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Wednesday 16 September 2015
Brevard County Heroin Dealer Sentenced to 15 Years in PrisonRead the Press Release
Orlando, FL – Senior U.S. District Judge Kendall Sharp today sentenced Antwon Sexton (37, Cocoa) to 15 years in federal prison for conspiracy to possess with the intent to distribute more than 100 grams of heroin. He pleaded guilty on May 28, 2015.
According to court documents, Sexton was a heroin dealer in Brevard County and had at least one source of supply in New Jersey. He managed at least five others who acted as drivers and/or street level dealers and who also helped him obtain and distribute heroin. During the investigation, agents purchased heroin from Sexton and identified several of his customers.
On March 4, 2015, Sexton arrived in downtown Orlando on a train that had originated in New Jersey. When Sexton departed the train, agents saw that he was carrying a duffle bag. He then got into a van and left the train station. During a traffic stop, agents searched the van and located more than 300 grams of heroin in Sexton’s duffle bag. During the investigation, agents linked Sexton to more than 600 grams of heroin.
This case was investigated by the Drug Enforcement Administration, the Brevard County Sheriff’s Office, and the Titusville Police Department. It was prosecuted by Assistant United States Attorney David Haas.
Baltimore Woman Indicted for Allegedly Stealing Almost $200,000 in Social Security BenefitsRead the Press Release
Baltimore, Maryland – A federal grand jury indicted Patricia Green Jackson, age 63, of Baltimore, for theft of government property and other charges arising from a scheme to steal social security benefits. The indictment was returned on September 15, 2015.
The indictment was announced by United States Attorney for the District of Maryland Rod J. Rosenstein and Special Agent in Charge Michael McGill of the Social Security Administration - Office of Inspector General, Philadelphia Field Division.
According to the two-count indictment, Jackson was a friend of J.W. and a co-signer on J.W.’s bank account. J.W. began receiving retirement benefits from the Social Security Administration (SSA) in 1986, which were paid by direct deposit to her bank account. J.W. died on December 31, 1997. SSA was not aware of J.W.’s death, and continued to make monthly payments of J.W.’s retirement benefits until March 2015.
According to the indictment, after J.W.’s death Jackson used a debit card to withdraw and spend J.W.’s monthly SSA retirement benefits. At the time J.W.’s benefits were suspended in 2015, SSA was paying $1,087 per month in benefits and paid a total of $196,323 in unauthorized benefits after J.W.’s death in 1997. The indictment alleges that not only did Jackson steal those funds, but she concealed J.W.’s death so that SSA would continue to pay J.W.’s retirement benefits.
Jackson faces a maximum sentence of 10 years in prison for theft of government property and a maximum of five years in prison for SSA benefit fraud. No court appearance has been scheduled.
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
United States Attorney Rod J. Rosenstein commended the Social Security Administration - Office of Inspector General for its work in the investigation. Mr. Rosenstein thanked Special Assistant U.S. Attorney Lauren E. Perry, who is prosecuting the case.
Austin Couple Sentenced for Producing Sexually Explicit Videos and Images of Two GirlsRead the Press Release
United States Attorney Andrew M. Luger today announced the sentencing of ANTHONY DOANE EDGE, 36, and DEBORAH SUSAN EDGE, 37, each of whom pleaded guilty to manufacturing child pornography. The defendants were sentenced yesterday before Senior U.S. District Judge Michael Davis in U.S. District Court in Minneapolis, Minn.
According to the defendants’ guilty pleas and documents filed in court, sometime between October 6, 2013, and March 27, 2014, A. EDGE and D. EDGE used a six-year-old minor for the purpose of making a sexually explicit video of the minor’s genitals and pubic area.
According to the defendants’ guilty pleas, A. EDGE made child pornography videos of two young girls in the bathroom of his home using pin-hole cameras disguised to look like household objects, one in the shape of a plastic coat hook and one in the shape of an ink pen. D. EDGE participated in making a child pornography video of one of the young girls. Moreover, more than one thousand suspected images of child pornography were recovered from computers seized at the Edge residence, including many depictions of the sexual exploitation of pre-pubescent children and infants.
This case is the result of an investigation by the Minnesota Bureau of Criminal Apprehension and the Austin Police Department.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
If you know of any child who may have been a victim of exploitation, please call the National Center for Missing or Exploited Children (NCMEC) at 1-800-THE-LOST (1-800-843-5678) or visit NCMEC’s web site at www.missingkids.com.
Assistant U.S. Attorneys Katharine T. Buzicky and Carol M. Kayser prosecuted this case.
Defendant Information:
ANTHONY DOANE EDGE, 36
Austin, Minn.
Convicted:
- Production of child pornography, 1 count
Sentenced:
- 25 years in federal prison
DEBORAH SUSAN EDGE, 37
Austin, Minn.
Convicted:
- Production of child pornography, 1 count
Sentenced:
- 10 years in federal prison
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
Arizona Department of Public Safety Receives over $40 Million in Federal Grant FundsRead the Press Release
PHOENIX – Today, U.S. Attorney John S. Leonardo announced that $40,786,191 has been awarded to the Arizona Department of Public Safety. These funds will, among other things, be used to provide direct services to crime victims. The funds were awarded by the Office for Victims of Crime (“OVC”), which is a component of the Department of Justice’s Office of Justice Programs (“OJP”).
“The Arizona Department of Public Safety is one of our key law enforcement partners, and we are pleased that the Department of Justice has allocated over $40 million in federal funds to supplement its important work in Arizona,” said Leonardo. “We encourage all agencies to be proactive and apply for future law enforcement grant funding through our Office of Justice Programs.”
