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Monday 21 September 2015
Bakersfield Methamphetamine Trafficking Defendant Sentenced to over 10 Years in PrisonRead the Press Release
FRESNO, Calif. — Manuel Riviera-Felix, aka Felipe Garcia, 27, of Mexico, was sentenced today by United States District Judge Lawrence J. O'Neill to 10 years and 11 months in prison for distribution of methamphetamine, United States Attorney Benjamin B. Wagner announced.
According to court documents, Rivera-Felix was a leader of a large scale drug organization in Bakersfield responsible for the importation and sale of large quantities of methamphetamine. Between March 1, 2014, and July 10, 2014, Rivera-Felix conspired with Juan Angel Lopez, 33, of Bakersfield, Edi Vega Bustamante 22, of Mexico, and others to distribute up to 45 kilograms of methamphetamine. Lopez pleaded guilty to conspiring to distribute and possess with intent to distribute methamphetamine and was sentenced to seven years and six months in prison. Bustamante pleaded guilty to possession with intent to distribute methamphetamine and was sentenced to five years in prison.
This case was the product of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation by the Drug Enforcement Administration, the Kern County Sheriff’s Office, the Bakersfield Police Department, the U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) and the Southern Tri-County High Intensity Drug Trafficking Area Task Force. Assistant United States Attorney Brian K. Delaney prosecuted the case.
Attorney General Loretta E. Lynch Delivers Remarks at the White House Champions of Change Event on Building Bridges Between Youth and Law EnforcementRead the Press Release
Contact: Public Affairs (202) 514-2007
Remarks as prepared for delivery
WASHINGTON, D.C.
Thank you, Roy [Austin], for that kind introduction – and for the extraordinary work that you and so many of your colleagues at the White House do to lift up our communities, to inspire our young people and to mobilize change agents like those we’re here to honor today. It’s a pleasure – and an immense privilege – to join so many passionate advocates, dedicated public servants and devoted law enforcement officers as we recognize 14 truly remarkable civic leaders: our Champions of Change.
These outstanding individuals exemplify the selfless men and women across the United States who are asking what they can do to improve the lives of others – and then doing it. They are working to ensure that our youth have the chance to fulfill their potential; that cycles of poverty, criminality and incarceration are dismantled; and that those grappling with homelessness, violence and addiction obtain a second chance at a better life. And by devoting their precious time and wide-ranging talents to the causes they champion, they are helping to mend the fabric of trust, respect and common purpose that all communities need to thrive. They exemplify what we have come to know: that change that can galvanize a nation often begins with a single human connection.
Actions like theirs are needed now more than ever. Over the course of the last year, we have seen all too frequently how relationships between communities and law enforcement can grow strained; how trust can be broken or lost; and how simmering tensions can erupt into unrest. The consequences are real – for sincere public safety officers, the guardians, who seek to ensure that all are sheltered under their umbrella of protection and for residents, particularly residents of color, who feel a sense of disconnection and despair that is all too familiar from a long and painful history of discrimination – and who often feel like they’re not being heard; like they’re not being believed; and like they’re not being protected. This is an intensely challenging issue and I could not be more proud of these Champions of Change and those like them throughout the nation, who believe that – despite the magnitude of the challenges we face – all of us can play a part in working together to ensure that every American is treated with fairness, with dignity and with respect; to maintain safe neighborhoods and supportive environments; and to establish a sense of community – of common aims and common efforts – in cities and towns across America. We are here today to honor those who exemplify nothing less than the essentially American belief that no matter the odds or the problem, change is possible and that it can begin with them.
The Department of Justice is committed to doing our part to help. Last September, we launched the National Initiative for Building Community Trust and Justice, a comprehensive effort to modernize training; develop evidence-based strategies; and advance research that will bolster law enforcement credibility, enhance procedural justice, reduce implicit bias and drive racial reconciliation. Our Civil Rights Division continues to work with police departments around the country to ensure constitutional policing in their jurisdictions. And our Office of Juvenile Justice and Delinquency Prevention is leading and supporting a variety of community-centered efforts to reduce youth and gang violence.
Of course, real change is spearheaded by those who are grappling with real problems every day. Our goal is to also tap into the innovative programs and exciting ideas that are emerging from communities across the country. That is why I’ve convened a series of community policing roundtables that have allowed me to see the extraordinary work that’s underway in diverse neighborhoods from coast to coast. In Birmingham, Alabama, I learned about the Citizen’s Police Academy, which allows local young people to form positive relationships with law enforcement officers and to understand the difficult jobs they do every day. In Cincinnati, Ohio, I observed an innovative mentoring program that puts police in the classroom as tutors, helping the children they work with see them as helpers, friends and peacemakers. In East Haven, Connecticut, I saw community leaders and public officials speak with pride about the strides they had made together just three years after a Justice Department investigation uncovered discriminatory tactics and the use of excessive force. And in Pittsburgh, Pennsylvania, I saw a police department newly committed to operating with accountability and to pursuing excellence. Later this week, I will complete the first phase of my tour with roundtables in Seattle, Washington and Richmond, California and I am excited to keep these important conversations going as more communities undertake the difficult but necessary work of growing more cohesive, more unified and more empowered. all of these cities have come back from the brink of profoundly challenged police community relationships to build a working relationship that recognizes that our communities are large enough to encompass those who protect them, that our guardians are strengthened when they truly know their charges and their needs and that all voices must be at the table to create and sustain meaningful change.
All of us at the Justice Department strongly support and encourage that work and those goals. That’s why I’m proud to announce today that the Justice Department’s Office of Community Oriented Policing Services – more commonly known as the COPS Office – is providing more than $107 million in new grants to support the hiring and retention of approximately 870 officers at roughly 200 agencies and municipalities throughout the United States. These awards will not only keep more officers on the beat – they will address specific issue areas like violent crime, school safety, homeland security and that which underlies it all: community trust. They will help local agencies deliver on the recommendations for community policing developed by the President’s Task Force on 21st Century Policing. And they will extend the remarkable record of support, leadership and results that the COPS Office has earned over the last two decades.
I am also pleased to give you a major update on the Body-Worn Camera Pilot Partnership Program that we kicked off in May. Our Bureau of Justice Assistance designed the program to assist local jurisdictions that are interested in exploring and expanding the use of body-worn cameras in order to enhance transparency, accountability and credibility. Initial expectations were that we would be able to support approximately 50 agencies. But today, I am happy to report that we intend to fund 73 local and tribal agencies across the country with more than $19.3 million for their body-worn camera programs. An additional $2 million will go toward training and technical assistance for agencies looking to develop or expand their programs. And another $1.9 million will support research in three police departments – Miami, Milwaukee and Phoenix – on the impact of body-worn cameras on a range of outcomes, including community relations. That kind of evaluation is crucial as we continue to weigh the advantages of more widespread use of cameras in policing.
A third and final piece of news comes from our Office of Juvenile Justice and Delinquency Prevention, which is launching a new initiative to bring young people together with the police officers in their communities. OJJDP is awarding $500,000 to a joint effort of the International Association of Chiefs of Police and the Coalition for Juvenile Justice to convene a youth and law enforcement roundtable and to develop an institute for disseminating best practices and sharing new approaches on issues of juvenile justice. Their unique partnership will go a long way toward fostering strong, collaborative relationships among young people, their families and those charged with their protection. And it unites a wealth of experience and expertise that will be an asset to law enforcement agencies developing strategic plans for their long-term improvement.
Each of these new efforts gives me hope that we can help to address these vital and complicated issues through sustained attention, honest conversation and thoughtful public policy. Each of the leaders here this afternoon gives me confidence that our commitment will yield progress. And each of the Champions we’re here to celebrate reminds me that our ultimate success depends on the goodwill, imagination and determination of motivated men, women and children across this country. I want to thank each of you for your exceptional work. I want to applaud each of you for your inspiring example. And I want you to know that I am honored to stand beside you and proud to count you as partners in our common pursuit of equality, opportunity and justice for all.
And now, I invite everyone to join me in saluting our Champions of Change, whom it’s my privilege to introduce at this time:
- Sergeant Alex Bielawski from Grand Prairie, Texas – a 30-year veteran of the Grand Prairie Police Department and founder of a youth boxing program that brings together police officers, young athletes, parents and school officials.
- Indeya Smith from Grand Prairie, Texas – a student at Tarrant County Community College, an intern with the Grand Prairie Police Department and a nationally ranked boxer who has trained with the Grand Prairie Police Youth Boxing Program.
- Anthony Davis from Bonner Springs, Kansas – a School Resource Officer for the Bonner Springs/Edwardsville School District and a criminal justice teacher at Bonner Springs High School.
- Blake McMahan from Bonner Springs, Kansas – the President of the Criminal Justice Club at Bonner Springs High School and a volunteer for the Bonner Springs Police Department.
- Ric DeLand from Portland, Oregon – a 25-year veteran of the Portland Police Bureau and the leader of an innovative, relationship-based foot patrol pilot project that reduced crime by 25 percent and strengthened community cooperation.
- Celia Luce from Portland, Oregon – a Peer Mentor with Outside In, an organization helping to connect homeless youth with the resources and the support they need.
- Captain Jacques Gilbert from Apex, North Carolina – a 25-year veteran of the Apex Police Department for over 25 years who worked with young people to build a public skate park for local youth.
- Tracy Stallworth from Apex, North Carolina – an aspiring professional skate boarder who worked with Captain Gilbert to make the Rodgers Family Skate Plaza a reality.
- Hiram Otero from Hartford, Connecticut – a Faith Based Initiative Community Service Officer for the South District of Hartford and organizer of the Charter Oak Cultural Center’s Good Vibrations youth mentoring program.
- Kayke Lopes from Hartford, Connecticut – a seventh-grader at Hartford Magnet Trinity College Academy and a participant in the Good Vibrations program.
- Laurie Reyes from Montgomery County, Maryland – a 17-year veteran of the Montgomery County Police Department and founder of the Department’s Autism and Intellectual/Developmental Disabilities Outreach Program.
- Jake Edwards from Germantown, Maryland – a seventh-grader at Kennedy Krieger School and an advocate for enhanced understanding between law enforcement and those with autism.
- Bill Singleton from Milwaukee, Wisconsin – an officer in the Milwaukee Police Department’s Office of Community Outreach & Education and a National Advisor for the Center for Court Innovation’s Police-Youth Dialogue Project.
- And finally, Erica Lofton from Milwaukee, Wisconsin – a 14-year-old violence-prevention advocate and founder of Girls in Action, Inc., an organization that promotes leadership among young girls.
Ladies and gentlemen – our Champions of Change.
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Area Tax Preparer Sentenced on Charges Involving Filing False Tax ReturnsRead the Press Release
St. Louis, MO – ANGEL BAILEY-DYSON, a tax preparer who worked for Tax King, a local tax preparation business, was sentenced to one year and one day in prison and ordered to pay $28,694 restitution to the IRS. Bailey-Dyson previously pled guilty to preparing false tax returns for customers for tax years 2011 and 2012. The false returns minimized the customers’ liability and thereby maximized the customers’ tax refunds.
Bailey-Dyson, St. Louis, Missouri, pled guilty in June to four felony counts of filing false tax returns. She appeared today for sentencing before United States District Judge Henry Autrey.
This case was investigated by Internal Revenue Service-Criminal Investigation.
Amarillo Man Who Robbed Amarillo National Bank is Sentenced to Serve Total of 212 Months in Federal PrisonRead the Press Release
AMARILLO, Texas — An Amarillo, Texas, man, William Eugene Boyd, 51, who pleaded guilty in July 2015 to one count of bank robbery, was sentenced this afternoon by U.S. District Judge Mary Lou Robinson, announced U.S. Attorney John Parker of the Northern District of Texas.
Boyd was sentenced to 188 months in federal prison for the bank robbery. In addition, Judge Robinson sentenced him to an additional 24 months in federal prison, to run consecutively, for committing this bank robbery while on supervised release on another bank robbery conviction in the Amarillo Division of the Northern District of Texas.
According to documents filed in the case, on March 13, 2015, a robber, later identified as Boyd, approached a teller at the ANB located at 2401 S. Coulter, in Amarillo, and told her, “This is a robbery.” He instructed her to give him all the money, nothing marked, and not make a sound. He told her that if she handed over all her money she would not get hurt, and he kept his left hand by his waistband, making her fearful he had a weapon. The teller complied with his instructions and Boyd left the bank with the cash.
After providing surveillance photographs to the media that were broadcast to the public, Amarillo Police Department investigators received several tips from Boyd’s friends/family members identifying him as the robber. Investigators located a hat matching the color and style of the one Boyd wore during the robbery in a vehicle registered to Boyd’s mother, and bank employees later identified him in a photo line-up.
The Federal Bureau of Investigation and the Amarillo Police Department investigated.
Assistant U.S. Attorney Joshua Frausto prosecuted.
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Albany Police Department Funded for Body-Worn CamerasRead the Press Release
ALBANY, NEW YORK - Attorney General Loretta Lynch today announced that the Justice Department has awarded grants totaling more than $23.2 million to 73 local and tribal agencies in 32 states to expand the use of body-worn cameras and explore their impact. The investment includes $19.3 million to purchase body-worn cameras, $2 million for training and technical assistance and $1.9 million to examine the impact of their use. The grants, awarded by the Department’s Office of Justice Programs (OJP), are part of President Obama’s proposal to purchase 50,000 body-worn cameras for law enforcement agencies within three years.
"As we support local leaders and law enforcement officers in their work to protect their communities, we are mindful that effective public safety depends not simply on taking bad guys off the streets, but on winning – and keeping – the confidence of the people these officers are sworn to serve," said Attorney General Loretta Lynch. "The awards we’re announcing today will enhance our understanding [of this technology] even further, and I am confident that they will help our many local law enforcement partners do an even better job of serving their communities."
The City of Albany Police Department’s $133,305 grant award is one of four grants received by New York State agencies. The City of Rochester, Village of Spring Valley and City of White Plains also received funding.
"It is fitting that the Albany Police Department, whose leaders and officers believe in community policing, has been chosen for this funding award," said United States Attorney Richard S. Hartunian. "Advancements like this will foster transparency and thereby improve police-community relations."
"Over the past few years, the Albany Police Department has made tremendous changes to ensure that we are building trust and legitimacy within our community," said Albany Police Chief Brendan Cox. "By outfitting our officers with body-worn cameras, the Albany Police Department can continue to bridge the gap between the members of our community and of the police department through a transparent process that includes stakeholder input in the planning and implementation of a body-worn camera program. I would like to thank Attorney General Loretta Lynch for her leadership in making this funding available at a time when police accountability and community confidence in the police are the defining principles of 21st century policing."
The grants, which require a 50/50 in-kind or cash match, can be used to purchase equipment and require that applicants establish a strong implementation plan and a robust training policy before purchasing cameras. The long term costs associated with storing this information will be the financial responsibility of each local agency.
In addition to funds to help purchase body-worn cameras and train officers in their use, grants under the Bureau of Justice Assistance’s (BJA’s) Smart Policing Initiative will support police departments in Miami, Milwaukee, and Phoenix as they examine the impact of body-worn cameras on citizen complaints, internal investigations, privacy, community relationships, and cost effectiveness. Each of these three departments will partner with a research institution to gain insight on the merits of deploying body-worn camera programs.
Lynch announced the award today during a White House Champions of Change event co-hosted by the Office of Justice Programs and the Community Oriented Policing Services Office (COPS). The event honored law enforcement officers and young people who are leading efforts to improve relationships between law enforcement and youth in their communities.
BJA has launched a comprehensive online toolkit that consolidates research, promising practices, model policies and other tools that address issues surrounding body-worn cameras, including implementation requirements; image retention; concerns of policy makers, prosecutors, victim and privacy advocates; and community engagement and funding considerations. The toolkit is available at: https://www.bja.gov/bwc/.
OJP’s Bureau of Justice Statistics is collecting data on body-worn camera usage through surveys of law enforcement agencies. It is also designing data collection forms for future surveys of prosecutors and public defenders to measure how body-worn camera footage is being used by the courts in criminal cases.
For additional information about the BWC Pilot Implementation Program, visit http://www.bja.gov/bwc/pdfs/BWCPIP-Award-Fact-Sheet.pdf.
