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Friday 25 September 2015
Gretna Woman Indicted for Theft of Federal FundsRead the Press Release
U.S. Attorney Kenneth A. Polite announced that DANIELLE RANDALL, 42, of Gretna, was charged today in a four-count Indictment for theft of federal funds.
According to the Indictment, on or about August 29, 2012, Hurricane Isaac struck southeastern Louisiana. Shortly thereafter, the Federal Emergency Management Agency (“FEMA”) declared a major disaster in parts of southeastern Louisiana, including the Eastern District of Louisiana. To assist individuals in coping with damage to their personal property and primary residences, FEMA established an application process for temporary disaster assistance. The Indictment alleges that RANDALL submitted an application for Disaster Assistance for damage to her apartment and personal property. After she received an initial disbursement of approximately $3,000, RANDALL continued to apply for housing assistance while falsely representing her rental address and housing expenses. In total, RANDALL received four U.S. Treasury checks to which she was not entitled. RANDALL’s false submissions to FEMA allowed her to steal a total $10,951 in federal funds.
If convicted, RANDALL faces a maximum penalty of 10 years imprisonment, a maximum fine of $250,000 and a special assessment of $100, as to each of the four counts. She also faces mandatory restitution of at least $10,951.
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 Department of Homeland Security, Office of Inspector General in investigating this case. Assistant U.S. Attorney Sharan E. Lieberman is in charge of the prosecution.
Granite City Man Sentenced for Methamphetamine DistributionRead the Press Release
Stephen R. Wigginton, United States Attorney for the Southern District of Illinois announced today that Antonio M. Avila, age 46, of Granite City, Illinois, was sentenced to 92 months imprisonment on September 24, 2015 for Possession With Intent to Distribute Methamphetamine
Avila had earlier pled guilty to the federal charge on May 14, 2015 in United States District Court in East St. Louis, Illinois.
At his change of plea hearing in May, the Government presented evidence that Avila was arrested in Madison, Illinois on June 1, 2013 in possession of 17 grams of methamphetamine and a digital scale. Avila admitted to arresting officers that he had been dealing ounce quantities of methamphetamine in and around Granite City for several weeks.
Avila has been continuously confined in federal custody since December 2014. Upon release from prison, Avila will be placed on supervised release for a term of 3 years.
The investigation which resulted in Avila’s arrest and conviction was conducted by the Madison, Illinois Police Department and by the Metropolitan Enforcement Group of Southwestern Illinois (MEGSI).
The case was assigned to Assistant United States Attorney Robert L. Garrison.
Fugitive Who Operated San Fernando Valley Chiropractic Clinic Indicted on Federal Health Care Fraud and Identity Theft ChargesRead the Press Release
LOS ANGELES – A federal grand jury has named an Encino-based chiropractor in a 15-count indictment that accuses him defrauding health care programs by submitting more than $300,000 in fraudulent bills for office visits that never took place and for medical equipment that was never provided.
Yoav Stein, 39, who until about a year ago resided in Encino, was indicted yesterday in a scheme that allegedly defrauded several health care plans, including the National Railroad Passenger Corporation’s (Amtrak) health care plan.
According to the indictment, Stein participated in corporate health care fairs, where he induced employees to provide insurance information by offering Transcutaneous Electrical Nerve Stimulus units for no “out-of-pocket costs.” Armed with the employees’ insurance information, Stein allegedly submitted fraudulent claims to health care plans.
The indictment charges Stein with 13 counts of health care fraud and two counts of aggravated identity theft.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed innocent until and unless proven guilty in a court.
Stein is currently a fugitive believed to be in Israel.
If he were to be convicted of the charges in the indictment, Stein would face up to 10 years in federal prison for each of the health care fraud counts, as well as a mandatory two-year consecutive sentence for aggravated identity theft.
This case is a product of an investigation by the Amtrak Office of Inspector General and United States Department of Labor, Employee Benefits Security Administration.
Forty-One Facing Drug Trafficking Charges as a Result of Multi-Agency Investigation in Chaves CountyRead the Press Release
ALBUQUERQUE – Forty-one individuals are facing drug trafficking charges as a result of an eight-month multi-agency investigation led by the FBI, the DEA, Chaves County Metro Narcotics Task Force, Roswell Police Department, Chaves County Sheriff’s Office, the New Mexico State Police. Twenty-one of the defendants charged are facing federal charges and the remaining 20 are facing state charges.
The results of the investigation were announced by U.S. Attorney Damon P. Martinez, Fifth Judicial District Attorney Dianna Luce, Special Agent in Charge Carol K.O. Lee of the FBI’s Albuquerque Division, Special Agent in Charge Will R. Glaspy of DEA’s El Paso Division, New Mexico State Police Chief Pete Kassetas, Chaves County Sheriff Britt Snyder and Roswell Police Chief Phil Smith.
The investigation, which was designated as part of the Organized Crime Drug Enforcement Task Force (OCDETF) program, initially targeted a drug trafficking organization (DTO) allegedly led by Joseph Ray Mendiola, 34, of Roswell, that allegedly distributed methamphetamine in Chaves County. It later expanded to include drug traffickers who allegedly supplied methamphetamine to the Mendiola DTO and other drug traffickers operating in Chaves County. The OCDETF program combines the resources and unique expertise of federal agencies, along with their local counterparts, in a coordinated effort to disrupt and dismantle major drug trafficking organizations.
Sixteen of the 21 defendants facing federal charges are charged in a 24-count indictment that was filed by a grand jury on Sept. 22, 2015. The remaining five federal defendants are charged in criminal complaints. Each of the 20 defendants facing state charges is charged by criminal complaint.
During the course of the investigation, law enforcement officers executed 14 federal search warrants for 10 residences in Roswell, one residence in Dexter, N.M., and three vehicles. During the execution of those search warrants, the officers seized approximately 5600 grams of methamphetamine, $35,960.00 in cash, and multiple firearms including two assault rifles. Five of the federal defendants, including alleged DTO leader Mendiola, were arrested on July 31, 2015, the date on which the officers executed the 14 federal search warrants.
U.S. Attorney Damon P. Martinez commended the investigating agencies on the outstanding results of their investigation and said, “The charges filed and drugs seized as a result of this investigation illustrate the success of our District’s federal, state, county and local law enforcement collaboration in rooting out drug traffickers operating in Chaves County and improving the quality of life for people who live there.”
“The months of collaboration of federal, state and local law enforcement agencies led to the arrest of numerous active drug traffickers in Chaves County,” said Fifth Judicial District Attorney Dianna Luce. “The District Attorney's Office expresses a special thank you to the agents of the New Mexico State Police for their work on this operation.”
“This operation demonstrates how a team of federal, state and local law enforcement agencies, working closely with the U.S. Attorney’s Office, can make a big difference in the communities we serve and protect. Dozens of special agents, state troopers, sheriff’s deputies, police officers, intelligence analysts and other professionals worked together to take some of the worst of the worst drug offenders off our streets,” said FBI Special Agent in Charge Carol K.O. Lee. “The FBI and our partners will continue to go after drug-traffickers and others who try to harm our communities, regardless of where these criminals hide or how long it takes.”
“Today’s law enforcement activity in the Roswell area once again makes it abundantly clear that DEA and our law enforcement partners will use all of our investigative tools and resources to keep our smaller communities safe from drug trafficking organizations,” said DEA Special Agent in Charge Will R. Glaspy. “Criminal activity that threatens the safety and well-being of our citizens will not be tolerated.”
“The citizens of New Mexico are safer today as the result of this cooperative effort between law enforcement agencies,” said New Mexico State Police Chief Pete Kassetas. “The cooperation was outstanding and I cannot express my gratitude enough to all the agencies involved. Together, we have made a difference in our state. This operation reinforces to those that choose to break the law, that they will suffer the consequences.”
“Teamwork with our federal, state and local partners is how we got to today,” said Chaves County Sheriff Britt Snyder. “I greatly appreciate that team effort.”
Roswell Police Chief Phil Smith said, "The investigation was a great collaborative effort between the Roswell Police Department and the FBI, successfully removing both drugs and their dealers/pushers from our Roswell community."
The federal cases were investigated by the Roswell office of FBI’s Albuquerque Division, the Las Cruces office of DEA, Roswell Police Department, Chaves County Sheriff’s Office, the Chaves County Metro Narcotics Task Force, the New Mexico State Police and the U.S. Marshals Service. The state cases were investigated by the New Mexico State Police In addition to the aforementioned agencies, the Pecos Valley Drug Task Force and Lea County Drug Task Force participated in today’s law enforcement operation. Assistant U.S. Attorney Randy M. Castellano is prosecuting the federal cases, and the Fifth Judicial District Attorney’s Office is prosecuting the state cases.
The HIDTA Chaves County Metro Narcotics Task Force is comprised of investigators from the Roswell Police Department, Bureau of Alcohol, Tobacco, Firearms and Explosives, the FBI and the Chaves County Sherriff’s Office. The High Intensity Drug Trafficking Areas (HIDTA) program was created by Congress with the Anti-Drug Abuse Act of 1988. HIDTA is a program of the White House Office of National Drug Control Policy (ONDCP) which provides assistance to federal, state, local and tribal law enforcement agencies operating in areas determined to be critical drug-trafficking regions of the United States and seeks to reduce drug trafficking and production by facilitating coordinated law enforcement activities and information sharing.
The Pecos Valley Drug Task Force is comprised of officers from the Eddy County Sheriff’s Office, Carlsbad Police Department and Artesia Police Department and is part of the HIDTA Region VI Drug Task Force. The Lea County Drug Task Force is comprised of officers from the Lea County Sheriff’s Office, Hobbs Police Department, Lovington Police Department, Eunice Police Department the Tatum Police Department and the Jal Police Department, and is part of the NM HIDTA Region VI Drug Task Force.
Indictment in United States v. Mendiola, et al., 15-CR-3386-RB
Summary of the Charges
Count 1 of the Indictment charges 15 of the 16 defendants with conspiracy to distribute methamphetamine in Chaves County between June 2015 and July 2015. For 11 of the federal defendants, the statutory penalty for a conviction on this count is imprisonment for not less than ten years or more than life. For four defendants, the statutory penalty for a conviction on this count is not more than 20 years of imprisonment.
Count 2 charges three defendants with conspiracy to distribute cocaine in Chaves County in July 2015. The statutory penalty for a conviction on this count is not more than 20 years of imprisonment.
Count 3 charges certain defendants with possession of methamphetamine with intent to distribute in Chaves County on July 17, 2015. The statutory penalty for a conviction on this count is imprisonment for not less than five years and not more than 40 years.
Counts 4, 5, 6 and 7 charge certain defendants with possession of methamphetamine with intent to distribute in Chaves County in July 2015. The statutory penalty for a conviction on this count is imprisonment for not less than ten years or more than life.
Counts 8 through 24 charge certain defendants with using communications devices (telephone) to facilitate drug trafficking crimes. The statutory penalty for a conviction on each of these counts is imprisonment for not more than four years.
Charges Against Federal Defendants
- Joseph Ray Mendiola, 34, of Roswell, N.M., is charged in Counts 1, 2, 4, 5 and 10 to 24. Mendiola was arrested on July 31, 2015, on a criminal complaint and has been in federal custody since that time.
- Francisco Fernando Aguilar-Larios, 34, a Mexican national who illegally resides in Phoenix, Ariz., is charged in Counts 1, 4, 5 and 18. Aguilar-Larios was arrested on July 31, 2015, on a criminal complaint and has been in federal custody since that time.
- Rodney Boughton, 48, of Roswell, N.M., is charged in Counts 1, 6 and 9. Boughton was arrested on July 31, 2015, on a criminal complaint and has been in federal custody since that time.
- James H. Lewis, 50, of Roswell, N.M., is charged in Counts 1 and 6. Lewis was arrested on July 31, 2015, on a criminal complaint and has been in federal custody since that time.
- Stephanie Leyba, 41, of Roswell, N.M., is charged in Counts 1 and 6. Leyba was arrested on July 31, 2015, on a criminal complaint and has been in federal custody since that time.
- Louis Escobar, 46, of Roswell, N.M., is charged in Counts 1 and 11. Escobar has yet to be arrested and is considered a fugitive.
- Sergio Ureta-Castro, 38, of Roswell, N.M., is charged in Counts 1, 7 and 14. Ureta-Castro has yet to be arrested and is considered a fugitive.
- Jonathan Ureta-Lopez, 19, of Roswell, N.M., is charged in Counts 1, 7, 10 and 14. Ureta-Lopez has yet to be arrested and is considered a fugitive.
- Gerald Sentell, 44, of Roswell, N.M., is charged in Counts 1, 3, 8 and 9. Sentell has yet to be arrested and is considered a fugitive.
- Susana Ceballos, 35, of Roswell, N.M., is charged in Counts 1, 4, 12, 13 and 16. Cebollos has yet to be arrested and is considered a fugitive.
- Ana Solis, 22, of Roswell, N.M., is charged in Counts 1, 4, 5, 17 and 23. Solis was arrested during this morning’s law enforcement operation and made her initial appearance earlier today in federal court in Roswell.
- Destiny Stephenson, 34, of Roswell, N.M., is charged in Counts 1 and3. Stephenson was arrested during this morning’s law enforcement operation and made her initial appearance earlier today in federal court in Roswell.
- Ty Livingston, 36, of Roswell, N.M., is charged in Counts 1, 22 and 24. Livingston has yet to be arrested and is considered a fugitive.
- Ismael Molina, 29, of Roswell, N.M., is charged in Counts 1, 2 and 15. Molina was rested during this morning’s law enforcement operation and made his initial appearance earlier today in federal court in Roswell.
- Cipriano Anaya, 33, of Las Cruces, N.M., is charged in Counts 1 and 21. Anaya was arrested during this morning’s law enforcement operation and made his initial appearance earlier today in federal court in Roswell.
- Christopher Bernard Larez, 41, of Roswell, N.M., is charged in Counts 1, 2, 19 and 20. Larez has yet to be arrested and is considered a fugitive.
Federal Defendants Charged by Criminal Complaint
The following defendants were arrested during today’s law enforcement operation on federal criminal complaints and made their initial appearances in federal court in Roswell:
- Mia Coy Campbell, 32, of Carlsbad, N.M., is charged by criminal complaint 15-MJ-3315 with being a felon in possession of a firearm. If convicted, Campbell faces a statutory maximum penalty of ten years in prison.
- James Hill, 33, of Roswell, N.M., is charged by criminal complaint with possession of methamphetamine with intent to distribute. If convicted, Hill faces a statutory penalty of not less than five years and not more than 40 years of imprisonment.
- Jason Martinez, 27, of Roswell, N.M., is charged in criminal complaint 15-MJ-3319 with conspiracy and possession of methamphetamine with intent to distribute. If convicted, each faces a statutory penalty of not less than five years and not more than 40 years of imprisonment. His co-defendant Joseph Vallejos, 23, of Roswell, N.M., has yet to be arrested and is considered a fugitive.
- Renee Rodriguez, 31, of Roswell, N.M., is charged in criminal complaint 15-MJ-3314 with conspiracy, possession of methamphetamine with intent to distribute, and using and carrying a firearm in relation to a drug trafficking crime. If convicted, she faces a statutory penalty of not less than five years and not more than 40 years of imprisonment on the drug charges and a minimum five years of imprisonment on the firearms charge that must be served consecutive to the sentence imposed on the drug charges. As noted above, co-defendant Joseph Vallejos is a fugitive.
Photographs of the following federal fugitives are attached to this press release: Susana Ceballos, Christopher Larez, Ty Livingston, Gerald Sentell and Joseph Vallejos. Anyone with information on the whereabouts of this/these fugitive(s) is asked to contact the Albuquerque FBI (24 hours) at (505) 889-1300. Tips also can be submitted online at https://tips.fbi.gov.
