C., pleaded guilty to wrongful disclosure of identifiable health information, in violation of the criminal provisions of the Health Insurance Portability and Accountability Act (HIPAA). U.S. District Court Judge George A. O’Toole, Jr., scheduled sentencing for March 15, 2016. Eckles was charged in an Information in October 2015.
From 2007 to 2012, Eckles worked for Warner Chilcott and served as a district manager in the company’s osteoporosis division in a mid-Atlantic district. Atelvia® had poor insurance coverage in Eckles’s district when it was launched in 2011, and many insurance companies required a prior authorization before covering Atelvia®. A prior authorization contains protected health information, including biographical data and information concerning a patient’s medical condition. Certain insurance companies require prior authorizations signed by a patient’s doctor in order to overcome restrictions that favor less expensive prescription drugs. Eckles directed certain sales representatives that, if physicians refused to fill out Atelvia® prior authorizations, the sales representatives should fill them out themselves. Several of Eckles’s sales representatives, and Eckles himself, filled out Atelvia® prior authorizations, and by doing so, accessed patients’ protected health information in violation of the HIPAA law and regulations that safeguard the privacy of confidential health records.
In addition, Eckles and a sales representative accessed a number of patients’ medical charts and placed Atelvia® brochures in the charts so that physicians would be reminded to prescribe it. Eckles bragged about this tactic to his sales representatives, stating, “I guarantee you that this is going to drive business,” and encouraged his sales representatives to follow suit. In part, as a result of his scheme, Eckles received a bonus of approximately $60,000 in 2011.
The charging statute provides a sentence of no greater than 10 years in prison, three years of supervised release, a fine of $250,000 and exclusion from the Medicare program. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Eckles is the fifth individual charged in connection with the Warner Chilcott investigation. In October 2015, Warner Chilcott agreed to plead guilty to health care fraud and pay $125 million to resolve a joint criminal and civil investigation. In addition, the former President of Warner Chilcott, Carl Reichel, was indicted for conspiracy to pay kickbacks. Two other former district managers, Jeff Podolsky and Timothy Garcia, pleaded guilty to conspiracy to commit health care fraud. Rita Luthra, a Springfield, Mass. physician, was indicted for accepting kickbacks, violating the criminal provisions of HIPAA and obstructing justice.
United States Attorney Carmen M. Ortiz and Antoinette V. Henry, Special Agent in Charge of the U.S. Food and Drug Administration, Office of Criminal Investigations, made the announcement today. The case is being prosecuted by Assistant U.S. Attorneys David Schumacher and Miranda Hooker of Ortiz’s Health Care Fraud Unit.
Former New Orleans Police Officer Sentenced for Theft of Government FundsRead the Press Release
U.S. Attorney Kenneth A. Polite announced that TRACIE MEDUS, age 40, of New Orleans, was sentenced today after having previously pled guilty to theft of government funds.
U.S. District Judge Mary Ann Vial Lemmon sentenced MEDUS to three years probation, including one year of home confinement. Additionally, MEDUS was ordered to make restitution in the amount of $158,700.
MEDUS admitted that she defrauded the federally funded Small Rental Property Program, a Louisiana Road Home program to enable low-income families displaced by Hurricane Katrina to return to Louisiana. The program provided money for landlords to repair units to be rented at specified low rates to approved low-income tenants. Road Home required that tenants be approved for income eligibility and to reside in units prior to landlords receiving funds.
U.S. Attorney Polite praised the work of the Department of Housing and Urban Development - Office of Inspector General and the Federal Bureau of Investigation in investigating this matter and thanked the New Orleans Police Department’s Public Integrity Bureau and the Internal Revenue Service’s Criminal Investigation Division for their assistance. Assistant U.S. Attorney Chandra Menon was in charge of this prosecution.
Former Director of Two North Suburban Medical Practices Sentenced to 18 Months for Defrauding the Companies out of Nearly Half a Million DollarsRead the Press Release
CHICAGO — The former executive director of two Deerfield-based physician offices was sentenced today to 18 months in federal prison for fraudulently diverting nearly $500,000 of the companies’ funds to her own use.
JAYNE KULHANEK, 57, used corporate credit cards of The Laser Network LLC and United Eye Care Providers to fund vacations in France and Spain, purchase antique furniture, and pay her own state and federal income taxes. Kulhanek concealed the six-year scheme by making false accounting entries in the companies’ ledgers.
Kulhanek, of Benton Harbor, Mich., pleaded guilty in February to one count of wire fraud. In addition to the 18-month prison term, U.S. District Judge John W. Darrah ordered Kulhanek to pay $364,598.05 in restitution.
“The crime is not one of a mistake made one time, but a six-year scheme to steal money and cover it up,” Assistant U.S. Attorney Sunil R. Harjani argued in the government’s sentencing memorandum. “Only when the defendant’s scheme was fully exposed by company management did she stop her fraudulent conduct.”
The Laser Network and United Eye Care Providers are affiliated physician offices that provide treatment for the eye. As executive director of the two companies, Kulhanek had access to the companies’ corporate credit cards and bank accounts in order to pay business expenses. She also maintained the companies’ accounting ledgers.
From January 2006 to December 2012, Kulhanek used the companies’ funds to pay balances on her personal credit cards that she had spent on her own living expenses. She attempted to conceal the scheme by fraudulently classifying the payments as having been made to a medical-equipment vendor or other supplier. The scheme netted Kulhanek $491,328.57.
When company officials initially confronted her about the antique furniture in November 2011, Kulhanek said she had used the wrong credit card to make the purchase. The scam continued for another year before it was fully exposed.
The sentence was announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois; and Michael J. Anderson, Special Agent-in-Charge of the Chicago office of the Federal Bureau of Investigation.
The government is represented by Mr. Harjani.
Former Dallas County Probation Employee Sentenced to 97 Months in Federal Prison for Role in Cocaine Distribution ConspiracyRead the Press Release
DALLAS — Selena Ball, 30, of Desoto, Texas, was sentenced this afternoon by U.S. District Judge Jane J. Boyle to 97 months in federal prison, following her guilty plea in April 2015 to one count of conspiracy to possess with intent to distribute cocaine, announced U.S. Attorney John Parker of the Northern District of Texas.
Ball, who was remanded into federal custody following her sentencing, was a Pretrial Bond/Electronic Monitoring Officer for the Dallas County Department of Criminal Justice. As part of her duties, she was assigned to monitor an inmate, co-defendant Patrick D. Lenard, 33.
The Court noted Ball’s abuse of trust as a member of the Dallas County Probation Department, and the Department’s director testified as to the devastating effect the case had on her department.
Ball and 10 co-defendants, including Lenard, were charged in a November 2014 indictment with various felony offenses, including conspiracy, drug trafficking, kidnapping, firearms offenses, witness intimidation/tampering, and records destruction, stemming from their involvement in a violent drug trafficking operation (DTO) that operated in South Dallas and the Dallas County Jail. One of the co-defendants, Rodney Wynn, 34, of Kaufman, Texas, who was on the State of Texas’s most wanted list, was apprehended and is set for trial in January 2016. The remaining defendants have all pleaded guilty. To date, seven have been sentenced, receiving sentences ranging from 46 months to 210 months in federal prison.
According to documents filed in the case, Ball and Lenard were involved in a romantic relationship despite her position and despite the conflict this relationship created. Lenard convinced Ball to alter, modify or fail to report violations of his conditions of release. For example, Lenard was required to limit his travel to certain areas within Dallas to avoid contact with co-conspirators. Part of Ball’s responsibility was to review and identify locations Lenard visited as reflected in the GPS records from his monitoring bracelet. Ball, however, failed to report violations of these conditions by Lenard. In fact, Lenard violated his conditions of release by approaching, confronting and attempting to intimidate coconspirators and witnesses to a kidnaping.