"As the state's designated recipient of federal Victims of Crime Act Grants, the Arizona Department of Public Safety realizes that this year’s funding will surpass any level of funding that the agency has ever seen. Our employees also understand the responsibilities associated with this funding and are working hard to distribute these funds to service those most in need” said Col. Frank Milstead, Director of the Arizona Department of Public Safety.
Additional information about OVC and its programs is available at: http://www.ovc.gov/.
Information about OJP and its programs can be found at: http://www.ojp.usdoj.gov.
Learn more about the Arizona Department of Public Safety link: http://www.azdps.gov/.
RELEASE NUMBER: 2015-079_AZ _Dept_Pub_Safety (2015-VA-GX-0032)
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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.
10th Annual National Prescription Drug Take-Back Day Saturday, September 26, 2015Read the Press Release
Oklahoma City – U.S. Attorney Sanford C. Coats wants to encourage the public to participate in the Drug Enforcement Administration’s 10th National Prescription Drug Take-Back Day set for Saturday, September 26, 2015, from 10:00 a.m. to 2:00 p.m.
"Prescription drug abuse constitutes one of the greatest public safety and public health epidemics of our time, inflicting devastating, long-term, harm to individuals as well as destroying families and communities throughout the country," said U.S. Attorney Sanford C. Coats. "We can all do our part to fight this epidemic by cleaning out our medicine cabinets of unwanted, unneeded, or expired prescription drugs for safe disposal at one of the many collection sites."
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 previous Take Back events, DEA and its partners have taken in over 4.8 million pounds—more than 2,400 tons—of pills.
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.
Collection sites will be set up throughout communities nationwide.
*******media Advisory*******Read the Press Release
ALBUQUERQUE – Officials from the Department of Justice and Department of the Interior (Interior) will hold a press conference on THURSDAY, SEPTEMBER 17, 2015, to announce a landmark settlement with a nationwide class of tribes and tribal entities.
WHO: Principal Deputy Assistant Attorney General Benjamin C. Mizer Head of the Justice Department’s Civil Division
U.S. Attorney Damon P. Martinez of the District of New Mexico
DOI Assistant Secretary – Indian Affairs Kevin K. Washburn
President David Jose of Ramah Navajo Chapter
President John Yellowbird Steele of Oglala Sioux Tribe
Governor Val R. Panteah Sr. of Pueblo of Zuni
Michael P. Gross, M.P. Gross Law Firm P.C.
C. Bryant Rogers, partner in VanAmberg, Rogers, Yepa, Abeita, Gomez and Works LLP
Lloyd B. Miller, partner in Sonosky Chambers Sachse Miller & Munson
WHEN:THURSDAY, SEPTEMBER 17, 2015 11:00 a.m. MDT / 1:00 p.m. EDT
WHERE:U.S. Attorney’s Office of the District of New Mexico
201 Third Street NW
10th Floor Multi-Media Room (Reception on Ninth Floor)
Albuquerque, NM 87102
OPEN PRESS
NOTE: All media must present government-issued photo I.D. (such as a driver’s license) as well as valid media credentials (which must be worn around the neck or pinned to clothing at all times). Media may begin to arrive at 10:00 a.m. MDT. Members of the media must RSVP for the above event to Nicole Navas at [email protected] and Elizabeth Martinez at [email protected] by Thursday, September 17, at 9:00 a.m. EDT. Please include your name, outlet, position, phone number and email address. Inquiries regarding logistics should be directed to Alyssa Ferda at 505-224-1480 or [email protected].
Tuesday 15 September 2015
White Mountain Apache Tribe Receives Nearly $290,000 in Federal Grant Funds to Support Sex Offender Registration and Notification EffortsRead the Press Release
PHOENIX – Today, U.S. Attorney John S. Leonardo announced that $282,014 in additional grant funds have been made available to the White Mountain Apache Tribe to support, maintain, and refine jurisdiction-wide programs and functions under the Sex Offender Registration and Notification Act (“SORNA”). These funds will assist in improving victim notification services, providing educational services, and increasing service capacity. The grant funds were awarded by the Sex Offender Sentencing, Monitoring, Apprehending, Registering, and Tracking (“SMART”) Office, which is a component of the Department of Justice’s Office of Justice Programs (“OJP”).
Information about OJP and its programs can be found at: http://www.ojp.usdoj.gov.
RELEASE NUMBER: 2015-071_WHITE MTN GRANT (2015-AW-BX-0017)
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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.
Utah Cities Get Department of Justice Grants to Support Police Departments, Serve CommunitiesRead the Press Release
SALT LAKE CITY – The Department of Justice has awarded grants to several Utah cities under the Edward Byrne Memorial Justice Assistance Grant (JAG) Program. The JAG Program is the primary provider of federal criminal justice funding to state and local jurisdictions and supports a range of program areas including law enforcement, prosecution and court programs, prevention and education programs, corrections and community corrections, drug treatment and enforcement, crime victim and witness initiatives, and planning, evaluation, and technology improvement programs.
Among the cities receiving local solicitation grants this year are West Valley City, Layton, Sandy, Provo, Ogden, West Jordan, Salt Lake City, South Salt Lake City, and Murray. The Utah Commission on Crime and Juvenile Justice (CCJJ) received a JAG grant of $1,421,840 under the state solicitation portion of the grant program.
“This program allows cities to apply for grant funds to address local needs and to support a broad range of local initiatives. Our communities are using the funding to increase officer safety, build transparency between police officers and the communities they serve, and to reduce crime in our neighborhoods. Grant recipients are also using funds to target specific issues we face in Utah, such as prescription drug abuse, domestic violence, and gang violence,” U.S. Attorney for Utah John W. Huber said today. The grants are awarded through DOJ’s Bureau of Justice Assistance.