Charges in indictments and criminal complaints are merely accusations and defendants are presumed innocent unless found guilty beyond a reasonable doubt.
State Defendants Charged by Criminal Complaint
The following defendants were arrested today on state drug trafficking charges:
- Michael Albarez, 33 of Roswell, N.M.
- Raymond Amador, 22, of Roswell, N.M.
- Frederick Bersane, 36, of Roswell, N.M.
- Aaron Brockman, 27, of Roswell, N.M.
- Ann Escamilla Cobos, 41 of Roswell, N.M.
- Lorenzo Cobos, 41, of Roswell, N.M.
- James Dennis, 25, of Roswell, N.M.
- Jose Dimas, 27, of Roswell, N.M.
- Jerry Garcia, 37, of Roswell, N.M.
- Andres Granado, 27, of Roswell, N.M.
- Angelo Hidalgo, 22, of Roswell, N.M.
- Annette Lucero, 44, of Roswell, N.M.
- Jason Lucero, 37, of Artesia, N.M.
- Larissa Madril, 23, of Roswell, N.M.
- Domenic Montes, 25, of Roswell, N.M.
- Danielle Paslay, 24, of Roswell, N.M.
- Armando Primera, 46, of Dexter, N.M.
- Alexander Roberson, 24, of Roswell, N.M.
- Brandon Dean Shelton, 44, of Roswell, N.M.
- Jose Trujillo, 25, of Albuquerque, N.M.
Charges in indictments and criminal complaints are merely accusations and defendants are presumed innocent unless found guilty beyond a reasonable doubt.
Former U.S. Army Physician Sentenced to Federal Prison for his Role in an Estimated $7.3 Million Health Care Fraud SchemeRead the Press Release
In El Paso today, former William Beaumont Army Medical Center (WBAMC) physician and Army Lt. Col. Richard Craig Rooney of Medina, WA, age 46, was sentenced to 30 months in federal prison for his role in an estimated $7.3 million Health Care fraud scheme announced United States Attorney Richard L. Durbin, Jr.; Janice M. Flores, Special Agent in Charge of the Defense Criminal Investigative Service’s Southwest Field Office, Arlington, TX; Special Agent in Charge Scott Wilk of the Southwest Fraud Field Office of the U.S. Army Criminal Investigation Command Major Procurement Fraud Unit, Arlington, TX; and FBI Special Agent in Charge Douglas E. Lindquist, El Paso Division.
In addition to the prison term, Senior United States District Judge David Briones ordered that Rooney pay a $15,000 fine and be placed on supervised release for a period of three years after completing his prison term.
The Government is also seeking the forfeiture of approximately $4.27 million seized from financial institutions. The Government has already forfeited a residential real estate property located in the State of Washington. A hearing to determine restitution is scheduled for December 1, 2015, before Judge Briones.
On January 9, 2015, Rooney pleaded guilty to aiding and abetting Acts Affecting a Personal Financial Interest. By pleading guilty, Rooney admitted that, beginning in 2005 and continuing through June 2010, he was employed by two medical device development and sales companies, Altiva Corporation (“Altiva”) and Allure Spine Consulting, LLC (“Allure”), as a consultant regarding the efficacy of existing medical devices and the design development and marketing of prospective medical devices. During the time Rooney was receiving money from both Altiva and Allure, he was also recommending that Darnall Army Medical Center at Ft. Hood, TX (DAMC) and WBAMC purchase Altiva and Allure products for his use in surgical procedures at the two hospitals. At the time Rooney was making the decisions to use Altiva and Allure products and was recommending the two military hospitals contract with Altiva and Allure to purchase said products, Rooney had an undisclosed financial interest in Altiva and Allure products.
This investigation was conducted by agents with the Defense Criminal Investigative Service (DCIS); agents of the Criminal Investigation Command Major Procurement Fraud Unit of the U.S. Army Criminal Investigation Command; and agents of the Federal Bureau of Investigation (FBI). Assistant United States Attorneys Debra Kanof and Anna Arreola are prosecuting this case on behalf of the Government.
Former North Texas Pharmacist Charged with Federal Drug Trafficking ViolationsRead the Press Release
PLANO, Texas – A 29-year-old Granbury, Texas man has been charged with federal drug trafficking violations in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.
John Christopher Esparza was indicted by a federal grand jury on Sep. 10, 2015 and charged with conspiracy to distribute and possession with intent to distribute oxycodone. Esparza appeared before U.S. Magistrate Judge Don D. Bush on Sep. 24, 205, and was ordered to be detained until trial.
According to information presented in court, from November 2012 to September 2015, Esparza was the pharmacist in charge of Trinity Pharmacy on Rosemeade Parkway in Carrollton, Texas. During this time he is alleged to have illegally sold large quantities of oxycodone to an informant. During the investigation it was revealed that a review of the pharmacy’s inventory records suggests that a large amount of oxycodone with a street value of approximately $2.9 million was unaccounted for.
If convicted, Esparza faces up to 20 years in federal prison. A trial date has not been set.
This case was investigated by the Drug Enforcement Administration – Dallas Field Division Tactical Diversion Squad, the Texas Department of Public Safety, the Texas Board of Pharmacy, and the McKinney Police Department. This case is being prosecuted by Assistant U.S. Attorneys in the Eastern District of Texas.
It is important to note that a grand jury indictment is not evidence of guilt. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Former German Soldier Sentenced in Manhattan Federal Court to 20 Years in Prison for Conspiring to Murder A DEA Agent and Conspiring to Import CocaineRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced that DENNIS GOGEL, a former member of the German Army and a trained sniper, was sentenced to 20 years in prison for his participation in a conspiracy to murder a Drug Enforcement Administration (“DEA”) agent and a confidential informant working at the direction of the DEA, a conspiracy to import cocaine into the United States, a conspiracy to possess a firearm in furtherance of the murder conspiracy, and a conspiracy to import cocaine on board an aircraft registered in the United States. GOGEL was arrested in September 2013 along with co-defendants Joseph Hunter, Timothy Vamvakias, Slawomir Soborski, and Michael Filter following a long-term DEA undercover investigation. Each defendant pled guilty before U.S. District Judge Laura Taylor Swain, who imposed yesterday’s sentence.
Manhattan U.S. Attorney Preet Bharara said: “Dennis Gogel used his elite German military training to support a network of underground criminals who were prepared and willing to kill a DEA agent and informant, and import 300 kilograms of cocaine to New York. Thanks to the efforts of the DEA and coordination with law enforcement partners from around the world, Gogel and his co-conspirators are now safely behind bars.”
According to the Indictment filed against GOGEL, Hunter, Vamvakias, Soborski, and Filter, as well as sentencing proceedings and other filings in Manhattan federal court:All five defendants have previously served in the armed forces of their respective nations. GOGEL served in the German armed forces until 2010; Hunter served in the U.S. Army between approximately 1983 and 2004; Vamvakias served in the U.S. Army between approximately 1991 and 2004; Filter served in the German armed forces until 2009; and Soborski served in the Polish armed forces until 2011. GOGEL attained the rank of corporal and served as a sniper from 2007 to 2010. Hunter served as a sniper instructor and a senior drill sergeant, training other soldiers in marksmanship and tactics; and Soborski and Filter were also trained as snipers.
In 2013, GOGEL was recruited by Hunter to serve as security for a Colombian drug trafficking organization and to perform contract killings. Hunter recruited GOGEL based on his military training and experience in the private security industry. During meetings in Asia, Africa, and the Caribbean, beginning in January 2013 and continuing through late September 2013, Hunter communicated with three confidential sources (the “CSs”) working with the DEA, who purported to be Colombian narcotics traffickers. Hunter agreed to serve as the head of security for the CSs’ purported narcotics trafficking organization, and assembled a “security team” consisting of GOGEL, Vamvakias, Filter, and Soborski. Hunter also told the CSs that he had previously been involved in contract killings – referred to as “bonus jobs” – and that some team members wanted to do as much “bonus work” as possible.
Hunter and his co-defendants thereafter agreed, in meetings and communications with the CSs, to provide security and surveillance services to the narcotics trafficking organization. Furthermore, GOGEL, Vamvakias, and Hunter agreed to commit murder-for-hire in Liberia by assassinating both a DEA Special Agent and a person who, according to the CSs, was providing information to the DEA about the CSs’ narcotics trafficking organization. In exchange for the murders, GOGEL and Vamvakias were together to be paid approximately $700,000, and Hunter was to receive an additional $100,000 for his leadership role. Communications between the defendants and the CSs occurred by telephone, over email, and in a series of surreptitiously audio-recorded and videotaped meetings over an approximately nine-month period.
In March 2013, GOGEL, Filter, and Soborski conducted counter-surveillance of a boat in Thailand that the CSs had represented would be used to transport narcotics, seeking to detect law enforcement monitoring of the vessel.
In April 2013, GOGEL acted as team leader as he, Filter, and Soborski provided security for meetings in Mauritius between the CSs and representatives of a bona fide international drug trafficking organization. The security team also performed counter-surveillance of additional individuals that the CSs met with to discuss international weapons dealers.
In late June 2013, GOGEL, Vamvakias, Filter, and Soborski conducted surveillance of a purported U.S.-registered aircraft at the direction of the third CS (“CS-3”), who posed as a member of the CSs’ narcotics trafficking organization. CS-3 informed the defendants that the aircraft was to be loaded with 300 kilograms of cocaine to be shipped to New York.
With respect to the murder-for-hire scheme, in mid-May 2013, at a meeting with the CSs in Thailand, GOGEL, Vamvakias, Hunter, and Soborski were told that a “bonus job” – that is, a contract killing – was in the offing, due to a leak within the CSs’ narcotics trafficking organization. In late May 2013, in email communications, Hunter confirmed that his team would be willing to murder both a U.S. law enforcement agent and an informant (a boat captain) who was providing information to U.S. law enforcement authorities. Hunter confirmed by email that his team would kill both the DEA agent and the informant who was providing information to law enforcement about the CSs’ narcotics trafficking organization. At a meeting in late June 2013, CS-3 explained to GOGEL and Vamvakias that “the job is to kill a U.S. DEA agent and a source with the DEA,” who would be located in Liberia. GOGEL and Vamvakias discussed the weapons that could be used and masks to be worn for the murders, and Vamvakias stated that it would be better to “hit the agent first” and then “the snitch.” In early July 2013, Hunter sent via email a list of the items needed for the murders, including “[t]wo submachine guns with silencers . . . [t]wo .22 pistols with silencers.”
In mid-August 2013, at a meeting in Thailand, GOGEL, Vamvakias, and Hunter discussed in detail the weapons that would be used and the possibility of entering Liberia without having their passports stamped. They suggested that CS-3 fly them out of the country via private plane following the murders. Vamvakias stated that among other weapons, a sub-machine gun and two .22 caliber pistols would be needed for the murders, and CS-3 agreed to deliver the weapons to Liberia. The next day, at a meeting with GOGEL, CS-3 confirmed that an order for the requested weapons had been made. Later that same day, GOGEL met again with CS-3 and provided CS-3 with two highly sophisticated latex facemasks, which can make the wearer appear to be of another race, for CS-3 to transport to Liberia. Discussing his work with the purported drug cartel, GOGEL told the CS that, “That’s fun. It is for me. I love that, I love this work.”
In late September 2013, GOGEL and Vamvakias arrived in Liberia to commit the planned murders-for-hire.
* * *
GOGEL, 30, pled guilty on January 13, 2015, to conspiracy to import cocaine into the United States (Count One); conspiracy to murder a federal law enforcement agent and a person assisting a federal law enforcement agent (Count Two); conspiracy to possess a firearm in furtherance of a crime of violence (Count Four); and conspiracy to distribute cocaine on board an aircraft registered in the United States (Count Five). In addition to the 20-year prison term, GOGEL was sentenced to five years of supervised release.
The remaining defendants, Hunter, 50, Vamvakias, 43, Soborski, 43, and Filter, 30, each pled guilty to conspiracy to import cocaine into the United States (Count One). Hunter and Vamvakias also pled guilty to conspiracy to murder a law enforcement agent and a person assisting a law enforcement agent (Count Two); and conspiracy to possess a firearm in furtherance of a crime of violence (Count Four). Each count carries a maximum possible term of life in prison; Count One carries a mandatory minimum term of 10 years in prison. The maximum potential sentences faced by these remaining defendants are prescribed by Congress and are provided here for informational purposes only, as any sentencing of these defendants will be determined by the judge.
Vamvakias was sentenced on July 16, 2015, to 20 years in prison by Judge Swain. Filter was sentenced on September 9, 2015, to eight years in prison by Judge Swain. Hunter is scheduled to be sentenced on October 13, 2015, and Soborski is scheduled to be sentenced on October 22, 2015.
The prosecution was the result of the close cooperative efforts of the United States Attorney’s Office for the Southern District of New York; DEA’s Special Operations Division; DEA’s Bangkok, Ghana, Pretoria, Bucharest, Manila, Nassau and Copenhagen Offices; the Royal Thai Police Narcotics Suppression Bureau and Crime Suppression Division; the Royal Thai Immigration; the Royal Thai Attorney General’s Office; Republic of Liberia’s National Security Agency; the Republic of Liberia’s Attorney General’s Office; the Estonian Police and Border Guard; the Estonian National Criminal Police, Investigative Bureau; the Estonian State Prosecutors Office; the Royal Bahamas Police Force and Drug Enforcement Unit; the Romanian National Police; Interpol; and the U.S. Department of Justice Office of International Affairs.
This prosecution is being handled by the Office’s Terrorism and International Narcotics Unit. Assistant United States Attorneys Michael D. Lockard, Anna Skotko, Emil Bove, and Aimee Hector are in charge of the prosecution.
Former Correctional Officer Sentenced to over 6 Years in Prison in Baltimore Jail Racketeering ConspiracyRead the Press Release
Baltimore, Maryland – U.S. District Judge J. Frederick Motz sentenced former correctional officer Travis Paylor, age 27, of Baltimore, today to 76 months in prison, followed by three years of supervised release, for participating in a racketeering conspiracy and drug conspiracy, involving the smuggling of drugs and contraband inside the Baltimore City Detention Center (BCDC). Paylor was convicted on February 5, 2015, after a more than two month long jury trial.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Kevin Perkins of the Federal Bureau of Investigation; Secretary Stephen T. Moyer of the Maryland Department of Public Safety and Correctional Services (DPSCS); Interim Baltimore Police Commissioner Kevin Davis; and Baltimore City State’s Attorney Marilyn Mosby.
“Travis Paylor received the longest sentence of any correctional officer in the case, which is appropriate because he continued to engage in illegal activity even after he was convicted in this case,” said U.S. Attorney Rod J. Rosenstein.
“We commend our task force partners for yet another successful prosecution in the wide-ranging corruption cases that plagued the now closed Baltimore City Detention Center. This sentence once again emphasizes we will not tolerate corruption within our correctional system and those found to be engaged in such criminal activity will be prosecuted to the fullest extent of the law,” said Secretary Stephen T. Moyer.
According to trial testimony and court documents, BGF has been the dominant gang at the Baltimore City Detention Center (BCDC), and in several connected facilities, including the Baltimore Central Booking Intake Center, the Women’s Detention Center, which houses many men, and in the Jail Industries Building. Tavon White and other BGF leaders and members incarcerated at BCDC were involved with and often directed the smuggling of contraband into BCDC, including cell phones, tobacco and drugs, through the services of correctional officers (COs), who received payments, gifts, or a share of the profits.
According to evidence presented at trial, Paylor was a correctional officer (CO) at the BCDC who smuggled contraband into the jail for distribution by BGF inmates. In return, Paylor and other COs received payments, gifts or a share of the profits.