From November 26, 2012, to approximately November 18, 2014, Lenard conducted and managed drug-trafficking activities form his jail cell in the Dallas County Jail. During that time, he called his co-conspirators, including Ball. On multiple occasions, Lenard and Ball had phone conversations regarding illegal narcotics transactions and money obtained from those transactions. Lenard instructed Ball to hide the drug proceeds, and in one conversation, Ball actively counted the drug proceeds. On some of the phone calls, other individuals were conferenced in and Lenard, Ball and the other individual would discuss illegal naracotics transactions and money obtained from those transactions.
The Texas Department of Public Safety (DPS), the Drug Enforcement Administration, the FBI and the Dallas Police Department led the investigation.
Deputy Criminal Chief Assistant U.S. Attorney Rick Calvert and Assistant U.S. Attorneys Errin Martin and P. J. Meitl are prosecuting the case.
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Former Belton Woman Pleads Guilty to Stealing $471,000 from EmployerRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a former Belton, Mo., woman pleaded guilty in federal court today to embezzling $471,000 from her employer.
Kimberly Joyce Padgett, 42, of Osawatomie, Kan., formerly of Belton, waived her right to a grand jury and pleaded guilty before U.S. District Judge Gary A. Fenner to a federal information that charges her with five counts of wire fraud.
By pleading guilty today, Padgett admitted that she embezzled approximately $471,000 from her employer, Reliant Financial Services in Kansas City, Mo. As part of Padgett’s duties at Reliant Financial Services, she managed the business’s books, paid the bills, managed the accounts receivable, operated the telephones, and prepared the paychecks. Padgett was also a signor on the business’s bank accounts and had use of the business’s credit cards for authorized business expenses. Padgett was terminated from employment in March 2015 when the fraud scheme was discovered.
During 2007 up to and including 2015, Padgett embezzled money from the Reliant Financial Services bank account intended for payroll tax and office supplies. Padgett wrote $350,000 in checks to herself and deposited those funds into her personal PayPal account and her husband’s bank account. Padgett used her PayPal account to pay for trips around America for herself, and at least once for a coworker, the coworker’s daughter, Padgett’s daughter, and others. She also used her company credit card in an unauthorized manner by paying expenses for herself and others, including clothing, jewelry, gasoline, vacations, hotels, and restaurants.
From 2012 to 2015, Padgett made little to no payments in payroll taxes. Company owners had no knowledge the payroll taxes were not paid, and did not learn the taxes were not paid until they were contacted by the IRS.
Padgett is charged with five specific instances of wire fraud in which she made unauthorized wire transfers, ranging from $2,500 to $5,000, between April 2013 and February 2015.
Under federal statutes, Padgett is subject to a sentence of up to 20 years in federal prison without parole, plus a fine up to $250,000 and an order of restitution on each of the five counts. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Jane Pansing Brown. It was investigated by the FBI.
Florida man sentenced in Federal court for drug trafficking from Florida to West VirginiaRead the Press Release
CHARLESTON, W.Va. – A Florida man was sentenced today in federal court in Charleston, West Virginia, to 10 years in federal prison and a $10,000 fine for participating in an oxycodone distribution and money laundering conspiracy, announced United States Attorney Booth Goodwin. Lester W. Taylor, 46, of Daytona Beach, Florida, previously entered his guilty plea to conspiracy charges concerning distribution of oxycodone and laundering the proceeds of his criminal activities.
From January 2010 through May 2014, Taylor was involved in trafficking pills from Florida to West Virginia using a variety of illicit methods. Taylor sent several packages containing oxycodone pills to Lincoln County for illegal distribution. Law enforcement intercepted one of those packages on January 8, 2011, which contained 1,000 30mg oxycodone pills. Taylor also admitted to obtaining prescriptions for oxycodone and hydromorphone from physicians in Florida and then having the prescriptions filled at pharmacies in West Virginia. The pharmacy primarily used for this unlawful activity, A+ Care Pharmacy, formerly located in Barboursville, has since been prosecuted in federal court by the U.S. Attorney’s Office for the Southern District of West Virginia, and is no longer in business.
After distributing the pills, Taylor’s co-conspirators deposited the proceeds in West Virginia bank accounts bearing Taylor’s name. Taylor would then withdraw the money in Florida in an effort to conceal the source of the cash and the pills.
The West Virginia State Police, the Internal Revenue Service Criminal Investigation Division, and the Metropolitan Drug Enforcement Network Team conducted the investigation. Assistant United States Attorney Monica D. Coleman handled the prosecution.
This case is being prosecuted as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs and heroin. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal pill trafficking, eliminating open air drug markets, and curtailing the spread of opiate painkillers and heroin in communities across the Southern District.
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Financial Management Company Owner Pleads Guilty to Defrauding ClientsRead the Press Release
COLUMBUS, Ohio – Douglas E. Cowgill, 60, of Westerville, Ohio, pleaded guilty in U.S. District Court to wire fraud, theft or embezzlement from employee benefit plans, and perjury.
Carter M. Stewart, United States Attorney for the Southern District of Ohio, Angela L. Byers, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Field Division, James Vanderberg, Special Agent in Charge, U.S. Department of Labor – Office of the Inspector General, and Joseph Rivers, Cincinnati Office Director of the U.S. Department of Labor - Employee Benefits Security Administration, announced the plea entered into today beforeU.S. District Judge Michael H. Watson.
From July 2013 through August 2014, Cowgill was president and sole owner of Professional Investment Management (PIM), Inc. in Columbus, where he had been employed since July 1981.Cowgill used his positions at PIM to defraud investors and use their funds for his own use. From March 2008 through October 2013, he misappropriated approximately $840,575. He manually altered account balances in company software and wired the misappropriated funds to an account for his own use. Cowgill paid various personal obligations with the money, depositing the money into his bank accounts, bank accounts of his wife, and bank accounts of the Northwest Swim Club, a non-profit swim club in Columbus for which he served as the treasurer.
PIM had the funds of approximately 300 individual clients under management, and Cowgill’s fraudulent scheme harmed at least 125 victims.
Most of the victims had their money in one of approximately 15 retirement plans. Each of the retirement plans was a qualified employee pension benefit plan under the Employee Retirement Income Security Act of 1974, and Cowgill pleaded guilty to theft or embezzlement from employee benefit plans.
On January 23, 2014, Cowgill lied under oath before officers of the Securities and Exchange Commission (SEC) while the SEC was conducting an investigation to determine whether there had been violations of federal securities laws in connection with PIM.
In January 2014, in Columbus, Ohio, Cowgill gave a deposition in connection with the SEC’s investigation. As part of the deposition, Cowgill took an oath that he would testify truthfully and that all materials prepared by him in anticipation of his testimony were accurate and complete.
In connection with the deposition, Cowgill prepared responses to a background questionnaire that, in part, asked him to list all accounts in his name, in which he had any beneficial interest, or over which he had any control. In response, Cowgill failed to disclose his control of over five bank accounts associated with the Northwest Swim Club for which he was an authorized signatory. During his sworn deposition, Cowgill affirmed that his answers to the questionnaire were accurate, and again failed to disclose the five Northwest Swim Club accounts to the officers of the SEC. At the time of the deposition, Cowgill knew that the Northwest Swim Club had been a recipient of a substantial portion of the funds misappropriated by him. In doing so, Cowgill attempted to conceal his misappropriation of client funds from investigators.
Cowgill faces a maximum sentence of 20 years in prison for wire fraud. Theft or embezzlement from employee benefit plansand perjury are each crimes punishable by up to five years in prison.
U.S. Attorney Stewart commended the cooperative investigation by the FBI and the U.S. Department of Labor - Office of the Inspector General and U.S. Department of Labor - Employee Benefits Security Administration, as well as Assistant United States Attorney Peter Glenn-Applegate, who is representing the United States in this case. U.S. Attorney Stewart also commended the SEC for its work on the related civil matter, prior to the initiation of this criminal case.