CCJJ will used its JAG funds to enhance statewide public safety services, support of the Utah Residential Substance Abuse Treatment (RSAT) program; and continue other evidence-based projects that support the juvenile justice system, among other things. CCJJ’s JAG priority areas include addressing gang prevention/education or enforcement, prescription drug abuse prevention/education or enforcement, sexual assault or domestic violence, mental health courts and problem solving courts.
West Valley City will receive $90,892 to purchase body cameras for officers. The goals of the grant funding include facilitating transparency and fostering relationships of trust between officers and citizens of the city.
Layton will receive $13,529 to purchase equipment to increase officer safety and to help provide effective service to city residents and Davis County.
Sandy will also use its $19,579 grant to buy equipment, including in-car video camera systems, to provide increased safety for officers and help reduce crime.
Provo will use its $22,532 grant to enhance officer safety and to protect residents of the city. Purchases will include upgrading computers and software. Funds also will be used to purchase Tasers.
Ogden intends to use its $56,117 grant to purchase body cameras and provide training as a part of the city’s participation in multi-jurisdictional law enforcement efforts.
West Jordan will receive $29,487 to purchase law enforcement equipment, including hand-held radios, to improve the capability of police officers.
Murray intends to use its award of $26,439 to purchase digital in-car cameras to improve the capabilities of first responders in the city.
South Salt Lake City will use its $27,963 grant to purchase body cameras for officers.
Salt Lake City will receive a grant of $291,397 to support the Salt Lake City Police Department’s Explorer Program and the Salt Lake Peer Court. The funding will be used to provide equipment and technology, training for civilians and sworn officers, and organizing enforcement and community overtime projects.
Taylorsville, awarded $29,916, will use its grant money to purchase bicycles, lasers, printers, first aid equipment, surveillance equipment, digital cameras, and safety supply handouts for presentations. The updated equipment will help improve neighborhoods security in Taylorsville.
Two Sentenced to Prison for Trafficking More Than Five Pounds of MethRead the Press Release
BUTTE – A federal judge sentenced two defendants on Tuesday for attempting to transport more than five pounds of methamphetamine into Montana. Ismael Melin, 40, of Long Beach, California was sentenced today to 87 months in federal prison for possession with intent to distribute methamphetamine. Jose Luis Montano-Espericueta, 38, also of Long Beach, was sentenced today to 36 months in federal prison for possession of meth with the intent to distribute. Upon release from prison, both defendants will be remanded to the Bureau of Immigration and Customs Enforcement for deportation to Mexico. Chief U.S. District Court Judge Dana Christensen presided over the proceedings.
In an Offer of Proof filed by Assistant U.S. Attorney Bryan Whittaker, the government stated that if the case had proceeded to trial, the government would have proven that between September 2013 and February 2015, Melin and Montano-Espericueta possessed, with intent to distribute, 500 grams or more of methamphetamine, a Schedule II controlled substance. In January of 2015, agents of the Northwest Drug Task Force set up an ostensible drug deal through use of a Confidential Informant. During the exchange, which took place on February 6, agents obtained from the defendants a cooler in which was concealed approximately five pounds of methamphetamine. The defendants were arrested and during subsequent interviews admitted that they had driven from California to Montana for the purpose of transporting and distributing the methamphetamine in Montana.
The defendants had requested sentences significantly below the recommended guideline range. The United States had argued for sentences within the guideline range based on the extremely large amount of methamphetamine and the profound social and economic toll caused by the drug in Montana.
Assistant U.S. Attorney Bryan Whittaker prosecuted the cases. The crimes were investigated by the Northwest Drug Task Force. The defendants will have to serve at least 85% of their sentences before being released from federal prison.
Two Defendants Plead Guilty in Manhattan Federal Court for Their Roles in Orchestrating $18.5 Million Mortgage Modification Fraud SchemeRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced today that PED ABGHARI, a/k/a “Ted Allen,” and JUSTIN ROMANO pled guilty for their roles in orchestrating a massive mortgage modification scheme that collectively defrauded over 8,000 homeowners out of over $18.5 million. ABGHARI and ROMANO each pled guilty to wire fraud and conspiracy to commit wire fraud, and ABGHARI also pled guilty to misprision of a felony. ROMANO pled on September 14, 2015, and ABGHARI pled on September 15, 2015, before U.S. District Judge. John F. Keenan.
Manhattan U.S. Attorney Preet Bharara said: “As they have now admitted, Ped Abghari and Justin Romano took advantage of thousands of homeowners under water with debt and in need of assistance from the Home Affordable Modification Program and similar mortgage modification programs. Instead of helping to lift desperate homeowners out of debt, Abghari and Romano pushed them deeper in through exorbitant fees for mortgage modification services they never intended to provide. More than 8,000 homeowners were victimized by the defendants’ greed, but thanks to the extraordinary efforts of the Office of the Special Inspector General for the Troubled Asset Relief Program, those victims now can find some comfort in knowing that those who preyed on their suffering have been forced to admit to their crimes.”
According to the Indictment, and statements made at the plea proceedings:
The Home Affordable Modification Program
As a result of the financial crisis and collapse of the housing bubble in 2008, Congress enacted the Home Affordable Modification Program (“HAMP”), which was to be funded through the Troubled Asset Relief Program (“TARP”). HAMP permits qualified home owners to obtain mortgage relief. Specifically, HAMP seeks to prevent foreclosure by modifying troubled loans to achieve monthly payments the homeowner can afford.
Pursuant to HAMP, any homeowner may apply to his or her mortgage provider by completing a short form and submitting it, along with supporting paperwork, to the homeowner’s mortgage provider. HAMP further sets guidelines for lenders to follow in determining eligibility, such as guidelines based on the homeowner’s income and the principal balance remaining on the mortgage. Pursuant to HAMP, only a homeowner’s lender may determine the homeowner’s eligibility for a modification and, if appropriate, the modified rate and monthly payment for which the homeowner is eligible.