According to trial evidence and other court documents, Paylor was an important source of supply of Percocet pills for BGF leader Tavon White, who bought Percocet pills from Paylor once or twice a week. Paylor worked with other correctional officers to sell contraband to White, as well as to other inmates. Paylor charged various rates, depending on the amount of items purchased. For example, Paylor charged $300 just to bring in 50 Percocet pills provided by the inmate’s outside source of supply. From 2009 through 2010, when Paylor was moved to the Baltimore Central Booking and Intake Center (BCBIC), Tavon White paid Paylor approximately $10,000 for drugs. Paylor continued selling contraband to inmates after he was moved to BCBIC.
This case was developed as a result of the efforts of the Maryland Prison Task Force, formed in 2011 with the Maryland Department of Public Safety and Correctional Services, local, state and federal law enforcement agencies, and prosecutors. The Task Force has met regularly for over three years, generating recommendations to reform prison procedures and producing leads that have been pursued by state, local and federal criminal investigators. Investigations are continuing.
Forty of the 44 defendants charged in the racketeering conspiracy have been convicted, including 24 correctional officers. Thirty-five defendants pleaded guilty and five defendants were convicted after trial. Three defendants were acquitted and one defendant died.
To date, 23 of the correctional officers, including Paylor, have been sentenced to up to 76 months in prison.
BGF leader Tavon White, age 37, pleaded guilty to his participation in the racketeering conspiracy and testified at the trial and was sentenced to 12 years in prison. Inmates and leaders in the BGF gang, Russell Carrington, a/k/ Rutt, age 34, and Joseph Young, a/k/a Monster, age 33, both of Baltimore, were convicted after trial and sentenced to 210 months in prison and 15 years in prison, respectively. Former correctional officer Ashley Newton, age 31, of Baltimore, was sentenced to 51 months in prison, after being convicted after trial of participating in racketeering, drug, and money laundering conspiracies, involving the smuggling of drugs and contraband inside the Baltimore City Detention Center (BCDC).
U.S. Attorney Rosenstein recognized the efforts of the other members of the Maryland Prison Task Force, including: the Maryland State Police, Prince George’s County Police Department, United States Marshals Office, DEA, Washington-Baltimore High Intensity Drug Trafficking Area and Maryland Coordination and Analysis Center.
United States Attorney Rod J. Rosenstein praised the FBI, Maryland Department of Public Safety and Correctional Services, Baltimore Police Department, and Maryland Prison Task Force, for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorneys Robert R. Harding and Ayn B. Ducao, who are prosecuting this Organized Crime Drug Enforcement Task Force case.
Former Business Owner and Son Sentenced for Arson and Insurance FraudRead the Press Release
ALEXANDRIA, Va. – Lawrence Wayne Reese, 56, and his son, Lance Terrell Reese, 28, both from Fort Belvoir, were sentenced today for their roles in burning down the Sub Shop, a business Lawrence Reese owned in Lorton.
Lawrence Reese was sentenced to 15 years in prison, five years of supervised release, and ordered to pay $34,000 in restitution. Lance Reese was sentenced to five years in prison, two years of supervised release, and ordered to pay $34,000 in restitution.
Lawrence and Lance Reese were convicted at trial on June 19, 2015, for their respective roles in the Feb. 6, 2013, arson of the Sub Shop. Lawrence Reese owned and operated the business. Through over 500 hours of financial analysis performed by an ATF Senior Forensic Auditor, the United States proved at trial that the business was financially insolvent. Specifically, Lawrence Reese’s business reported losses of approximately $60,000 on its 2012 U.S. income tax return. Due to financial strain, Lawrence Reese recruited his son and Horace Thompson to burn down the Sub Shop. Thompson was convicted of arson at trial on Oct. 3, 2013, and was sentenced on Dec. 19, 2013, to five years in prison, two years of supervised release, and ordered to pay $34,000 in restitution.
The evidence presented at trial established that Lawrence Reese and Thompson, through the use of the accelerant gasoline, caused an explosion followed by a fire at the Sub Shop. The fire destroyed the business and left Lawrence Reese and Thompson badly burned. Following the fire, Lawrence Reese submitted a claim for approximately $200,000 to his insurance company. His submission of this claim, for an intentionally set fire, resulted in his commission of multiple counts of mail and wire fraud.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Colonel Edwin C. Roessler Jr., Fairfax County Chief of Police; and Charles E. Smith, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives’ (ATF) Washington Field Division, made the announcement after sentencing by U.S. District Judge Liam O’Grady.
This case was investigated by the Fairfax County Police Department’s Homicide Unit and the Arson Group in ATF’s Washington Field Division, with special assistance from ATF’s Financial Investigative Services Division. Assistant U.S. Attorneys Michael Rich and Zachary Terwilliger prosecuted the case.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:15-cr-32.
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Former Air National Guard Contract Employee Sentenced to Probation for FraudRead the Press Release
PITTSBURGH - A resident of Maryland has been sentenced in federal court to two years of probation, six months of home detention and community service on his conviction of conspiracy, United States Attorney David J. Hickton announced today.
United States District Judge Arthur J. Schwab imposed the sentence on Robert St. Clair, 51, of Bel Air, Maryland.
According to the information presented to the court, between 2002 and 2011, St. Clair, a contract employee at the National Guard Bureau at Andrews Air Force Base, conspired with another person at the 171st Air Refueling Wing in Coraopolis, Pennsylvania, to defraud the United States by accepting a “no show” enlistment position as a “contracting specialist’ at the 171st, in exchange for St Clair providing military work days to the conspirator, a former commander at the 171st ARW.
Assistant United States Attorney Gregory C. Melucci prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the U.S. Air Force Office of Special Investigations and the Federal Bureau of Investigation for the investigation leading to the successful prosecution of Robert St. Clair.
Federal Authorities Arrest Three El Paso Family Members on Federal Charges in Connection with Murder-For-Hire PlotRead the Press Release
In El Paso, two brothers and a sister are in custody based on a federal grand jury indictment alleging a murder-for-hire plot announced United States Attorney Richard L. Durbin, Jr., Drug Enforcement Administration (DEA) Special Agent in Charge Will R. Glaspy, Homeland Security Investigations (HSI) Special Agent in Charge Waldemar Rodriguez, and Federal Bureau of Investigation (FBI) Special Agent in Charge Douglas E. Lindquist.
The federal indictment, returned on Tuesday and unsealed today, charges El Paso residents Dalia Valencia, age 43, Samuel Velasco Gurrola, age 40, and Emmanuel Velasco Gurrola, age 29, with three counts of conspiracy to commit murder and three counts of conspiracy to cause foreign travel for murder for hire.
According to published reports, on October 3, 2008, Francisco Maria Sagredo Villareal was murdered in his house in Ciudad Juarez, Chihuahua, Mexico. On November 20, 2008, Francisco’s daughter, Cinthia Sagredo Escobedo, was murdered in Ciudad Juarez. Two days later, while traveling to her sister Cinthia’s funeral, Ruth Sagredo Escobedo was ambushed and murdered.
According to the indictment, in September 2008, the defendants conspired to have the above mentioned people murdered. The indictment further alleges that from September 2008 until November 22, 2008, the defendants conspired to pay someone to travel from the United States into Mexico to carry out their murder plot or caused someone to travel into Mexico, intending that a murder be committed, and that money was exchanged as part of the conspiracy.
Upon conviction of the murder related charges, the defendants face up to life in federal prison.
Federal agents arrested Dalia Valencia and Samuel Velasco yesterday without incident. Emmanuel Velasco was already in custody on a separate federal indictment which charges Emmanuel, Samuel and others with various offenses, including drug and money laundering charges.
This indictment resulted from an investigation conducted by the Drug Enforcement Administration, Homeland Security Investigations and the Federal Bureau of Investigation. Assistant United States Attorney Daphne Newaz is prosecuting this case on behalf of the Government.
An indictment is merely a charge and should not be considered as evidence of guilt. The defendants are presumed innocent until proven guilty in a court of law.
District Man Sentenced to 26 Months in Prison for Assaulting Deputy U.S. MarshalRead the Press Release
WASHINGTON - Jared Thompson, 46, of Washington, D.C., was sentenced today to 26 months in prison for forcibly assaulting a Deputy United States Marshal during an incident at a courthouse earlier this year, announced Acting U.S. Attorney Vincent H. Cohen, Jr. and Michael Hughes, U.S. Marshal for the Superior Court of the District of Columbia.
Thompson was found guilty on July 23, 2015, following a trial in the U.S. District Court for the District of Columbia, of assaulting, resisting or impeding a federal law enforcement officer. He was sentenced by the Honorable Senior Judge Gladys Kessler. Upon completion of his prison term, Thompson will be placed on three years of supervised release.
According to the government’s evidence, on Jan. 8, 2015, Thompson was ordered by a Superior Court judge to be detained in a previous and unrelated criminal case; he was not in custody at this time. Thompson then was taken into custody by a Deputy U.S. Marshal. The deputy marshal escorted Thompson to the cellblock hall area at Superior Court and attempted to search and pat down the defendant’s clothing for possible contraband.
During this initial search, the deputy marshal found a pipe and a small container containing a green weed substance which was consistent with marijuana. While the search continued, Thompson asked the deputy marshal, “Did you find my weed yet?” The deputy marshal searched inside Thompson’s pants area, and then instructed Thompson to pull up his pants. Thompson refused, cursed, and stated, “You pulled them down, you pull them up.” He then began turning toward the deputy marshal in a threatening manner.
Thompson then balled his hand into a fist, tensed his arm, and began to turn to stand face-to-face with the deputy marshal. The deputy marshal attempted to re-apply the handcuffs on Thompson to gain control of the defendant and for the safety of the court, staff, and all others in the cellblock. Thompson cursed, kicked his feet towards the deputies, and bit the deputy marshal’s forearm. The bite broke the deputy marshal’s skin, caused his forearm to bleed, and caused great pain. Because of his injury and the possibility of infection, the deputy marshal was taken to a hospital for treatment of his injury.
In announcing the sentence, Acting U.S. Attorney Cohen and Marshal Hughes commended the actions of the U.S. Marshals Service. They also commended those who worked on the case from the U.S. Attorney’s Office, including Paralegal Specialists Jeannette Litz, Candace Battle, and Teesha Tobias. Finally, they expressed appreciation for the work of Assistant U.S. Attorney Emory V. Cole, who investigated and prosecuted the case.
District Man Sentenced to 21 Years in Prison for Sexually Assaulting Woman in Northwest Washington AlleyRead the Press Release
WASHINGTON – George Cocroft, 38, of Washington, D.C., was sentenced today to 21 years in prison for sexually assaulting a woman in an alley in Northwest Washington, Acting U.S. Attorney Vincent H. Cohen, Jr. announced.
Cocroft, a prior sex offender, was found guilty in March 2015 of first-degree sexual abuse, with aggravating circumstances. The verdict, in the Superior Court of the District of Columbia, followed a bench trial before the Honorable Robert E. Morin. Judge Morin ordered that Cocroft be placed on five years of supervised release following the prison term. Cocroft also will be required to register as a sex offender for the remainder of his life.
According to the government’s evidence, on Nov. 25, 2012, the victim, then 19, traveled alone by Metro into the District of Columbia. She has an intellectual disability and autism. At approximately 7 p.m., she went into a fast-food restaurant in the Chinatown neighborhood. Once inside, she encountered the defendant, a homeless man, who sat down with her and began complimenting her and holding her hand.
Cocroft and the victim left the restaurant together, at which time the defendant led the victim into a dark alley. The victim initially believed the defendant’s house was in the alley and that they were going to talk so that they could get to know each other better.
Once in the alley, Cocroft began groping the victim and telling her he had not had sex in a long time. The victim was scared and told Cocroft that she did not want to have sex. She said that they should wait until they were older and married. Cocroft did not stop, however. He led her to a more secluded part of the alley and had her lie face down on concrete barriers. Despite her continued protests, he sexually assaulted her. After the assault, the victim reported what had happened to her to a Metro station manager. Cocroft was subsequently arrested pursuant to an arrest warrant and has been in custody ever since.
In announcing the sentence, Acting U.S. Attorney Cohen praised the work performed by those who investigated the case from the Metropolitan Police Department’s Sexual Assault Unit. He also acknowledged the critical services provided to the victim at the District of Columbia Children’s Advocacy Center. In addition, he expressed appreciation for the work of those who handled the case from the U.S. Attorney’s Office, including Victim/Witness Advocate Veronica Vaughan; Paralegal Supervisor Jason Manuel; Paralegal Specialist Tierra Nanches; Information Technology Specialist Michael Richards; Victim/Witness Security Specialists David Foster and La June Thames; and former Assistant U.S. Attorney Heide Herrmann.
Finally, he commended the work of Assistant U.S. Attorneys Amy Zubrensky and Jeff T. Cook, who investigated and prosecuted the matter.
District Court Enters Permanent Injunction against Miami Dietary Supplement Manufacturer and its Two Owners to Stop Distribution of Adulterated ProductsRead the Press Release
The U.S. District Court for the Southern District of Florida entered a consent decree of permanent injunction against Miami-based Sunset Natural Products Inc. and the firm’s co-owners, Teresa Martinez and Elsy Cruz, to prevent the distribution of adulterated dietary supplements, the Department of Justice announced today.
The department filed a complaint in the U.S. District Court for the Southern District of Florida at the request of the U.S. Food and Drug Administration (FDA), alleging that the defendants violated the law by manufacturing and distributing dietary supplements that were deemed to be adulterated. Under the law, dietary supplement manufacturers are required to have systems in place to ensure that their products meet specifications for identity, purity, strength and composition.
According to the complaint, several FDA inspections between 2012 and 2014 allegedly revealed that Sunset failed to conduct at least one appropriate test or examination to verify the identity of every dietary ingredient before using the ingredient, and that the firm failed to establish product specifications for the identity, purity, strength and composition of finished batches of dietary supplements. The defendants allegedly failed to use equipment and utensils of appropriate design, construction and workmanship to enable them to be adequately cleaned and properly maintained.
The firm and its owners agreed to settle the litigation and be bound by a consent decree of permanent injunction that prohibits them from committing further violations of the federal Food, Drug and Cosmetic Act. The consent decree requires Sunset to cease all operations and requires that if the defendants seek to resume manufacturing and distributing dietary supplements, the FDA first must determine that the firm’s manufacturing practices have come into compliance with the law. The consent decree also requires the defendants to recall all dietary supplements that the defendants manufactured, prepared, processed, packed, labeled, held and/or distributed at any time since April 2014. The defendants are then required to destroy all dietary supplements in their possession, custody and/or control.
“Manufacturers of dietary supplements who do not follow the appropriate federal regulations put the public at risk,” said Principal Deputy Assistant Attorney General Benjamin C. Mizer, head of the Justice Department’s Civil Division. “The Department of Justice will continue to work with FDA to protect consumers from adulterated products.”
On March 19, 2013, the FDA issued a warning letter to Martinez, detailing numerous violations of current Good Manufacturing Practice (cGMP) regulations the FDA observed during the 2012 inspection. According to the complaint, all of the cGMP violations described in the warning letter were the same as, or similar to, the violations the FDA observed during the April 2014 and September 2014 inspections. As noted in the complaint, the warning letter stated that it was the defendants’ responsibility to ensure compliance with the law and cautioned that failure to take prompt action to correct the deviations, and prevent their recurrence, may result in legal action.
According to the complaint, Martinez responded to the 2013 warning letter with promises to correct the cGMP violations. However, according to the allegations, the defendants either did not follow through on their promises to correct and/or failed to fully correct these violations, as shown by the FDA investigators’ observation and documentation of ongoing, significant cGMP deficiencies during the subsequent inspections in 2014.
The government is represented by Counsel Melanie Singh of the Civil Division’s Consumer Protection Branch, with the assistance from Senior Counsel Michele Svonkin of the Department of Health and Human Services’ Office of General Counsel – Food and Drug Division.