Federal Prison Guard Sentenced to Prison for Conspiring to Bring Marijuana into Prison for an InmateRead the Press Release
Augusta, GA: Anna Marie McDonald, 57, from McRae, Georgia, was sentenced last week by Senior United States District Court Judge Dudley H. Bowen, Jr. to serve 6 months in prison followed by 3 years of supervised release for her role in a conspiracy to bring marijuana into a federal prison facility for an inmate.
According to evidence presented during the guilty plea and sentencing hearings, McDonald, a former Federal Bureau of Prisons (BOP) Contract Correctional Officer assigned to the Correctional Institution in McRae, agreed through text messages to provide marijuana to an inmate in December 2014 in exchange for money. Evidence also showed that McDonald had smuggled both alcohol and cigarettes into the facility for inmates on other occasions. As a result, federal inmates Juan Carlos Armenta-Garcia and Oscar Sierra-Rubio were both convicted of receiving contraband in prison. In October 2015, each received a 6 month prison term followed by a year of supervised release.
United States Attorney Edward Tarver said, “This defendant chose to place her own greed above the safety of other BOP employees and the public she was sworn to protect. Those who agree to smuggle contraband into federal prisons can expect to join the inmates from whom they are attempting to profit.”
The case was investigated the U. S. Department of Justice Office of the Inspector General. Assistant U. S. Attorney Nancy C. Greenwood prosecuted the case on behalf of the United States. Any additional questions should be directed to First Assistant James D. Durham at (912) 201-2647.
Federal Jury Convicts Dallas Man on Child Pornography ChargeRead the Press Release
DALLAS — Following a one and one-half day trial before U.S. District Judge Jane J. Boyle, and less than three hours of deliberation, a federal jury has convicted 60-year-old Jack Marty Taylor, of Dallas, on one count of attempted enticement of a minor, announced U.S. Attorney John Parker of the Northern District of Texas.
Taylor, who had been on bond, was remanded into federal custody after the verdict. He faces a statutory penalty of not less than 10 years and up to life in federal prison and a $250,000 fine. A sentencing date was not set.
The government presented evidence at trial that on September 16, 2014, Taylor posted a Backpage advertisement entitled, “Sugar Dad looking for his son – 50.” Taylor stated he was looking for a younger guy for companionship and stated, “You must be 18-30ish…I’m looking for companionship and love.” In return for that, Taylor offered to “give you a nice, safe place to live, 3 meals a day, spending money, clothing, shoes, etc.”
On September 17, 2014, at 12:33 p.m., a detective with the Garland Police Department, posing as a 14-year-old boy, responded to the advertisement via email. Several emails transpired in which Taylor suggested they communicate via text messaging. As the text messaging began, Taylor asked more about the boy’s age, confirmed he was a minor, where he lived, and what school he attended. Taylor almost immediately began to text the boy about meeting and what they would do when they met. Taylor exchanged numerous text messages with the boy, including sexually explicit text messages, throughout the day.
The government presented further evidence that between September 17, 2014, and February 4, 2015, Taylor suggested meeting the boy in person 40 times, and each time the boy avoided meeting Taylor. In fact, after just three hours of emails and texts with the boy, and after repeatedly suggesting that the two meet, Taylor texted, “I was scared of you at first. I thought maybe you were a cop.” On February 4, 2015, the day Taylor and the boy were set to meet, Taylor again asked him if he was a cop. Taylor indicated he had experience in these types of matters and advised, “That’s an important thing to ask when you’re meeting someone for the first time.” Law enforcement arrested Taylor on February 4, 2015, at the agreed meeting location.
The case was brought as part of Project Safe Childhood, a nationwide initiative, which was launched in May 2006 by the Department of Justice, to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals, who sexually exploit children, and identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/. For more information about internet safety education, please visit http://www.justice.gov/psc/ and click on the tab “resources.”
The Garland Police Department and the FBI investigated. Special Assistant U.S. Attorney Lara Burns and Assistant U.S. Attorney Camille Sparks are in charge of the prosecution.
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Fair Oaks Man Sentenced to over Five Years in Prison for Mortgage FraudRead the Press Release
SACRAMENTO, Calif. — Today, United States District Judge Morrison C. England Jr. sentenced Anthony Salcedo, 34, of Fair Oaks, to five years and four months in prison for a mortgage fraud scheme. Salcedo was found guilty by a federal jury of one count of conspiracy and four counts of mail fraud after a five-day trial in June 2015.
According to court documents and evidence produced at trial, Anthony Salcedo worked in the real estate industry beginning in 2000 and was licensed as a real estate agent in 2004. He was licensed as a mortgage broker in 2006 and worked for two different mortgage lenders for five years. When selling his personal properties in 2005 and 2006, Salcedo worked with mortgage broker Sean McClendon, 49, of Fair Oaks, and Anthony Williams, 47, previously of Memphis, Tennessee, to find buyers. As an incentive to complete the sales transactions, Salcedo paid kickbacks to the buyers and to McClendon outside of escrow. Salcedo artificially inflated the value of his properties and paid the kickbacks out of the excess financing paid by the lenders who were deceived as to the true value of the purchases they were underwriting. The kickback payments were never disclosed to the lenders as part of the purchase and sale agreements, and the buyers’ income and assets were falsified in order to qualify for the loans.
In all, approximately $2.6 million in fraudulently obtained loans were involved in the scheme, while Salcedo and his family got out from under their $1.6 million in mortgage debt and made over $600,000 of profit at a time when Salcedo knew the real estate market was slowing down. Salcedo was remanded to the custody of the U.S. Marshals after the verdict, and has been awaiting sentencing in the Sacramento County Jail since that time.
According to a Sentencing Agreement on file with the Court, after trial the government’s continuing investigation indicated Salcedo might be hiding assets and manufacturing a drug problem in an effort to avoid restitution payments and influence the amount of time he ultimately served in prison. To resolve those issues, Salcedo agreed the Court need not consider his purported drug problem, which may have qualified him for a drug treatment program and a reduction of his sentence. He also agreed to repay the United States Federal Defenders for the costs of his defense, make a $300,000 payment toward a total restitution obligation of over $700,000, and pay a $50,000 fine before sentencing.
In sentencing Salcedo, Chief Judge England noted, “You really believed that you were going to beat the system. You’re not smarter than everyone else in the world.”
“Anthony Salcedo was a licensed real estate professional who decided to game the system so that he could profit in the midst of the then looming financial crisis, to which his actions contributed,” said U.S. Attorney Wagner. “We are gratified by the sentence imposed by the Court, which should serve as notice that mortgage fraud remains a serious offense for which there can and should be severe consequences.”
“Beyond the dishonesty and collusion involved, this is significant because of the exchange of money outside of escrow,” said Thomas McMahon, Acting Special Agent in Charge, IRS Criminal Investigation. “Through kickbacks, the defendant and his family managed to avoid $1.6 million in mortgage debt while a few buyers declared bankruptcy and not only lost their investment properties but also their homes. IRS-CI is committed to hold accountable those involved in these types of schemes.”
Co-defendant McClendon pleaded guilty and was sentenced on November 5, 2015, to 20 months in prison. He is expected to begin serving that sentence in January 2016. Co‑defendant Williams pleaded guilty, and is currently serving his sentence of two years and nine months in prison.
This case was the product of an investigation by the Internal Revenue Service‑Criminal Investigation and the Federal Bureau of Investigation. Assistant United States Attorneys Jean M. Hobler and Marilee Miller prosecuted the case.
FBI Director and NAACP Chairman to Speak at Building Bridges Conference in New HavenRead the Press Release
(Click here to watch a video of the conference)
Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that FBI Director James Comey and NAACP Chairman Roslyn Brock will visit New Haven on Monday to speak at Building Bridges: The Community and Law Enforcement, a one-day event aimed at strengthening the relationship between law enforcement and the African American Community.