About the Office of Justice Programs (OJP)
OJP, headed by Assistant Attorney General Karol V. Mason, provides federal leadership in developing the nation’s capacity to prevent and control crime, administer justice and assist victims. OJP has six components: the Bureau of Justice Assistance; the Bureau of Justice Statistics; the National Institute of Justice; the Office of Juvenile Justice and Delinquency Prevention; the Office for Victims of Crime and the Office of Sex Offender Sentencing, Monitoring, Apprehending, Registering and Tracking. More information about OJP can be found at www.ojp.gov
Adventist Health System Agrees to Pay $115 Million to Settle False Claims Act AllegationsRead the Press Release
Adventist Health System has agreed to pay the United States $115 million to settle allegations that it violated the False Claims Act by maintaining improper compensation arrangements with referring physicians and by miscoding claims, the Justice Department announced today. Adventist is a non-profit healthcare organization that operates hospitals and other health care facilities in 10 states.
“Unlawful financial arrangements between heath care providers and their referral sources raise concerns about physician independence and objectivity,” said Principal Deputy Assistant Attorney General Benjamin C. Mizer, head of the Justice Department’s Civil Division. “Patients are entitled to be sure that the care they receive is based on their actual medical needs rather than the financial interests of their physician.”
The settlement announced today resolves allegations that Adventist submitted false claims to the Medicare and Medicaid programs for services rendered to patients referred by employed physicians who received bonuses based on a formula that improperly took into account the value of the physicians’ referrals to Adventist hospitals. Federal law restricts the financial relationships that hospitals and clinics may have with doctors who refer patients to them.
“Adventist-owned hospitals, such as Park Ridge, allegedly paid doctors’ bonuses based on the number of test and procedures they ordered,” said Acting U.S. Attorney Jill Westmoreland Rose of the Western District of North Carolina. “This type of financial incentive is not only prohibited by law, but can undermine patients’ medical care. Would-be violators should take notice that my office will use the False Claims Act to prevent and pursue health care providers that threaten the integrity of our healthcare system and waste taxpayer dollars.”
“Companies that financially reward physicians in exchange for patient referrals – as the government contended in this case – undermine the physicians’ impartial medical judgment at the expense of patients and taxpayers,” said Special Agent in Charge Derrick L. Jackson of the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG) in Atlanta. “We will continue to investigate such wasteful business arrangements.”
The settlement also resolves allegations that Adventist submitted bills to Medicare for its employed physicians’ professional services containing certain improper coding modifiers, and thereby obtained greater reimbursement for these services than entitled.
The allegations settled today arose from two lawsuits filed respectively by whistleblowers Michael Payne, Melissa Church and Gloria Pryor, who worked at Adventist’s hospital in Hendersonville, North Carolina, and Sherry Dorsey, who worked at Adventist’s corporate office, under the qui tam provisions of the False Claims Act. The act permits private parties to file suit on behalf of the United States for false claims, and to share in any recovery. The whistleblowers’ share of the settlement has not yet been determined.
This settlement illustrates the government’s emphasis on combating health care fraud and marks another achievement for the Health Care Fraud Prevention and Enforcement Action Team (HEAT) initiative, which was announced in May 2009 by the Attorney General and the Secretary of Health and Human Services. The partnership between the two departments has focused efforts to reduce and prevent Medicare and Medicaid financial fraud through enhanced cooperation. One of the most powerful tools in this effort is the False Claims Act. Since January 2009, the Justice Department has recovered a total of more than $25 billion through False Claims Act cases, with more than $16 billion of that amount recovered in cases involving fraud against federal health care programs.
The cases, United States ex rel. Payne, et al. v. Adventist Health System/Sunbelt, Inc., et al. No. 12-856 (W.D.N.C), and United States ex rel. Dorsey v. Adventist Health System Sunbelt Healthcare Corp., et al., No. 13-217 (W.D.N.C), were handled by the Civil Division’s Commercial Litigation Branch, the U.S. Attorney’s Office of the Western District of North Carolina and HHS-OIG. The claims settled by this agreement are allegations only, and there has been no determination of liability.
Sunday 20 September 2015
Rhode Island Law Enforcement Teams up to Participate in National Prescription Drug Take Back ProgramRead the Press Release
On September 26, 2015 from 10 a.m. to 2 p.m., Rhode Islanders are encouraged to drop off their unused and expired prescription drugs at one of more than 30 locations across the state as part of the national Prescription Drug Take Back Program. The program was created in 2010 by the federal Drug Enforcement Administration (DEA) to prevent pill abuse and theft by allowing residents to rid their homes of potentially dangerous expired, unused, and unwanted prescription drugs.
A list of locations and participating police departments can be found at www.dea.gov or www.riag.ri.gov. The service is free and anonymous, no questions asked. In addition, many police departments provide free drop-off boxes year-round. Contact your local police department to see if they offer the service. ((Note: The DEA cannot accept liquids or needles or sharps, only pills or patches.))
"Many Americans are not aware that medicines which languish in home cabinets are highly vulnerable to diversion, misuse, and abuse," said DEA Special Agent in Charge Michael J. Ferguson. "Rates of prescription drug abuse in the U.S. are at alarming rates, as are the number of accidental poisoning and overdoses due to the illegal use of these drugs. Please take the time to clean out your medicine cabinet and make your home safe from drug theft and abuse."
US Attorney Peter F. Neronha added, “America has a prescription pill problem, and Rhode Island is no exception. The overprescribing, diversion, and misuse of prescription opioids is a significant threat to public health in its own right, made worse by the fact that in many instances it leads to heroin abuse, often with catastrophic results. There is no single solution to this problem. But one thing that can help is to provide a safe and effective way to dispose of unneeded prescription pills, and this take-back does precisely that.”
“With the disturbing and dangerous rise of prescription opioid addiction and abuse in Rhode Island, this take back program is a simple and anonymous way for people to rid homes of potential dangers. Opioid addiction and abuse is one of the most serious public health and safety threats within our state. While there are many fronts on which we need to fight this war, this program is a key piece to ending the cycle of addiction by eliminating the temptation to use these pills in the first place,” said Attorney General Peter F. Kilmartin.
In 2014, the DEA issued regulations that would legally expand options for disposing of controlled substances beyond the scheduled prescription drug take back days. Recognizing the success and popularity of the one-day events, the DEA decided to once again support the program nationwide in partnership with state and local law enforcement. In Rhode Island, there are several police departments that offer this service year round. In addition, other methods for safe disposal of prescription medications are available throughout the state including at pharmacies and healthcare facilities.
Last September, Americans turned in 309 tons (over 617,000 pounds) of prescription drugs at nearly 5,500 sites operated by the DEA and more than 4,000 of its state and local law enforcement partners. When those results are combined with what was collected in its eight previous Take Back events, DEA and its partners have taken in over 4.8 million pounds - more than 2,400 tons - of prescription medications.
This initiative addresses a vital public safety and public health issue. 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 a majority of abused prescription drugs are obtained from family and friends, including from the home medicine cabinet. In addition, Americans are now advised that their usual methods for disposing of unused medicines—flushing them down the toilet or throwing them in the trash—both pose potential safety and health hazards.
For more information about the disposal of prescription drugs or about the September 26 Take Back Day event, visit www.riag.ri.gov or www.dea.gov.
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Friday 18 September 2015
Woodlawn Man Exiled to 100 Months in Prison for Illegal Possession of Stolen Guns and AmmunitionRead the Press Release
Baltimore, Maryland – Chief U.S. District Judge Catherine C. Blake, sentenced Nishon Rainner, age 31, of Woodlawn, Maryland, today to 100 months in prison, followed by three years of supervised release, for being a felon in possession of guns and ammunition. Chief Judge Blake also sentenced Rainner to 18 months in prison, consecutive to the sentence on his gun conviction, for violation of his supervised release on a previous federal conviction.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge William P. McMullan of the Bureau of Alcohol, Tobacco, Firearms and Explosives - Baltimore Field Division; Chief James W. Johnson of the Baltimore County Police Department; and Baltimore County State’s Attorney Scott Shellenberger.
According to the evidence presented at Rainner’s three day trial and other court documents, on March 12, 2015, officers from the Baltimore County Police Department executed a search warrant at Rainner’s rented house in Woodlawn, as part of an investigation by the Baltimore County Regional Auto Theft Task Force into Rainner’s involvement in an organized automobile theft organization.
In the family room on the first floor of the house, police officers recovered a loaded 7.62 caliber AK-47 style semi-automatic rifle and an unloaded 12-gauge tactical shotgun stored together in a plastic bag leaning against the wall; the bag also contained other loose ammunition compatible with the AK-47. Inside a small closet nearby, which housed the water heater, officers located a loaded .40 caliber handgun above the doorframe. The handgun was located next to a sunglass case containing additional ammunition and a Washington, D.C. driver’s license with a picture of Rainner in the name “Gary Simon.” All three firearms were operational and none were secured or locked in any way to prevent them from being fired. Police also found a second Washington, D.C. license with a photograph of Rainner in the name of Rodney Nicolas. Further investigation revealed a third false Washington, D.C. driver’s license with Rainner’s picture in the name of Brandon Rucker. It was determined that the information on the false licenses matched that of individuals with those same names who lived in Florida and North Carolina.
During the execution of the search warrant at the Woodlawn house, police officers recovered three stolen cars and found the keys to the stolen cars hanging on a key rack in the main entry of the house.
During the search, officers also found mail with Rainner’s name and the address of the house in Woodlawn, as well as Washington, D.C. traffic citations issued to Gary Simon and correspondence addressed to “Rodney Nicholas,” and over $14,000 in cash. Finally, the police officers found a lease for the Woodlawn home, which was signed by Rainner, and a receipt for $10,600, for six-months’ rent, paid in cash. Rainner, his girlfriend, and her children ages 5 and 9, were present in the house at the time of the execution of the warrant, and were listed as the only occupants of the townhome on the lease.
Rainner subsequently agreed to make a statement to the officers. During interviews with police Rainner denied living at the Woodlawn residence. Rainner also told law enforcement that he did not know who owned the guns, nor how they had gotten into the house.
According to witness testimony, the firearms were stolen from their rightful owners. Bank records for Rainner indicated that on the dates two of the guns were stolen he was in the area where the thefts occurred. The third stolen weapon had been stored in the basement of a home where Rainner had previously lived and had stored items in the basement, as well.
Court documents show that Rainner has 16 previous convictions, including the illegal possession of firearms, stolen cars, false identifications, and false statements.
United States Attorney Rod J. Rosenstein commended the ATF, Baltimore County Police Department and Baltimore County State’s Attorney’s Office for their work in the investigation. Mr. Rosenstein thanked Special Assistant United States Attorney David P. Kehoe and Assistant U.S. Attorney Judson T. Mihok, who prosecuted the case.
Winnebago Man Sentenced for Shots Fired at A House and Parked CarRead the Press Release
United States Attorney Deborah R. Gilg announced that Roman Perales, age 17, was sentenced upon his conviction for assault with intent to damage real or personal property. Senior United States District Court Judge Lyle E. Strom sentenced Perales to 41 months imprisonment to be followed by three years of supervised release. Perales was further ordered to pay restitution in the amount of $780 for damage done to a vehicle. Although Perales is only 17 years of age, the United States was successful in having him treated as an adult due to the nature of the crime. Perales will be transferred to an adult correctional facility once he turns 18.
On September 22, 2014, a Winnebago resident drove to the Winnebago Police Station to report that someone had fired shots towards his residence and a vehicle parked in the driveway. The defendant was identified as a suspect because of a prior dispute the defendant had with an occupant of the residence. The defendant’s girlfriend told police that the defendant had told her he was going to do something to get even for an earlier assault against him. Another friend of the defendant told police that the defendant said he was going to shoot up the resident’s car. The defendant even boasted on Facebook that he was going to get revenge utilizing a Glock handgun.
Numerous shell casings were found on a hill behind the residence which would fit into a 9mm Glock. The investigation revealed that the vehicle in the driveway on the side of the home was struck numerous times by bullets. The homeowner and his family were inside the home at the time of the shooting and a bullet entered the home near where the homeowner’s family was sitting.
This case was investigated by the Bureau of Indian Affairs.
Washington Man Sentenced for Bringing Drugs and Prostitution to Missoula AreaRead the Press Release
MISSOULA – Yusuf Deshawn Reeves, 47, of Spokane Valley, Washington, was sentenced Thursday in Missoula federal court to drug and prostitution-related racketeering charges. In May, Reeves plead guilty to one count of conspiracy to possess with the intent to distribute methamphetamine and heroin and one count of interstate travel in aid of racketeering. Chief U.S. District Court Judge Dana Christensen Sentenced Reeves to 121 months incarceration on the conspiracy to distribute charge and 60 months for the racketeering charge. The sentences will run concurrently. Following his release, Reeves will be subject to five years supervised release for the drug charge and three years for the racketeering charge, also to run concurrently.
In an offer of proof filed by Assistant U.S. Attorney Cyndee Peterson, the government stated that if the case had proceeded to trial, the government would have demonstrated that between February and November of 2014, Reeves possessed and entered into an agreement with co-conspirators to distribute more than 50 grams of methamphetamine and more than 100 grams of heroin. In addition, between June and August of 2014, Reeves traveled in interstate commerce with the intent to promote, manage, establish, carry on or facilitate prostitution. The government was prepared to prove that during this time period, Reeves traveled between Spokane, Washington, and Missoula Montana, transporting drugs and at least four women with the intent to promote prostitution in violation of Montana Law. Reeves is the second of four co-conspirators to be sentenced in this prostitution and drug-running operation.
This case was prosecuted by Assistant U.S. Attorney Cyndee Peterson and investigated by the Federal Bureau of Investigation, Montana Violent Crime Task Force, Missoula Street Crimes Unit, Drug Enforcement Administration, and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
United States Intervenes in False Claims Act Lawsuit against Mississippi Hospital, Two Individuals and Management Company for Overcharging Medicare ProgramRead the Press Release
The United States has intervened in a lawsuit and filed a complaint against H. Ted Cain, Julie Cain, Corporate Management Inc. and Stone County Hospital Inc. for submitting false claims to the Medicare program by knowingly charging excessive and ineligible expenses from 2002 to the present. Stone County Hospital is a critical access hospital located in rural Mississippi. Corporate Management Inc. is a management company that provides management services to Stone County Hospital. Ted Cain owns and controls the hospital and the management company.
Most acute care hospitals are reimbursed by Medicare under a variety of prospective payment systems, which provide a fixed payment based on a patient’s diagnosis or treatment. However, to encourage hospital coverage in rural, underserved areas, critical access hospitals, like Stone County Hospital, are exempted from these prospective payment systems and are entitled to receive 101 percent of the actual and allowable costs of providing Medicare beneficiaries with outpatient, inpatient, laboratory, ambulance and post-acute care services. However, Medicare requires that costs charged by critical access hospitals be reasonable and necessary. Medicare also prohibits hospitals from charging the program for luxury items, like expensive automobiles.
The government’s complaint alleges that Ted and Julie Cain, the hospital and the management company abused the special Medicare rules for rural hospitals. In particular, the government contends that the Cains claimed to be serving the hospital in various management and directorship positions but in fact did little of the work for which the hospital paid them and any work they did duplicated work performed by the hospital and the management company staff, which were also paid by the hospital. The government also contends that Ted Cain improperly claimed the expenses for his personal luxury automobiles on the hospital’s cost reports and his management company wrongfully charged to the hospital work that Cain did at his other businesses.
“The Medicare reimbursement rules for critical access hospitals are intended to ensure that Medicare beneficiaries living in rural areas receive access to the health care services they need,” said Principal Deputy Assistant Attorney General Benjamin C. Mizer, head of the Justice Department’s Civil Division. “We will aggressively pursue providers who try to take advantage of these rules to line their own pockets.”
“In a state like ours where nearly a third of the hospitals are critical access hospitals, many of our citizens depend on this very important system, and we will protect it by ferreting out fraud where it exists,” said U.S. Attorney Gregory K. Davis of the Southern District of Mississippi.