Dickson Resident Found Guilty of Being in the U.S. Illegally Possessing FirearmsRead the Press Release
Hector Palma Zapien, 43, of Dickson, Tennessee, was found guilty today by a federal jury of illegally re-entering the United States after being deported and of being an illegal alien in possession of firearms, announced David Rivera, U.S. Attorney for the Middle District of Tennessee. After a three-day trial, the jury returned guilty verdicts on both counts against Mr. Zapien.
According to the proof at trial, Zapien was removed from the United States in 2001 after being found here illegally. Zapien was again found to be in the U.S. illegally in February 2014. When federal agents searched his home pursuant to a federal search warrant, agents found 6 firearms, including rifles, shotguns and pistols, along with ammunition, and over $180,000 in cash. Proof and at trial also showed that during the past several years, Zapien had made numerous attempts to enter the U.S. with false identification documents.
Zapien faces a maximum penalty of 20 years in prison and a $250,000 fine on the conviction for illegal reentering the United States. He faces a maximum penalty of 10 years in prison and a $250,000 fine on the conviction for being an illegal alien unlawfully possessing firearms. Sentencing will be scheduled at a later date.
A co-defendant charged with unlawfully possessing firearms was acquitted at the trial.
This case was investigated by the Department of Homeland Security, the IRS-Criminal Investigation and the Tennessee Bureau of Investigation. Assistant U.S. Attorneys Thomas J. Jaworski and Sandra G. Moses prosecuted the case.
DOJ Human Trafficking Grant for $1.5 Million Awarded to the Eastern District of LouisianaRead the Press Release
U.S. Attorney Kenneth A. Polite announced today that, as part of more than $44 million in grant funding to combat human trafficking, the Justice Department awarded $1.5 million to the Eastern District of Louisiana to support law enforcement efforts and victim services for the next three years.
The list of this year’s grantees include:
Covenant House New Orleans $900,000
Jefferson Parish Sheriff’s Office $600,000
“Human traffickers prey on some of the most vulnerable members of our society, and their crimes – which are nothing short of modern-day slavery – have no place in this country,” said Attorney General Lynch. “These grants – administered by the Office of Justice Programs’ Bureau of Justice Assistance (BJA), the Office of Juvenile Justice and Delinquency Prevention, the Office for Victims of Crime (OVC) and the National Institute of Justice – will fund efforts across the country to fight human trafficking, to provide services for survivors and to expand research going forward.”
“These grant awards will help continue our District’s fight against human trafficking,” stated U.S. Attorney Polite. “I congratulate Jim Kelly and Sheriff Newell Normand for their work in this area. They are among a group of community leaders who are dedicated to eliminating modern-day slavery here in Southeast Louisiana.”
The grants are part of a government-wide effort to combat human trafficking and provide services to survivors, as outlined in Coordination, Collaboration, Capacity: Federal Strategic Action Plan on Services for Victims of Human Trafficking in the United States, 2013–2017, released by the White House in January 2014.
DEA to Hold 10th National Prescription Drug Take-Back Day This SaturdayRead the Press Release
September 22 - (Washington, D.C.) – This Saturday from 10 a.m. to 2 p.m. local time, come to one of the almost 5,000 collection sites around the nation to return all unwanted, unneeded, or expired prescription drugs for safe and anonymous disposal. This is the U.S. Drug Enforcement Administration’s (DEA’s) 10th National Prescription Drug Take-Back Day in the past five years. Collection sites in every local community, manned by DEA and its local law enforcement and community partners, can be found by going to www.dea.gov or calling 800-882-9539. All states and some territories will be participating Saturday (with the exception of Pennsylvania and Delaware, which held their events earlier in the month).
The National Prescription Drug Take-Back Day addresses vital public safety and health issues. Many Americans are not aware that medicines that languish in home cabinets are highly susceptible to diversion, misuse, and abuse. Rates of prescription drug abuse in the U.S. are alarmingly high, as are the number of accidental poisonings and overdoses due to these drugs. Studies show that many abused prescription drugs are obtained from family and friends, including from the home medicine cabinet. In addition, many Americans do not know how to properly dispose of their unused medications, often flushing them down the toilet or throwing them away – posing safety and environmental hazards.
“Our goal is to reduce the risk of addiction and the 46,000 overdose deaths a year that come with prescription drug abuse. Take Back Day is a great opportunity for folks to help reduce the threat,” Rosenberg said. "Please clean out your medicine cabinet and make your home safe from drug theft and abuse.”
DEA’s previous nine nationwide Take-Back events collected 4,823,251 pounds—more than 2,411 tons—of drugs.
DEA 10th National Drug Take Back Day, Saturday 26Read the Press Release
Contact Person: Chuvalo Truesdell (404) 893-7124
Event will take place from 10am to 2pm on Saturday, September 26.
Columbia, SC - The Drug Enforcement Administration’s (DEA) South Carolina District Office is partnering with national, state, local, and tribal law enforcement officials, as well as community coalition groups, to hold its 10th state-wide Prescription Drug Take-Back Day on Saturday, September 26, 2015 from 10 a.m. to 2 p.m. local time. This one-day event will make it convenient for the public to rid their homes of potentially dangerous prescription drugs. At the event, South Carolinians will be able to drop off their expired, unused, and unwanted pills at sites across the state free of charge, no questions asked. By doing so, they will help prevent prescription drug abuse and theft. South Carolinians participating in DEA’s last take-back, held on September 27, 2014, yielded 4,776 pounds of unwanted or expired medications for safe and proper disposal at sites set up throughout the state. Collection can be found by going to www.dea.gov or calling 800-882-9539.
The National Prescription Drug Take-Back Day addresses vital public safety and health issues. Many Americans are not aware that medicines that languish in home cabinets are highly susceptible to diversion, misuse, and abuse. Rates of prescription drug abuse in the U.S. are alarmingly high, as are the number of accidental poisonings and overdoses due to these drugs.
Studies show that many abused prescription drugs are obtained from family and friends, including from the home medicine cabinet. In addition, many Americans do not know how to properly dispose of their unused medications, often flushing them down the toilet or throwing them away – posing safety and environmental hazards.
Daniel R. Salter, the Special Agent in Charge of the DEA Atlanta Field Division said, “DEA is committed to making our communities safer by raising public awareness about the dangers of prescription drug abuse. The Prescription Drug Take-Back program will allow Americans to properly and safely dispose of their prescription medication which could otherwise be abused for non-medical purposes. This event is free and anonymous. Simply turn in your unused, unwanted, unneeded medication, no questions asked. This is just one of example of how DEA is working hand-in-hand with its law enforcement and community partners in an effort to stem the tide of prescription drug abuse.”
The DEA encourages parents, along with their children, to educate themselves about the dangers of legal and illegal drugs by visiting DEA’s interactive websites at www.justhinktwice.com, www.GetSmartAboutDrugs.com and www.dea.gov.
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Clearwater Man Sentenced in Stolen Identity Refund Fraud SchemeRead the Press Release
Tampa, Florida – U.S. District Judge Elizabeth A. Kovachevich today sentenced Sylvester Banks (56, Clearwater) to two years and three months in federal prison for his role in a conspiracy to commit stolen identity refund fraud. He was ordered to pay restitution to the Internal Revenue Service in the amount of $755,900.00. The Court also entered a money judgment in the same amount.
Banks pleaded guilty on June 18, 2015.
According to court documents, between April 2011 and March 2013, Banks received and deposited into his bank account approximately $755,900 in U.S. Treasury and other checks, which were all made payable to persons other than himself. Those checks were income tax refund checks that were the result of numerous false and fraudulently filed income tax returns. During an interview with federal agents in February 2015, Banks acknowledged that he had realized that the checks were fraudulent income tax refund proceeds, and that it was unlawful for him to have received and deposited them into his own account.
This case was investigated by the Internal Revenue Service-Criminal Investigation Division. It is being prosecuted by Assistant United States Attorney Jay L. Hoffer.
Certified Public Accountant Pleads Guilty to Using Her Tax Preparation Business to Facilitate an Income Tax Refund Fraud SchemeRead the Press Release
A Certified Public Account (CPA) pled guilty today to using her tax preparation business to facilitate an income tax refund fraud scheme.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and Kelly R. Jackson, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), made the announcement.
Pamella B. Watson, 60, of Davie, pled guilty to one count of wire fraud, in violation of Title 18, United States Code, Section 1343. At sentencing, the defendant faces a maximum statutory sentence of twenty years in prison.
According to court documents, Watson operated Watson & Associates Business Services, Inc., a tax preparation business in Miami. Defendant Watson prepared the client’s tax return and provided them a copy showing a refund amount and/or an amount payable to the IRS. Without the client’s knowledge or authorization, the figures on the return were changed, and a tax return showing a higher refund amount was filed with the IRS. The client’s bank account received the refund amount reflected on the copy they received from defendant Watson, and the remainder of the tax refund was deposited into an account controlled by Watson. The client did not have any knowledge of the refund falsification and splitting.
Court documents state that Watson prepared approximately 557 U.S. Individual Income Tax Returns (Forms 1040) for tax years 2010 through 2013 for her clients. Approximately 395 (71%) had refunds split into an account controlled by defendant Watson, or the entire refund diverted into Watson’s bank account. From approximately January 2011 through September 2014, defendant Watson deposited $3,405,479.20 of client tax refunds from 183 individual taxpayers into accounts she controlled.
According to court documents, Watson also diverted checks totaling $222,676 into her personal IRS account, and an additional $56,766 in IRS payments from Watson’s clients was applied to an associate’s tax account. These checks were generated by clients who were informed by defendant Watson that they were paying their own tax liability.
Watson is scheduled to be sentenced on December 4, 2015 at 9:00 a.m. before Judge James I. Cohn.
Mr. Ferrer commended the investigative efforts of IRS-CI. The case is being prosecuted by Senior Litigation Counsel Neil Karadbil.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Butler County Couple Pleads Guilty in Identity Theft Scheme Perpetrated at Walmart StoresRead the Press Release
PITTSBURGH – A Butler County couple has pleaded guilty in federal court to charges of conspiracy, and aggravated identity theft, United States Attorney David J. Hickton announced today.
Robert W. MacVittie, 35, and Jennifer MacVittie, aka Jennifer Dinwiddie, 32, formerly of Cranberry, Twp., each pleaded guilty to two counts before Senior United States District Judge Joy Flowers Conti.
In connection with the guilty plea, beginning around October 2013, through May, 2014, the MacVitties’ used cell phone cameras to “shoulder surf” Social Security numbers from Walmart customers nationwide by taking cell phone video images of the customers who were cashing checks at the customer service counters. The stolen information was later used by the MacVittie’s to negotiate counterfeit checks at Walmart stores throughout the U.S., including Pennsylvania, West Virginia, Florida, Texas, Mississippi, Alabama, Kansas and other states. The MacVittie’s were arrested at a casino by law enforcement in Nevada on Nov. 29, 2014.
Judge Conti scheduled the sentencing for Jennifer MacVittie on Jan. 8, 2016, at 11 a.m. and Robert MacVittie on Jan. 15, 2016, at 10 a.m. The law provides for a maximum total sentence of not more than seven years in prison, a fine of $500,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Gregory C. Melucci is prosecuting this case on behalf of the government.
The Western Pennsylvania Financial Crimes Task Force (WPFCTF) conducted the investigation that led to the indictment of the MacVitties. The WPFCTF was established as a collaborative, multi-agency effort to effectively combat financial crimes, including identity fraud, in Western Pennsylvania. Partnering in this effort are the United States Attorney's Office for the Western District of Pennsylvania, the United States Secret Service, the United States Postal Inspection Service, the Department of Homeland Security, the Allegheny County District Attorney's Office, the Allegheny County Police Department, the City of Pittsburgh Bureau of Police and the Pennsylvania State Police.
Atlanta Doctor Indicted for Tax EvasionRead the Press Release
ATLANTA – Dr. Debra Johnson-Jordan, a physician in East Point, Georgia, has been arraigned on federal charges of tax evasion and failing to file a federal income tax return.
“The indictment alleges that, despite earning significant income, this doctor failed to file tax returns for several years in a row, and then claimed that she was exempt from paying taxes,” said U.S. Attorney John Horn.
“IRS Criminal Investigation is sworn to protect the tax system and bring to justice those who steal from the Treasury,” stated Veronica F. Hyman-Pillot, Special Agent in Charge. “Dr. Jordan stole from the American people by failing to file tax returns and pay the taxes that she owed for numerous years.”
According to U.S. Attorney Horn, the indictment, and other information presented in court: Johnson-Jordan, who practices medicine in East Point, Georgia, is charged with two counts of tax evasion for filing false W-4 forms with her employer claiming that she was exempt from paying federal income taxes for tax years 2011 and 2012. Johnson-Jordan claimed she was exempt from paying federal income taxes despite earning at least $363,376. Johnson-Jordan is also charged with one count of failing to file a federal income tax return for 2010, despite earning at least $175,943. The indictment also alleges that Johnson-Jordan failed to file federal income tax returns for tax years 1997-2007 and 2010-2012.
Debra Johnson-Jordan, 58, of Winder, Georgia, was arraigned before U.S. Magistrate Judge Janet F. King. She was indicted by a federal grand jury on August 26, 2015.
Members of the public are reminded that the indictment only contains charges. The defendant is presumed innocent of the charges and it will be the government’s burden to prove the defendant’s guilt beyond a reasonable doubt at trial.
This case is being investigated by the Internal Revenue Service Criminal Investigation.
Assistant U.S. Attorney Jeffrey Brown is prosecuting the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Armed Drug Dealer Sentenced in Federal CourtRead the Press Release
United States Attorney Kenyen R. Brown of the Southern District of Alabama announced that Nick Somphonphakdy, 19, of Bayou La Batre, was sentenced today in federal court for his role in a marijuana distribution conspiracy. Somphonphakdy pled guilty to conspiracy to possess with intent to distribute marijuana and possession of a firearm in furtherance of a drug trafficking felony in June of 2015.
United States District Court Judge William H. Steele ordered that Somphonphakdy serve a total sentence of 90 months imprisonment, consisting of 30 months on the drug charge consecutive to 60 months on the gun charge. He also ordered that Somphonphakdy serve a five-year term of supervised release, which will commence when he is released from prison. As a special condition of his supervision, Somphonphakdy will undergo drug testing and treatment. Judge Steele ordered that Somphonphakdy pay $200 in special mandatory assessments, but he did not impose a fine.
The case was investigated by the United States Postal Inspectors and the Mobile County Sheriff’s Office. It was prosecuted in the United States Attorney’s Office by Assistant United States Attorney Gloria Bedwell.
Armed Bank Robber Sentenced to 32 Years in Federal PrisonRead the Press Release
MEDFORD, Ore.—Bradley William Monical, 45, of The Dalles, Oregon, was sentenced on September 23, 2015 by U.S. District Judge Michael McShane to 32 years in prison for committing seven bank robberies in Southern Oregon, Eastern Washington and Idaho, all in 2010. Judge McShane ordered the sentence to be served concurrently with state sentences previously imposed in Jackson and Coos County Circuit Courts for robbery in the first degree, robbery in the second degree, unlawful use of a weapon, felon in possession of a firearm, and escape. Monical was also ordered to pay $68,698 in restitution and to serve three years of supervised release.
The bank robberies Monical plead guilty to include:
- June 11, 2010, at Bank of America in Redmond, Oregon;
- August 27, 2010, at Wells Fargo Bank in Coeur d’Alene, Idaho;
- September 4, 2010, at Banner Bank in Walla Walla, Washington;
- October 2, 2010, at Sterling Savings Bank in Spokane Valley, Washington;
- November 9, 2010, at Sterling Savings Bank in Medford, Oregon;
- December 2, 2010, at U.S. Bank in Kennewick, Washington; and
- December 20, 2010, at Sterling Savings Bank in Klamath Falls, Oregon.