“After the massacre at Mother Emmanuel Church in Charleston this past June, the Greater New Haven Clergy Association reached out to the U.S. Attorney’s Office,” stated U.S. Attorney Daly. “That first meeting has grown into a continuing partnership committed to building a strong relationship between law enforcement and the community at large, grounded in fairness, mutual respect and an abiding dedication to justice. We thank the many organizations that have sponsored this important discussion and the individuals who are participating. We encourage all to attend.”
The Building Bridges Conference is co-sponsored by the U.S. Attorney’s Office, Greater New Haven Clergy Association, Yale Black Law Students Association, Yale Law School, Federal Bureau of Investigation, New Haven Police Department, Greater New Haven Branch of the NAACP and the National Organization of Black Law Enforcement Executives for Connecticut. The Conference has been funded by the generous support of Yale Law School’s Oscar M. Ruebhausen Fund and members of the Greater New Haven Clergy Association.
“We are hopeful that this conference will be the beginning of bridging the divide between the community and law enforcement officers,” stated the Rev. Dr. Boise Kimber of the First Calvary Baptist Church in New Haven. “Thanks to U.S. Attorney Deirdre Daly, Chief Dean Esserman, Mayor Tony Harp and Rev. James Newman, President of the Clergy Association, for hearing the cry of this community. Let the healing begin, not only in this state but throughout this country.”
In addition to keynote addresses by FBI Director Comey and NAACP Chairman Brock, the conference will feature three panel discussions: Communities At Risk, Civil Rights Investigations and Prosecutions, and Project Longevity: Connecticut’s Community & Law Enforcement Partnership. The event will conclude with a performance by the Yale Gospel Choir.
The conference will be held on November 16, 2015 from 1:00 p.m. to 5:00 p.m. at Cooperative Arts and Humanities High School, 177 College Street, New Haven. Doors open at 12:30 through the Crown Street entrance. Parking at the Temple Street Garage will be validated for the first 100 arrivals. Entrance is free, but prior registration is requested.
Interested attendants can register by clicking this link.
Executive Office for Immigration Review Announces Six New Assistant Chief Immigration JudgesRead the Press Release
FALLS CHURCH, Va. – The Executive Office for Immigration Review (EOIR) today announced the appointment of six new assistant chief immigration judges (ACIJs). ACIJs are responsible for overseeing the operations of the immigration courts or program portfolio to which they are assigned. Their official assignments will be announced in the coming months.
The new ACIJs will help EOIR focus supervisory functions closer to the immigration courts around the country, which is particularly important given the growth in the immigration judge corps expected over the coming months. “While the immigration courts continue to face incredible strain on their resources under an ever growing backlog of cases, we must take action to fully exercise the abilities of our staff at all levels,” said Acting Chief Immigration Judge Print Maggard. “The placement of each of these dedicated immigration judges into a management role will allow EOIR to increase immigration court efficiencies through organizational change.” In addition to their management responsibilities, the new ACIJs will continue to hear cases.
Biographical information for each ACIJ follows.
Mary Cheng, Assistant Chief Immigration Judge
Mary Cheng was appointed as an assistant chief immigration judge in November 2015. Judge Cheng received a Bachelor of Arts degree in 1993 from New York University and a Juris Doctor in 1997 from New York Law School. From April 2009 to November 2015, she served as an immigration judge at the New York City Immigration Court. From March 2003 to April 2009, Judge Cheng served as an assistant chief counsel for U.S. Department of Homeland Security, Immigration and Customs Enforcement, New York. From June 2002 to March 2003, she worked as an assistant district counsel for the former Immigration and Naturalization Service in New York. From August 2000 to May 2002, Judge Cheng was in private practice in New York. During this time, from June 2001 to June 2002, Judge Cheng served as an administrative law judge for the New York City Department of Finance. From September 1998 to July 2000, she worked as an assistant district counsel for the former Immigration and Naturalization Service in New York. From September 1997 to September 1998, Judge Cheng worked as a judicial law clerk at the New York City Immigration Court entering on duty through the Attorney General’s Honors Program. Judge Cheng is a member of the New York State Bar.Irene C. Feldman, Assistant Chief Immigration Judge
Irene C. Feldman was appointed as an assistant chief immigration judge in November 2015. Judge Feldman received a Bachelor of Arts degree in 1983 from Mount Holyoke College, a Juris Doctor degree in 1988 from Benjamin N. Cardozo School of Law, and a Master of Science in Management degree in 1995 from Boston University, Ben Gurion University of the Negev in Israel. From 2008 to 2015, Judge Feldman served as an immigration judge at the Eloy (Arizona) Immigration Court. From 2001 to 2008, Judge Feldman served as an assistant U.S. attorney in Puerto Rico and in Arizona. From 1996 to 2001, Judge Feldman worked as an Assistant District Counsel, Office of the District Counsel, for the former Immigration and Naturalization Service in New Jersey and in New York. From 1989 to 1994, Judge Feldman served as an Assistant Prosecutor, in the Office of the County Prosecutor, Bergen County, New Jersey. Judge Feldman is a member of the State Bar of Arizona and the New Jersey State Bar.Amy C. Hoogasian, Assistant Chief Immigration Judge
Amy C. Hoogasian was appointed as an assistant chief immigration judge in November 2015. Judge Hoogasian received a Bachelor of Arts degree in 1990 from the University of Wisconsin-Madison and a Juris Doctor in 1994 from John Marshall Law School, Chicago. From October 2010 to November 2015, Judge Hoogasian served as an immigration judge at the San Francisco Immigration Court. From 2009 to 2010, she served as chief legal counsel at SAGIN LLC. From 2005 through 2009, Judge Hoogasian served as senior corporation counsel at ULINE, Inc. From 1999 to 2005, she served as an assistant chief counsel, at the U.S. Department of Homeland Security, Immigration and Customs Enforcement in Chicago. From 1995 to 1999, Judge Hoogasian served as attorney to the chairman at the Illinois Pollution Control Board. In 1995, she served as an assistant state’s attorney at the Lake County State’s Attorney’s Office, Waukegan, Ill. Judge Hoogasian is a member of the Illinois State Bar.H. Kevin Mart, Assistant Chief Immigration Judge
H. Kevin Mart was appointed as an assistant chief immigration judge in November 2015. Judge Mart received a Bachelor of Arts degree in 1976 from the University of Dayton (Ohio) and a Juris Doctor in 1982 from Georgetown University Law Center. Since October 2010 Judge Mart has served as an immigration judge at the Miami Immigration Court. From 1995 to October 2010 Judge Mart worked in private practice in Miami and Orlando, Fla., specializing in immigration law. From 1992 to 1995 Judge Mart worked in private practice specializing in litigation in Cincinnati, Ohio, and the Virgin Islands, and in 1991 worked as an assistant attorney general for the U.S. Virgin Islands. From 1982 to 1990, Judge Mart worked in private practice in New York City at Brown &Wood and Fried, Frank, Harris, Shriver & Jacobson specializing in corporate finance. Judge Mart is member of the State Bar of California, the New York and Ohio State Bars, and the Virgin Islands Bar.Sheila McNulty, Assistant Chief Immigration Judge
Sheila McNulty was appointed as an assistant chief immigration judge in November 2015. She received a Bachelor of Arts degree from Miami University of Ohio in 1984. Judge McNulty received a Juris Doctorate in 1991 from New England School of Law. From November of 2010 until November of 2015 she served as an immigration judge at the Chicago Immigration Court. Judge McNulty served as a special assistant U.S. attorney for the Northern District of Illinois, Chicago, from 2000 until 2010. Prior to that, she began working for the U.S. Department of Justice through the Attorney General’s Honors Program, serving as a trial attorney in the Chicago District Counsel’s Office of the former Immigration and Naturalization Service from 1991 to 2000. Judge McNulty worked as a community activist and organizer in Cambridge, Mass., from 1985 until 1991. Judge McNulty is a member of the Illinois State Bar.Clarence M. Wagner Jr., Assistant Chief Immigration Judge
Clarence M. Wagner, Jr. was appointed as an assistant chief immigration judge in December 2015. Judge Wagner received a Bachelor of Arts degree in 1993 from Hampton University, a Juris Doctorate in 1997 from Southern University Law Center and a Master of Law degree in 1999 from Georgetown University Law Center. From October 2010 to November 2015, Judge Wagner served as an immigration judge at the Honolulu Immigration Court. From 2003 to October 2010, he served with the Department of Homeland Security, Immigration and Customs Enforcement, Office of the Principal Legal Advisor, in various capacities, including chief counsel, Honolulu, from 2008 to 2010; deputy chief counsel, New Orleans, from 2006 to 2008; and assistant chief counsel, San Antonio, from 2003 to 2006. From 2002 to 2003 Judge Wagner served as an assistant attorney general for the State of Louisiana Department of Justice in Baton Rouge, La. From February 2002 to June 2002, he served as senior attorney, Legal Affairs Division, Louisiana Department of Environmental Quality. From 1998 to 2001, Judge Wagner served as an officer in the U.S. Army, Office of the Staff Judge Advocate, Honolulu, Hawaii. In that capacity, he was the labor and employment attorney from 1998 to 2000 and the environmental law attorney from 2000 to 2001. He was also appointed as a special assistant U.S. attorney, Department of Justice, U.S. Attorney’s Office, District of Hawaii, from 1998 to 2000. Judge Wagner is a member of the Louisiana State Bar and the State Bar of Texas.- EOIR -
The Executive Office for Immigration Review (EOIR) is an agency within the Department of Justice. Under delegated authority from the Attorney General, immigration judges and the Board of Immigration Appeals interpret and adjudicate immigration cases according to United States immigration laws. EOIR's immigration judges conduct administrative court proceedings in immigration courts located throughout the nation. They determine whether foreign-born individuals—whom the Department of Homeland Security charges with violating immigration law—should be ordered removed from the United States or should be granted relief from removal and be permitted to remain in this country. The Board of Immigration Appeals primarily reviews appeals of decisions by immigration judges. EOIR's Office of the Chief Administrative Hearing Officer adjudicates immigration-related employment cases. EOIR is committed to ensuring fairness in all of the cases it adjudicates.