The government’s complaint was filed in a lawsuit initially brought under the qui tam, or whistleblower, provisions of the False Claims Act, which permit private parties to sue on behalf of the government for false claims for government funds and to share in any recovery. The act permits the United States to intervene and take over the lawsuit, as it has done in this case. If a defendant is found liable under the act, the defendant is subject to trebles damages and penalties.
The United States’ suit is part of the government’s emphasis on combating health care fraud and another step for the Health Care Fraud Prevention and Enforcement Action Team (HEAT) initiative, which was announced in May 2009 by the Attorney General and the Secretary of Health and Human Services. The partnership between the two departments has focused efforts to reduce and prevent Medicare and Medicaid financial fraud through enhanced cooperation. One of the most powerful tools in this effort is the False Claims Act. Since January 2009, the Justice Department has recovered a total of more than $25 billion through False Claims Act cases, with more than $16 billion of that amount recovered in cases involving fraud against federal health care programs.
The matter was investigated by the Civil Division’s Commercial Litigation Branch, the U.S. Attorney’s Office of the Southern District of Mississippi and the Department of Health and Human Services’ Office of Inspector General. The claims asserted against Ted and Julie Cain, Corporate Management and Stone County Hospital are allegations only, and there has been no determination of liability.
The case is captioned United States ex rel. Aldridge v. Cain, et al., Case No. 3:07-CV-309 HTW-LRA (S.D. Miss.).
Two Maryland residents charged with illegal gun traffickingRead the Press Release
MARTINSBURG, WEST VIRGINIA – A federal grand jury has returned an indictment charging Jarrud Michael Dixon, 26, of New Market, Maryland, and Robert Sales, 32, of Mt. Airy, Maryland, with unlawful firearms trafficking, United States Attorney William J. Ihlenfeld, II, announced.
An investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives revealed that Dixon and Sales conspired with a licensed firearms dealer in Pocahontas County, West Virginia to unlawfully transport firearms across state lines. The firearms dealer was prohibited from transporting firearms across state lines except for sales to certain authorized individuals. Throughout 2013 and 2014, Dixon and Sales are alleged to have repeatedly unlawfully transferred firearms from West Virginia into Maryland. The defendants falsely reported that Dixon’s girlfriend was the intended recipient of the firearms because she had a West Virginia ID card. In fact, Maryland residents Dixon and Sales were the true purchasers of the firearms.
"This investigation was partnership between ATF offices in West Virginia, Baltimore, and the Baltimore Police Department," said Stuart Lowrey, ATF Special Agent in Charge of the Louisville Field Division, which covers West Virginia and Kentucky. "Illegal gun trafficking has direct and devastating results on our communities, as is obvious from the number of firearms in this case that have already been recovered in crimes. The public entrusts Federal Firearms Licensees with significant responsibility for preventing firearms trafficking, and ATF will aggressively pursue those who breach that trust."
Dixon and Sales are each charged with one count of “Conspiracy to Illegally Traffic Firearms.” They each face up to five years in prison and a fine of up to $250,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendants.Assistant U.S. Attorney Stephen Warner is prosecuting the case on behalf of the government.
An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
Two Kilos of Pure Meth Lands Couple in Federal PrisonRead the Press Release
CORPUS CHRISTI, Texas – A couple from South Texas have been handed significant sentences following their convictions of conspiracy to possess with intent to distribute methamphetamine, announced U.S. Attorney Kenneth Magidson. Pedro Candelaria, 24, of Pharr, and Cynthia Marez, 31, of McAllen, pleaded guilty June 4, 2015, and March 5, 2015, respectively.
Today, U.S. District Judge Nelva Gonzales Ramos sentenced Candelaria to 156 months in federal prison, while Marez was ordered to serve a 84-month-term of imprisonment. Both were also ordered to serve five years of supervised release following their sentences.
In January 2015, Border Patrol (BP) agents conducted an inspection of a passenger bus that arrived at the Falfurrias checkpoint. During that inspection, they discovered several vacuum-sealed bags strapped to Marez’s body which contained approximately 2.2 kilograms of methamphetamine. The investigation also led to the arrest of Candelaria who had been Traveling with Marez. Laboratory analysis determined that the methamphetamine had a purity level of 97%.
In federal custody since their arrests, Candelaria and Marez will remain in custody and serve their sentences at a U.S. Bureau of Prisons facility to be designated in the near future.
The convictions stem from an investigation by the Drug Enforcement Administration and BP. Assistant U.S. Attorney Lance Watt is prosecuting the case.
Two Anchorage Residents Charged in A 49-Count Indictment with Conspiracy, Bank Fraud and Aggravated Identity TheftRead the Press Release
Anchorage, Alaska - U.S. Attorney Karen L. Loeffler announced today that two Anchorage residents were charged in a 48-count indictment alleging that the two conspired to obtain checks from vehicle break-ins, burglaries, and mail theft, and then negotiated the stolen checks and opened bank accounts using stolen identification.
Kelci Neal, age 26, and Zachary Ensman, age 31, both of Anchorage, were charged in a 48-count indictment that includes charges of conspiracy, bank fraud, possession of stolen mail, and aggravated identity theft.
According to Assistant U.S. Attorney Aunnie Steward, who presented the case to the grand jury, Neal and Ensman conspired together to use stolen checks and stolen identities at banks and businesses in Anchorage from October 2014, to August 2015, to obtain over $47,000.
Ensman appeared in court today on the charges. Neal’s whereabouts are unknown. Anyone with information regarding the location of Neal please contact the U.S. Postal Inspection Service in Anchorage at 907-261-6321. See the photos at the end of this release.
The law provides for a maximum sentence of 30 years in prison and a fine of $1 million or both. Under federal sentencing statutes, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
The United States Postal Inspection Service and the Anchorage Police Department conducted the investigation leading to the indictment in this case.
An indictment is only a charge and is not evidence of guilt. A defendant is presumed innocent and is entitled to a fair trial at which the government must prove guilt beyond a reasonable doubt.
Tobyhanna Man Pleads Guilty to Passing $8,500 in Counterfeit Currency in Area CasinosRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Jason Mitchell, age 30, Tobyhanna, Pennsylvania, pleaded guilty to conspiracy in dealing in counterfeit United States Federal Reserve Notes. The guilty plea was entered before U.S. District Judge James M. Munley in Scranton.
According to U.S. Attorney Peter Smith, Mitchell was charged in an indictment by a grand jury in November 2014. Mitchell and others conspired to receive, exchange, transfer, and pass approximately $8,500 in counterfeit $100 Federal Reserve Notes at the Mount Airy Casino in Mount Pocono and the Mohegan Sun Casino in Plains during June 2014.
The plea is subject to the approval of the court. Judge Munley scheduled sentencing for December 18, 2015.
The case was investigated by the United States Secret Service and the Pennsylvania State Police, Bureau of Gaming Enforcement. Prosecution is assigned to Assistant United States Attorney Michelle Olshefski.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law is 5 years of imprisonment, a term of supervised release following imprisonment, and a $250,000 fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Three New Orleans Area Postal Workers Charged for Theft of MailRead the Press Release
U.S. Attorney Kenneth A. Polite announced three separate criminal matters, charging United States Postal employees for theft of mail.
According to a four-count Indictment, on or about July 18, 2015, and again on or about July 22, 2015, ANISHA GALLIN, age 27, stole the contents of four first-class letters.
A second one-count Indictment alleges that, in or about December 2013, O’NEIL EDWARDS, age 27, stole two $100 gift cards from mail sent from Las Vegas to Belle Chasse.
Lastly, a three-count Bill of Information charges that, on or about July 9, 2014, JOSHUA GRESHAM, age 27, removed $370 in cash from three greeting cards while on his postal route.
If convicted, each defendant faces a maximum term of imprisonment of five years, followed by three years of supervised release, a maximum fine of $250,000, and restitution, as to each count.
U.S. Attorney Polite reiterated that the Indictments and Bill of Information merely contain charges and that the guilt of each defendant must be proven beyond a reasonable doubt.
U.S. Attorney Polite praised the work of the U.S. Postal Service, Office of Inspector General for investigating this matter. Assistant U.S. Attorney G. Dall Kammer is in charge of prosecuting all three matters.
Three Defendants Arrested in Multi-County Meth DistributionRead the Press Release
BOISE - Diego Alejandro Alcantar-Armenta, 29, and Daniel Valdenegro-Zafiro, 24, of Elko, Nevada, and Jose Antonio Diaz-Juarez, 44, of Grandview, Idaho, were indicted on September 9, 2015, by a federal grand jury in Boise for one count of conspiracy to distribute methamphetamine and two counts of possession with intent to distribute methamphetamine, U.S. Attorney Wendy J. Olson announced. An initial appearance was held on September 18, 2015, for all of the defendants.
The Indictment alleges that between July 24, 2015, and September 8, 2015, the defendants conspired with each other to distribute methamphetamine in the state of Idaho. On two occasions the defendants are alleged to have possessed with the intent to distribute methamphetamine in Ada County.
The penalties for the charges vary—depending on the facts for each charge—from not more than twenty years in prison, to not less than five years mandatory minimum up to forty. The maximum fine for each of the charged offenses varies from $1,000,000 to $5,000,000. The number of years of supervised release following any incarceration for the charged offenses varies from three years to four years.
A trial is set for November 16, 2015, before Chief U.S. District Judge B. Lynn Winmill at the federal courthouse in Boise.
The case is being investigated by the Drug Enforcement Administration, Ada County Sheriff’s Office, Elmore County Sheriff’s Office, Owyhee County Sheriff’s Office, and the Elko Combined Narcotic Unit of Elko, Nevada.
The case is being prosecuted by the Special Assistant U.S. Attorney hired by the Ada County Prosecuting Attorney’s Office and the Idaho High Intensity Drug Trafficking Area Board. The Idaho High Intensity Drug Trafficking Board is a collaboration of local law enforcement drug task forces and prosecuting agencies dedicated to addressing regional drug trafficking organizations that operate in Ada, Canyon, and Malheur County.
An indictment is a means of charging a person with criminal activity. It is not evidence. The person is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Three Charged with Defrauding West Chester Company of MillionsRead the Press Release
PHILADELPHIA – Douglas S. Rae, 58, of Bethlehem, PA, was charged today by indictment with participating in several schemes to defraud his former employer, a company based in West Chester, PA, of millions of dollars. Rae is charged with seven counts of mail fraud, 25 counts of wire fraud and conspiracy to commit wire fraud, and three counts of money laundering, announced United States Attorney Zane David Memeger.
In related matters, also charged today by information were John R. Hodde, 53, of Aubrey, TX, and Michael H. Keppler, 55, of Ridgewood, NJ. Hodde and Keppler are separately charged with two counts of wire fraud and conspiracy to commit wire fraud for their alleged participation, along with Rae, in schemes to defraud Rae’s former employer.
According to the indictment, between 2006 and 2013, Rae devised a scheme to defraud his employer by submitting invoices from two companies he controlled for goods and services that were never delivered. Rae controlled the bank accounts for the two companies, Lighting Equipment Sales and Service, Inc. (“LESS”), and Lighting Products International, Inc. (“LPI”). He caused the victim company to pay over $900,000 for bogus LESS and LPI invoices, and he took the proceeds for his own personal use.
The charging documents further allege that from 2007 through 2013, Rae and Hodde devised a scheme to defraud Rae’s employer by submitting bogus invoices from Hodde’s employer, Barbizon Capitol, Inc. (“Barbizon”). One of the ways the men allegedly carried out this scheme began with Hodde allowing Rae to use Hodde’s corporate credit card account, which Rae used to for personal expenditures such as home appliances, airline tickets for him and his wife to visit their vacation home, personal electronics, and dental services. It is further alleged that Rae and Hodde then worked together to create bogus invoices from Barbizon to Rae’s employer for purported product sales, when in fact Barbizon did not supply any of the product. Rae and Hodde created the bogus invoices in amounts to reimburse Barbizon for all of Rae’s personal expenditures on the Barbizon credit card account, plus an approximately 10% mark-up, which Barbizon kept. In this manner, Rae and Hodde allegedly caused the victim company to pay over $560,000 for bogus invoices submitted to it from Barbizon. The other way Rae and Hodde allegedly carried out their scheme involved Rae submitting bogus invoices from LESS and LPI to Barbizon, and then at Rae’s direction, Hodde allegedly generated corresponding bogus invoices from Barbizon to Rae’s employer, along with an approximate 10% mark-up for Barbizon to keep.
Neither LESS, LPI, nor Barbizon supplied any of the product for which the victim company was invoiced. In this manner, according to the charging documents, Rae and Hodde caused the victim company to pay over $200,000 for the bogus invoices. Barbizon retained approximately 10% of those proceeds, and the remainder were forwarded to LESS and LPI and deposited into bank accounts controlled by Rae.
Between 2010 and 2012, Rae and Keppler allegedly devised a scheme to defraud Rae’s employer by submitting bogus invoices from Keppler’s company, Keppler Engineers, LLC (“Keppler Engineers”). Rae directed Keppler to generate invoices from Keppler Engineers to Rae’s employer that contained particular item descriptions, descriptions of services, and specific prices, and Keppler did as directed. Rae and Keppler caused those invoices to be submitted to the victim company for payment. The victim company paid Keppler Engineers for the invoices, and then Keppler Engineers paid all but approximately 10% of the proceeds to LPI, which Rae deposited into bank accounts he controlled. Neither Keppler Engineers nor LPI provided the products or services to the victim company. According to the charging documents, Rae and Keppler caused the victim company to pay over $170,000 for the bogus invoices from Keppler Engineers.
Rae is further charged with conducting three separate financial transactions of over $10,000 each in criminally derived proceeds.
If convicted, Rae faces up to 20 years in prison on each count of mail fraud, wire fraud, and conspiracy to commit wire fraud, and up to ten years in prison on each count of money laundering. He also faces up to three years of supervised release, full restitution, a fine, a $3,500 special assessment, and criminal forfeiture. Hodde and Keppler each face up to 20 years in prison on each count of wire fraud and conspiracy to commit wire fraud, full restitution, three years of supervised release, a $500,000 fine, and a $200 special assessment.
The case was investigated by the Federal Bureau of Investigation and is being prosecuted by Assistant United States Attorney Nancy E. Potts.
Third Commercial Trash Hauler Admits to Bribing Baltimore City Landfill EmployeesRead the Press Release
Baltimore, Maryland – Larry Lowry, age 61, of Orchard Beach, Maryland, pleaded guilty today to conspiracy and bribery in connection with a scheme in which commercial haulers paid Department of Public Works (DPW) employees cash in return for allowing the haulers to deposit trash at the Quarantine Road Landfill (Landfill) without paying the required disposal fees.
The plea agreement 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; Robert H. Pearre, Jr., Inspector General, City of Baltimore Office of Inspector General; Special Agent in Charge Thomas Jankowski of the Internal Revenue Service - Criminal Investigation, Washington, D.C. Field Office; and Colonel William M. Pallozzi, Superintendent of the Maryland State Police.
The DPW’s Bureau of Solid Waste is responsible for managing Baltimore City’s waste management services, including overseeing citizen drop-off centers, such as the Northwest Transfer Station (NWTS) and the Landfill. Baltimore City’s waste management system generates revenue for the City by collecting and selling recyclable scrap metal dumped at the City’s trash collection facilities. The City contracts with private salvage companies to purchase and remove scrap metal from its trash collection facilities. DPW employees at the Landfill and NWTS are required to place the recyclable scrap metal in separate bins provided by the salvage companies. The salvage companies regularly pick up the scrap metal and, based on predetermined prices per ton, the salvage companies pay the City for the value of the scrap metal.
Baltimore City residents can deposit small amounts of trash and/or recyclables in dumpsters located near the main entrance of the Landfill, free of charge. Individuals or companies commercially hauling trash that have registered their vehicles with the City and obtained Landfill permits, as well as Baltimore City residents with larger loads, must deposit their trash in an open area located farther within the Landfill. Commercial haulers of trash that meet certain vehicle weight limitations must, in addition to purchasing a Landfill permit, pay a waste disposal fee of $67.50 per ton of trash deposited at the Landfill.