HAMP applications are readily available online as well as in many local banks. Submitting an application is, by law, free of charge to the homeowner. Virtually all mortgage providers are required to participate in the HAMP program and accept HAMP applications.
If a HAMP applicant is approved, he or she receives a reduced monthly mortgage payment set by the lender. If the HAMP applicant is not eligible for a modification, the application may be rejected. Common reasons for rejection of a HAMP application include that the homeowner earns too much income to qualify or has not demonstrated sufficient financial hardship or need for a modification.
Mortgage Modification Fraud
PED ABGHARI, a/k/a “Ted Allen,” was a president and owner of an Irvine, California, company that offered purported mortgage modification services (the “Telemarketing Firm”). JUSTIN ROMANO held himself out as the president of two purported law firms (the “Purported Law Firms”), based in Holbrook, New York, and Sayville, New York, which offered purported mortgage modification services in conjunction with the Telemarketing Firm.
From at least January 2011 through May 2014, through the Telemarketing Firm and the Purported Law Firms, ABGHARI and ROMANO, among others, perpetrated a scheme to defraud homeowners in dire financial straits who were seeking relief through HAMP and other mortgage relief programs. Through a series of false and fraudulent representations, the defendants duped thousands of homeowners into paying thousands of dollars each in up-front fees in exchange for little or no service from the defendants or their companies. In total, through their scheme, the defendants obtained over $18.5 million from more than 8,000 victim-homeowners throughout the United States.
Through the Telemarketing Firm, ABGHARI and others purchased thousands of “leads,” consisting of the name, address, and other contact information of homeowners who had fallen behind in making mortgage payments on their homes. ABGHARI and others then caused the Telemarketing Firm to send, by e-mail, false and fraudulent solicitation letters to the homeowners they identified through the “leads,” misleading these homeowners into believing that their mortgages were already under review and that new, modified rates had already been contemplated and approved by the homeowners’ lenders.
At the direction of ABGHARI and ROMANO, among others, the Telemarketing Firm’s telemarketer and sales people (the “Sales Staff”) called homeowners and/or answered telephone calls from homeowners who received the Telemarketing Firm’s fraudulent solicitations. During these calls, in an effort to convince the homeowners to pay up-front fees, the defendants, through the Sales Staff, regularly caused various false and fraudulent representations to be made to homeowners, including that (a) the homeowners were retaining a “law firm” and an “attorney” who would complete the HAMP application and negotiate aggressively on the homeowners’ behalf with banks to modify the terms of the homeowners’ mortgages; (b) the defendants would “pre-approve” the homeowners for a guaranteed modification through HAMP; (c) the defendants employed underwriters who would calculate and guarantee the homeowners a new, modified rate and monthly mortgage payment; and (d) the defendants’ mortgage modification services were free, and the up-front fees paid by the homeowners would be paid directly to the homeowners’ lenders. In truth and in fact, and as ABGHARI and ROMANO well knew, all of these representations were false and fraudulent.
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ABGHARI, 38, of Irvine, California, and ROMANO, 41, of Blue Point, New York, each pled guilty to one count of conspiracy to commit wire fraud and one count of wire fraud, each of which carries a maximum sentence of twenty years in prison. ABGHARI also pled guilty to one count of misprision of a felony, which carries a maximum sentence of three years in prison. Sentencings for ABGHARI and ROMANO have been set for January 14, 2016.
The maximum sentences are prescribed by Congress and are provided here for informational purposes only, as any sentencings of the defendants will be determined by the judge.
The remaining defendant charged for his role in the scheme, Dionysius Fiumano, a/k/a “D,” is scheduled to begin trial on December 9, 2015, before Judge Keenan. The charges pending against Fiumano are merely allegations, and he is presumed innocent unless and until proven guilty.
Mr. Bharara praised the investigative work of the Office of the Special Inspector General for the Troubled Asset Relief Program.
The case is being prosecuted by the Office’s Complex Frauds and Cybercrime Unit. Assistant U.S. Attorneys Edward B. Diskant and Joshua A. Naftalis are in charge of the prosecution.
Trivillian's Pharmacy sentenced for federal healthcare and drug crimesRead the Press Release
Former Owner Paula Butterfield Sentenced to One Year and One Day in Federal Prison
Charleston, W.Va. – United States Attorney Booth Goodwin announced that Trivillian’s Pharmacy, a long-standing Kanawha City retail and compounding pharmacy, was sentenced today in federal court in Charleston to three years of probation. Trivillian’s Pharmacy had previously entered guilty pleas on February 25, 2015, to healthcare fraud and misbranding drugs. Trivillian’s Pharmacy admitted it defrauded Medicare and Medicaid by dispensing compounded drugs while billing for more expensive brand name drugs, dispensing generic drugs while billing for more expensive brand name drugs, billing for drugs that were never dispensed and dispensing drugs that were compounded outside of a safe and clean environment. Trivillian’s Pharmacy also admitted to dispensing compounded drugs under labels and identification numbers associated with name brand drugs. As part of the plea, Trivillian’s Pharmacy agreed to make restitution to the Medicare and Medicaid programs in the amount of $355, 312.19**, and to forfeit an additional $355,312.19 of proceeds of the fraud schemes to the United States.
Paula J. Butterfield, the former owner and president of Trivillian’s Pharmacy was also sentenced to one year and one day in federal prison, followed by three years of supervised release. Butterfield, who was insured by Medicare, previously pleaded guilty to causing Trivillian’s Pharmacy to bill Medicare for drugs that were never dispensed to her. Butterfield has agreed make restitution to Medicare in the amount of $5,106.90.