During the Oregon robberies, Monical was armed with a pistol. In the Washington and Idaho robberies he was armed with what appeared to be a hand gun.
Monical was in custody on Oregon bank robbery charges when he escaped from the Jackson County Jail on November 19, 2012. Defendant was later found in Oregon City and was arrested by the U.S. Marshals Service. At the time of his arrest, he was found with his girlfriend, Carolyn Gibson. Gibson pled guilty to concealing a person from arrest and providing money and a vehicle for Monical after his escape. Gibson was sentenced to probation on February 2, 2015.
Monical also has pending charges of robbery and attempted murder in Marion County, Oregon.
The bank robbery and escape investigations were conducted by the FBI, U.S. Marshals Service, Redmond Police Department, City of Coeur d’Alene Police Department, Walla-Walla Police Department, Spokane Valley Police Department, Ashland Police Department, Medford Police Department, Jackson County Sheriff’s Office, Kennewick Police Department and Klamath Falls Police Department. The federal case was prosecuted by Assistant U.S. Attorney Judith R. Harper.
Albuquerque Man and Mexican National Sentenced to Prison for Violating Federal Narcotics Trafficking Laws in New MexicoRead the Press Release
ALBUQUERQUE – Luis Juan Contreras-Cano and Carlos Davenport were sentenced to prison today in federal court in Albuquerque, N.M., for violating the federal narcotics trafficking laws. Contreras-Cano, 20, a Mexican national residing in Albuquerque, was sentenced to 97 months in prison. He will be deported following his incarceration. Davenport, 41, of El Paso, Texas, was sentenced to 15 years in prison followed by five years of supervised release.
Contreras-Cano and Davenport were arrested on Dec. 13, 2014, in Bernalillo County, N.M., after law enforcement officers, on a criminal complaint, searched the vehicle in which the two men were traveling and found ten pounds of methamphetamine and two firearms. Contreras-Cano and Davenport were subsequently indicted on Jan. 8, 2015, and charged with conspiracy to possess methamphetamine with intent to distribute, possession of methamphetamine with intent to distribute, and using and carrying firearms in relation to a drug trafficking crime. All offenses took place in Bernalillo County.
On June 24, 2015, Contreras-Cano pled guilty to a felony information charging him with conspiracy to distribute methamphetamine. In entering the guilty plea, Contreras-Cano admitted that while driving through Bernalillo County on Dec. 13, 2014, he and Davenport were stopped by Albuquerque Police officers who found ten pounds of methamphetamine, two firearms and ammunition during a search of their vehicle. Contreras-Cano further admitted that he and Davenport had acquired to the methamphetamine in Phoenix, Ariz., and were planning to redistribute the methamphetamine.
On June 17, 2015, Davenport pled guilty to Counts 1 and 3 of the indictment charging him with conspiracy to distribute methamphetamine and using and carrying a firearm in relation to a drug trafficking crime.
This case was investigated by the Albuquerque offices of the FBI and Homeland Security Investigations (HSI) and the Albuquerque Police Department. Assistant U.S. Attorneys James R.W. Braun and Joel R. Meyers prosecuted the case.
Albany Man Pleads Guilty to Facebook ThreatsRead the Press Release
EUGENE, Ore. – Timothy Loren McCoy Fleming, 23, of Albany pled guilty today in U.S. District Court to transmitting a threat in interstate commerce. Fleming admitted in his plea agreement that he posted on Facebook threats to kill a police officer at the Albany City Hall, along with a picture of himself holding a pistol.
Transmitting a threat in interstate commerce is a felony offense punishable by up to five years in prison and a $250,000 fine.
Fleming made the threats last January and was arrested on a state probation violation. He was transferred to federal custody in April after a complaint was filed in U.S. District Court. Fleming remains in custody pending his sentencing hearing on January 4 before U.S. District Judge Michael McShane in Eugene.
This case was investigated by the Albany Police Department and the FBI. Assistant U.S. Attorney William “Bud” Fitzgerald is prosecuting the case.
***Corrected*** U.S. Attorney's Office Resolves Complaint Against Restaurant for Refusing Service to Customer with Service AnimalRead the Press Release
Contact Person: John Douglas (843) 727-4381
Columbia, SC– United States Attorney Bill Nettles today announced an agreement with Cook Out – Conway, Inc., which operates a Cook Out restaurant in Conway, South Carolina. The agreement resolves allegations that the restaurant violated the Americans with Disabilities Act (ADA) by refusing service to an individual on the basis of his disability. The Settlement Agreement concludes an investigation which began in August of 2014, when a complaint was filed with the U.S. Attorney’s Office. The complaint alleged that a man attempted to obtain service at the Cook Out, but was refused because he was accompanied by his service animal.
Pursuant to the terms of the Settlement Agreement, Cook Out – Conway, Inc. agreed not to discriminate against any individual on the basis of disability and to provide service to all persons with disabilities, including those accompanied by a service animal. Cook Out – Conway, Inc. also agreed to adopt an ADA compliant service animal policy.
The Settlement Agreement is part of a broader effort by the Department of Justice to enforce the ADA and to educate the public about the ADA’s requirements. “This settlement exemplifies the U.S. Attorney’s Office commitment to protecting the civil rights of all citizens of South Carolina, including those with disabilities,” United States Attorney Nettles said.
The ADA prohibits public and private entities from discriminating against persons with disabilities. Under the ADA, state and local governments, businesses, and nonprofit organizations that serve the public generally must allow service animals to accompany people with disabilities in all areas of the facility where the public is normally allowed, including restaurants, movie theaters, stores, hospitals, doctor’s offices, and fairs.
The Department of Justice has a number of publications available to assist entities to comply with the ADA, including guidance on service animals. Those publications can be found online at www.ada.gov/service_animals_2010.htm. For more information about the Americans with Disabilities Act, go to www.ada.gov or call the toll-free ADA Information Line at (800) 514-0301 or (800) 514-0383 (TTY). ADA complaints may be filed with the U.S. Attorney’s Office or online at www.ada.gov/filing_complaint.htm.
This case was handled by Assistant United States Attorney John Douglas.
** The restaurant name was misidentified in the previous press release that was issued on 23 September 2015. It should have read “Cook Out.”
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Thursday 24 September 2015
Whitesboro Man Pleads Guilty to Methamphetamine Distribution and Ammunition PossessionRead the Press Release
MUSKOGEE, OKLAHOMA - The United States Attorney’s Office for the Eastern District of Oklahoma, announced that KENNY RAY SMITH, age 52, of Whitesboro, Oklahoma, pled guilty to POSSESSION WITH INTENT TO DISTRIBUTE METHAMPHETAMINE, in violation of Title 21, United States Code, Sections 841(a)(1) and 841 (b)(1)(C), punishable by not more than 20 years imprisonment, up to a $1,000,000.00 fine or both and FELON IN POSSESSION OF AMMUNITION, in violation of Title 18, United States Code, Sections 922(g)(1) and 924(a)(2), punishable by not more than 10 years imprisonment, a fine of up to $250,000.00 or both.
The Indictment alleged that on or about February 13, 2015, in the Eastern District of Oklahoma, the defendant did knowingly and intentionally possess with the intent to distribute a mixture or substance containing a detectable amount of methamphetamine, a Schedule II controlled substance.
It was further alleged that on or about February 13, 2015, in the Eastern District of Oklahoma, the defendant, having been convicted of a crime punishable by imprisonment for a term exceeding one year, did knowingly possess in and affecting commerce, ammunition which had been shipped and transported in interstate commerce.
The charges arose from an investigation by the Oklahoma Bureau of Narcotics and the District 16 District Attorney’s Drug Task Force.
The Honorable Kimberly E. West, Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, accepted the guilty pleas and ordered the completion of a presentence report. Sentencing will be scheduled following its completion. The defendant will remain in the custody of the United States Marshal Service pending sentencing.
Assistant United States Attorney Chris Wilson represented the United States.
Wheeling man sentenced for cocaine traffickingRead the Press Release
WHEELING, WEST VIRGINIA – Sharod Hodge, 37, of Wheeling, was sentenced today to 21 months in prison for cocaine trafficking, United States Attorney William J. Ihlenfeld, II, announced.
Hodge was discovered in possession of cocaine in April 2014 near a public housing authority facility, known as Riverview Towers, in Ohio County, West Virginia. He pled guilty in May 2015 to one count of “Possess Cocaine with Intent to Distribute Near a Protected Location.”
Assistant U.S. Attorney Robert McWilliams prosecuted the case on behalf of the government. The Marshall County Drug and Violent Crime Task Force and the Ohio Valley Drug and Violent Crime Task Force, both HIDTA-funded initiatives, investigated.
U.S. District Judge John Preston Bailey presided.
Washington D.C. Man Charged with Transporting Teenage Boy to Engage in Sexual ActivityRead the Press Release
BOSTON – Jason Michael Wolf, 29, was arrested and charged today in U.S. District Court in Boston with one count of transportation of a minor in interstate commerce to engage in illegal sexual activity. Wolf was ordered detained during an initial appearance today before U.S. Magistrate Judge Marianne B. Bowler.
According to court documents, on Aug. 17, 2015, the Massachusetts Bay Transportation Authority (MBTA) Police received information that an adult man and a minor were acting inappropriately at the South Station Bus Terminal. Law enforcement arrived on scene and interviewed the two individuals who were identified as Wolf and a 14-year-old boy from Maryland. The two admitted that they had met on a mobile dating app in July, had traveled to Boston from Maryland, and had engaged in sexual activity in Maryland, Washington D.C., New York, and Boston.
Wolf was arrested by the Boston Police in August and charged with aggravated statutory rape of a child under state law. He is currently being held by local authorities.
The charge of transportation of a minor in interstate commerce to engage in illegal sexual activity provides for a minimum mandatory term of 10 years and up to a lifetime in prison, a minimum of five years and up to a lifetime of supervised release, and a fine of up to $250,000. 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.
United States Attorney Carmen M. Ortiz; Joseph R. Bonavolonta, Acting Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; James V. Buthorn, Acting Inspector in Charge of the U.S. Postal Inspection Service; Boston Police Commissioner William Evans; and Acting Chief Kenneth Green of the MBTA Transit Police Department, made the announcement today. The case is being prosecuted by Assistant U.S. Attorney Kenneth G. Shine of Ortiz’s Major Crimes Unit.
The details contained in the complaint are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Virgin Islands Water and Power Authority signs legal agreement with EPA and U.S. Department of Justice to reduce air pollution at two power plantsRead the Press Release
WASHINGTON – Under an agreement announced today by the Department of Justice and the Environmental Protection Agency, the Virgin Islands Water and Power Authority (VIWAPA) will come into compliance with the federal Clean Air Act at its Krum Bay facility on St. Thomas and Cruz Bay facility on St. John, U.S. Virgin Islands. The settlement resolves numerous violations of the Clean Air Act, including VIWAPA’s failure to properly operate pollution control equipment to reduce emissions of nitrogen oxides and particulate matter that can cause serious respiratory illness. These pollutants are linked to health problems, including asthma, lung and heart disease. VIWAPA will spend approximately $12.2 million to comply with the agreement’s requirements. VIWAPA will also pay a $1.3 million penalty.
Separate from the settlement, VIWAPA has been in the process of converting several of its oil-fired turbines at the St. Thomas facility to be capable of burning liquefied petroleum gas or liquefied natural gas. The settlement requires that at least 85 percent of the power VIWAPA generates from the converted units be from burning liquefied petroleum gas or liquefied natural gas at the converted units and renewable sources. The agreement will result in a reduction of nitrogen oxide emissions by approximately 1,300 tons per year and particulate matter emissions by approximately 185 tons per year. In addition, the conversion to LPG or LNG will reduce the amount of carbon dioxide, a greenhouse gas, from the St. Thomas facility by approximately 66,000 tons per year and sulfur dioxide by approximately 200 tons per year.
“Today’s settlement marks another milestone in our ongoing efforts to enforce the Clean Air Act and reduce air pollution from power plants,” said Assistant Attorney General John C. Cruden for the Justice Department’s Environment and Natural Resources Division. “This settlement will eliminate thousands of tons of harmful air pollution each year, significantly improving air quality in the Virgin Islands.”
“This settlement will drastically reduce the amount of air pollution in the Virgin Islands and bring the St. Thomas power plant, one of the most significant sources of air pollution in the U.S. Virgin Islands, into compliance with the Clean Air Act,” said Regional Administrator Judith A. Enck for EPA.
Under the Clean Air Act, large industrial facilities that make modifications that increase air pollution emissions must install best available control technology. VIWAPA operates with a permit that requires it to use the best available control technology to control emissions of nitrogen oxides and particulate matter. The complaint, which this settlement resolves, alleged numerous violations, including that VIWAPA had not properly operated nor maintained its water injection pollution control system during various times from October 2005 through December 2013. The complaint also alleged that the St. Thomas facility failed to meet the opacity (smoke) emission limits during normal operations and failed to conduct continuous monitoring to ensure compliance with its limits, and to keep proper records.
Under the agreement, at the St. Thomas facility, VIWAPA will:
- Properly operate and maintain the water injection pollution control system;
- Properly operate and maintain the continuous monitoring equipment;
- Develop and maintain an inventory of spare parts for the St. Thomas facility’s water injection pollution control system and emission monitoring equipment;
- Arrange for third-party audits and self-audits to ensure compliance with the water injection pollution control system requirements and emission monitoring requirements;
- Install a pollution control device to reduce visible emissions from one unit; and
- Install a video camera system to monitor visible emissions from the stacks and conduct visible emission monitoring when visible emissions are observed.
Under the agreement, at the St. John facility, VIWAPA will:
- Use cleaner fuel; and
- Submit a request to the Virgin Islands government to modify the permit to designate the unit as an emergency unit.
EPA has worked with VIWAPA over the past several years to address its violations and operations at the St. Thomas facility and the St. John facility. As a result of that work, VIWAPA has already repaired and replaced pollution controls and monitoring equipment at the St. Thomas facility. It replaced its data acquisition system and installed an improved water system, which it now uses in its water injection pollution control system.
For more information on this settlement or to read the proposed consent decree, go to: http://www.justice.gov/enrd/consent-decrees
# 15-1166 #
IF YOU HAVE QUESTIONS, PLEASE CALL THE OFFICE OF PUBLIC AFFAIRS AT 202-514-2007.
Virgin Islands Water and Power Authority Signs Legal Agreement with EPA and U.S. Department of Justice to Reduce Air Pollution at Two Power PlantsRead the Press Release
Under an agreement announced today by the Department of Justice and the Environmental Protection Agency, the Virgin Islands Water and Power Authority (VIWAPA) will come into compliance with the federal Clean Air Act at its Krum Bay facility on St. Thomas and Cruz Bay facility on St. John, U.S. Virgin Islands. The settlement resolves numerous violations of the Clean Air Act, including VIWAPA’s failure to properly operate pollution control equipment to reduce emissions of nitrogen oxides and particulate matter that can cause serious respiratory illness. These pollutants are linked to health problems, including asthma, lung and heart disease. VIWAPA will spend approximately $12.2 million to comply with the agreement’s requirements. VIWAPA will also pay a $1.3 million penalty.
Separate from the settlement, VIWAPA has been in the process of converting several of its oil-fired turbines at the St. Thomas facility to be capable of burning liquefied petroleum gas or liquefied natural gas. The settlement requires that at least 85 percent of the power VIWAPA generates from the converted units be from burning liquefied petroleum gas or liquefied natural gas at the converted units and renewable sources. The agreement will result in a reduction of nitrogen oxide emissions by approximately 1,300 tons per year and particulate matter emissions by approximately 185 tons per year. In addition, the conversion to LPG or LNG will reduce the amount of carbon dioxide, a greenhouse gas, from the St. Thomas facility by approximately 66,000 tons per year and sulfur dioxide by approximately 200 tons per year.