DPW employees assigned as scale house operators weigh each truck as it enters the Landfill, which is recorded on a computerized point-of-sale system. To activate the system and record a particular transaction, DPW employees must enter the tag number of the truck and a corresponding billing code. The scale house operators reweigh each truck as it leaves the Landfill. The net weight of the deposited trash and the required disposal fee is then calculated and printed on a receipt that is handed to the driver.
According to his plea agreement, beginning in 1988, Lowry was in the business of collecting and hauling trash to the Landfill when he learned from a friend that he could avoid paying the disposal fee if he paid a cash bribe to the scale house operators. The friend introduced Lowry to William Nemec and others to whom Lowry paid $100 per trip in lieu of the usual dumping fee. This continued for approximately two years until Lowry stopped using the Landfill. In 2010, Lowry approached Nemec and told him that he wanted to start using the Landfill again for free. Thereafter Lowry paid a $100 cash bribe, usually to Nemec, but sometimes to others. Paying the $100 bribe for each trip he made to the Landfill saved Lowry thousands of dollars in fees each month. When Lowry first started paying the bibes he would hand the money to the scale operator through the outbound window at the scale house. Later, he usually met Nemec at an off-site location where he would pay a week’s worth of bribes or more. Lowry always paid the bribes in cash. While he was paying the bribes Lowry received phony receipts from the scale house operators at the outbound window. From July 1, 2014 to May 1, 2015 alone, Williams paid more than $20,000 in bribe payments in lieu of paying the required waste disposal fees, which totaled approximately $60,000.
As part of his plea agreement, Lowry has agreed to forfeit and pay restitution of $350,000.
Lowry faces a maximum sentence of five years in prison for the conspiracy and 10 years in prison for bribery. U.S. District Judge Marvin J. Garbis has scheduled sentencing for Williams on January 8, 2016 at 10:00 a.m.
Former DPW employees Tamara Oliver Washington, age 55, and William Charles Nemec, Sr., age 55, both of Baltimore; and commercial haulers Mustafa Sharif, age 63, of Baltimore, and Adam Williams, Jr., age 52, of Randallstown, have pleaded guilty to their participation in the bribery scheme. Nemec and another DPW employee, Michael Theodore Bennett, age 46, also of Baltimore, have pleaded guilty to a related “junking” scheme. Washington is scheduled to be sentenced on October 20, 2015, Williams on October 21, 2015, Sharif on November 6, 2015, Nemec on November 17, 2015, and Bennett on December 21, 2015. Washington and Nemec have each agreed to the entry of an order to pay $6 million in restitution. Sharif has agreed to forfeit and pay restitution of $500,000 and Williams has agreed to forfeit and pay restitution of $900,000. As part of his plea agreement, Bennett agreed to the entry of an order to pay restitution of $526,273.
United States Attorney Rod J. Rosenstein praised the FBI, IRS-CI, Baltimore Office of Inspector General, and Maryland State Police for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorney Martin J. Clarke, who is prosecuting the case.
Tenth Defendant Pleads Guilty to Tax Fraud SchemeRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that a Springfield, Mo., woman has pleaded guilty in federal court to her role in a fraudulent tax return preparation scheme that claimed nearly $340,000 in fraudulent income tax refunds.
Amanda Leigh Boyd, 33, of Springfield, pleaded guilty before U.S. Magistrate Judge David P. Rush on Thursday, Sept. 17, 2015, to three counts of making false claims.
Co-defendant Cherie Christine Dupuis, 43, of Springfield, pleaded guilty on July 21, 2015, to leading the fraudulent tax return preparation conspiracy. Dupuis admitted that she and co-conspirators defrauded the government by filing false claims for income tax refunds from February 2009 to March 2012. In the false and fraudulent federal income tax returns they prepared and filed, conspirators claimed refunds from the IRS totaling approximately $340,630, of which approximately $336,839 was false. Over the course of the scheme, the total actual tax loss to the IRS was $284,169.
Dupuis admitted that she filed fraudulent federal income tax returns in her own name and for at least 19 other individuals. Dupuis would usually split the fraudulent refunds with her co-conspirators. The total amount of the false claims Dupuis personally prepared and/or filed was approximately $298,708, with approximately $256,281 being paid on these false claims and a loss to the government of approximately $213,711.
Boyd admitted that she aided and abetted Dupuis, and was aided and abetted by Dupuis, in the filing of false federal income tax returns with the IRS for the 2009, 2010 and 2011 tax years. Boyd claimed tax refunds to which she knew she was not entitled. Boyd provided her personal information to Dupuis, which Dupuis then used to file false income tax returns that falsely listed wages that had not been earned and federal income tax withholdings that had not been withheld. As a result, Boyd fraudulently received a total of $29,409 in fraudulent income tax refunds and she paid approximately half of that amount to Dupuis.
Boyd is the 10th defendant to plead guilty to her role in the scheme. In addition to Dupuis, co-defendants Johnny L. Cooper, 28, and Jeannie Marie Rhodes, 34, both of Springfield; Heather Nicole Drennen, 32, of Cameron, Mo., formerly of Springfield; Shawna Marie Hughey, 37, of Joplin, Mo., formerly of Springfield; William J. Coonce, 29, of Otterville, Mo.; Jeannette R. Dunn, 48, of Huntsville, Ark., formerly of Springfield; Asia Michelle Couchman, 26, of Oak Grove, Mo.; and Delbert L. Allen, 37, of Pleasant Hope, Mo., formerly of Springfield, have also pleaded guilty.
Under federal statutes, Boyd is subject to a sentence of up to 15 years in federal prison without parole, plus a fine up to $750,000 and an order of restitution. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Steven M. Mohlhenrich. It was investigated by IRS-Criminal Investigation.
Tax Return Preparer Pled Guilty to Filing a False Claim with the IRSRead the Press Release
A tax return preparer pled guilty to filing a false claim with the Internal Revenue Service (IRS).
Wifredo A. Ferrer, U.S. 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.
Joseph Akins Owanikin, a/k/a Joe Akins, of Fort Lauderdale, pled guilty to one count of filing a false claim with the Internal Revenue Service, in violation of Title 18, United States Code, Section 287. At sentencing, the defendant faces a maximum statutory sentence of five years in prison.
According to court documents, Owanikin was a professional tax return preparer and operated Akins Financial Inc., a/k/a Akins Financial Services, in Miami-Dade County. The defendant obtained an Electronic Filing Identification Number (EFIN) so that he could submit tax returns electronically to the IRS in the names of other individuals. Owanikin knowingly filed a false and fraudulent claim, that is, a false 2008 individual United States income tax return and supporting documents, including IRS Form 5405 for the First-Time Homebuyer Credit, fraudulently claiming a tax refund of $7,500.
Owanikin is scheduled to be sentenced on December 1, 2015 at 10:30 a.m. before Judge William J. Zloch.
Mr. Ferrer commended the investigative efforts of IRS-CI. The case is being prosecuted by Assistant U.S. Attorney Roger Cruz.
A copy of this press release may be found on the website of the United States Attorney’s Office for the Southern District of Florida at www.usdoj.gov/usao/fls. 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.
Tampa Restaurant Owner Sentenced for Receiving Stolen PropertyRead the Press Release
Tampa, Florida – U.S. District Judge Elizabeth A. Kovachevich today sentenced Charvester Anthony to four years and three months in federal prison for receiving stolen government property. As part of his sentence, the Court entered a money judgment in the amount of $31,000, the proceeds of the charged criminal conduct. A federal jury found him guilty on June 18, 2015.
According to court documents, Anthony, who owned and operated several restaurants in Tampa, received and cashed more than 30 federal income tax return checks, knowing that they had been obtained by fraud. The checks totaled more than $250,000.
This case was investigated by the Internal Revenue Service - Criminal Investigation. It was prosecuted by Assistant United States Attorney Bob Mosakowski.
St. Petersburg Man Sentenced for Attempting to Entice Children Online and for Sending Obscene MaterialRead the Press Release
Tampa, FL – U.S. District Judge Charlene Edwards Honeywell today sentenced Sandi S. McGann (30, St. Petersburg) to 10 years in federal prison for attempting to entice and coerce minors to engage in illegal sexual activity, and for transferring obscene matter to individuals that he believed were under the age of 16.
According to court documents, between December 10, 2014, and February 12, 2015, McGann communicated online and attempted to persuade a 14-year-old “child” to engage in illegal sexual activity with him. The “child” actually was an undercover agent from U.S. Immigration and Customs Enforcement’s Homeland Security Investigations posing as a ninth grade girl living in Clearwater. Further investigation revealed that McGann had also engaged in sexually explicit online chats with another Homeland Security agent posing as a child online. He also communicated online with a 14-year “child” living in California named “Amanda.” “Amanda” was actually the founder of the “Demand Project,” a nonprofit organization in Oklahoma designed to help law enforcement identify individuals who pose a risk to children. During the various online chat sessions with individuals McGann believed were under the age of 16, McGann repeatedly masturbated while on his webcam.
“Predators who target innocent children for their own criminal gratification are warned that law enforcement will not rest until they are brought to justice,” said Susan L. McCormick, special agent in charge of HSI Tampa. “HSI, along with our federal, state, and local partners, will continue identifying and arresting those who would even attempt to victimize the young and defenseless in such a deplorable way.”
This case was investigated by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations. It is being prosecuted by Assistant United States Attorney Amanda C. Kaiser.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Sixteen Sentenced for Importing Cocaine from Jamaica and Distribution Throughout Eastern North CarolinaRead the Press Release
NEW BERN - United States Attorney Thomas G. Walker announces that fifteen individuals were sentenced for their involvement in an international cocaine trafficking organization. All 16 were part of the same drug trafficking organization operating in the Elizabethtown and Bladen County area. The organization was importing the cocaine from Jamaica for distribution.
The following individuals were indicted on February 11, 2014. Count 1 charged conspiracy to distribute and possess with intent to distribute 5 kilograms or more of cocaine from September 2008 to February 11, 2014. Count 2 charged conspiracy to import 5 kilograms or more of cocaine into the United States from September 2008 to February 11, 2014 and Count 3 charged distribution of a quantity of cocaine on April 24, 2013. All pleaded guilty and were sentenced to the following. The count of the indictment they pleaded to is annotated as well.
- Shawn Melvin, a/k/a “Gutta” 41, of Elizabethtown, NC – Count 1, 190 months & 5 years supervised release
- Veronica Kemp, 43, of Elizabethtown, NC – Count 1, 120 months & 5 years supervised release
- Alicia McCoy, 25, of Lumberton, NC – Count 1, 24 months & 2 years supervised release
- Jonathan Shipman, 35, of Elizabethtown, NC – Count 3, 108 months & 3 years supervised release
The following individuals were indicted on May 27, 2014. Count 1 charged each with conspiracy to distribute cocaine from January 2004 to May 27, 2014. Count 2 charged each with conspiracy to import cocaine from January 2004 to May 27, 2014. Each was later sentenced to the following terms of incarceration:
- Clayton Leslie, a/k/a “Tyrone Gordon” and “Jamaica”, 37, of Elizabethtown, NC – Count 1, 120 months & 5 years supervised release
- Don Smith, 32, of Elizabethtown, NC – Count 1, 22 months & 2 years supervised release
- Felicia Smith, 39, of Clarkton, NC – Count 1, 18 months & 3 years supervised release
- Terri Smith, a/k/a “Bit Bit”, 31, of Clarkton, NC – Count 1, 5 months & 3 years supervised release
- Levi McGowan, 44, of Columbus, OH – Case transferred to Southern District of Ohio, where the defendant received a sentence of 27 months & 3 years supervised release
- Turkesa Lesane, 35, of Elizabethtown, NC – Count 1, 4 months & 3 years supervised release
- Lawrence Roberson, 49, of Fayetteville, NC – Count 1, 30 months & 4 years supervised release
- Grant McCoy, 31, of Clarkton, NC – Count 1, 30 months & 5 years supervised release
- Kevisha Brown, 25, of , NC – Count 1, 32 months & 3 years supervised release
- Antonio Williams, 45, of Poughkeepsie, NY – Count 1, 141 months & 5 years supervised release
- Michael Ellison, 45, of Bronx, NY – Count 1, 56 months & 4 years supervised release
The following individual pleaded guilty to use of a communication facility in committing or in causing or facilitating a drug trafficking offense; aiding and abetting:
- David McLaughlin, 43, of Orlando, FL – 96 months & 1 year supervised release
In 2011, the United States Department of Homeland Security established the existence of a drug trafficking organization that smuggled cocaine into the United States from several Caribbean islands, including Jamaica, Curacao, and Trinidad. The organization, based in Bladen County, North Carolina, was formed in 2004 by Tyrone Gordon, Shawn Melvin, and Melvin’s wife, Veronica Kemp.
The organization was primarily supplied cocaine by unindicted Jamaican nationals and they recruited Alicia McCoy, Don Smith, Felicia Smith, Terri Smith, Levi McGowan, Turkesa Lesane, David McLaughlin, Lawrence Roberson, Grant McKoy, Kevisha Brown, Antonio Williams, and Michael Ellison to travel to the Caribbean islands to ingest or conceal pelletized cocaine in their body cavities or undergarments. The couriers smuggled the cocaine into the United States via several airports, including those in Charlotte, North Carolina; Miami, Florida; New York, New York; Atlanta, Georgia; Chicago, Illinois; Fort Lauderdale, Florida; and Memphis, Tennessee. These couriers made a total of 52 international flights for the organization. When the couriers returned to the United States, they regurgitated or passed the cocaine pellets and gave them to Melvin, Kemp, and/or Gordon for distribution. On occasion, some of the couriers were utilized to wire money overseas to individuals for cocaine purchases prior to the couriers’ travels. Melvin provided some of the cocaine to Jonathan Shipman, a drug dealer and high-level member of the United Blood Nation street gang in Bladen County. Investigation ultimately revealed that the organization illegally imported more than 11.5 kilograms of cocaine into the United States between 2004 and 2014.
The case was investigated by The Department of Homeland Security-Homeland Security Investigations, Office of the Resident Agent in Charge, Charlotte, NC; US Customs and Border Protection, Bladen County Sheriff’s Office, North Carolina Department of Public Safety-Division of Alcohol Law Enforcement, North Carolina Highway Patrol, North Carolina Department of Motor Vehicles-License and Theft Bureau, Maryland State Police, Elizabethtown Police Department, and the NC State Bureau of Investigation. Assistant U.S. Attorney Jennifer Wells prosecuted the case for the government.
Scottsdale Man Found Guilty of Premeditated Murder of Tribal Police OfficerRead the Press Release
PHOENIX – Earlier this week, Elijah Loren Arthur, Sr., 34, of Scottsdale, Ariz., was found guilty by a federal jury of first-degree murder and using a firearm in a crime of violence resulting in death. The case was tried before U.S. District Judge Steven P. Logan from Sept. 1-16, 2015. The defendant is being held after trial. Sentencing is set before Judge Logan on Nov. 30, 2015.
“The verdict in this case represents the culmination of an intensive investigation following the tragedy that took Officer Cabrera away from his family and his Salt River Police Department colleagues,” said U.S. Attorney John S. Leonardo. “Our office is determined to prosecute to the fullest extent of the law those who threaten, menace, or harm tribal law enforcement officers.”
“While the outcome of these proceedings does not change the fact a police officer was killed while performing his official duties, it will hopefully bring closure to the family and friends of Officer Jair Cabrera. The FBI remains committed to bringing justice to those responsible for senseless crimes such as these,” stated FBI Acting Special Agent in Charge Michael V. Caputo.
“Now that the verdict is in and the case has run its course through the criminal justice system, my department can begin to start the healing process. The verdict will never bring back our beloved fallen comrade but at least we know that the suspect in this case will not be able to do any harm to anyone else. On behalf of the men and women of the Salt River Police Department, and the supportive members of the Salt River Pima-Maricopa Police Department, we thank the Community for their continual support throughout this process and we especially thank the men and women of the U.S. Attorney’s Office, the FBI, and all of the surrounding agencies that assisted the SRPD with the prosecution of this case. Please keep the parents and significant others of Officer Jair Cabrera in your prayers.” stated Chief Patrick R. Melvin.