Goodwin’s office has also reached a civil settlement with Trivillian’s Pharmacy under the federal False Claims Act, through which the United States recovered an additional $1.1 million for Medicare and Medicaid. The settlement amount represents more than three times the losses suffered by these federal healthcare programs. Between Trivillian’s Pharmacy and Butterfield, a total of more than $1.4 million will be paid through the civil settlement, criminal restitution and asset forfeiture.
Goodwin said, “Pharmacists and pharmacies hold positions of trust in our communities. Patients trust them to provide the medicines they need and bill correctly for the medicines they dispense. The crimes committed in this case represent a substantial breach of that trust. Here, the pharmacist and the pharmacy she owned were held accountable for their crimes and the programs they stole from were made whole. This should send a message to others who would engage in such conduct.”
The investigation was conducted by the United States Health and Human Services, the FDA, the Drug Enforcement Administration, the West Virginia State Police, and the West Virginia Medicaid Fraud Control Unit. Assistant United States Attorney Eumi Choi was in charge of the prosecution. Assistant United States Attorney John Gianola is responsible for the civil settlement.
** The pharmacy gets credit towards restitution for this amount based on its payments to date under the civil settlement.
Topsfield Man Pleads Guilty to Tax and Bankruptcy Fraud ChargesRead the Press Release
BOSTON – A Topsfield man pleaded guilty today in connection with evading nearly $400,000 in federal income taxes and false statements he made in bankruptcy filings.
Robert P. Bonefant, Jr., 57, pleaded guilty to two counts of tax evasion, three counts of filing a false tax return, and three counts of bankruptcy fraud for making false statements. U.S. District Chief Judge Patti B. Saris scheduled sentencing for Dec. 18, 2015.
In late 2008, the IRS assessed Bonefant for $194,430 in taxes owed for tax years 2004 and 2005. Thereafter, Bonefant took steps to prevent the IRS from learning of his true income and determining his actual tax liabilities. He did so by, among other things, depositing $1 million into his father’s bank accounts, including both taxable income and non-taxable business expense reimbursements. Bonefant also filed three federal income tax returns that failed to report significant income he had received for tax years 2009, 2011, and 2012. Additionally, he failed to file taxes for 2010. In total, including the amounts assessed for 2004 and 2005 and the amounts owed for 2009 through 2012, Bonefant failed to pay approximately $386,984 in taxes.
In 2012, Bonefant filed a chapter 7 bankruptcy case in Massachusetts seeking to discharge various debts, including the outstanding 2004 and 2005 federal tax liability. In documents filed with the Bankruptcy Court, and which he signed under the penalty of perjury, Bonefant made false statements concerning his income and assets, as well as his use of his father’s bank accounts.
The charge of tax evasion provides a sentence of no greater than five years in prison, three years of supervised release, and a fine of $250,000. The charge of filing a false tax return provides a sentence of no greater than three years in prison, one year of supervised release, and a fine of $250,000. The charge of bankruptcy fraud provides a sentence of no greater than five years in prison, three years of supervised release, and a fine of $250,000. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Carmen M. Ortiz; William P. Offord, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston; and Joseph R. Bonavolonta, Acting Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division, made the announcement today. The U.S. Trustee’s Office in Boston also provided assistance with this case. The case is being prosecuted by Assistant U.S. Attorney Mark J. Balthazard of Ortiz’s Economic Crimes Unit.
Third Defendant Sentenced in Illegal Deer Trafficking CaseRead the Press Release
COLUMBUS, Ohio – Benjamin N. Chason, 61, of Climax, Ga. pleaded guilty and was sentenced in U.S. District Court for three charges related to violating the Lacey Act. Chason was ordered to pay $1.6 million in fines and restitution, the largest sum of money ordered of an individual to pay for a wildlife crime in the United States.
Of the $1.6 million, $600,000 is to be paid into the Ohio Department of Natural Resources Wildlife Habitat Fund $200,000 to the Federal Endangered Species and Wildlife Diversity Fund, $400,000 to Columbus and Franklin County Metro Parks and $100,000 to the Ohio DNR Division of Wildlife Turn in a Poacher (TIP) program.
Carter Stewart, U.S. Attorney for the Southern District of Ohio, Gregory Jackson, Special Agent in Charge, United States Fish and Wildlife Service Office of Law Enforcement, Chief Scott Zody, Ohio Department of Natural Resources Division of Wildlife, Franklin County Prosecutor Ron O’Brien, the Florida Fish and Wildlife Conservation Commission and Georgia Department of Natural Resources announced the sentence, which was unsealed yesterday.
According to court documents, Chason and co-conspirator Donald W. Wainwright, Sr., trafficked in live white-tailed deer. Wainwright Sr. owned hunting preserves in Logan County, Ohio, and Live Oak, Florida; both preserves were named Valley View Whitetails. Donald Wainwright, Jr. was part-time resident and part-time operator of the site in Ohio. Chason was part-owner of Valley View Whitetails in Ohio and also owned an extensive high-fenced property containing white-tailed deer in Climax, Ga.
Wainwright Sr. illegally shipped deer to Florida from Ohio and attempted to ship deer to Georgia from Ohio. The deer herds involved with these shipments were not certified to be free from chronic wasting disease, tuberculosis and brucellosis. Federal law requires interstate shipments of deer to be certified to be disease-free; because the deer in the present case were not certified as disease-free, deer herds (both captive and wild) in Florida were potentially exposed to these diseases. Tuberculosis and brucellosis can also be transmitted from deer to cows and humans.
The attempted shipment to Georgia was intercepted on I-71 South, about 50 miles from the Ohio River, when Ohio Division of Wildlife officers noticed deer noses and antlers inside a cargo trailer and pulled over a truck driven by Wainwright Sr.’s employees.