Ellis County Man Sentenced on Federal Drug, Gun ChargesRead the Press Release
WICHITA, KAN. – An Ellis County man was sentenced Thursday to 10 years in federal prison on drug and gun charges, U.S. Attorney Barry Grissom said.
In July, Joseph Anthony Ransom, 30, Ellis, Kan., was convicted on count of growing marijuana plants, one count of possession with intent to distribute marijuana, one count of unlawful possession of a firearm in furtherance of drug trafficking, and one count of unlawful possession of a firearm following a felony conviction.
During trial, the prosecution presented evidence that on Sept. 25, 2014, officers with the Ellis Police Department executed a search warrant at Ransom’s residence in Ellis. They found that Ransom was growing 181 marijuana plants inside his home and that he possessed a Zastava PAP M92 PV AK47 pistol and a .223 caliber rifle. Because of prior felony convictions, Ransom was prohibited from possessing a firearm.
Grissom commended the Ellis Police Department, the Ellis County Sheriff’s Office, the Kansas Bureau of Investigation and the Bureau of Alcohol, Tobacco, Firearms and Explosives and Assistant U.S. Attorney David Lind for their work on the case.
District Man Found Guilty of Armed Carjacking and Other Charges in Separate Attacks on Delivery Drivers in Northeast WashingtonRead the Press Release
WASHINGTON – Cephus Hollis, 18, of Washington, D.C., was found guilty by a jury today of numerous charges stemming from two violent carjackings in Northeast Washington within a four-day period in September 2014, U.S. Attorney Channing D. Phillips announced.
Hollis was found guilty in the Superior Court of the District of Columbia of a total of 15 charges, including assault with intent to kill while armed, armed carjacking of a senior citizen, and aggravated assault of a senior citizen while armed. He is to be sentenced on Jan. 22, 2016, by the Honorable Lynn Leibovitz. He has been in custody in this case since his arrest in May 2015.
According to the evidence presented at trial, Hollis and a co-conspirator went out on the evening of Sept. 7, 2014 to steal cars in the Riggs Park neighborhood of Northeast Washington and surrounding areas. After stealing their first car that night, they used it to drive around and steal or attempt to steal numerous other cars.
In the early morning hours of Sept. 8, 2014, Hollis and the co-conspirator saw a 62-year-old man delivering copies of the Washington Post, and followed him as he did this for several stops. At one stop, in the 5800 block of Eastern Avenue NE, the newspaper delivery man got out of his car to throw a paper onto the doorstep. Hollis then got into the front seat. Hollis assumed the victim had left the keys in the ignition. The victim had not, and when he returned to the car, Hollis confronted him and demanded the keys. When the victim would not surrender the keys, Hollis punched and kicked him, and the co-conspirator joined in. They beat the victim until they broke his wrist, dislocated his shoulder, broke the orbital bones around his eye, and caused other injuries. Then, after they beat him, they took the cars he was using to make the deliveries. A few days later, that car ran out of gas and was abandoned in the middle of the street. Fingerprints recovered from it matched the defendant and the co-conspirator.
Four days later on Sept. 12, 2014, at about 5 p.m., Hollis ordered Chinese food to be delivered to his own house in the 400 block of Oneida Street NE. When the delivery driver arrived, he parked in front of the house and called Hollis, who acknowledged ordering the food. As the driver walked up to Hollis’s porch, Hollis came out of the house. Without saying anything, Hollis stabbed the driver in the head. The driver fell to the ground and Hollis kept stabbing him. The driver somehow broke free and fled to his car. He locked the door, hoping the car would keep him safe. But as he looked out the car window, he saw that Hollis had his car keys and was walking towards the car. Using the electronic key fob, Hollis unlocked the car. The driver locked the car again, smearing his own blood over the controls as he did so. Hollis, however, kept coming and unlocked the car again, got inside, and resumed stabbing the driver.
The driver got out of the car. Hollis got out, too, ran around the car, and stabbed the driver again. In total, the driver was stabbed at least seven times, including to the head, face, chest, hands, and arms. In addition to his numerous lacerations and puncture wounds, the victim sustained a partially collapsed lung. Hollis then fled in the delivery driver’s car, which was recovered the next day. DNA evidence tying Hollis to the crime was recovered from inside the car. A phone later recovered from Hollis’s pocket was shown to have placed the call ordering the food, and received the call from the delivery driver when he arrived with the food.
In announcing the verdict, U.S. Attorney Phillips commended the work of the detectives of the Fourth Police District of the Metropolitan Police Department and the Special Agents from the FBI Washington Field Office’s Violent Crime Task Force. He also expressed appreciation to those who worked on the case from the U.S. Attorney’s Office, including Paralegal Specialists Tiffany Fogle and Benjamin Kagan-Guthrie; Lead Paralegal Specialist Kwasi Fields; Paralegal Supervisors Darline Douglas and Anthony Griffith; Victim/Witness Services Coordinator Katina Adams-Washington; Victim/Witness Advocate Diana Lim; Intelligence Analysts Shannon Alexis and Sharon Johnson; Information Technology Specialists Aneela Bhatia, Anisha Bhatia, Paul Howell, Claudia Gutierrez, Jeanie Latimore-Brown, William Henderson, and Leif Hickling; Criminal Investigators Nelson Rhone and Chris Brophy; Elizabeth Trosman, Chief of the Appellate Division; Assistant U.S. Attorneys Stephen Rickard and John Mannarino of the Appellate Division; and Michael Ambrosino, Special Counsel for DNA and Forensic Evidence Litigation. Finally, he praised the efforts of Assistant U.S. Attorneys Christopher Bruckmann and Katherine Earnest, who investigated and prosecuted the case.
Defendants Plead Guilty at Onset of Sex Trafficking TrialRead the Press Release
HOUSTON – With the guilty plea of the final defendant today, a total of six men have now been convicted for their varying roles in an international sex trafficking of minors conspiracy, announced U.S. Attorney Kenneth Magidson.