The evidence at trial showed that on May 24, 2014, Arthur used an AR-15 to shoot and kill Salt River Police Officer Jair Cabrera following a traffic stop on the Salt River Pima-Maricopa Indian Reservation. The evidence at trial also showed that Arthur’s affiliation with the East Side Bloods gang may have been a motivating factor for the killing. The driver of the vehicle that was stopped, Joey Michael Thomas, 22, of Scottsdale, Ariz., previously pled guilty to second degree murder and is scheduled to be sentenced on Nov. 6, 2015.
A conviction for first degree murder carries a mandatory penalty of life imprisonment, and a conviction for using a firearm in a crime of violence resulting in death carries a consecutive punishment of 10 years to life imprisonment, a $250,000 fine, or both.
The investigation in this case was conducted by Federal Bureau of Investigation and the Salt River Pima-Maricopa Police Department. The prosecution was handled by Tracy Van Buskirk and Thomas Simon, Assistant U.S. Attorneys, District of Arizona, Phoenix.
CASE NUMBER: CR-14-848-PHX-SPL
RELEASE NUMBER: 2015-082_ Arthur
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For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.
Ross County Business Owner Sentenced in Employment Tax Fruad CaseRead the Press Release
COLUMBUS, OHIO – Andrew J. Parish, 40, of Chillicothe, Ohio was sentenced to 18 months in prison, three years of supervised release, and was ordered to pay $341,336.46 in restitution to the Internal Revenue Service (IRS) for failing to account for and pay over employment taxes to the IRS. Parish previously pleaded guilty to the aforementioned charge on May 5, 2015.
Carter M. Stewart, United States Attorney for the Southern District of Ohio and Kathy A. Enstrom, Special Agent in Charge, Internal Revenue Service Criminal Investigation, Cincinnati Field Office announced the sentence handed down today by Senior U.S. District Judge James L. Graham.
According to court documents, between January 2009 and March 2009, Parish defrauded the IRS by failing to account for and pay over employment taxes. Parish was the owner and operator of Axiom Consulting Group, LLC (“Axiom”) and was responsible for collecting, truthfully accounting for, and paying over the employment taxes to the IRS from the employees of Axiom. Parish retained the services of an accounting firm that employed Certified Professional Accountants. One of the accounting firm’s responsibilities was to process the payroll for Axiom based on figures provided to them by Parish. The accounting firm was also retained to prepare Forms 941, Employer’s Quarterly Federal Tax Returns.
Parish did not follow the established payroll procedures and instead paid a majority of Axiom’s payroll by issuing the payroll checks himself to the Axiom employees. These payroll checks did contain withholding amounts for the required employment taxes owed. However, the amount of employment taxes that Parish withheld from his employees were never remitted to the IRS. In addition, Parish never provided the true amount of the wages paid to the employees to the accounting firm, causing the preparation of an inaccurate Form 941 for the period January 1, 2009 through March 31, 2009. In addition, it was Parish’s responsibility to transmit the Forms 941 to IRS, but he failed to do so.
The total tax loss to the IRS as a result of the non-payment of employment taxes was $341,336.46.
"IRS Criminal Investigation realizes the detrimental consequences of employment tax evasion. It results in the loss of tax revenue to the United States government and the loss of future social security or Medicare benefits for the employees," stated Kathy A. Enstrom, Special Agent in Charges, IRS Criminal Investigation, Cincinnati Field Office.
This case was prosecuted by Assistant United States Attorney Jessica H. Kim and was investigated by special agents of IRS-Criminal Investigation.
Retired Railroad Worker Sentenced for Disability FraudRead the Press Release
David E. Hunnicutt, age 58, of Macon, Georgia was sentenced September 16, 2015 by the Honorable Marc T. Treadwell, United States District Judge, in Macon, Georgia. Mr. Hunnicutt was sentenced to 12 months and a day imprisonment, he was ordered to pay $273,060.52 in restitution to the Railroad Retirement Board (RRB), and he was ordered to serve one (1) year on supervised release following imprisonment. On April 2, 2015, Hunnicutt pled guilty to an indictment which charged him with the offense of “False Statement,” a violation of 18 U.S.C. § 1001(a)(3). The maximum penalties for violation of this law are five (5) years imprisonment, a $250,000 fine, three (3) years supervised release, and a $100 mandatory assessment fee.
The RRB takes the place of Social Security for railroad workers and their families. Mr. Hunnicutt was employed as a brakeman for Norfolk Southern Corporation railroad from September 1979 through December 2001. On August 8, 2002, he filed for disability with the RRB. He reported no self-employment to the RRB on his application. At the time of his application, Hunnicutt was informed that he had a responsibility to report earnings and employment to the RRB, and he was informed that it is a crime to make a false statement to the RRB in order to receive disability benefits. Mr. Hunnicutt was granted disability and received payments from the RRB beginning September 2002 through 2013.
An investigation by the RRB Office of Inspector General established that Hunnicutt was the incorporator of Mid-Georgia Tractor Service, Inc. (MGTS) in 1997. MGTS was a domestic profit corporation, the business of which was landscape design, lawn maintenance, and irrigation. In addition to being the incorporator of this business, evidence showed that from 1997 through 2013 Hunnicutt was an active participant in the business, that he listed himself as owner of the business on a company internet website, that he was an officer and agent of the business, and that he wrote checks on the business account and received income from the business. On January 16, 2012, Hunnicutt filed a “Continuing Disability Report” with the RRB in which he falsely stated to the Board that he had no self-employment from June 1, 2002 through January 16, 2012.
“Disability payments are a great benefit for those who need them, often meaning the difference between making ends meet and facing personal financial ruin,” United States Attorney Michael Moore said. “The system is geared to help those who need it, not serve as a means of additional income for those who are not truly disabled. Mr. Hunnicutt failed to be honest about his situation. These types of claims put the disability compensation program in jeopardy by draining funds meant to help those who need it. In the Middle District of Georgia we will continue to use our resources to investigate and prosecute fraud with the hopes that these programs continue to be available for those who lawfully seek assistance.”
The case was investigated by the Railroad Retirement Board, Office of the Inspector General. Assistant United States Attorney Paul McCommon prosecuted the case on behalf of the Government.
Inquiries regarding the case should be directed to Pam Lightsey at the United States Attorney’s Office at 478-752-3511.
Project Safe Neighborhoods Grant Awarded to Milwaukee Police Department to Support the Milwaukee Homicide Review CommissionRead the Press Release
The United States Attorney’s Office announced today that the Milwaukee Police Department has been awarded a Project Safe Neighborhoods (PSN) Program grant of $294,668 to support the Milwaukee Homicide Review Commission (MHRC) efforts to reduce gun violence in the City of Milwaukee.
The PSN program, led by the United States Attorney, is a collaborative effort between federal, state, and local law enforcement and other community members to implement gang violence and gun crime enforcement, intervention and prevention initiatives within the Eastern District of Wisconsin. As key component of the Milwaukee PSN effort, the MHRC regularly brings together police, prosecutors, corrections, probation and parole, ATF, FBI and community service providers to review homicides and non-fatal shootings to better understand the problem of gun violence in the City of Milwaukee and seek solutions based on proven prevention and enforcement efforts developed around the country. The MHRC’s research-based, anti-violence program is being replicated in other major US cities.
The grant announced today will be used to enhance the MHRC work with law enforcement and corrections to focus on those individuals repeatedly involved as victims, witnesses, or suspects in shootings and associated violent crimes. The grant will be used to support research and intelligence efforts to identify the individuals and groups frequently involved in shootings, armed robberies, car-jackings and other violent crimes and coordinate the targeting of these individuals and their criminally involved associates for investigation and prosecution by joint federal, state, and local task forces.
In announcing the grant award today, Acting United States Attorney Greg Haanstad said, “The Milwaukee Police Department and the Milwaukee Homicide Review Commission are essential partners in the United States Department of Justice’s efforts to combat gun crime in Milwaukee. The US Attorney’s Office and our federal law enforcement partners look forward to working even more closely with our state and local partners on this focused effort to target those most prone to gun violence in Milwaukee.”
“When the Milwaukee Police Department and I commenced the Homicide Review process a decade ago, we envisioned effective partnerships with federal, state and local agencies as anticipated under this Project Safe Neighborhood grant,” said Mayor Tom Barrett. “I am confident that our system-wide partners will join us as we redouble our efforts and continually refine our focus to reduce gun violence and apprehend those who choose to victimize their neighborhoods with guns.”
MHRC is led by Mallory O’Brien, an epidemiologist with the Medical College of Wisconsin who is working out of the City of Milwaukee Health Department. Research support under the new grant will be provided by researchers from Indiana University and the University of Missouri who have been working as PSN research partners for many years.
Philadelphia Man Charged with Crimes Arising Out of Pharmacy RobberiesRead the Press Release
Philadelphia - Michael Katzin, was charged today by superseding indictment with one count of conspiracy to commit pharmacy burglary, one count of conspiracy to possess with the intent to distribute controlled substances, one count of pharmacy burglary, and one count of possession with the intent to distribute controlled substances, announced United States Attorney Zane David Memeger. The superseding indictment charges that the defendant conspired and agreed with Harry Katzin and Mark Katzin, both charged elsewhere, and others known and unknown to the grand jury, to enter Rite Aid pharmacies, including the Rite Aid pharmacy located at 1852 Brownsville Rd, Feasterville-Trevose, Pennsylvania on November 18, 2010, and the Rite Aid pharmacy located at 807 S. 4th Street, Hamburg, Pennsylvania on December 16, 2010, with intent to steal materials and compounds containing any quantity of a controlled substance, including amphetamine salts, dextroamphetamine, fentanyl, methylphenidate, dexmethylphenidate, morphine sulfate, meperidine, oxymorphone, tapentadol, codeine sulfate, hydromorphone, hydrocodone, hydrocodone APAP, hydrocodone chlorpheniram, oxycodone, and oxycodone APAP, each a Schedule II controlled substance; and whose replacement value was not less than $500, and to knowingly and intentionally possess these controlled substances with the intent to distribute them.
The superseding indictment further charges that the defendant burglarized the Rite Aid Pharmacy at 807 South 4th Street, Hamburg, Pennsylvania on December 16, 2010, with intent to steal materials and compounds containing any quantity of a controlled substance, including to Schedule II and other controlled substances, including amphetamine salts, dextroamphetamine, fentanyl, methylphenidate, dexmethylphenidate, morphine sulfate, meperidine, oxymorphone, tapentadol, codeine sulfate, hydromorphone, hydrocodone, hydrocodone APAP, hydrocodone chlorpheniram, oxycodone, and oxycodone APAP; all Schedule II controlled substances; and whose replacement value was not less than $500, and
If convicted, the defendant faces a maximum sentence of 70 years imprisonment, a $2,500,000 fine, 3 years supervised release up to lifetime supervised release, and a $400 special assessment. The case was investigated by agents from the Federal Bureau of Investigation, the Drug Enforcement Administration, the Pennsylvania State Police, the New Jersey State Police, the Philadelphia Police Department, the Southampton Township Police Department, and the Hamburg Borough Police Department, and has been assigned to Assistant United States Attorney Thomas M. Zaleski.
Palm Coast Man Pleads Guilty to Receiving Child Pornography over the InternetRead the Press Release
Jacksonville, Florida – United States Attorney A. Lee Bentley, III announced today that Gioacchino Campo (57, Palm Coast) has pleaded guilty to receiving child pornography over the Internet. He faces a minimum mandatory penalty of 5 years, up to 20 years, in federal prison. A sentencing date has not yet been set.
According to court documents, an FBI agent in Jacksonville began an undercover investigation to identify individuals that were accessing or trading images or videos depicting child pornography over the Internet. The agent identified a computer that was hosting images using a file sharing program, and the agent was able to download several files depicting child pornography from that computer. The computer was traced to Campo’s residence.
On March 11, 2014, agents and officers executed a federal search warrant at Campo’s residence and seized computers and other electronic media. During an interview, Campo stated that he had been downloading child pornography, and first became involved with it about five years ago. Forensic analyses of Campo’s computer revealed that it contained at least 50 videos depicting the sexual abuse of children.
This case was investigated by the Federal Bureau of Investigation in Jacksonville and Daytona Beach. It is being prosecuted by Assistant United States Attorney D. Rodney Brown.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
PCP Trafficker Sentenced to 12 Years in PrisonRead the Press Release
Baltimore, Maryland – Chief U.S. District Judge Catherine C. Blake sentenced Fitzgerald Stoney, Jr., age 42, of Glenarden, Maryland today to 12 years in prison followed by five years of supervised release for conspiring to possess with the intent to distribute one kilogram or more of phencyclidine (PCP) and two counts of possession with intent to distribute PCP.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge William P. McMullan of the Bureau of Alcohol, Tobacco, Firearms and Explosives - Baltimore Field Division; Chief Gary Gardner of the Howard County Police Department; and Chief James W. Johnson of the Baltimore County Police Department.
According to his plea agreement, detectives investigating the distribution of PCP in Howard County intercepted phone calls and text messages in 2013 which identified Stoney as trafficking in PCP. On November 7, 2013 law enforcement executed a search warrant at the home of a co-conspirator and seized 53 grams of PCP attributable to Stoney.
On December 1, 2013, Baltimore County Police arrested Stoney and seized 19 grams of PCP from him, which were intended for resale. On December 5th, Howard County Police arrested Stoney and one of his co-defendants, Soboyejo Sofidiya, and seized 178 grams of PCP from them which were intended for resale. Stoney and Sofidiya had been travelling back to Baltimore from New York where they had purchased PCP for resale.
On December 19, 2013, law enforcement executed a search warrant at the home of another co-conspirator and seized 315 grams of PCP attributable to Stoney.
To date, Soboyejo Sofidiya, age 33, of Laurel, Maryland and three other co-defendants have pleaded guilty to their participation in the drug conspiracy, and were sentenced to a period ranging from time served to 60 months.
United States Attorney Rod J. Rosenstein praised ATF and the Howard County and Baltimore County Police Departments for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorneys Leo J. Wise and Christopher Romano, who prosecuted the case.
Ohio Man Pleads Guilty to Defrauding Bradenton Medical PracticeRead the Press Release
Tampa, FL – United States Attorney A. Lee Bentley, III announces that David Brooks (44, Ohio) has pleaded guilty to mail fraud. He faces a maximum penalty of 20 years in federal prison.
According to the plea agreement, in October 2011, Brooks was hired as the Financial Accounting Manager at Coastal Orthopedics and Sports Medicine of Southwest Florida (Coastal), located in Bradenton. While working for Coastal, Brooks was convicted of theft, money laundering, and other fraud-related offenses in Ohio. In June 2013, after discovering this information, Coastal fired Brooks and commenced a review of its books and records.
Between January 2012 and June 19, 2013, Coastal found that Brooks had used company accounts to purchase more than $700,000 in American Express gift cards that he then used for personal expenses, including legal fees associated with his Ohio criminal case. He also had diverted payroll funds to himself above his normal salary. Brooks had altered the company’s books and records to cover up his actions.
In one instance, Brooks used ten different gift cards, paid for with Coastal’s funds, to purchase a 2012 Jeep Liberty. The gift cards were shipped to Brooks at Coastal on March 15, 2012, and four days later he used them to purchase the vehicle.
In total, Brooks used $702,091.60 of Coastal’s funds to purchase the gift cards for his own use. Together with the funds he diverted to pay himself over and above his salary, he defrauded the company out of approximately $858,883.
This case was investigated by the United States Secret Service and the Bradenton Police Department. It is being prosecuted by Assistant United States Attorney Mandy Riedel.
Nicholasville Man Sentenced to 84 Months for Distribution of Child PornographyRead the Press Release
LEXINGTON, Ky. — A Nicholasville man, who previously admitted that he made child pornography images available for download on the internet, has been sentenced to 84 months in federal prison.
On Thursday, Chief U.S. District Judge Karen Caldwell sentenced Jeffrey Treadway, 37, for distribution of child pornography. Under federal law, he must serve at least 85 percent of his prison sentence; and upon his release, he will be under the supervision of the U.S. Probation Office for 25 years.
According to court documents, in 2013, law enforcement identified several child pornography files available for download on the internet and traced the source of the images to Treadway’s computer, which was located at his home in Nicholasville.