“Today’s settlement marks another milestone in our ongoing efforts to enforce the Clean Air Act and reduce air pollution from power plants,” said Assistant Attorney General John C. Cruden for the Justice Department’s Environment and Natural Resources Division. “This settlement will eliminate thousands of tons of harmful air pollution each year, significantly improving air quality in the Virgin Islands.”
“This settlement will drastically reduce the amount of air pollution in the Virgin Islands and bring the St. Thomas power plant, one of the most significant sources of air pollution in the U.S. Virgin Islands, into compliance with the Clean Air Act,” said Regional Administrator Judith A. Enck for EPA.
Under the Clean Air Act, large industrial facilities that make modifications that increase air pollution emissions must install best available control technology. VIWAPA operates with a permit that requires it to use the best available control technology to control emissions of nitrogen oxides and particulate matter. The complaint, which this settlement resolves, alleged numerous violations, including that VIWAPA had not properly operated nor maintained its water injection pollution control system during various times from October 2005 through December 2013. The complaint also alleged that the St. Thomas facility failed to meet the opacity (smoke) emission limits during normal operations and failed to conduct continuous monitoring to ensure compliance with its limits, and to keep proper records.
Under the agreement, at the St. Thomas facility, VIWAPA will:
-
Properly operate and maintain the water injection pollution control system;
-
Properly operate and maintain the continuous monitoring equipment;
-
Develop and maintain an inventory of spare parts for the St. Thomas facility’s water injection pollution control system and emission monitoring equipment;
-
Arrange for third-party audits and self-audits to ensure compliance with the water injection pollution control system requirements and emission monitoring requirements;
-
Install a pollution control device to reduce visible emissions from one unit; and
-
Install a video camera system to monitor visible emissions from the stacks and conduct visible emission monitoring when visible emissions are observed.
Under the agreement, at the St. John facility, VIWAPA will:
-
Use cleaner fuel; and
-
Submit a request to the Virgin Islands government to modify the permit to designate the unit as an emergency unit.
The EPA has worked with VIWAPA over the past several years to address its violations and operations at the St. Thomas facility and the St. John facility. As a result of that work, VIWAPA has already repaired and replaced pollution controls and monitoring equipment at the St. Thomas facility. It replaced its data acquisition system and installed an improved water system, which it now uses in its water injection pollution control system.
For more information on this settlement or to read the proposed consent decree, go to: http://www.justice.gov/enrd/consent-decrees
-
Twelve Charged in Scheme that Allowed Georgia Inmates to Sell Drugs and Defraud Consumers from Inside PrisonRead the Press Release
ATLANTA – Two former Georgia Department of Corrections (GDOC) employees, four current Georgia state inmates, three recently paroled inmates, and three others have been charged federally with drug trafficking, extortion, wire fraud conspiracies, wire fraud, and identity theft offenses, as detailed in two indictments unsealed today. Much of the criminal conduct allegedly was committed inside Georgia state prisons.
“Prisons serve to punish and rehabilitate convicted offenders and deter crime—not enable it,” said U.S. Attorney John Horn. “These indictments allege that, after being placed in prison to protect society from their criminal behavior, these inmates capitalized on their ready access to cell phones and other contraband to further victimize citizens outside the prisons. Prisons should be a place where we have confidence that inmates are not operating identity theft schemes and drug distribution rings.”
“The federal indictments and arrests of these individuals represent not only the larger problems posed by contraband such as cell phones in prisons, but also the joint law enforcement effort to address it,” said J. Britt Johnson, Special Agent in Charge, FBI Atlanta Field Office. “The FBI will continue to work with its state partners, to include the Georgia Department of Corrections, in addressing the many unique challenges facing correctional facilities and those that work within them”.
“Criminals who are able to operate inside correctional facilities and conduct this level of criminal activity are a direct threat to the safety of the public. The GBI is fully committed to working with the Georgia Department of Corrections and the Federal Bureau of Investigation to address this type of crime,” said Vernon Keenan, Director, Georgia Bureau of Investigation.
According to U.S. Attorney Horn, the charges and other information presented in court: As alleged in the indictments, the wide-ranging conspiracy involved GDOC employees at Phillips and Valdosta State Prisons who helped smuggle cell phones and other contraband to inmates in exchange for bribe payments. These cell phones were often equipped with touch screens and internet access that enabled the prisoners to coordinate drug transactions, commit identity theft and credit card fraud, and even post on social media and buy products online.
According to the indictment, the charged GDOC employees allegedly helped smuggle methamphetamine, prescription pain medication, marijuana, liquor, tobacco, and take-out food into the prisons. At times, the inmates even bragged about watching streaming movies while in solitary confinement. In one instance, an inmate allegedly used his contraband cell phone to arrange a “hit” on another inmate whom he suspected of cooperating with law enforcement.
The following individuals were arrested today, and most of the defendants made their initial appearances before United States Magistrate Judge Janet F. King:
Former GDOC employees who were charged are:
- Anekra Artina Williams, 20, of Nashville, Georgia, was a GDOC guard at Valdosta State Prison, in Valdosta, Georgia. Williams has been charged with one count of conspiring to distribute at least 50 grams of methamphetamine; one count of distributing methamphetamine; and one count of conspiring to interfere with commerce by extortion.
- Charonda Edwards, a/k/a “John,” 29, of Decatur, Georgia, was a kitchen worker at Phillips State Prison, in Buford, Georgia. Edwards has been charged with one count of conspiring to distribute methamphetamine and marijuana; and one count of interfering with commerce by extortion.
The current GDOC inmates who were charged are:
- Donald Howard Hinley, 51, was an inmate at Valdosta State Prison prior to his arrest, has been charged with one count of conspiring to distribute at least 50 grams of methamphetamine; one count of distributing at least 50 grams of methamphetamine; and three counts of distributing methamphetamine.
- Mims Morris, 24, who was an inmate at Phillips State Prison prior to his arrest, has been charged with one count of conspiring to distribute methamphetamine and marijuana; two counts of conspiring to commit wire fraud; two counts of committing wire fraud; and two counts of aggravated identity theft.
- Johnathan Silvers, a/k/a “Turtle,” 28, who was an inmate at Phillips State Prison prior to his arrest, has been charged with one count of conspiring to distribute methamphetamine and marijuana.
- Adam Smith, 30, who was an inmate at Phillips State Prison prior to his arrest, has been charged with one count of conspiring to distribute methamphetamine and marijuana.
The paroled GDOC inmates who were charged are:
- Ruben Ruiz, a/k/a “Flaco” and “Scrappy,” 34, of Gainesville, Georgia, has been charged with one count of conspiring to distribute at least 50 grams of methamphetamine. Ruiz was paroled in March 2014 from GDOC custody after serving a 10-year sentence.
- William A. Matthews, a/k/a “Two Young,” 30, of Union City, Georgia, has been charged with one count of conspiring to distribute at least 50 grams of methamphetamine; and one count of distributing methamphetamine. Matthews was paroled in August 2014 from GDOC custody after serving a 10-year sentence.
- Kansas Bertollini, a/k/a “Guido,” 35, of Kathleen, Georgia, has been charged with one count of conspiring to distribute at least 50 grams of methamphetamine; and one count of distributing at least 50 grams methamphetamine. Bertollini was paroled in June 2014 from GDOC custody after serving an 11-year sentence.
The other individuals who were charged are:
- Tiffany Allen, 27, of Cleveland, Georgia, has been charged with two counts of conspiring to commit wire fraud; and two counts of aggravated identity theft.
- Monique Kinney, a/k/a Monique Reed, 26, of Augusta, Georgia. Kinney was charged with one count of conspiring to commit wire fraud; and one count of aggravated identity theft.
- Opal Marie Hayden, 58, of Acworth, Georgia, has been charged with one count of conspiring to distribute at least 50 grams of methamphetamine; and three counts of distributing methamphetamine.
Valdosta State Prison
The GDOC is an agency of the State of Georgia and responsible for overseeing the operations of state prisons. Over 55,000 inmates are incarcerated in Georgia state prisons. According to the indictment, GDOC inmates increasingly obtain and use cellular telephones to further their criminal activities while incarcerated. Among other things, cellular telephones are used to traffic drugs, commit fraud schemes, and organize criminal activity both inside and outside of prison. Inmates regularly buy and sell cellular telephones inside of prison, many of which are the latest models.
The first of two indictments focuses on Valdosta State Prison (VSP), which is located in Valdosta, Georgia, and houses adult male inmates. Donald Hinley was an inmate at VSP.
The Smuggling Scheme
The indictment alleges that inmates typically relied on prison employees to smuggle cellular telephones and other contraband into VSP. In 2014 and 2015, Hinley routinely arranged to have telephones, cigarettes, liquor, prescription pain medication, and illegal drugs smuggled into the prison by prison employees. Anekra Williams was a GDOC corrections officer who allegedly smuggled contraband into VSP in exchange for bribe payments. The indictment alleges that Williams smuggled drugs, tobacco and other items requested by inmates into VSP. On one such occasion, Williams allegedly smuggled methamphetamine and prescription pain medication into the prison for Hinley in exchange for $500. In order to assist with the smuggling scheme, Hinley allegedly arranged to have the contraband packaged in a manner to avoid detection by other prison security officers.
Drug Trafficking from Inside Prison
The indictment alleges that while an inmate at VSP, Hinley coordinated a network of illegal drug suppliers and couriers, from August 2014 through April 2015 that included, among others, Opal Marie Hayden, Ruben Ruiz, William Matthews, Kansas Bertollini, and Williams. With their assistance, Hinley allegedly brokered a number of significant drug transactions in Atlanta and in other areas of Georgia. On multiple occasions, Hinley coordinated the purchase and sale of illegal narcotics by cell phone. In recorded telephone calls, Hinley allegedly bragged “We have good prices and good product.”
The indictment also alleges that in one encounter, Hinley used his contraband cell telephone to call an inmate he knew at Telfair State Prison (TSP) and instructed his associate to kill another TSP prisoner after Hinley confirmed that the inmate was “a snitch” and was likely a prosecution witness against Hinley’s girlfriend. At the time, Hinley’s girlfriend worked as a drug courier in Hinley’s drug organization and was a defendant in a state narcotics case. Hinley allegedly ordered his associate to “shoot every one” of the witness’ family members. Immediately after law enforcement learned of Hinley’s plan, the cooperating inmate was placed in protective custody.
Phillips State Prison
The second indictment focuses on Phillips State Prison (PSP), which is located in Buford, Georgia, and houses adult male inmates. Mims Morris (Morris), Johnathan Silvers (Silvers), and Adam Smith (Smith) were inmates at PSP and were members of the Ghostface Gang. The indictment alleges that while they were inmates at PSP, both Morris and Silvers allegedly obtained cellular telephones and used them to traffic drugs and commit fraud. Morris and Silvers even obtained cellular telephones while they were in segregated custody, charging the devices using the light fixtures in their cells. Silvers allegedly bragged that his cellmate was watching a movie on his cellular telephone while they were in the “hole” together. In a recorded telephone call, Morris talked about posting on Facebook and buying shoes on the Internet. Morris boasted that the guards all knew he had a cellular telephone in segregated confinement.
The indictment also alleges that Tiffany Allen (Allen) and Monique Kinney (Kinney) assisted Morris by using stolen identities to commit fraud. Allen and Kinney communicated with Morris by cellular telephone while he was an inmate at PSP.
The Smuggling Scheme
The indictment alleges that, like VSP, inmates relied on prison employees to bring in cellular telephones and other contraband to PSP. Charonda Edwards (Edwards) was a GDOC contract employee who worked in the kitchen at the prison. Edwards allegedly obtained drugs, tobacco, and other items requested by Silvers in exchange for payment. Edwards then smuggled the items into prison and hid them so the inmates could pick up the contraband. Edwards also allegedly provided valuable information to Silvers in the process such as when the prison would be “locked down.”
Morris, Silvers, and Edwards allegedly relied on prison orderlies and other inmates inside PSP to move drugs, cellular telephones and other items throughout the prison. Morris and Silvers sold the smuggled drugs and contraband to other inmates. In one recorded call, Silvers said that, even though they were in the “hole,” he had food, cigarettes and marijuana, and even expected to get methamphetamine in the near future. Silvers paid Edwards using reloadable prepaid credit cards.
Fraud and Theft from Inside Prison
The indictment alleges that from June 2014 to September 2014, Morris allegedly used his contraband cellular telephone to perpetuate various fraud schemes from inside prison with the assistance of associates on the outside, including Kinney and Allen. The targeted victims were credit card companies and their customers, and job-seekers responding to online advertisements for work.
The Credit Card Scheme
The indictment alleges that on August 26, 2014, Morris called victim “B.T.,” pretending to be a Discover Card representative, working in the “Fraudulent Specialist Department.” He informed B.T. that there were fraudulent charges on her credit card and he needed her credit card number to verify her identity. At his urging, B.T. eventually provided her credit card number to Morris.
While pretending to be B.T., Morris allegedly called a Discover Card representative and was able to access her Discover card account. During the call, Morris used B.T.’s Social Security number and credit card number to authorize a $2,200 transfer to another credit card Morris controlled. Later, Morris allegedly pretended he was B.T. and asked the representative to change the telephone number on the account because he was going to be out of town for several weeks. The Discover representative changed the telephone number to Morris’s prison cell phone. On September 3, 2014, Morris allegedly used B.T.’s information to apply for additional credit cards. With the help of Kinney, Morris was approved for a Capital One Platinum Card using B.T.’s personal information.
The Fake Employment Scheme
On August 31, 2014, Morris texted Allen, telling her he wanted to act as though he was hiring people. Morris allegedly explained that he would obtain personal information from people seeking work and then would order debit cards in their names, using their personal information. Morris commented to Allen that it was “easy as pie” to get someone’s personal information.
The indictment alleges Morris directed Allen to post a fraudulent advertisement on Craigslist.com for job applicants for non-existent construction and roofing jobs. Morris provided a fake company name and an address in Sacramento, California, and even provided his cellular telephone in prison as the telephone number for the fake company so the victims would call him directly and provide their personal information. Allen allegedly attempted to post this information on Craigslist for Morris.
Prison Investigation Also Uncovers Illegal Machinegun Sales
During the federal investigation, FBI agents learned that a woman, later identified as Tiffany Goodson, 34, of Toccoa, Georgia, telephoned an inmate at Jenkins Correctional Center, a privately owned state prison in Millen, Georgia. The inmate received Goodson’s telephone call on a contraband prison cell phone. During that call, Goodson, a convicted felon, allegedly informed the inmate that she knew a man who was willing to build and sell fully automatic machineguns. This inmate later cooperated with federal authorities.
When that information reached the FBI, federal agents identified Goodson and used an undercover agent to purchase two machineguns from her. The agents also identified Goodson’s gun supplier as Robert Burns, 30, of Wahalla, South Carolina. On February 15, 2015, during an undercover operation arranged by the FBI, Mr. Burns drove from South Carolina to Stephens County, Georgia, where he sold Goodson a fully automatic rifle with an obliterated serial number for $2,500.
On July 7, 2015, Goodson and Burns were indicted by a federal grand jury for their roles in a conspiracy to sell illegal machineguns. Earlier today, Mr. Burns pleaded guilty before Senior U.S. District Court Judge Orinda D. Evans. During his plea hearing, Mr. Burns admitted to making and supplying machineguns and to possessing an illegal machinegun with an obliterated serial number. Ms. Goodson’s charges are pending.
Members of the public are reminded that the indictments only contains charges. The defendants are presumed innocent of the charges and it will be the government’s burden to prove the defendants’ guilt beyond a reasonable doubt at trial.
These cases are being investigated by the Federal Bureau of Investigation the Georgia Bureau of Investigation, and the Georgia Department of Corrections Office of Professional Standards.