Jose William Quintanilla, 40, entered his plea today after the jury was seated and testimony was set to begin. Two others – Adelio De Jesus Batres, 52, and Hugo Alexander Melendez-Gonzalez, 37 - pleaded before trial began this week, while the remaining three – Francis Yuvinni Guerra Pleitez, 33, Walter Alexander Ejcalon Xalcut, 27, and Mariano Quintanilla-Campos, 33 – had previously entered guilty pleas in the case.
With the exception of Xalcut, who is from Guatemala, the defendants are originally from El Salvador. All had been residing in the Houston area.
Court records demonstrated that from late 2010 to the present, the men conspired to cause persons less than 18 years of age to engage in commercial sex acts. The men employed women and underage girls, transported them to various apartments for the purpose of engaging in sex and shared in the proceeds derived from the illegal activity. Most, if not all, of the females were also aliens illegally within the U.S.
With the exception of Melendez-Gonzalez, who admitted to sex trafficking of a particular minor, the remaining defendants were all convicted of engaging in the overall sex trafficking of minors conspiracy. All six men face up to life in federal prison as well as a possible $250,000 maximum fine.
U.S. District Judge David Hittner has set sentencing for Feb. 9, 2015.
All of the defendants had been and will remain in custody pending their sentencing hearing.
The charges arose from an investigation conducted by the FBI, Harris County Sheriff’s Office, Houston Police Department, Homeland Security Investigations and Texas Department of Public Safety. Assistant U.S. Attorneys Julie Searle and Douglas Davis are prosecuting the case.
Defendants Convicted in Methamphetamine Conspiracy Sentenced to Lengthy Federal Prison TermsRead the Press Release
FORT WORTH, Texas — Four defendants who pleaded guilty this summer to their respective roles in a methamphetamine distribution conspiracy that operated in the Dallas – Fort Worth area, and elsewhere, have been sentenced to lengthy federal prison terms, announced U.S. Attorney John Parker of the Northern District of Texas.
U.S. District Judge John McBryde sentenced the four on Friday as follows: Humberto Macedo, 27, of Dallas, 360 months; Fernando Perez, a/k/a “Fernando Perez-Reynoso,” 22, of Mexico, 240 months; Guadalupe Macedo, 23, of Dallas, 240 months; and Ariceli Munoz, 27, formerly of South Carolina, 48 months.
Each pleaded guilty to one count of conspiracy to possess with intent to distribute methamphetamine. According to documents filed in the case, from approximately April 1, 2014 to March 3, 2015, the four defendants knowingly and intentionally conspired to possess with intent to distribute at least 50 grams of methamphetamine.
During the conspiracy, Humberto Macedo distributed more than 45 kilograms of methamphetamine. Perez acted as Humberto Macedo’s primary runner. Guadalupe Macedo purchased more than 1.5 kilograms of methamphetamine from Humberto Macedo. Munoz assisted Humberto Macedo by counting money from the drug transactions and brokering methamphetamine transactions.
The case was investigated by the Drug Enforcement Administration, the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Dallas Police Department. Assistant U.S. Attorney Joshua Burgess prosecuted.
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Cuban National Pleads Guilty to Bank FraudRead 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 Claudia Diaz Diaz, 22, a Cuban National, pleaded guilty before U.S. District Court Judge Richard J. Arcara, to conspiracy to commit bank fraud. The charge carries a maximum penalty of 30 years in prison and a fine of $1,000,000.Assistant U.S. Attorney Russell T. Ippolito, Jr., who is handling the case, stated that Diaz fraudulently obtained the credit/debit card numbers of actual people and then encoded counterfeit cards with the information illegally obtained. The defendant then used the counterfeit cards to purchase merchandise at retail stores in the area, including a Tops Market in Amherst, NY and a CVS Pharmacy in Buffalo, NY. Diaz obtained the information associated with approximately 79 credit and debit card accounts at various financial institutions.
Five other Cuban Nationals, Eduardo Quinones Hernandez, Yasser Carrillo Chartrand, Yaily Santurio Milian, Misael Toledo Rios, and Jose Valdivia Quinones are also charged in this scheme to defraud involving counterfeit debit cards. Hernandez, Quinones and Rios have been convicted, charges are pending against Chartrand and Milian. The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
Today’s plea is the result of an investigation by Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Special Agent in Charge James C. Spero, the U.S. Secret Service, under the direction of Special Agent in Charge C. Todd Laster, and the New York State Police, under the direction of Major Michael Cerretto.
Sentencing is scheduled for February 18, 2015 at 12:30 p.m. before Judge Arcara.
Convicted Sex Offender Admits to Enticing a Minor to Engage in Sexual Activity and to Receiving Child PornographyRead the Press Release
Baltimore, Maryland – Michael L. Montague, age 65, formerly of Gwynn Oak, Maryland, pleaded guilty today to using a mobile phone to entice a minor to engage in sexual activity and to receipt of child pornography.
The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Kevin Perkins of the Federal Bureau of Investigation; Special Agent in Charge Andre Watson of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); Colonel William M. Pallozzi, Superintendent of the Maryland State Police; Chief James W. Johnson of the Baltimore County Police Department; and Baltimore County State’s Attorney Scott Shellenberger.
According to Montague’s plea agreement, from February 16 through March 26, 2014, Montague used his mobile phone to contact Boy 1. Montague knew Boy 1, and knew that Boy 1 was 12 years old at the time of their communications. Montague used a mobile application to contact Boy 1 using a number different from the telephone number assigned to Montague’s phone. Using this disguised phone number, Montague contacted Boy 1 and claimed to be “Gail,” a classmate of victim’s. Posing as “Gail,” Montague engaged in sexually explicit text and email communications with Boy 1.
Montague, posing as “Gail” wrote to Boy 1 that she knew Montague, and that Boy 1 should send pictures of himself to Montague, and Montague would send Boy 1 pictures of “Gail.” “Gail” told Boy 1 that Montague had very nice pictures of “Gail” that Boy 1 should ask Montague to see. “Gail” suggested that Boy 1 seek permission to stay with Montague for a weekend so that “Gail” and Boy 1 could meet for a sexual encounter. “Gail” also told Boy 1 that she could get Montague to make a sexual video of her, and that then Boy 1 should let Montague make a sexual video with Boy 1. Montague also sent messages to Boy 1 posing as a male classmate of Boy 1 who also knew Montague and “Gail.”
Forensic examination of Montague’s phone revealed sexually explicit communications with Boy 1, sexually explicit images and videos Montague sent to Boy 1, and a sexually explicit image that the victim sent to Montague.
On May 19, 2009, Montague was convicted in the Circuit Court for Baltimore County, Maryland, of child abuse and a third degree sex offense, for his sexual abuse of two girls, and was sentenced to three years in prison. Upon his release from prison, Montague was required to register as a sex offender. As part of this plea agreement, Montague will be required to continue to register as a sex offender in the place where he resides, where he is an employee, and where he is a student, under the Sex Offender Registration and Notification Act (SORNA).
Montague faces a minimum mandatory sentence of 10 years in prison and a maximum of life in prison for enticing a minor to engage in sexual activity; and a minimum mandatory sentence of 15 years in prison and up to 40 years in prison for receipt of child pornography, each followed by up to lifetime supervised release. U.S. District Judge James K. Bredar has scheduled sentencing for February 19, 2016, at 11:00 a.m.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc. For more information about internet safety education, please visit www.justice.gov/psc and click on the "resources" tab on the left of the page.
United States Attorney Rod J. Rosenstein commended the FBI, HSI Baltimore, Maryland State Police Internet Crimes Against Children Task Force, Baltimore County Police Department and Baltimore County State’s Attorney’s Office for their work in the investigation and prosecution. Mr. Rosenstein thanked Assistant U.S. Attorneys Zachary A. Myers and Judson T. Mihok, who are prosecuting the case.