The FBI searched Treadway’s computer and found over 20,000 thousand images of children, some of whom were under the age of 12, engaged in sexually explicit conduct. Treadway admitted that some of the images depicted adults sexually abusing children.
Kerry B. Harvey, U.S. Attorney for the Eastern District of Kentucky and Howard S. Marshall, Special Agent in Charge, FBI, jointly announced the sentence.
The investigation was conducted by the FBI and the Kentucky Regional Computer Forensic Laboratory (KRCFL). The case was prosecuted by Assistant U.S. Attorney David A. Marye.
Mexican National Indicted for Illegal ReentryRead the Press Release
U.S. Attorney Kenneth A. Polite announced that ADRIAN RIVERA-MENDOZA, age 35, a citizen of Mexico, was charged today in a one-count Indictment with illegal reentry into the United States after having been previously deported.
According to the Indictment, ADRIAN RIVERA-MENDOZA was encountered by Immigration & Customs Enforcement agents in the Eastern District of Louisiana on June 29, 2015, after records showed he had been previously deported from the United States to Mexico on October 29, 2012.
If convicted, ADRIAN RIVERA-MENDOZA faces a maximum term of imprisonment of two years, a maximum fine of $250,000, a maximum term of supervised release of one year, and a mandatory $100 special assessment.
U.S. Attorney Polite reiterated that an 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 Immigration & Customs Enforcement. Assistant U.S. Attorney Emily K. Greenfield is in charge of the prosecution.
Member of Drug Trafficking Organization Admits Role in Conspiracy to Sell Heroin in New Jersey; Another Sentenced to 10 Years in PrisonRead the Press Release
TRENTON, N.J. – A Monmouth County man pleaded guilty and another was sentenced today to prison in connection with their roles in a large-scale drug trafficking organization that distributed heroin in Ocean and Monmouth counties, U.S. Attorney Paul J. Fishman announced.
Tyshon Young, a/k/a “Young Money,” a/k/a “Young Boy,” 29, of Asbury Park, New Jersey, pleaded guilty before U.S. District Judge Peter G. Sheridan in Trenton federal court to an information charging him with one count of conspiracy to distribute heroin. Kenneth Greenhow, a/k/a “Fame,” 41, also of Asbury Park, was sentenced by Judge Sheridan to 120 months in prison. Greenhow pleaded guilty on May 11, 2015, to an information charging him with one count of conspiring to distribute heroin.
In March 2014, 21 alleged members of the “Britt-Young DTO,” a drug trafficking organization named after its leaders, Robert Britt and Rufus Young, were charged by criminal complaint with conspiring to distribute heroin. Nineteen of the defendants have pleaded guilty.
According to documents filed in this case and statements made in court:
Between February 2013 and March 2014, Tyshon Young conspired with Rufus Young and others to distribute heroin in Ocean and Monmouth counties. Tyshon Young admitted distributing between 40 and 60 grams of heroin in furtherance of the conspiracy. Greenhow admitted that between October 2013 and March 2014, he also participated in the conspiracy and distributed between 40 and 60 grams of heroin.
The distribution conspiracy charge to which Tyshon Young pleaded guilty carries a maximum potential penalty of 20 years in prison and $1 million fine. Sentencing is scheduled for Dec. 22, 2015.
In addition to the prison term, Judge Sheridan sentenced Greenhow to serve three years of supervised release.
U.S. Attorney Fishman credited special agents of the FBI, Red Bank Resident Agency, under the direction of Special Agent in Charge Richard M. Frankel, with the investigation leading to today’s sentencing and guilty plea.
The government is represented by Assistant U.S. Attorney Nicholas Grippo of the U.S. Attorney’s Office Criminal Division in Newark.
The allegations in complaint against the remaining defendants are merely accusations, and they are presumed innocent unless and until proven guilty.
Defense Counsel:
Young: James R. Murphy Esq., Princeton, New Jersey
Greenhow: Mark Davis Esq., Trenton
Medical Biller Sentenced to 45 Months in Prison for Role in $4 Million Health Care Fraud SchemeRead the Press Release
The medical biller of a Chicago-area visiting physician practice was sentenced today to 45 months in prison for her role in a $4 million health care fraud scheme.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Zachary T. Fardon of the Northern District of Illinois, Special Agent in Charge Lamont Pugh III of the U.S. Department of Health and Human Services-Office of Inspector General (HHS-OIG) in Chicago and Acting Special Agent in Charge John A. Brown of the FBI’s Chicago Division made the announcement.
Mary Talaga, 54, of Elmwood Park, Illinois, was convicted in May 2015 following a jury trial of one count of conspiracy to commit health care fraud, six counts of health care fraud and three counts of false statements relating to a health care matter. In addition to imposing the prison term, U.S. District Judge Gary Feinerman of the Northern District of Illinois ordered Talaga to pay approximately $1 million in restitution.
From 2007 to 2011, Talaga was the primary medical biller at Medicall Physicians Group Ltd., a physician practice that visited patients in their homes and prescribed home health care. The evidence at trial showed that Talaga and her co-conspirators routinely billed Medicare for overseeing patient care plans (a service known as “care plan oversight” or CPO) when, in fact, the doctors at Medicall rarely provided the service. The evidence at trial also showed that Talaga and her co-conspirators billed Medicare for other services that were never provided, including services rendered to patients who were deceased, services purportedly provided by medical professionals no longer employed by Medicall, and services purportedly provided by medical professionals who, based on billing records, worked over 24 hours per day.
According to the evidence presented at trial, during the five-year conspiracy, Medicall submitted bills to Medicare for more than $4 million in services that were never provided. Medicare paid more than $1 million on those claims.
Rick Brown, 58, of Rockford, Illinois, and Roger A. Lucero, 64, of Elmhurst, Illinois, were also convicted of offenses based on their roles in the scheme. Brown was convicted along with Talaga at trial and was previously sentenced to serve more than seven years in prison. Lucero, Medicall’s Medical Director, pleaded guilty and will be sentenced at a later date.
The case was investigated jointly by HHS-OIG and the FBI, and was brought as part of the Medicare Fraud Strike Force, under the supervision of the Criminal Division’s Fraud Section and the U.S. Attorney’s Office of the Northern District of Illinois. This case was prosecuted by Trial Attorney Brooke Harper and Senior Trial Attorney Jon Juenger of the Criminal Division’s Fraud Section.
Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged over 2,300 defendants who collectively have billed the Medicare program for over $7 billion. In addition, the HHS Centers for Medicare & Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
To learn more about the Health Care Fraud Prevention and Enforcement Action Team (HEAT), go to: www.stopmedicarefraud.gov.
Lower Brule Woman Sentenced for Assault Resulting in Serious Bodily InjuryRead the Press Release
Acting United States Attorney Randolph J. Seiler announced that a Lower Brule, South Dakota, woman convicted of Assault Resulting in Serious Bodily Injury was sentenced on September 14, 2015, by U.S. District Judge Roberto A. Lange.
Leaf Colette Byington, age 33, was sentenced to 33 months in custody, followed by 2 years of supervised release, and a special assessment of $100 to the Federal Crime Victims Fund.
Byington was indicted by a federal grand jury on March 10, 2015. She pled guilty on June 23, 2015.
The conviction stems from an incident on October 24, 2014, when Byington and other persons, including the victim, were consuming alcohol together in Lower Brule. At some point in the early morning hours, Byington and two others were outside arguing. The victim heard the commotion and went outside, where Byington hit the victim in the face and the two began to fight. Byington then stabbed her in the back of the head and ear with a knife. Others intervened in an effort to stop the fight.
When law enforcement arrived at the residence, individuals advised the officer that Byington had stabbed the victim. EMTs were called.
The officer then proceeded over to Byington’s home where he had contact with Byington. She had some blood on her clothes and a knife was seized. A second knife was found on Byington’s person during the booking process at the jail.
The victim was treated at the emergency room in Chamberlain, where she had a significant wound to the back of her head and ear that required over 20 staples to close.
This case was investigated by the Bureau of Indian Affairs, Lower Brule Agency. Assistant U.S. Attorney Meghan N. Dilges prosecuted the case.
Byington was immediately turned over to the custody of the U.S. Marshals Service.
Louisiana Man Pleads Guilty to Possession of Child PornographyRead the Press Release
U.S. Attorney, Kenneth A. Polite announced that ERIN PITRE, age 36, of Cut Off, pled guilty today to a one-count Bill of Information with possession of images and videos depicting the sexual exploitation of children under the age of twelve years old.
According to court documents, law enforcement officials executed a search warrant at PITRE’S residence on January 22, 2015, during which time they seized an external digital storage device that contained images and videos of child pornography. A forensic examination of the device revealed that PITRE used peer-to-peer file sharing programs on his computer to search for, download, and store images and videos of children as young as two years-old engaging in sexually explicit conduct. The forensic examination located approximately 185 images and 7 videos of children engaging in sexually explicit conduct that PITRE possessed.
PITRE faces a maximum term of imprisonment of not more than twenty years, followed by up to a lifetime of supervised release, and a $250,000 fine. PITRE can also be required to register as a sex offender. U.S. District Judge Mary Ann Vial Lemmon set sentencing for December 10, 2015. This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys= Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
U.S. Attorney Polite praised the work of the Federal Bureau of Investigation is investigating this matter. Assistant U.S. Attorney Jordan Ginsberg is in charge of the prosecution.
Long Island Investment Fund Manager Sentenced to Six Years in Prison for Operating A $17 Million Ponzi SchemeRead the Press Release
Earlier today at the federal courthouse in Central Islip, New York, James Peister was sentenced to six years in prison and three years of supervised release, following his November 10, 2014 guilty plea to committing securities fraud for defrauding 74 investors of $17.9 million by operating a Ponzi scheme. As part of the sentence, Peister was ordered to pay $9,657,218.65 in restitution to the victims of his fraud and $17.9 million in forfeiture, which includes his residence in St. James, New York, and his Hummer sports utility vehicle.
The sentence was announced by Kelly T. Currie, Acting United States Attorney for the Eastern District of New York, and Diego Rodriguez, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI).
“For nearly a decade, Peister lulled his victims into a false sense of security through empty promises of reliable growth and conservative investing. After stealing millions of dollars in inheritances and retirement savings, Peister now faces his own retirement in prison while his victims struggle to rebuild their lives,” stated Acting United States Attorney Currie. “Would-be fraudsters take note that you, like Peister, who prey on the investing public will be held accountable.” Mr. Currie thanked the U.S. Securities and Exchange Commission (SEC) and the U.S. Commodity Futures Trading Commission (CFTC) for their cooperation and assistance.
FBI Assistant Director-in-Charge Rodriguez stated, “Today's sentencing marks a closing for Peister's $17 million Ponzi scheme, although for his victims, who lost their inheritance and retirement savings, there is no closure that can make them whole again. The FBI is committed to investigating and bringing to justice those who prey upon trusting individuals for their own personal gain.”
Between January 2000 and June 2009, Peister raised more than $17 million from at least 74 investors in connection with an investment fund that he managed. He had assured those investors that their money would be invested safely in a variety of securities, including stocks, futures, and fixed income instruments. Instead of investing the money as he had promised, Peister misappropriated the money to run a Ponzi scheme. Among other things, he used the investors’ money to pay millions of dollars in redemptions to his victim investors to keep the scheme afloat and to purchase luxury items such as an expensive estate in St. James and a Hummer luxury vehicle. To avoid detection and continue the scheme, Peister sent phony account statements to investors that falsely showed that their funds were invested and performing well and submitted bogus financial statements to the investment fund’s independent auditor. As a result, investors believed that the funds were performing satisfactorily, and they continued to invest their money with Peister. Peister’s Ponzi scheme collapsed in the wake of the financial crisis in 2008, when he could no longer keep up with demands for redemptions from nervous investors.
This prosecution was the result of efforts by President Obama’s Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. Attorneys’ Offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory, and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets, and conducting outreach to the public, victims, financial institutions and other organizations. Since fiscal year 2009, the Justice Department has filed over 18,000 financial fraud cases against more than 25,000 defendants. For more information on the task force, visit http://www.StopFraud.gov.
The government’s case is being prosecuted by the Office’s Business and Securities Fraud Section. Assistant United States Attorneys Jacquelyn M. Kasulis and Jonathan P. Lax are in charge of the prosecution, with assistance provided by Assistant United States Attorney Brian D. Morris of the Office’s Civil Division, which is responsible for the forfeiture of assets.
The Defendant:
JAMES M. PEISTER
Age: 63
St. James, New YorkE.D.N.Y. Docket No. 14-CR-328 (JFB)
Lexington, South Carolina, Man Indicted for Misprision of a Felony and Making False Statements Relating to Mother Emanuel AME Church ShootingRead the Press Release
Contact: The Office of Public Affairs (202) 514-2007
WASHINGTON – Principal Deputy Assistant Attorney General Vanita Gupta, head of the Civil Rights Division, and U. S. Attorney Bill Nettles of the District of South Carolina announced today an indictment charging Joseph Carlton Meek, 21, of Lexington, South Carolina, with misprision of a felony and making false statements.
Meek is alleged to have taken steps to conceal his knowledge of the crimes committed by Dylann Storm Roof, and to have made materially false statements when Meek told a Special Agent of the FBI that he did not know specifics of Roof’s plan to shoot individuals on a Wednesday, during Bible Study, at an AME Church in Charleston, South Carolina, prior to Roof’s attack on June 17, 2015. The misprision count carries up to three years in prison and the false statement charge carries up to five years in prison.
The indictment is the result of an investigation conducted by the FBI, Charleston Police Department and South Carolina Law Enforcement Division. Assistant U.S. Attorneys Jay N. Richardson and Nathan Williams of the District of South Carolina are prosecuting the case with the assistance of the Civil Rights Division.
An indictment is merely an accusation, and the defendants are presumed innocent unless and until proven guilty.
# # #
Lexington, South Carolina, Man Indicted for Misprision of a Felony and Making False Statements Relating to Mother Emanuel AME Church ShootingRead the Press Release
Principal Deputy Assistant Attorney General Vanita Gupta, head of the Civil Rights Division, and U. S. Attorney Bill Nettles of the District of South Carolina announced today an indictment charging Joseph Carlton Meek, 21, of Lexington, South Carolina, with misprision of a felony and making false statements.
Meek is alleged to have taken steps to conceal his knowledge of the crimes committed by Dylann Storm Roof, and to have made materially false statements when Meek told a Special Agent of the FBI that he did not know specifics of Roof’s plan to shoot individuals on a Wednesday, during Bible Study, at an AME Church in Charleston, South Carolina, prior to Roof’s attack on June 17, 2015. The misprision count carries up to three years in prison and the false statement charge carries up to five years in prison.
The indictment is the result of an investigation conducted by the FBI, Charleston Police Department and South Carolina Law Enforcement Division. Assistant U.S. Attorneys Jay N. Richardson and Nathan Williams of the District of South Carolina are prosecuting the case with the assistance of the Civil Rights Division.
An indictment is merely an accusation, and the defendants are presumed innocent unless and until proven guilty.
Leader of International Counterfeit Currency Ring Sentenced to 15 Years in PrisonRead the Press Release
Itzhak Loz, 48, of Rishon Le Zion, Israel, the leader of an international counterfeit currency ring responsible for over $70 million in counterfeit U.S. currency, was sentenced today to 180 months in prison for leading a RICO conspiracy involving multiple acts of counterfeiting and money structuring. Loz was also ordered to forfeit $20 million and specific assets including a warehouse in New Jersey where the counterfeit currency was most recently printed.
“Loz was the leader of a conspiracy that printed, distributed and passed over $70 million high-quality counterfeit $50 and $100 bills,” said U.S Attorney Dana J. Boente of the Eastern District of Virginia. “This international criminal enterprise operated undetected for many years in Israel and the United States and relied upon a close-knit and loyal network of distributors bound by family ties, loyalty and greed. I want to commend the Secret Service and its law enforcement partners for aggressively investigating this conspiracy and supporting the prosecution of these 13 defendants.”
“The conclusion of this case highlights the Secret Service’s investigative prowess and ability to detect one of the most prolific counterfeit notes in history,” said Special Agent in Charge James M. Murray of the U.S. Secret Service’s (USSS) Washington Field Office. “This investigation joins a long list of successful counterfeit suppressions over our 150 year history. We will continue to work closely with our network of law enforcement partners to combat criminal enterprises and protect the Nation’s financial infrastructure.”