First Assistant United States Attorney Kurt R. Erskine, Assistant United States Attorneys Brent Alan Gray and John S. Ghose, and Special Assistant United States Attorneys Erin E. Sanders and Trevor Wilmot are prosecuting these cases.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Three Sutter County Residents Sentenced to Prison for Roles in Decades Long Unemployment and Disability Benefits Fraud SchemeRead the Press Release
SACRAMENTO, Calif. — Four residents of Sutter County, California were sentenced to prison today for their roles in a $14 million unemployment and disability benefits fraud scheme based out of Yuba City and Live Oak, California, United States Attorney Benjamin B. Wagner announced.
United States District Judge Morrison C. England Jr. sentenced Mohammad Adnan Khan, 35, of Live Oak, to nine years in prison; Iqila Begum Khan, 32, of Live Oak, to five years in prison; and Mohammad Shahbaz Khan, 50, of Yuba City, to seven years and three months in prison and a $50,000 fine. Each was also ordered to serve a term of three years of supervised release following the service of their prison terms. A hearing will be held November 5, 2015 to determine the amount of restitution owed to the California Employment Development Department. Parole has been abolished in the federal system, and each defendant will be required to serve at least 85 percent of the prison time imposed. A fourth defendant, Mohammad Nawaz Khan, 60, is scheduled to be sentenced on October 1, 2015.
According to court documents, the Khans sold fake paystubs to other people in the community and used the companies they controlled to report false wages for the individuals who purchased those paystubs. At times the Khans instructed the purchasers how to use the fake paystubs to fraudulently claim unemployment and disability benefits. The Khans set up a storefront in Yuba City and sold the fraudulent paystubs on a walk-in basis. Purchasers found out about the opportunity to commit fraud with the Khans in a number of ways. Some purchasers approached the Khans looking for work and were told to commit fraud instead. Others learned of the fraud at public places in the community, like the grocery store.
Over the course of the conspiracy, the defendants reported wages for over 400 separate individuals that resulted in more than 2,000 fraudulent claims for unemployment and disability benefits. The loss in this case is more than $14 million. To date, 28 individuals have been charged and 24 have pleaded guilty to various offenses connected to the scheme.
U.S. Attorney Wagner stated: “The defendants sentenced today committed a massive and brazen fraud that corrupted many members of their community. Collectively, their conduct occurred over the course of decades and involved hundreds of individuals who, but for the defendants’ conspiracy, would likely never have become involved in criminal conduct.”
“The scheme which led to these sentences involved more than bending a rule or exaggerating a claim,” stated Monica Miller, Special Agent in Charge of the Sacramento FBI Field Office. “It was the systematic fabrication of employment histories on a massive scale. I am proud of the work the FBI and our partners on this investigation. By working together, we all put a stop to the scheme which stole money intended for people who earned support from the state in a time of need.”
“This week’s sentencings send a powerful message that combating unemployment insurance fraud remains a high priority for the Office of Inspector General. We will continue to work with our law enforcement partners to safeguard unemployment insurance benefits from illicit enrichment schemes and conspiracies carried out against Department of Labor programs” stated Abel Salinas, Special Agent-in-Charge, U.S. Department of Labor, Office of Inspector General, Office of Labor Racketeering and Fraud Investigations in Los Angeles.
“To defraud vital programs that serve as a lifeline for unemployed and disabled workers is unconscionable,” said EDD Director Patrick W. Henning, Jr. “Today’s sentencing highlights the commitment of EDD investigators, the U.S. Attorney’s Office, and our law enforcement partners to safeguard these programs.”
Of the 28 individuals, charged in this investigation, three remain pending trial. A trial date is set for Mohammad Riaz Khan, Mohammad Shahbaz Khan, and Harjit Johal on November 10, 2015, at 9:00 a.m. before United States District Judge Garland E. Burrell Jr. The charges against those individuals are only allegations; they are presumed innocent until and unless proven guilty beyond a reasonable doubt.
This case is the product of an investigation by the Federal Bureau of Investigation; the U.S. Department of Labor, Office of Inspector General; and the California Employment Development Department, Investigations Division. Assistant United States Attorneys Jared C. Dolan and Sherry D. Haus are prosecuting the case.
Texas Company Sentenced for Mislabeling Mexican Shrimp as Caught in United States WatersRead the Press Release
U.S. Attorney Kenneth A. Polite announced that GARCIA SHRIMP CO., LLC, a Texas Limited Liability Company headquartered in Brownsville, was sentenced today after previously pleading guilty to a one-count Bill of Information for violating the federal Lacey Act.
U.S. District Judge Nannette Jolivette Brown, pursuant to a plea agreement with the Government, sentenced GARCIA SHRIMP to pay a criminal fine of $150,000. GARCIA SHRIMP also sentenced to a three year term of probation with conditions that subject the company to increased labeling, recordkeeping, and auditing requirements. The 35,000 pounds of shrimp previously seized was later sold in a forfeiture auction for $120,800.
According to court documents, in early October 2012, GARCIA SHRIMP purchased 35,000 pounds of Mexican shrimp from Mexican businessmen. The shrimp was packaged in plastic crates typically used by Mexican supermarket wholesalers. After taking receipt of the shrimp, company personnel removed “Product of Mexico” labels from the packages containing the shrimp and attached new tags indicating that the shrimp was caught in U.S. waters. Company personnel also conducted an offloading ruse, whereby the shrimp was trucked down to GARCIA SHRIMP’s dock facility and then re-weighed and wrapped to make it appear as if the shrimp was caught by a local U.S. flagged fishing vessel. Then company personnel created false documents and bills of lading that falsely read, “Product of U.S.A., Wild Caught Gulf Shrimp.” On or about October 12, 2012, GARCIA SHRIMP sold the shrimp to a New Orleans based seafood distributor.
U.S. Attorney Polite praised the work of the U.S Department of Commerce NOAA Office of Law Enforcement, and the Louisiana Department of Wildlife and Fisheries in investigating this matter. The case was prosecuted with the support of the Federal Interagency Seafood Fraud Task Force. Eastern District of Louisiana Assistant U. S. Attorney Spiro G. Latsis and Department of Justice Trial Attorney Christopher L. Hale with the Environmental Crimes Section in Washington D.C. were in charge of the prosecution.
Teamster Sentenced for Stealing Unemployment BenefitsRead the Press Release
BOSTON – A member of the Boston Teamsters Local 82 was sentenced today in U.S. District Court in Boston in connection with stealing unemployment insurance benefits.
Thomas Flaherty, 52, of Braintree, was sentenced by U.S. District Court Judge Denise J. Casper to two years of probation, a fine of $1,000, and restitution of $21,011. In July 2015, Flaherty pleaded guilty to three counts of mail fraud for defrauding the Massachusetts Department of Workforce Development, Division of Unemployment Assistance of unemployment insurance benefits.
From March 2010 to December 2011, while working for Local 82, Flaherty’s gross earnings were $49,890; however, Flaherty made several misrepresentations so that he could collect unemployment insurance benefits. Specifically, Flaherty falsely reported to the Department of Unemployment Insurance that during the same time period he earned only $10,102. Flaherty failed to report his weekly earnings or significantly under-reported his earnings so that it appeared to the Department of Unemployment Insurance that he was eligible to receive full or at least partial unemployment insurance when, in fact, he was employed nearly full time and was not eligible. In total, Flaherty collected $21,093 in unemployment insurance benefits.
United States Attorney Carmen M. Ortiz; Scott S. Dahl, Inspector General of the U.S. Department of Labor, Office of Inspector General; Jonathan Russo, District Director of the U.S. Department of Labor, Office of Labor-Management Standards; Susan A. Hensley, Regional Director of the U.S. Department of Labor, Employee Benefits Security Administration; and Boston Police Commissioner William Evans, made the announcement. The case is being prosecuted by Assistant U.S. Attorneys Laura J. Kaplan of Ortiz’s Organized Crime and Gang Unit and Susan G. Winkler of Ortiz’s Narcotics and Money Laundering Unit.
Swanton woman charged with wire fraudRead the Press Release
A Swanton woman was charged with one count of wire fraud, said Steven M. Dettelbach, U.S. Attorney for the Northern District of Ohio.
Cynthia M. Brinkman, 50, worked at Hank's Plumbing and Heating, Inc.. where she was authorized to write checks from the company's account. Between 2007 and 2015, Brinkman wrote and deposited checks totalling $180,000 to herself on the company's account that were not authorized, according to the information.
If convicted, the defendant’s sentence will be determined by the court after reviewing factors unique to this case, including the defendant’s prior criminal record, if any, and the defendant’s role in the offense and the characteristics of the violation. In all cases the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum. The investigating agency in this case is the Federal Bureau of Investigation. The case is being handled by Assistant U.S. Attorney Tracey Ballard Tangeman.
An information 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.
Streetsboro man sentenced to nine years in prison for child pornography crimesRead the Press Release
A Streetsboro man was sentenced to nine years in prison for child pornography crimes, law enforcement officials said.
Ronald Flick, 47, was previously found guilty of one count of receiving and distributing visual depictions of minors engaged in sexually explicit conduct and one count of possessing computers, hard drives and compact discs containing child pornography.
The case is being prosecuted by Assistant United States Attorney Michael Sullivan following an investigation by the Federal Bureau of Investigation, the Ohio Bureau of Criminal Investigation and the Streetsboro Police Department.
Spencer Chiropractor to Pay $62,349 to Resolve False Claims Act AllegationsRead the Press Release
Elizabeth Kressin, D.C., from Spencer, Iowa, has agreed to pay $62,349 to resolve allegations she violated the False Claims Act by improperly billing the Medicaid system for medically unnecessary chiropractic procedures and for the treatment of conditions for which payment is not allowed, including bed wetting, colic and ear infections. The government alleged that Kressin caused the submission of the improper claims from January 1, 2008, through June 30, 2015. The claims settled by the agreement are allegations only; there has been no admission or judicial determination of liability.
“The civil False Claims Act was created to serve as a tool for combating fraud, waste and abuse in federally funded programs,” emphasized Kevin W. Techau, United States Attorney for the Northern District of Iowa. Techau noted that this case puts providers on notice, indicating “This recovery sends the message that health care providers must comply with all applicable state and federal regulations when billing the United States Government for services, or they will face consequences.”
The allegations resolved by the settlement arose from an investigation led by the Department of Health and Human Resources and initiated by the State of Iowa’s Medicaid Program Integrity Unit. False Claims Act cases also arise under the qui tam, or whistleblower provision of the Act. Under those provisions, a private party may file suit on behalf of the United States for false claims and share in any recovery.
Follow us on Twitter @USAO_NDIA.
Smithfield Woman Sentenced for Embezzling More Than $274,000 from Her EmployerRead the Press Release
PROVIDENCE, R.I. – Christi Romano, aka Christi Machala, 36, of Smithfield, R.I., was sentenced today to four years probation, the first six months to be served in home confinement, for embezzling more than $274,000 from Christa Creations, a toy manufacturer and distributor in Smithfield where she was employed, and for lying to FBI agents during the investigation into the theft, announced United States Attorney Peter F. Neronha and Joseph R. Bonavolonta, Acting Special Agent in Charge of the Boston Field Office of the FBI.
At sentencing, U.S. District Court Judge John J. McConnell, Jr., also ordered Romano to pay restitution in the amount of $274,751.06. Romano pleaded guilty on May 27, 2015, as charged by way of a federal indictment returned in October 2014, to charges of wire fraud and making false statements.
At the time of her guilty plea, Romano admitted to the court that between February 16, 2010, and March 26, 2012, she made 126 unauthorized wire transfers totaling $274,751.06 from a bank account belonging to Christa Creations. Romano admitted to the court that she used the funds to pay her personal credit card debt.
At the time of her guilty plea, Romano also admitted to the court that during the investigation she made false statements to FBI agents when she told the agents that she did not steal or misapply funds belonging to Christa Creations.
The case was prosecuted by Assistant U.S. Attorney Richard W. Rose.
The matter was investigated by the FBI, with the assistance of the Internal Revenue Service Criminal Investigation.
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Contact:
Jim Martin (401) 709-5357
email: [email protected]
on Twitter @USAO_RI
Sentencings for September 14 - September 24, 2015Read the Press Release
Marshall Glenn McGinty, 44, was sentenced by Federal District Court Judge Alan B. Johnson on September 24, 2015, for being a felon in possession of a firearm; carjacking; and using and carrying a firearm during a crime of violence. McGinty was arrested in Casper, Wyoming. He received 204 months imprisonment, to be followed by five years of supervised release, and was ordered to pay a $300.00 special assessment and restitution in the amount of $5,338.87. This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Jason Roger Moore, 36, of Laramie, Wyoming, was sentenced by Chief Federal District Court Judge Nancy D. Freudenthal on September 22, 2015, for being a felon in possession of a firearm. Moore was arrested in Laramie, Wyoming. He received 36 months imprisonment, to be followed by three years of supervised release, and was ordered to pay a $150.00 fine and a $100.00 special assessment. This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Shelly Lynn McElroy, 46, of Salt Lake City, Utah, was sentenced by Chief Federal District Court Judge Nancy D. Freudenthal on September 14, 2015, for conspiracy to distribute at least 50 grams of a mixture or substance containing a detectable amount of methamphetamine. McElroy was arrested in Utah. She received 110 months imprisonment, to be followed by four years of supervised release, and was ordered to pay a $500.00 fine and a $100.00 special assessment. This case results from an ongoing Organized Crime Drug Enforcement Task Forces (OCDETF) joint investigation conducted by the Wyoming Division of Criminal Investigation, the U.S. Drug Enforcement Administration and the Internal Revenue Service, Criminal Investigation Office. The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply.
Second Texas Man Pleads Guilty to Federal Hate Crime Against Gay African-American ManRead the Press Release
CORPUS CHRISTI, Texas - A second Texas man has pleaded guilty to hate crime offenses for his role in a Mar. 8, 2012, assault of a gay African-American man in Corpus Christi, announced U.S. Attorney Kenneth Magidson and Principal Deputy Assistant Attorney General Vanita Gupta, head of the Department of Justice’s Civil Rights Division.
Jimmy Garza, 33, pleaded guilty in federal court in Corpus Christi today to one count of conspiracy to commit hate crimes and one count of a hate crime violation based on the victim’s sexual orientation.
During the plea hearing, Garza admitted that he and others conspired to assault a gay African-American man because of his race and sexual orientation. Garza admitted that during the assault, he and his co-conspirators punched and kicked the man, and assaulted him with various weapons, including a frying pan, a mug, a sock filled with batteries, a broom and a belt.
Garza admitted that when the victim began to bleed, the conspirators forced him to remove all of his clothing and clean up the blood throughout the apartment. After the victim was completely naked, Garza held a gun to the victim’s head, while a co-conspirator sodomized the victim with a broom handle. During the assault, Garza poured bleach onto the victim’s face and eyes, and struck him with a handgun. The conspirators also whipped the victim on the back with a belt.
Garza acknowledged that throughout the assault, the conspirators repeatedly called the victim racial and homophobic slurs and made other anti-black and anti-gay statements.
Garza will be sentenced on Dec. 9, 2015, and faces a maximum sentence of 15 years in prison. He will remain in custody pending that hearing. Co-defendant Ramiro Serrata Jr. pleaded guilty to the same hate crime charges in connection with this offense on Sept.15, 2015. He is also set for sentencing on Dec. 9, 2015.
“The gruesome evidence heard in today's plea of guilty underscores the importance of prosecuting hate crimes under our authority to protect the civil rights of all our citizens,” said Magidson. “These cases will continue to be a high priority of our office.”
“The federal hate crime to which Jimmy Garza Jr. and Ramiro Serrata Jr. pleaded guilty to was as shocking as it was reprehensible,” said Gupta. “The Department of Justice will continue to use every tool at its disposal to vindicate the rights of victims of violent crime.”