Wainwright Sr. and Chason placed federal identification tags from a certified deer that had previously died into the ear of an uncertified deer they were selling. They then sold breeding services and semen from the deer to breeders around the United States.
The defendants also sold illegal white-tailed deer hunts at Valley View Whitetails of Ohio. They induced clients from around the country to hunt at Valley View Whitetails of Ohio – charging customers from $1,000 to $50,000 to kill deer inside his high fence preserve when Wainwright did not have a hunting preserve license. The customers then took the bucks back to their home states, including: Florida, Michigan, Alabama and Virginia.
“Illegal sale and transport of white-tailed deer are serious crimes and I appreciate the teamwork and cooperation between all of the agencies involved to help obtain these convictions,” ODNR Division of Wildlife Chief Scott Zody said.
"We are pleased to see the positive results in this investigation. The U.S. Fish and Wildlife Service, Office of Law Enforcement considers the potential spread of disease caused by the illegal commercialization of fish and wildlife resources a high priority, and we will continue to work closely with our State partners to assist them in these important investigations," said Edward Grace, U.S. Fish and Wildlife Service Deputy Assistant Director for Law Enforcement.
Chason pleaded guilty on May 1, 2014. Besides being ordered to pay restitution, Chason was sentenced to three years of probation and four months of home confinement. Chason also agreed to publish a statement in North American Whitetail Magazine and perform 150 hours community service in an Ohio or Georgia State Park.
Wainwright Sr. pleaded guilty on February 27, 2015, to 12 charges related to violating the Lacey Act, one count of conspiracy and one count of wire fraud. He was sentenced to 21 months in prison, a $125,000 fine 200 hours of community service to be served in a parks system and ordered to publish an article in The Deer Breeders Gazette.
Wainwright Jr. pleaded guilty on February 17, 2015, to eight charges related to offering illegal hunts in violation the Lacey Act and was sentenced to four months of house arrest and three years of probation.
Under the Lacey Act, it is unlawful to import, export, transport, sell or purchase wildlife, fish or plants that were taken, possessed, transported or sold in violation of a state, federal or foreign law. When it was passed in 1900, the Lacey Act became the first federal law protecting wildlife.
U.S. Attorney Stewart commended the cooperative investigation by law enforcement, as well as Special Assistant United States Attorney Heather Robinson with the Franklin County Prosecutor’s Office and Assistant United States Attorneys J. Michael Marous and Peter Glenn-Applegate, who represented the United States in this case.
Texas Man Pleads Guilty to Federal Hate Crime Against Gay African American ManRead the Press Release
A Texas man has pleaded guilty to hate crime offenses for his role in a Mar. 8, 2012, assault of a gay African American man in Corpus Christi, Texas, announced Principal Deputy Assistant Attorney General Vanita Gupta, head of the Department of Justice’s Civil Rights Division, and U.S. Attorney Kenneth Magidson of the Southern District of Texas.
Ramiro Serrata Jr., 22, pleaded guilty in federal court in Corpus Christi to one count of conspiracy to commit hate crimes and one count of a hate crime violation based on sexual orientation.
During the plea hearing, Serrata admitted that he and others conspired to assault a gay African American man because of his race, color and sexual orientation. Serrata admitted that during the assault, he and his co-conspirators punched and kicked the man and assaulted him with various dangerous weapons, including a frying pan, a mug, a sock filled with batteries, a broom and a belt.
Serrata admitted that when the victim began to bleed, the conspirators forced him to remove all of his clothing and clean up the blood throughout the apartment. After the victim was completely naked, one of the conspirators pointed a gun at the victim, while Serrata sodomized him with a broom. During the assault, the conspirators poured bleach onto the man’s face and eyes, pistol-whipped him with a handgun and whipped him with a belt.
Serrata acknowledged that throughout the assault, the conspirators repeatedly called the victim racial and homophobic slurs and made other anti-black and anti-gay statements. The conspirators also prevented the man from leaving the apartment by physical force and threats of force. The victim eventually escaped the apartment by jumping out of a window.
Serrata will be sentenced on Dec. 9, 2015, and faces a maximum sentence of fifteen years in prison. Serrata is incarcerated pending sentencing.
Jimmy Garza Jr. is also charged with related hate crimes in connection to this offense. His trial is scheduled for Sept. 29, 2015. He has pleaded not guilty, and is presumed innocent unless and until proven guilty.
This case was investigated by the FBI’s Corpus Christi Resident Agency with assistance from the Corpus Christi Police Department and is being prosecuted by Trial Attorneys Jared Fishman and Nicholas Durham of the Civil Rights Division and Assistant U.S. Attorney Ruben Perez of the Southern District of Texas.
Tennessee Woman Pleads Guilty to Filing False Tax ClaimRead the Press Release
A Nashville, Tennessee, resident pleaded guilty to filing a false claim with the U.S. government, announced Acting Assistant Attorney General Caroline D. Ciraolo of the Justice Department’s Tax Division and U.S. Attorney David Rivera of the Middle District of Tennessee.
According to court documents and statements at the plea hearing, Karen Liane Miller, 60, admitted that from in or about August 2008 until in or about July 2009, she knowingly prepared and submitted to the Internal Revenue Service (IRS) multiple false federal income tax returns on behalf of her friends, family and herself. The returns reported false amounts of taxable income on attached Forms 1099-OID (Original Issue Discount) and Forms 1099-A that Miller created and fraudulently represented to have been issued by financial institutions. The returns also reported identical or near-identical false amounts of federal income tax withheld from the fictitious income to generate claims for tax refunds that were significantly higher than what the taxpayers were entitled to receive. Miller filed 48 fraudulent tax returns that falsely claimed more than $19.8 million in refunds. The IRS issued $1,003,238 in refunds for eight of the 48 fraudulent returns.