Loz, along with 12 co-conspirators, were indicted by a federal grand jury on Aug. 7, 2014. According to court documents filed in the case, Loz was the leader of the racketeering enterprise that manufactured and distributed more than $70 million in counterfeit U.S. currency between 2004 and 2014. The enterprise was financed, in part, by brothers Arkadiy Bangiyev, 38, of Rego Park, New York, and Eduard Bangiyev, 40, of Forest Hills, New York, who operated a retail jewelry store in Long Island and then a gold refinery business in Manhattan’s diamond district.
Loz, along with the Bangiyev brothers and co-conspirator Ronen Fakiro, 47, also of Rishon Le Zion, manufactured the counterfeit currency on offset and lithography printing machinery in Israel and the United States and produced extremely high-quality notes which replicated the many security features of genuine currency. At the height of its operations, the enterprise smuggled $3 million worth of counterfeit currency into the United States every three months. The counterfeit was concealed inside shipping containers containing machinery. Once the counterfeit was in the United States, the enterprise relied upon a network of distributors who obtained the counterfeit from the Bangiyev brothers. The ultimate users of the counterfeit passed the notes at locations up and down the east coast of the United States.
In 2014, Loz and Ronen Fakiro purchased a warehouse in Cherry Hill, New Jersey, to manufacture counterfeit $100 notes and recruited a married couple from Israel, Boaz and Ofra Borohov, 45 and 46, respectively, to assist them in the production of the notes. Loz attempted to recreate and produce the security features of the most recently issued $100 bill but was unable to do so. Instead, beginning in April 2014, the enterprise printed $5.3 million in counterfeit $100 bills. On May 28, 2014, the USSS executed a search warrant at the warehouse and essentially caught the Borohov’s “red handed” as they were operating heat press machines used to manufacture counterfeit currency. That same day, the USSS also seized approximately $2.56 million in counterfeit $100 bills from Loz’s New York storage unit and other assets, including over $200,000 in genuine U.S. currency, along with jewelry, watches, diamonds, bank accounts, luxury cars and real estate.
All 13 defendants named in the original indictment have pleaded guilty. Nine defendants have been sentenced, while the remaining four are awaiting sentencing. The defendants are listed in the indictment in the following order:
Defendant Name & Age
Residence
Arrest Location & Date
Status
Itzhak Loz, 48
Rison Lezion, Israel
Jamaica, New York
May 28, 2014Pleaded guilty Jan. 20, 2015. Sentenced today to 180 months.
Ronin Fakiro, 47
Rison Lezion, Israel
Jamaica, New York
May 28, 2014Pleaded guilty Jan. 20, 2015. Sentencing Sept. 21, 2015.
Boaz Borohov, 45
Tel Aviv, Israel
Cherry Hill
May 28, 2014Pleaded guilty Feb. 6, 2015. Sentenced today to 33 months.
Ofra Borohov, 46
Tel Aviv, Israel
Cherry Hill
May 28, 2014Pleaded guilty Feb. 6, 2015. Sentenced today to 24 months.
Arkadiy Bangiyev, 38
Rego Park, New York
Rego Park
May 28, 2014Pleaded guilty Jan. 20, 2015. Sentencing Sept. 21, 2015.
Eduard Bangiyev, 40
Forest Hills, New York
Scranton, Pennsylvania
May 28, 2014Pleaded guilty Jan. 20, 2015. Sentencing Sept. 21, 2015.
Johnny Elegante Lee, 46
Glen Oaks, New York
Miami, Florida
June 1, 2014Pleaded guilty Sept. 16, 2014. Sentencing on Sept. 25, 2015.
Tarell Lavon Johnson, 27
Lynbrook, New York
Lynbrook, New York
May 28, 2014Pleaded guilty Oct. 23, 2014. Sentenced to 36 months on Feb. 27, 2015.
Craig Johnson, 49
Douglasville, Georgia
Douglasville, Georgia
June 13, 2014Pleaded guilty Oct. 1, 2014. Sentenced to 16 months on Feb. 13, 2015.
Shannon Lamont Smith, 45
Woodstock, Georgia
Atlanta, Georgia
May 28, 2014Pleaded guilty Sept. 26, 2014. Sentenced to 24 months on July 31, 2015.
Fredrick Barrett, 33
Hempstead, New York
Hempstead, New York
May 28, 2014Pleaded guilty Oct. 24, 2014. Sentenced to 36 months on Feb. 27, 2015.
Ramel Epps, 25
Freeport, New York
Freeport, New York
May 28, 2014Pleaded guilty Oct. 20, 2014. Sentenced to 15 months on Feb. 20, 2015.
Brattie Guerra, 23
Freeport, New York
Freeport, New York
May 28, 2014Pleaded guilty Oct. 3, 2014. Sentenced to 12 months on Feb. 20, 2015.
U.S. Attorney Boente Director Joseph P. Clancy of USSS, made the announcement after sentencing by U.S. District Judge Liam O’Grady. This case was investigated by the USSS with assistance from U.S. Customs and Border Protection. Assistant U.S. Attorneys Kimberly R. Pedersen and Gordon D. Kromberg of the Eastern District of Virginia are prosecuting the case.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:14CR206.
Leader of International Counterfeit Currency Ring Sentenced to 15 YearsRead the Press Release
ALEXANDRIA, Va. – Itzhak Loz, 48, of Rishon Le Zion, Israel, the leader of an international counterfeit currency ring responsible for over $70 million in counterfeit U.S. currency, was sentenced today to 180 months in prison for leading a RICO conspiracy involving multiple acts of counterfeiting and money structuring. Loz was also ordered to forfeit $20 million and specific assets including a warehouse in New Jersey where the counterfeit currency was most recently printed.
“Loz was the leader of a conspiracy that printed, distributed and passed over $70 million high-quality counterfeit $50 and $100 bills,” said U.S Attorney Boente. “This international criminal enterprise operated undetected for many years in Israel and the United States and relied upon a close-knit and loyal network of distributors bound by family ties, loyalty and greed. I want to commend the Secret Service and its law enforcement partners for aggressively investigating this conspiracy and supporting the prosecution of these 13 defendants.”
“The conclusion of this case highlights the Secret Service’s investigative prowess and ability to detect one of the most prolific counterfeit notes in history,” said James M. Murray, Special Agent in Charge of the U.S. Secret Service’s Washington Field Office. “This investigation joins a long list of successful counterfeit suppressions over our 150 year history. We will continue to work closely with our network of law enforcement partners to combat criminal enterprises and protect the Nation’s financial infrastructure.”
Loz, along with 12 co-conspirators, were indicted by a federal grand jury on Aug. 7, 2014. According to court documents filed in the case, Loz was the leader of the racketeering enterprise that manufactured and distributed more than $70 million in counterfeit U.S. currency between 2004 and 2014. The enterprise was financed, in part, by brothers Arkadiy Bangiyev, 38, of Rego Park, New York, and Eduard Bangiyev, 40, of Forest Hills, New York, who operated a retail jewelry store in Long Island and then a gold refinery business in Manhattan’s diamond district.
Loz, along with the Bangiyev brothers and co-conspirator Ronen Fakiro, 47, also of Rishon Le Zion, Israel, manufactured the counterfeit currency on offset and lithography printing machinery in Israel and the United States and produced extremely high-quality notes which replicated the many security features of genuine currency. At the height of its operations, the enterprise smuggled $3 million worth of counterfeit currency into the United States every three months. The counterfeit was concealed inside shipping containers containing machinery. Once the counterfeit was in the United States, the enterprise relied upon a network of distributors who obtained the counterfeit from the Bangiyev brothers. The ultimate users of the counterfeit passed the notes at locations up and down the east coast of the United States.
In 2014, Loz and Ronen Fakiro purchased a warehouse in Cherry Hill, New Jersey, to manufacture counterfeit $100 notes and recruited a married couple from Israel, Boaz and Ofra Borohov, 45 and 46, respectively, to assist them in the production of the notes. Loz attempted to recreate and produce the security features of the most recently issued $100 bill but was unable to do so. Instead, beginning in April 2014, the enterprise printed $5.3 million in counterfeit $100 bills. On May 28, 2014, the U.S. Secret Service (USSS) executed a search warrant at the warehouse and essentially caught the Borohov’s “red handed” as they were operating heat press machines used to manufacture counterfeit currency. That same day, the USSS also seized approximately $2.56 million in counterfeit $100 bills from Loz’s New York storage unit and other assets, including over $200,000 in genuine U.S. currency, along with jewelry, watches, diamonds, bank accounts, luxury cars and real estate.
*UPDATE* (Sept. 25, 2015) - All 13 defendants named in the original indictment have pleaded guilty and been sentenced.
Defendant Name & Age
Residence
Arrest Location & Date
Status
Itzhak Loz, 48
Rison Lezion, Israel
Jamaica, New York
May 28, 2014Pleaded guilty Jan. 20, 2015. Sentenced to 180 months on Sept 18, 2015.
Ronin Fakiro, 47
Rison Lezion, Israel
Jamaica, New York
May 28, 2014Pleaded guilty Jan. 20, 2015. Sentenced to 84 months on Sept. 21, 2015.
Boaz Borohov, 45
Tel Aviv, Israel
Cherry Hill, New Jersey
May 28, 2014Pleaded guilty Feb. 6, 2015. Sentenced to 33 months on Sept. 9, 2015.
Ofra Borohov, 46
Tel Aviv, Israel
Cherry Hill, New Jersey
May 28, 2014Pleaded guilty Feb. 6, 2015. Sentenced to 24 months on Sept. 9, 2015.
Arkadiy Bangiyev, 38
Rego Park, New York
Rego Park, New York
May 28, 2014Pleaded guilty Jan. 20, 2015. Sentenced to 108 months on Sept. 21, 2015.
Eduard Bangiyev, 40
Forest Hills, New York
Scranton, Pennsylvania
May 28, 2014Pleaded guilty Jan. 20, 2015. Sentenced to 96 months on Sept. 21, 2015.
Johnny Elegante Lee, 46
Glen Oaks, New York
Miami, Florida
June 1, 2014Pleaded guilty Sept. 16, 2014. Sentenced to 36 months on Sept. 25, 2015.
Tarell Lavon Johnson, 27
Lynbrook, New York
Lynbrook, New York
May 28, 2014Pleaded guilty Oct. 23, 2014. Sentenced to 36 months on Feb. 27, 2015.
Craig Johnson, 49
Douglasville, Georgia
Douglasville, Georgia
June 13, 2014Pleaded guilty Oct. 1, 2014. Sentenced to 16 months on Feb. 13, 2015.
Shannon Lamont Smith, 45
Woodstock, Georgia
Atlanta, Georgia
May 28, 2014Pleaded guilty Sept. 26, 2014. Sentenced to 24 months on July 31, 2015.
Fredrick Barrett, 33
Hempstead, New York
Hempstead, New York
May 28, 2014Pleaded guilty Oct. 24, 2014. Sentenced to 36 months on Feb. 27, 2015.
Ramel Epps, 25
Freeport, New York
Freeport, New York
May 28, 2014Pleaded guilty Oct. 20, 2014. Sentenced to 15 months on Feb. 20, 2015.
Brattie Guerra, 23
Freeport, New York
Freeport, New York
May 28, 2014Pleaded guilty Oct. 3, 2014. Sentenced to 12 months on Feb. 20, 2015.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; and James M. Murray, Special Agent in Charge of the U.S. Secret Service's Washington Field Office, made the announcement after sentencing by U.S. District Judge Liam O’Grady. This case was investigated by the USSS with assistance from U.S. Customs and Border Protection. Assistant U.S. Attorneys Kimberly R. Pedersen and Gordon D. Kromberg are prosecuting the case.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:14CR206.
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Laredo Man Gets Sentenced for Illegally Possessing AmmoRead the Press Release
LAREDO, Texas – A previously convicted felon who resided in Laredo has been sentenced for illegally possessing 14 rounds of 7.62x39mm ammunition, announced United States Attorney Kenneth Magidson. Humberto Hilario-Gomez, 25, of Laredo, pleaded guilty to being a felon in possession of ammunition on Jan. 13, 2015.
Today, U.S. District Judge George P. Kazen handed Hilario-Gomez a sentence of 72 months in federal prison to be immediately followed by three years of supervised release. The Judge commented on Hilario-Gomez’s young age and his extensive history of violent behavior. Hilario-Gomez expressed remorse over his actions.
The conviction stems from an aggravated robbery investigation initiated by Laredo Police Department. After it was determined that Hilario-Gomez was involved in the robbery, a warrant was issued and executed at his residence. There, officers discovered the ammunition in his home.
Hilario-Gomez has prior felony convictions for aggravated assault with a deadly weapon, deadly weapon in a penal institution, taking a weapon from an officer, robbery, and evading arrest with a motor vehicle. As such, he is prohibited from possessing firearms or ammunition per federal law.
The charges are the result of an investigation conducted by Laredo Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorney Christopher A. dos Santos prosecuted the case.
Kenner Woman Charged with Theft of Public Money and Aggravated Identity TheftRead the Press Release
U.S. Attorney Kenneth A. Polite announced that NISIKA WEST, age 36, of Kenner, was charged today in a six-count Indictment with theft of public money and aggravated identity theft.
According to the Indictment, between in or about March 2012 and May 2012, WEST knowingly stole money from the United States Department of the Treasury in the form of federal tax refunds by using stolen identities.
If convicted, WEST faces a maximum term of imprisonment of ten years, followed by three years of supervised release, a maximum fine of $250,000, and restitution, as to each of Counts 1 through 3. As to Counts 4 through 6, the defendant faces a mandatory two years of imprisonment as to each count in addition to any sentence received for Counts 1 through 3.
United States 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 Internal Revenue Service – Criminal Investigations. Assistant United States Attorney G. Dall Kammer is in charge of the prosecution.
Justice Department and Chinese Ministry of Public Security Coordinate Efforts to Combat International Drug TraffickingRead the Press Release
This week, law enforcement officials from the United States and the People’s Republic of China met in Beijing to coordinate their efforts to fight international drug trafficking.
Representatives of the two sides held two separate but related meetings to exchange law enforcement information, share their assessments of the drug problem, discuss responses in their respective countries, review progress and examine possible mechanisms for further cooperation. In doing so, the two countries expanded their understanding of the differences in their legal systems, investigative practices and national situations.
The Bilateral Drug Intelligence Working Group, led by officials from the U.S. Drug Enforcement Administration and the Chinese Ministry of Public Security, met on Sept. 14-15, 2015. Primarily an exchange mechanism for law enforcement information, the Bilateral Drug Intelligence Working Group conducted briefings on the major drug issues faced by each country.
The Counternarcotics Working Group, led by the Department of Justice and Chinese Ministry of Public Security, met on Sept. 16-17, 2015. This group, which reports to the Joint Liaison Group on law enforcement cooperation, focuses on expanding mutual understanding and cooperation on drug issues. In this meeting, among other issues, the sides discussed the legal and regulatory challenges posed by “designer drugs” – also known as new psychoactive substances – as well as potential avenues for cooperation in investigating and combating this emerging threat.
Going forward, law enforcement exchange and cooperation mechanisms such as these will facilitate more effective cooperation between the two countries in confronting their shared problem of drug trafficking and abuse.
Jury Convicts Lexington Woman of Filing False Tax ReturnsRead the Press Release
Defendant Claimed Hundreds of Thousands of Dollars in Tax Refunds
LEXINGTON, Ky. — A federal jury convicted Winona Jean Cox, of Lexington, Ky., of filing four false income tax returns and then obstructing the Internal Revenue Service from recovering a fraudulently-claimed refund check.
On Thursday, the jury convicted Cox, 40, of four counts of filing false tax claims and one count of interfering with the administration of the internal revenue laws. The jury reached its verdicts after three days of trial and two hours of deliberation.
At trial, the United States proved that Cox falsely claimed over $477,000 in tax refunds during tax years 2005 through 2008. Cox’s fraud involved over-reporting interest income and tax withholding, using counterfeit IRS 1099-OID forms. Cox then submitted claims for tax refunds based on those inflated amounts.