Co-owner of Construction Company Sentenced for Defrauding Service-Disabled Veteran-Owned Small Business ProgramRead the Press Release
KANSAS CITY, KAN. - The co-owner of a defunct Missouri construction company has been sentenced to 51 months in federal prison for defrauding a federal program that set aside contracts for businesses owned by service-disabled veterans, U.S. Attorney Barry Grissom said Thursday.
Michael J. Parker, 41, Blue Springs, Mo., pleaded guilty to one count of conspiracy to commit fraud against the United States, one count of major program fraud and one count of wire fraud. In his plea, he admitted that he and his father, co-defendant, Warren K. Parker, made false claims in order for their company, Silver Star Construction LLC of Blue Springs, Mo., and Stilwell, Kan., to obtain more than $6.7 million in contracts from the Veterans Administration and more than $748,000 in contracts from the Department of Defense. The contracts were awarded under the Service-Disabled Veteran-Owned Small Business Program.
Federal agents determined that in fact Warren Parker never was classified as a service-disabled veteran by the Veterans Administration or the Department of Defense.
Co-defendants include:
Warren K. Parker, who was sentenced to 87 months.
Mary Parker, who was sentenced to 20 months.
Thomas Whitehead, who is awaiting sentencing.
Grissom commended the Small Business Administration?s Office of Inspector General; the Defense Criminal Investigative Service; the Department of Veterans Affairs, Office of Inspector General, Criminal Investigation Division and the General Services Administration?s Office of Inspector General; and Assistant U.S. Attorney Tris Hunt for their work on the case.
Clerk Admits Stealing Material Information from Prominent Law Firm for Use in $5.6 Million Insider Trading SchemeRead the Press Release
TRENTON, N.J. - The former managing clerk for a prominent, international law firm today admitted stealing sensitive, confidential information for use in a five-year insider trader scheme that yielded net profits of more than $5.6 million, U.S. Attorney Paul J. Fishman announced.
Steven Metro, 41, of Katonah, New York, pleaded guilty before U.S. District Judge Michael A. Shipp in Trenton federal court to the first two counts of an indictment charging him with securities fraud and conspiracy to commit securities and tender offer fraud.
According to documents filed in this case and statements made in court:
From 2009 to 2013, Metro stole material nonpublic information from his then-employer, Simpson Thacher & Bartlett LLP, one of the nation’s premier mergers and acquisitions firms. The information related to corporate transactions, such as mergers and acquisitions or tender offers, in which the firm represented a party or financial advisor to the transaction. As the firm’s managing clerk, Metro did not personally work on most of these transactions. Instead, Metro stole the inside information by scouring the firm’s computer system for client names and the keywords “merger agreement,” “bid letter,” “engagement letter,” and “due diligence.”
After obtaining the inside information, Metro would meet his friend, Frank Tamayo, 42, of Brooklyn, New York, at a bar, coffee shop, or other location near their respective workplaces in midtown Manhattan. During these meetings, Metro provided Tamayo material information pertaining to, among other things, the names and/or ticker symbols of the companies whose securities should be purchased. Tamayo would write the security’s ticker symbol on a small piece of paper or napkin and commit the rest of the inside information to memory.
Afterwards, Tamayo would meet Vladimir Eydelman, 43, formerly of Colts Neck, New Jersey, usually at a location near Eydelman’s workplace, such as at the large clock in New York City’s Grand Central Terminal. Tamayo would show Eydelman the paper or napkin with the ticker symbol of the company whose securities should be purchased. After Eydelman memorized the ticker symbol, Tamayo would place the paper or napkin into his mouth and chew it until it was destroyed.
After receiving the inside information provided by Metro, whom Eydelman knew as Tamayo’s “source,” Eydelman then purchased securities for himself, family members, friends, and/or clients, including Tamayo. Eydelman quickly sold the shares and covered any positions once the relevant deal was publicly announced and the stock price rose.
Throughout the course of the approximately five-year scheme, Tamayo reinvested the approximately $7,000 in profits that Metro made on the first deal, and updated Metro on the running balance of his profits from the insider trading scheme. As of October 2013, by which time the conspirators had traded ahead of at least 13 planned corporate transactions, Metro’s share of the profits had reached approximately $168,000. Metro sought to “cash out” his share of the accrued profits from the insider trading scheme, pressing Tamayo to “liberate some cash” during a meeting in January 2014. Eydelman paid approximately $7,000 in cash to Tamayo in February 2014, with the expectation that Tamayo would use the cash to compensate his law firm source – i.e., Metro – for providing them the inside information.
By exploiting the information that Metro took from the firm, Metro, Tamayo and Eydelman netted more than $5.6 million in illicit profits over five years.
The securities fraud charge to which Metro pleaded guilty carries a maximum potential penalty of 20 years in prison a $5 million fine. The conspiracy charge carries a maximum potential penalty of five years in prison and a $250,000 fine. Metro must also forfeit any proceeds from the offense. His sentencing is scheduled for Feb. 17, 2016.
Tamayo and Eydelman have both pleaded guilty to their roles in the scheme and await sentencing.
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 guilty plea. He also thanked the U.S. Securities and Exchange Commission’s Market Abuse Unit, under the direction of Robert Cohen and Joseph Sansone.
The government is represented by Assistant U.S. Attorney Shirley U. Emehelu of the Special Prosecutions Division of the U.S. Attorney’s Office in Newark, and R. Joseph Gribko of the U.S. Attorney’s Office in Trenton, as well as Unit Acting Chief Barbara Ward and Assistant U.S. Attorney Jafer Aftab of the Office’s Asset Forfeiture and Money Laundering Unit.
These charges are part of efforts underway by President Obama’s Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorney’s offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed more than 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,700 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.Defense counsel: James R. Froccaro Jr. Esq., Port Washington, New York
Charlotte Business Owner Involved in Foreclosure Assistance Scheme Pleads Guilty to Conspiracy to Defraud the United StatesRead the Press Release
A resident of Charlotte, North Carolina, pleaded guilty on Tuesday in the U.S. District Court of the Western District of North Carolina to conspiracy to defraud the United States, announced Acting Assistant Attorney General Caroline D. Ciraolo of the Justice Department’s Tax Division and U.S. Attorney Jill Westmoreland Rose of the Western District of North Carolina.
According to court documents and statements in court, Daniel Heggins and his co-conspirator Joan Clark of Charlotte conspired to defraud the United States by filing false tax returns. Heggins recruited individuals with debts, such as home mortgages or car loans and created false Forms 1099-OID falsely characterizing the amount of the debts as income. Heggins and Clark then prepared and filed false Forms 1040 that requested refunds from the Internal Revenue Service (IRS) based on the false Forms 1099-OID. Heggins and Clark caused the returns to be filed at the IRS office in Charlotte. Sixteen false tax returns claiming more than $4 million in fraudulent refunds were filed with the IRS as part of the scheme. According to court documents, Clark and another individual, Marlowe Williams, filed three false tax returns, requesting $900,000 in fraudulent refunds from the IRS and received $601,780.
Heggins faces a statutory maximum sentence of five years in prison and a $250,000 fine. On Nov. 5, Clark, also pleaded guilty to two counts of conspiracy to defraud the United States. She faces a statutory maximum sentence of five years in prison and a $250,000 fine for each conspiracy count. On Nov. 9, Williams of New London, North Carolina, pleaded guilty to conspiring with Clark to defraud the United States. He faces a statutory maximum sentence of five years in prison and a $250,000 fine. On Sept. 24, Cheryl Jones of Chicago, Illinois, pleaded guilty to presenting a materially false document to the IRS. Jones submitted false tax returns to the IRS at the direction of Heggins and Clark. She faces a statutory maximum sentence of one year in prison and a $10,000 fine.
The court has not yet set sentencing dates for any of the defendants.