The sentencing hearing is set for Jan. 8, 2016. Pursuant to the plea agreement, Miller faces a potential statutory maximum sentence of five years in prison, restitution in the amount of $1,003,328 to the IRS and a fine.
Acting Assistant Attorney General Ciraolo and U.S. Attorney Rivera commended special agents of IRS-Criminal Investigation, who investigated the case, and Trial Attorneys Alexander R. Effendi and Nathan P. Brooks of the Tax Division and Assistant U.S. Attorney Carrie Daughtrey, who are prosecuting the case.
Six-Time Cedar Rapids Felon Sent to Prison for the Maximum Ten Years for Possessing a Firearm and AmmunitionRead the Press Release
A convicted felon who possessed a firearm and ammunition on the streets of Cedar Rapids in March was sentenced yesterday to ten years in federal prison, the statutory maximum sentence possible for his crime.
Gregg Morris McGee a/k/a “Jimmy Ray Williams” a/k/a “Mykiel Lewis” a/k/a “Calvin McGee,” age 38, from Cedar Rapids, Iowa, received the prison term after a June 8, 2015, guilty plea to one count of possessing a firearm and ammunition as a felon.
At the guilty plea hearing, McGee admitted that he knowingly possessed a Glock Model 17, 9mm pistol and Remington-Peters 9mm ammunition. At the plea hearing, McGee also admitted to six prior felony convictions in state court for theft in the second degree, forgery, and possession of a simulated controlled substance with intent to deliver.
McGee was sentenced in Cedar Rapids by United States District Court Chief Judge Linda R. Reade to 120 months’ imprisonment. A special assessment of $100 was imposed. He must also serve a three-year term of supervised release after the prison term. There is no parole in the federal system. McGee is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Tim Vavricek and investigated by the FBI’s Safe Streets Task Force.
Court file information available: https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is 15-CR-00040.
Follow us on Twitter @USAO_NDIA.
Shreveport optometrist pleads guilty to illegally writing prescriptionsRead the Press Release
SHREVEPORT, La. – United States Attorney Stephanie A. Finley announced that a Shreveport optometrist pleaded guilty Monday to writing prescriptions for non-patients and non-medical purposes.
Charles D. Shanks, 63, of Shreveport, entered a conditional guilty plea before U.S. Magistrate Judge Mark L. Hornsby for one count of distributing or dispensing a controlled substance. The plea will become final when accepted by U.S. District Judge Donald E. Walter. According to evidence presented at the guilty plea, Shanks, a Shreveport optometrist, wrote dozens of prescriptions for codeine and hydrocodone in 2012 and 2013 from pharmacies and wholesale distributors that were for non-patients and not for valid medical purposes.
Shanks faces up to 10 years in prison, two years of supervised release and a $500,000 fine. A sentencing date of January 11, 2016 was set.
The DEA conducted the investigation. Assistant U.S. Attorney Seth D. Reeg is prosecuting the case.
Seven Wichita Area Residents Charged with Federal Unemployment Benefits FraudRead the Press Release
WICHITA, KAN. - Seven Wichita area residents were indicted in separate cases Tuesday on federal charges of fraudulently receiving unemployment benefits, U.S. Attorney Barry Grissom said.
The indictments allege each of the defendants submitted false information to the Kansas Department of Labor in order to receive unemployment benefits to which they were not entitled.
Each of the defendants was charged with one count of wire fraud. The defendants include:
John C. Hutchinson, 36, Wichita, who worked for The Specialists Group, LLC and Home Depot USA Inc., and is alleged to have fraudulently received $25,888 in benefits.
Ricky J. Henderson, 32, Wichita, Kan., who worked for CNH America, LLC, and is alleged to have fraudulently received $12,405 in benefits.
Edward L. Schwartz, 46, Colwich, Kan., who worked for CNH America, LLC, and Angela D. Schwartz, 41, Colwich, Kan. They are alleged to have fraudulently received $10,320 in benefits.
Terrance Turner, 32, Wichita, Kan., who worked for CNH America, LLC, and is alleged to have fraudulently received $10,879 in benefits.
David J. Smith, 34, Wichita, Kan., who worked for CNH America, LLC, and is alleged to have fraudulently received $9,582 in benefits.
Ignacio Calderon, 49, Wichita, Kan, who worked for CNH America, LLC, and is alleged to have fraudulently received $15,401 in benefits.
If convicted, the defendants face a maximum penalty of 20 years in federal prison and a fine up to $250,000. The Kansas Department of Labor investigated. Assistant U.S. Attorney Alan Metzger and Assistant U.S. Attorney Matt Treaster are prosecuting.
OTHER INDICTMENTS
Brandon L. Hutchinson, 30, Wichita, Kan., is charged with one count of unlawful possession of a firearm following a felony conviction. The crime is alleged to have occurred Aug. 13, 2015, in Sedgwick County, Kan.
If convicted, he faces a maximum penalty of 10 years in federal prison and a fine up to $250,000. The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated. Assistant U.S. Attorney Lanny Welch is prosecuting.
Jose Francisco Beltran, 39, Tucson, Ariz., is charged with one count of possession with intent to distribute methamphetamine. The crime is alleged to have occurred Aug. 27, 2015, in Lincoln County, Kan.
If convicted, he faces a penalty of not less than 10 years in federal prison and a fine up to $4 million. The Drug Enforcement Administration investigated. Assistant U.S. Attorney Matt Treaster is prosecuting.
Martin A. Garcia-Corona, 23, and Ana L. Armenta, 31, are charged with one count of possession with intent to distribute methamphetamine. The crime is alleged to have occurred Sept. 3, 2015, in Sedgwick County, Kan.
If convicted, they face a penalty of not less than 10 years and a fine up to $4 million. The Wichita Police Department investigated. Assistant U.S. Attorney Alan Metzger is prosecuting.