Evidence at trial also proved that, after Cox was mailed a tax refund check for one of the fraudulent returns, she attempted to obstruct the IRS from recovering that money, by assigning the titles of her three homes and her car to nominee trusts and wire transferring most of the refund into a bank account under a different name.
Cox faces a maximum sentence of five years in prison on the filing false claims counts, and three years in prison for interfering with the administration of the internal revenue laws. Sentencing is currently scheduled for December 14, 2015 before U.S. District Judge Joseph Hood. Any sentence imposed by the Court will come after careful consideration of the U.S. Sentencing Guidelines and the federal statutes governing imposition of sentences. Under federal law, Cox must serve at least 85 percent of her prison sentence.
Kerry B. Harvey, U.S. Attorney for the Eastern District of Kentucky; and Christopher A. Henry, Special Agent in Charge, Internal Revenue Service, Criminal Investigation Division, jointly made the announcement.
The investigation was conducted by the Internal Revenue Service, Criminal Investigation Division. Assistant U.S. Attorneys Neeraj Gupta and Ken Taylor prosecuted this case on behalf of the federal government.
Information: Federal Court ArraignmentsRead the Press Release
The United States Attorney’s Office announced that those persons listed below were arraigned before the U.S. Magistrate and the indictments handed down by the Grand Jury unsealed.
Appearing before U.S. Magistrate Lynch in Missoula on September 16, 2015, and entering pleas of Not Guilty were:
- JACQUELINE DIANE ERGER, a 45-year-old resident of Kalispell, appeared on charges of conspiracy to possess with intent to distribute and to distribute methamphetamine and possession with intent to distribute methamphetamine.. If convicted of the most serious charge contained in the indictment, ERGER faces life in prison, $10,000,000 in fines and 5 years supervised release. The case was investigated by Homeland Security Investigations and the Northwest Drug Task Force. PACER Case Reference. 15-16
- JACOB EDWARD GENTRY, a 45-year-old resident of Somers, appeared on charges of conspiracy to possess with intent to distribute and to distribute methamphetamine and possession with intent to distribute methamphetamine.. If convicted of the most serious charge contained in the indictment, GENTRY faces life in prison, $10,000,000 in fines and 5 years supervised release. The case was investigated by Homeland Security Investigations and the Northwest Drug Task Force. PACER Case Reference. 15-16
Appearing before U.S. Magistrate Johnston in Great Falls on September 15, 2015, and entering pleas of Not Guilty were:
- BRYCE GLENN GRANBOIS, a 44-year-old resident of Poplar, appeared on charges of felon in possession of a firearm. If convicted of the charge contained in the indictment, GRANBOIS faces 10 years in prison, $250,000 in fines and 3 years supervised release. The case was investigated by Federal Bureau of Investigation. PACER Case Reference. 15-52
Appearing before U.S. Magistrate Lynch in Missoula on September 14, 2015, and entering pleas of Not Guilty were:
- CHASTON ANTONIO FORT, a 20-year-old resident of Hollywood, Florida, appeared on charges of conspiracy to commit wire fraud, wire fraud and aggravated identity theft. If convicted of the most serious charge contained in the indictment, FORT faces 20 years in prison, $250,000 in fines and 3 years supervised release. The case was investigated by Federal Bureau of Investigation and the Billings Police Department. PACER Case Reference. 15-22
Appearing before U.S. Magistrate Johnston in Great Falls on September 14, 2015, and entering pleas of Not Guilty were:
- KAYLA MARIE RACINE, a 27-year-old resident of Browning, appeared on charges of assault resulting in serious bodily injury and assault with a dangerous weapon. If convicted of the most serious charge contained in the indictment, RACINE faces 10 years in prison, $250,000 in fines and 3 years supervised release. The case was investigated by Federal Bureau of Investigation. PACER Case Reference. 15-51
Appearing before U.S. Magistrate Lynch in Missoula on September 8, 2015, and entering pleas of Not Guilty were:
- ATHENA PATRICIA SCHARNHORST, a 45-year-old resident of Polson, appeared on charges of conspiracy to distribute methamphetamine, possession with intent to distribute methamphetamine, and possession of a firearm in furtherance of a drug trafficking crime. If convicted of the most serious charges contained in the indictment, SCHARNHORST faces life in prison, $10,000,000 in fines and 5 years supervised release. The case was investigated by the Missoula HIDTA. PACER Case Reference. 15-55
Appearing before U.S. Magistrate Ostby in Billings on September 8, 2015, and entering pleas of Not Guilty were:
- MARCO POLO OVALLE-MARTINEZ, a 28-year-old resident of Mexico, appeared on charges of illegal reentry. If convicted of the charge contained in the indictment, OVALLE-MARTINEZ faces 10 years imprisonment, $250,000 in fines and 3 years supervised release. The case was investigated by Department of Homeland Security. PACER Case Reference. 15-112
- ROBERT PEREZ SCHILLING, a 27-year-old resident of Billings, appeared on charges of conspiracy to possess with intent to distribute and to distribute methamphetamine, possession with intent to distribute methamphetamine; carrying a firearm during and in relation to a drug trafficking crime. If convicted of the most serious charges contained in the indictment, SCHILLING faces life in prison, $5,000,000 in fines and 4 years supervised release. The case was investigated by the Federal Bureau of Investigation Task Force. PACER Case Reference. 15-61
Appearing before U.S. Magistrate Johnston in Great Falls on September 8, 2015, and entering pleas of Not Guilty were:
- STEPHEN RAY AFTERBUFFALO, a 41-year-old resident of Browning, appeared on charges of conspiracy to possess with intent to distribute methamphetamine, possession with intent to distribute methamphetamine, and distribution of methamphetamine. If convicted of the most serious charges contained in the indictment, AFTERBUFFALO faces 20 years in prison, $1,000,000 in fines and 3 years supervised release. The case was investigated by the Bureau of Indian Affairs. PACER Case Reference. 15-55
- DOUGLAS MONTGOMERY LIU, a 35-year-old resident of Sunnyvale, California, appeared on charges of conspiracy to commit robbery affective commerce, robbery affecting commerce and use of a firearm during a crime of violence. If convicted of the most serious charges contained in the indictment, LIU faces life in prison, $250,000 in fines and 5 years supervised release. The case was investigated by the Federal Bureau of Investigation and Great Falls Police Department. PACER Case Reference. 05-38
- TALIA JOYCE NO RUNNER, a 35-year-old resident of Browning, appeared on charges of conspiracy to possess with intent to distribute methamphetamine, possession with intent to distribute methamphetamine and distribution of methamphetamine. If convicted of the most serious charges contained in the indictment, NO RUNNER faces 20 years in prison, $1,000,000 in fines and 3 years supervised release. The case was investigated by the Bureau of Indian Affairs. PACER Case Reference. 15-56
- NATASHA LOUISE RADASA, a 33-year-old resident of Cut Bank, appeared on charges of conspiracy to possess with intent to distribute methamphetamine, possession with intent to distribute methamphetamine, and distribution of methamphetamine. If convicted of the most serious charges contained in the indictment, RADASA faces 20 years in prison, $1,000,000 in fines and 3 years supervised release. The case was investigated by the Bureau of Indian Affairs. PACER Case Reference. 15-57
- LEON BUCK SHARP, a 39-year-old resident of Browning, appeared on charges of conspiracy to possess with intent to distribute methamphetamine, possession with intent to distribute methamphetamine, distribution of methamphetamine, and felon in possession of a firearm. If convicted of the most serious charges contained in the indictment, SHARP faces 40 years in prison, $5,000,000 in fines and 4 years supervised release. The case was investigated by the Bureau of Indian Affairs and Glacier County Sheriff’s Office. PACER Case Reference. 15-54
Appearing before U.S. Magistrate Ostby in Billings on September 3, 2015, and entering pleas of Not Guilty were:
- BRANDON PATRICK DALTON-JACKSON, a 34-year-old resident of Billings, appeared on charges of possession of methamphetamine with intent to distribute and possession of a firearm in furtherance of a drug trafficking crime. If convicted of the most serious charge contained in the indictment, DALTON-JACKSON faces life in prison, $10,000,000 in fines and 5 years supervised release. The case was investigated by the Federal Bureau of Investigation Task Force. PACER Case Reference. 15-98
- ALEJANDRO MARQUEZ GONZALEZ, a 36-year-old resident of Royal City, Washington, appeared on charges of possession of methamphetamine with intent to distribute and possession of a firearm in furtherance of a drug trafficking crime. If convicted of the most charge contained in the indictment, GONZALEZ, faces life in prison, $10,000,000 in fines and 5 years supervised release. The case was investigated by the U.S. Border Patrol PACER Case Reference. 15-102
- IGNACIO FIGUEROA RODRIGUEZ, a 37-year-old resident of Royal City, Washington, appeared on charges of possession of methamphetamine with intent to distribute and possession of a firearm in furtherance of a drug trafficking crime. If convicted of the most charge contained in the indictment, RODRIGUEZ, faces life in prison, $10,000,000 in fines and 5 years supervised release. The case was investigated by the U.S. Border Patrol PACER Case Reference. 15-102
Appearing before U.S. Magistrate Johnston in Great Falls on September 3, 2015, and entering pleas of Not Guilty were:
- BRUCE DARNELL MOORE, a 50-year-old resident of Great Falls, appeared on charges of conspiracy to conspiracy to possess with intent to distribute and to distribute methamphetamine, possession with intent to distribute methamphetamine and possession of a firearm in furtherance of a drug trafficking crime. If convicted of the most serious charges contained in the indictment, MOORE faces life in prison, $10,000,000 in fines and 5 years supervised release. The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Drug Enforcement Administration. PACER Case Reference. 15-49
Appearing before U.S. Magistrate Lynch in Missoula on September 1, 2015, and entering pleas of Not Guilty were:
- JOSEPH LEE ELDABAA, a 45-year-old resident of Albany, Oregon, appeared on charges of conspiracy to possess with intent to distribute and to distribute methamphetamine, possession with intent to distribute methamphetamine, possession of a firearm in furtherance of a drug trafficking crime and felon in possession of a firearm. If convicted of the most serious charges contained in the indictment, ELDABAA faces 10 years in prison, $10,000,000 in fines and 5 years supervised release. The case was investigated by the Federal Bureau of Investigation and Missouri River Drug Task Force. PACER Case Reference. 15-11
Appearing before U.S. Magistrate Johnston in Great Falls on September 1, 2015, and entering pleas of Not Guilty were:
- DENNIS PEIKER, a 51-year-old resident of Lincoln, appeared on charges of felon in possession of a firearm. If convicted of the charge contained in the indictment, PEIKER faces 10 years in prison, $250,000 in fines and 3 years supervised release. The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives. PACER Case Reference. 15-12
Appearing before U.S. Magistrate Johnston in Great Falls on August 31, 2015, and entering pleas of Not Guilty were:
- JOAN JOYCE HURLEY, a 38-year-old resident of Brady, appeared on charges of conspiracy to possess with intent to distribute and to distribute methamphetamine and possession with intent to distribute methamphetamine. If convicted of the most serious charge contained in the indictment, HURLEY faces life in prison, $10,000,000 in fines and 5 years supervised release. The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Drug Enforcement Administration. PACER Case Reference. 15-49
If any of the above cases are of interest to your media organization and the community it serves, we encourage you to monitor the progress of the case regularly through the U.S. District Court calendar and the PACER system so that you stay current and not miss any important developments in the case.
To establish a PACER account, which will allow you to review documents filed in the case, please go to, http://www.pacer.gov/register.html. To access the district court’s calendar, please go to https://ecf.mtd.uscourts.gov/cgi-bin/PublicCalendar.pl.
IT Professional Sentenced to 15 Months in Prison for Installing and Activating Malicious CodeRead the Press Release
Greenbelt, Maryland – U.S. District Judge Deborah K. Chasanow sentenced Anand Venkatraman, age 41, of Clarksburg, Maryland today to 15 months in prison, followed by three years of supervised release, for installing code that intentionally caused damage to a computer. Judge Chasanow also entered an order requiring Venkatraman to pay restitution of $157,300.
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; and Special Agent in Charge Brian Murphy of the United States Secret Service - Baltimore Field Office.
According to his plea agreement, from September 17, 2012 through January 29, 2014, Venkatraman worked as a contractor and employee of a privately held staffing company serving a variety of industries, based in Hanover, Maryland. Venkatraman held the position of Senior Developer, and was skilled in computer code, server and database construction and maintenance, and website design and architecture.
During the course of his employment with the company, Venkatraman was provided administrator credentials and passwords, and had access to and control over the infrastructure of the website of one of the company’s subsidiaries that helped people with disabilities to find employment. Venkatraman admitted that he used his access privileges and his technical skills to implant malicious code on the subsidiary’s webservers, which allowed him to remotely execute commands that, among other things, would cause the website to crash.
On January 29, 2014, Venkatraman’s last day of employment, the company disabled his credentials and passwords. After his separation from the company, on three separate occasions Venkatraman accessed, without authorization, the malicious code that he had previously implanted on the subsidiary’s webservers, causing the website to crash on June 13, 18 and 20, 2014. On June 26, 2014, Venkatraman again accessed the subsidiary’s webservers without authorization, and posted a blog post disparaging the subsidiary. On June 28, 2014, Venkatraman sent an email to a company official in which he admitted posting the “derogatory blog.” Approximately six months later, Venkatraman again attempted to access the malicious code that he had implanted on the subsidiary’s webservers, but the company had discovered and removed the malicious code.
As a result of Venkatraman’s actions, the company and its subsidiary sustained a loss of $157,300.
United States Attorney Rod J. Rosenstein praised the FBI and U.S. Secret Service for their work in the investigation and thanked the Maryland State Police for its assistance. Mr. Rosenstein thanked Assistant U.S. Attorney Nicolas A. Mitchell, who prosecuted the case.
Hudson County, New Jersey, Man Sentenced to 19 Months in Prison for Racketeering Conspiracy Related to Illegal Online Gambling EnterpriseRead the Press Release
NEWARK, N.J. – A Hudson County, New Jersey, man was sentenced to 19 months in prison for his roles in conspiring with a criminal enterprise that engaged in illegal online sports betting in New Jersey and elsewhere, U.S. Attorney Paul J. Fishman announced.
Robert J. Scerbo, 57 of Bayonne, New Jersey, previously pleaded guilty before U.S. District Judge Claire C. Cecchi in Newark federal court to separate informations charging them with one count of racketeering conspiracy. Judge Cecchi imposed the sentence today in Newark federal court.
According to documents filed in this case and statements made in court:
Members of the conspiracy, referred to as “agents,” were given access to Beteagle.com, a website located in Costa Rica and used to facilitate illegal online sports betting. Before the advent of computerized betting, these agents would have been referred to as “bookmakers” or “bookies.” The agents had the ability to track the “sub-agents,” under them and the wagers placed by their bettors. The agent or sub-agent maintained a group of bettors (the “package”) and were responsible for those bettors.
To place bets online, the agent or sub-agent issued the bettor a username and password to access Beteagle. This access was not given online and no money or credits were made or transferred through the website. Instead, Scerbo and his conspirators paid out winnings and collected losses in person. Scerbo admitted that he conspired with the criminal enterprise to commit racketeering acts, namely, the illegal sports betting operation, and that he and his conspirators profited through this criminal venture.
In addition to the prison terms, Judge Cecchi sentenced Scerbo to two years of supervised release and fined him $5,000.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Richard M. Frankel in Newark; the Bayonne Police Department, Special Investigations Unit, under the direction of Chief Drew Niekrasz; IRS-Criminal Investigation under the direction of Acting Special Agent in Charge Jonathan D. Larsen; the N.J. State Police, under the direction of Superintendent Rick Fuentes; and the Monmouth County Prosecutor’s Office, under the direction of Acting Prosecutor Christopher Gramiccioni, with the investigation leading to today’s sentencings.
The government is represented by Assistant U.S. Attorney Anthony Moscato of the New Jersey U.S. Attorney’s Office Criminal Division in Newark.
Defense counsel:
Scerbo: Thomas J. Cammarata Esq., Jersey City, New Jersey
Bruder: Daniel J. Welsh Esq., Jersey City, New Jersey