Acting Assistant Attorney General Ciraolo commended special agents of IRS – Criminal Investigation and the FBI, who investigated the case, and Assistant U.S. Attorney Mike Savage of the Western District of North Carolina and Trial Attorney Todd P. Kostyshak of the Justice Department’s Tax Division, who prosecuted the case.
Charlotte Business Owner Involved in Foreclosure Assistance Scheme Pleads Guilty to Conspiracy to Defraud the United StatesRead the Press Release
CHARLOTTE, N.C. — A resident of Charlotte, North Carolina, pleaded guilty on Tuesday in the U.S. District Court of the Western District of North Carolina to conspiracy to defraud the United States, announced Acting Assistant Attorney General Caroline D. Ciraolo of the Justice Department’s Tax Division and U.S. Attorney Jill Westmoreland Rose of the Western District of North Carolina.
According to court documents and statements in court, Daniel Heggins and his co-conspirator Joan Clark of Charlotte conspired to defraud the United States by filing false tax returns. Heggins recruited individuals with debts, such as home mortgages or car loans and created false Forms 1099-OID falsely characterizing the amount of the debts as income. Heggins and Clark then prepared and filed false Forms 1040 that requested refunds from the Internal Revenue Service (IRS) based on the false Forms 1099-OID. Heggins and Clark caused the returns to be filed at the IRS office in Charlotte. Sixteen false tax returns claiming more than $4 million in fraudulent refunds were filed with the IRS as part of the scheme. According to court documents, Clark and another individual, Marlowe Williams, filed three false tax returns, requesting $900,000 in fraudulent refunds from the IRS and received $601,780.
Heggins faces a statutory maximum sentence of five years in prison and a $250,000 fine. On Nov. 5, Clark, also pleaded guilty to two counts of conspiracy to defraud the United States. She faces a statutory maximum sentence of five years in prison and a $250,000 fine for each conspiracy count. On Nov. 9, Williams of New London, North Carolina, pleaded guilty to conspiring with Clark to defraud the United States. He faces a statutory maximum sentence of five years in prison and a $250,000 fine. On Sept. 24, Cheryl Jones of Chicago, Illinois, pleaded guilty to presenting a materially false document to the IRS. Jones submitted false tax returns to the IRS at the direction of Heggins and Clark. She faces a statutory maximum sentence of one year in prison and a $10,000 fine.
The court has not yet set sentencing dates for any of the defendants.
Acting Assistant Attorney General Ciraolo commended special agents of IRS – Criminal Investigation and the FBI, who investigated the case, and Assistant U.S. Attorney Mike Savage of the Western District of North Carolina and Trial Attorney Todd P. Kostyshak of the Justice Department’s Tax Division, who prosecuted the case.
Canadian Corporation Sentenced to 80K Fine After Importation of Contaminated Cattle FeedRead the Press Release
The Office of the United States Attorney for the District of Vermont stated that Yves Bolduc, President of the Quebec cattle feed brokerage and manufacturing company, Meunerie Sawyerville, Inc., appeared Monday in United States District Court in Rutland on behalf of the Canadian corporation. United States District Court Judge Geoffrey Crawford sentenced the defendant corporation to one year of probation and two fines of $70,000 and $10,000 on the two felony counts of conviction. The corporation had previously pled guilty to one count of making a false statement to the United States government, and one count of fraudulently causing the cattle feed drug monensin to be introduced into interstate commerce at a level of concentration significantly higher than that allowed by the U.S. Food and Drug Administration. According to court documents, on or about Sept. 12, 2012, Meunerie Sawyerville sent a driver into the United States with a truckload of cattle feed medicated with the regulated drug monensin at a concentration above that allowed by the FDA and 200% more than what was marked on the label. The feed was sampled at the border, and the driver was ordered to warehouse the feed pending further testing from the FDA. Contrary to orders from U.S. officials, Bolduc instructed the driver to deliver the feed to the Vermont farmer as planned, without informing the farmer that the feed had been sampled and ordered held by the FDA. The driver did deliver the medicated feed to the customer, and the Vermont cows consumed the contaminated feed. Bolduc thereafter engineered a plan that a sham shipment of similar-looking cattle feed cross the border under false Customs documentation to be stored on an unrelated piece of land in Vermont until requested for redelivery by Customs and Border Protection. Upon Customs’ request, Bolduc ordered that the sham shipment be presented for redelivery, accompanied by fictitious documentation that represented the sham shipment of feed to be the tainted feed, which was in fact already consumed by Vermont cows. United States Attorney Eric Miller emphasized the importance of enforcing the FDA’s rules on medicated feed, stating, “Vermonters care deeply about the quality and content of the milk our farmers produce and our families drink. My office will continue to work closely with the FDA to make sure that feed suppliers comply with laws that protect consumers from tainted products.” Meunerie Sawyerville was represented by Attorney Bud Allen. The prosecutor was Assistant U.S. Attorney Abigail Averbach. The United States Attorney would like to express his gratitude to the U.S. Food and Drug Administration’s Office of Criminal Investigations, Veterinary Drug Specialists, and Office of the Chief Counsel, for their excellent investigative work and assistance with this case.Business Owner Indicted on Tax FraudRead 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 a federal grand jury has returned a three count indictment charging David B. Schmitt, 63, of North Tonawanda, NY, with tax evasion and obstructing the administration of the Internal Revenue Service laws. The charges carry a maximum penalty of five years in prison and a $100,000 fine.Assistant U.S. Attorney Michael DiGiacomo, who is handling the case, stated that according to the indictment, the defendant owned and operated two different delivery businesses known as Three Kids Trucking Inc., and 1553 Harlem Road Inc. Between April 2007 and June 2013, while Schmitt owned and operated these businesses, he willfully attempted to evade and defeat the payment of a large part of the federal employment taxes owed by the two businesses in an amount exceeding $500,000. The defendant did so by, among other things, filing false forms with the IRS, having nominees open bank accounts to conduct business for the corporations and created a fraudulent trust for one of the corporations.
The defendant was arraigned before U.S. Magistrate Judge Jeremiah J. McCarthy. Schmitt was released and is due back in court on November 20, 2015.
The indictment is the result of an investigation by Internal Revenue Service, Criminal Investigation Division, under the direction of Shantelle P. Kitchen, Special Agent in Charge.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
Buffalo Man Pleads Guilty to Bank RobberyRead 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 Isaiah Brown, 28, of Buffalo, NY, pleaded guilty to bank robbery, before U.S. District Judge Elizabeth A. Wolford. The charge carries a maximum penalty of 20 years in prison and a $250,000 fine.
Assistant U.S. Attorney Frank T. Pimentel, who is handling the case, stated that on July 9, 2015, Brown entered the First Niagara Bank at 2853 Delaware Avenue in Kenmore, NY wearing a brown wig. The defendant passed a note to the teller demanding money and threatening that he had a gun. Brown made off with a specific amount of money.
As part of his plea agreement, the defendant also admitted that on July 3, 2015, he robbed the First Niagara Bank at 1726 Hertel Avenue in Buffalo using the same method.
The plea is the result of an investigation by the Federal Bureau of Investigation, under the direction of Adam S. Cohen
Sentencing is scheduled for February 23, 2016, at 10:00 a.m. before Judge Wolford.
Bossier City Man Sentenced for Theft of Government FundsRead the Press Release
U.S. Attorney Kenneth A. Polite announced that BRUCE LYDEL, age 59, of Bossier City, was sentenced today after previously pleading guilty to a one-count Bill of Information charging him with theft of government funds.
U.S. District Judge Carl J. Barbier sentenced LYDEL to five years probation, including six months of home detention. Additionally, LYDEL was ordered to pay $203,218 in restitution to the Social Security Administration.
According to court documents, LYDEL received Social Security Title II Benefit payments to which he knew he was not entitled.
U.S. Attorney Polite praised the work of the United States Social Security Administration- Office of Inspector General for investigating this matter. Assistant United States Attorney Loan "Mimi" Nguyen was in charge of the prosecution.