This case was investigated by the FBI’s Corpus Christi Resident Agency with assistance from the Corpus Christi Police Department. It is being prosecuted by Assistant U.S. Attorney Ruben Perez and Trial Attorneys Jared Fishman and Nicholas Durham of the Civil Rights Division.
Second Texas Man Pleads Guilty to Federal Hate Crime Against Gay African-American ManRead the Press Release
A second Texas man has pleaded guilty to hate crime offenses for his role in a Mar. 8, 2012, assault of a gay African American man in Corpus Christi, Texas, announced Principal Deputy Assistant Attorney General Vanita Gupta, head of the Department of Civil Rights Division, and U.S. Attorney Kenneth Magidson of the Southern District of Texas.
Jimmy Garza, 33, pleaded guilty in federal court in Corpus Christi to one count of conspiracy to commit hate crimes and one count of a hate crime violation based on the victim’s sexual orientation.
During the plea hearing, Garza admitted that he and others conspired to assault a gay African-American man because of his race and sexual orientation. Garza admitted that during the assault, he and his co-conspirators punched and kicked the man, and assaulted him with various weapons, including a frying pan, a mug, a sock filled with batteries, a broom and a belt.
Garza admitted that when the victim began to bleed, the conspirators forced him to remove all of his clothing and clean up the blood throughout the apartment. After the victim was completely naked, Garza held a gun to the victim’s head, while a co-conspirator sodomized the victim with a broom handle. During the assault, Garza poured bleach onto the victim’s face and eyes, and struck him with a handgun. The conspirators also whipped the victim on the back with a belt.
Garza acknowledged that throughout the assault, the conspirators repeatedly called the victim racial and homophobic slurs, and made other anti-black and anti-gay statements.
Garza will be sentenced on Dec. 9, 2015, and faces a maximum sentence of fifteen years in prison. Garza is incarcerated pending sentencing.
On Sept.15, 2015, Ramiro Serrata Jr. pleaded guilty to the same hate crime charges in connection with this offense. Serrata is scheduled for sentencing on Dec. 9, 2015. Serrata also faces a maximum sentence of fifteen years in prison.
“The federal hate crime to which Jimmy Garza Jr. and Ramiro Serrata Jr. pleaded guilty to was as shocking as it was reprehensible,” said Principal Deputy Assistant Attorney General Gupta. “The Department of Justice will continue to use every tool at its disposal to vindicate the rights of victims of violent crime.”
“The gruesome evidence heard in today's plea of guilty underscores the importance of prosecuting hate crimes under our authority to protect the civil rights of all our citizens,” said U.S. Attorney Kenneth Magidson of the Southern District of Texas. "These cases will continue to be a high priority of our office."
This case was investigated by the FBI’s Corpus Christi Resident Agency with assistance from the Corpus Christi Police Department. It is being prosecuted by Trial Attorneys Jared Fishman and Nicholas Durham of the Civil Rights Division and Assistant U.S. Attorney Ruben Perez of the Southern District of Texas.
Romanian Native in Large-Scale Atm Skimming Scheme Extradited to the United States to Face ChargesRead the Press Release
NEWARK, N.J. – A native of Romania who was arrested in Spain will make his initial court appearance and be arraigned tomorrow following his extradition to face charges that he participated in a large-scale lucrative ATM skimming scheme targeting New Jersey bank customers, U.S. Attorney Paul J. Fishman announced.
Alin Dumitru Carabus, 41, will appear tomorrow afternoon before U.S. Magistrate Judge Leda D. Wettre in Newark federal court. He is charged by indictment with conspiracy to commit bank fraud, aggravated identity theft, conspiracy to possess 15 or more counterfeit access devices, and possession of 15 or more counterfeit access devices. One of the other individuals charged in the indictment, Robert Mate, was previously apprehended in Spain and extradited to the United States. The third individual charged in the indictment, Ionut Vasile Ciurba-Stana, has been apprehended in Spain, and a request for extradition is pending.
According to documents filed in this and other cases and statements made in court:
Carabus participated in an extensive scheme to steal bank customer account information, commonly referred to as “ATM skimming,” by installing secret card-reading devices on ATMs throughout New Jersey, New York, Connecticut, Florida, and elsewhere. The scheme was organized by Marius Vintila, 33, who previously pleaded guilty to bank fraud conspiracy and aggravated identity theft charges. The scheme defrauded Citibank, TD Bank, Wells Fargo, and multiple other financial institutions out of at least $5 million and affected thousands of bank customers.
Vintila and Bogdan Radu designed and constructed sophisticated card-reader devices and pinhole camera panels capable of reading and storing customers’ bank account information and personal identification numbers. Carabus and others then secretly installed the card-reader devices and the pinhole cameras panels onto bank ATMs, and removed them a few days later after they had recorded customer bank account information as customers performed routine bank transactions at ATMs. After the account information was stolen, the stolen data was used to create thousands of false and fraudulent ATM cards, which Carabus and others used to withdraw millions of dollars from customers’ bank accounts.
The ATM skimming operation in which Carabus participated is one of the largest ever uncovered by law enforcement. To date, 16 individuals have been charged in connection with this scheme. Twelve have pleaded guilty, and one individual, Dinu Horvat, was convicted after a week-long trial.
Carabus is charged with four counts, as described below, which carry the following maximum penalties and fines:
Count
Offense
Maximum Penalty
Maximum Fine
1
Conspiracy to commit bank fraud
Thirty years in prison
$1 million
2
Aggravated identity theft
Mandatory, consecutive penalty of two years in prison
$250,000, or twice the gross pecuniary gain or loss from the offense
5
Conspiracy to possess 15 or more counterfeit access devices
Five years in prison
$250,000, or twice the gross pecuniary gain or loss from the offense
6
Possession of 15 or more counterfeit access devices
Ten years in prison
$250,000, or twice the gross pecuniary gain or loss from the offense
U.S. Attorney Fishman credited special agents of the U.S. Secret Service, Newark Field Office, under the direction of Special Agent in Charge Carl Agnelli, along with special agents of U.S. Immigration and Customs Enforcement’s (ICE), Homeland Security Investigations (HSI) in Newark, under the direction of Acting Special Agent in Charge Kevin Kelly, with the investigation leading to the charges.The government is represented by Assistant U.S. Attorneys Rahul Agarwal and David M. Eskew of the Criminal Division in Newark.
Defense counsel: Christopher Patella Esq., Bayonne, New Jersey
Rochester Men Charged with Sex Trafficking MinorsRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051ROCHESTER, N.Y. -- U.S. Attorney William J. Hochul, Jr. announced today that Andre L. Barnes, 39, and Christopher N. Johnson, Jr., 29, both of Rochester, NY, were arrested charged by a criminal complaint with conspiracy to sex traffic minors and sex trafficking of minors. The charges carry a mandatory minimum sentence of 10 years in prison, a maximum of life, and a $1,000,000 fine.
Assistant U.S. Attorney Melissa Marangola, who is handling the case the case, stated that the according the complaint, Barnes and Johnson began working together in 2010 to sex traffic minors. Their conspiracy continued until July 2013 at which time Barnes went to prison for assaulting one of the prostitutes that he is charged with trafficking in this case. The complaint alleges that Johnson has continued to sex traffic minors and adults by posting advertisements on Backpage.com.
The defendants made an initial appearance this afternoon before U.S. Magistrate Judge Jonathan W. Feldman. Barnes, who is currently serving a prison term on a state conviction, is due in court on September 25, 2015 at 3:00 p.m. to determine where he will be detained while the charges are pending. Johnson was detained and will return to court on September 29, 2015 at 4:30 p.m. for a detention hearing.
The arrest was the culmination of an investigation on the part of the Federal Bureau of Investigation Child Exploitation Task Force which includes the Monroe County Sheriff’s Office, the Rochester Police Department, and U.S. Immigration and Customs Enforcement-Homeland Security Investigations.
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.
Prison Terms Don’t Change for Former Haysville Doctor and WifeRead the Press Release
WICHITA, KAN. - A federal judge Thursday resentenced a former Haysville physician and his wife without changing the amount of time they must spend in prison for illegally distributing prescription pain killers to patients who overdosed on them, U.S. Attorney Barry Grissom said.
Stephen J. Schneider, 62, currently in federal custody, was sentenced Thursday to 30 years in federal prison. His wife, Linda K. Schneider, 57, also in federal custody, was sentenced Thursday to 33 years in federal prison.
U.S. District Judge Monti Belot originally sentenced the Schneiders in October 2010 after they were convicted in an eight-week jury trial on charges including conspiracy, unlawful distribution of controlled substances, health care fraud and money laundering. Belot set the case for resentencing after a Supreme Court ruling last year that a victim’s drug use must be the actual cause of death – not just a contributing factor – to impose the harshest penalties under the federal Controlled Substances Act. The judge threw out some of the original sentences.
During trial, the government=s case centered on the years from 2002 to 2008, when Stephen Schneider saw patients and Linda Schneider, a licensed practical nurse, managed the business of Schneider Medical Clinic at 7030 S. Broadway in Haysville. Prosecutors presented evidence that the Schneiders billed more than $4 million to Medicaid and other health insurance providers while they operated the clinic unlawfully, distributing controlled substances without a legitimate medical purpose, falsifying insurance claims, and engaging in unlawful financial transactions with the proceeds of the crimes.
Grissom commended the following agencies and individuals who worked on the case: The Department of Health and Human Services, the Drug Enforcement Administration, the Kansas Attorney General=s Medicaid Fraud and Abuse Division, the Federal Bureau of Investigation, U.S. Postal Inspection Service, the Kansas Bureau of Investigation, and Assistant U.S. Attorneys Tanya Treadway, Jon Fleenor, and Jabari Wamble, who prosecuted the case.
Plymouth Resident Pleads Guilty to Mail Fraud and Aggravated Identity TheftRead the Press Release
A Plymouth man who impersonated a West Point graduate pleaded guilty today to mail fraud and aggravated identity theft, U.S. Attorney Barbara L. McQuade announced today. McQuade was joined in the announcement by Acting Special Agent in Charge John Shoup, Federal Bureau of Investigation, Detroit Division. William Douglas Street, 64, pleaded guilty before U.S. District Judge Gershwin Drain. Street pleaded guilty to devising and executing a scheme to impersonate a United States Military Academy and Duke University graduate. Street requested transcripts and diplomas in the victim’s name from both institutions using the United States mail. In order to complete these requests, he used identifying information, including the victim’s social security number, date of birth and place of birth. He signed the victim’s name to the request forms. As a result of Street’s actions, the United States Military Academy and Duke University sent the defendant the victim’s transcripts and diplomas. Street created an email account using the victim’s name. He also set up a profile on Career Builder and applied for jobs using a resume he created in the victim’s name. In February 2015, law enforcement officers recovered transcripts, diplomas and various other items in the victim’s name at Street’s residence in Plymouth, Michigan. Street entered into a plea agreement that calls for a sentence of 28-34 months in prison. A sentencing hearing was set for January 28, 2015 at 2:00 pm. This case was investigated by special agents of the Federal Bureau of Investigation and the Plymouth Township Police Department and prosecuted by Assistant U.S. Attorney April Russo.Pennsylvania sex offender sentenced for failure to update registrationRead the Press Release
WHEELING, WEST VIRGINIA – Weirton, West Virginia resident Henry Lee Cutler, 24, originally of Clearfield, Pennsylvania, was sentenced today to 27 months in prison for failing to update his sex offender registration, United States Attorney William J. Ihlenfeld, II, announced.
In 2010, Cutler was convicted of “Indecent Assault” in Clearfield County, Pennsylvania. As a result of that conviction, he is required to register as a sex offender. In late 2014 or early 2015, Cutler relocated across state lines from Pennsylvania to the Weirton, West Virginia area. He failed to update his sex offender registration to reflect his new residence in West Virginia. He pled guilty in June 2015 to one count of “Failure to Register as a Sex Offender.”
Assistant U.S. Attorney Jarod Douglas prosecuted the case on behalf of the government. The United States Marshals Service investigated.
U.S. District Judge John Preston Bailey presided.
Page County, Iowa, Resident Sentenced for Conspiracy to Distribute MethamphetamineRead the Press Release
Council Bluffs, IA- On September 23, 2015, James Jayson Davis, 41, of Shenandoah, Iowa, was sentenced by Senior United States District Court Judge James E. Gritzner to 183 months in prison for conspiracy to distribute methamphetamine, announced United States Attorney Nicholas Klinefeldt. Davis’ term of imprisonment is to be followed by five years of supervised release.
Davis entered a guilty plea on February 5, 2015, to conspiracy to distribute methamphetamine from September 2013 up to July of 2014. The plea of guilty resulted from a year-long investigation into drug trafficking in Southwestern Iowa by a group that included Davis and his cousin, James Paul Davis. James Paul Davis was sentenced to 192 months in prison on July 27, 2015, by Judge Gritzner. The investigation showed that methamphetamine was being transported to Southwestern Iowa from the border region in Texas in pound quantities for distribution from Page County, across Southwestern Iowa and into Eastern Nebraska.
The investigation was conducted by the Iowa Division of Narcotics Enforcement, Page County Sheriff’s Office, Shenandoah, Iowa Police Department, Mills County Sheriff’s Office, Southwest Iowa Narcotics Task Force, Omaha, Nebraska Police Department, Metro Area Fugitive Task Force, and the United States Marshal’s Service for the Southern District of Iowa.
The case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
Owner of Reisterstown Auto Detailing Service Indicted for Submitting False Invoices Overbilling a Customer More Than $515,000Read the Press Release
Baltimore, Maryland – A federal grand jury today indicted Lawrence Coleman, age 46, of Reisterstown, Maryland, on charges arising from a scheme to defraud a customer by submitting false invoices, overbilling more than $515,000.
The indictment was announced by United States Attorney for the District of Maryland Rod J. Rosenstein and Special Agent in Charge Kevin Perkins of the Federal Bureau of Investigation.
According to the indictment, Coleman owned and operated Perfection Plus Auto Detailing, located in Reisterstown, Maryland. Prior to starting his business, Coleman was an employee of Avis, a rental car company. Beginning in 2007, Perfection Plus contracted with Avis to provide vehicle prepping services at Baltimore/Washington Thurgood Marshall Airport (“BWI”) in Hanover, Maryland. These services were performed on new vehicles prior to being offered for rent (infleeting), as well as for vehicles that were being removed from service (defleeting). According to the indictment, after a rental vehicle underwent Perfection Plus’ infleeting or defleeting service at the BWI site, the service manager for Perfection Plus sent Coleman a vehicle worksheet that included a checklist of the work that was performed on each car. Based upon the submitted worksheets, Coleman prepared invoices listing the identification numbers of the cars serviced, and then sent those invoices to Avis, billing Avis approximately $14.75 per vehicle for the prep service.
The indictment alleges that from August 2007 through November 2010, Coleman submitted false invoices to Avis for prepping services that were not performed on thousands of rental vehicles purportedly serviced by Perfection Plus, sometimes submitting more than twenty invoices for the same vehicle. To conceal the scheme, Coleman submitted new invoices that contained both the identification numbers of rental vehicles for which payment was legitimately due and those for which payment had already been made. Coleman allegedly used his knowledge as a former Avis employee to avoid closer scrutiny of his billing practices by submitting individual invoices that were less than $1,000, a threshold amount not requiring a second level of approval under Avis’ internal accounting procedures.
The indictment alleges that Coleman overbilled Avis approximately $515,149, and the indictment seeks forfeiture in that amount.
Coleman faces a sentence of 20 years in prison for wire fraud. Coleman’s initial appearance has not been scheduled.
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
United States Attorney Rod J. Rosenstein commended the FBI for its work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Martin J. Clarke, who is prosecuting the case.