Joel Zamarripa-Favela, 28, a citizen of Mexico, is charged with one count of unlawfully re-entering the United States after being deported. He was found Sept. 3, 2015, in Sedgwick County, Kan.
If convicted, he faces a maximum penalty of 20 years in federal prison and a fine up to $250,000. Immigration and Customs Enforcement’s Enforcement and Removal Operations investigated. Assistant U.S. Attorney Brent Anderson is prosecuting.
Fernando Delgado-Ornales, 39, a citizen of Mexico, is charged with one count of unlawfully re-entering the United States after being deported. He was found Aug. 10, 2015, in Sedgwick County, Kan.
If convicted, he faces a maximum penalty of 20 years in federal prison and a fine up to $250,000. Immigration and Customs Enforcement’s Enforcement and Removal Operations investigated. Assistant U.S. Attorney Brent Anderson is prosecuting.
Roberto Castro-Alaniz, 39, a citizen of Mexico, is charged with one count of unlawfully re-entering the United States after being deported. He was found Aug. 27, 2015, in Seward County, Kan.
If convicted, he faces a maximum penalty of two years in federal prison and a fine up to $250,000. Immigration and Customs Enforcement’s Enforcement and Removal Operations investigated. Assistant U.S. Attorney Brent Anderson is prosecuting.
In all cases, defendants are presumed innocent until and unless proven guilty. The indictments merely contain allegations of criminal conduct.
Seven Indicted for Allegedly Staging Dozens of Car Accidents in a $1.2 Million Insurance Fraud SchemeRead the Press Release
FRESNO, Calif. — Four of seven defendants were arrested today on federal charges related to their alleged involvement in a scheme that defrauded insurance companies of at least $1.2 million by staging car crashes and submitting false insurance claims, United States Attorney Benjamin B. Wagner announced.
A federal grand jury returned the sealed indictment on August 27, 2015, which was unsealed after the arrests today.
The indictment charges Juan Ortiz Rivas, 38, of Ceres; Oscar Diaz Landa, 45, of San Jose; Victor Hugo Soriano-Villafan, 25, of Modesto; Liobigildo Vargas, 45, of Turlock; Juan Marquez Cadenas, 29, of Patterson; Cristopher Santiago Sanchez-Becerra, 31, of Stockton; and, Alfonso Apu, 47, of Modesto with conspiracy to commit mail fraud and mail fraud. Landa, Sanchez-Becerra, and Apu were arrested this morning at their residences, and Vargas was arrested at his business Vargas Auto Body in Turlock. Soriano-Villafan was arrested last week in Las Vegas and arraigned in U.S. District Court in Fresno.
According to court documents, from October 2011 until August 2014, the defendants conspired to stage dozens of car accidents and submit false claims seeking compensation for the damage caused by the staged accidents. In each staged accident, the defendants damaged two or three vehicles and caused about $5,000 to $10,000 of damage to each vehicle. After each staged collision, all parties involved submitted a similar cover story to an insurer that concealed the true cause of the accident and commonly used aliases, false identities, and false addresses. The defendants usually used different vehicles in the staged collisions by obtaining many different vehicles and using false identities to both register the vehicles with the Department of Motor Vehicles and obtain insurance policies for the vehicles.
The indictment further alleges that the defendants were able to repeat the scheme in dozens of crashes by recruiting other individuals in the staged collisions. These individuals would allow their vehicles to be damaged in a staged collision and submit their own claim for damages after receiving instructions from the defendants about the cover story to use. In many instances, false claims were submitted to the recruited individual’s insurance company. Commonly, the defendants would also offer to repair the recruited individual’s vehicle at one of their automobile repair shops, usually with less-than-complete repair work, for a fee less than the payment from an insurance company on the damaged vehicle.
This case is the product of an investigation by the U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) and the California Department of Insurance, Fraud Division. Assistant United States Attorneys Patrick R. Delahunty and Henry Z. Carbajal III are prosecuting the case.
If convicted, each defendant faces a maximum statutory penalty of 20 years in prison and a $250,000 fine on each count of the indictment. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.
Scranton Man Sentenced to Prison for Use of an Interstate Communication Device to Entice A Minor to Engage in SexRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced that a Scranton man was sentenced today in federal court in Scranton by United States District Judge Edwin M. Kosik to serve 60 months in prison on the charge of using an interstate communication device to entice a minor to engage in sexual activity.
According to United States Attorney Peter Smith, Hugo Perez Banda, age 28, pleaded guilty to utilizing the internet and a cellular device, to knowingly attempt to entice a minor to engage in sexual activity, in March 2015.
The charges were brought after Scranton Police received a complaint that Banda had communicated with a 14 year old minor using Facebook, and requesting the minor to both send photographs of her genital area to Banda over the internet, and to accompany Banda to a local motel in order to engage in sexual intercourse.
In addition to the prison term, Judge Kosik also ordered that Banda be supervised by a probation officer for five years following his release from prison. It is also noted that Banda is subject to deportation upon his release from prison.
The investigation was conducted by Homeland Security Investigations, the Pennsylvania State Police, and the Scranton Police Department. The case was prosecuted by Assistant United States Attorney Todd K. Hinkley.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
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Russian National Admits Role in Largest Known Data Breach Conspiracy Ever ProsecutedRead the Press Release
Hackers Targeted Major Payment Processors, Retailers and Financial Institutions Around the World
A Russian national today admitted his role in a worldwide hacking and data breach scheme that targeted major corporate networks, compromised more than 160 million credit card numbers and resulted in hundreds of millions of dollars in losses – the largest such scheme ever prosecuted in the United States.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Paul J. Fishman of the District of New Jersey and Director Joseph P. Clancy of the U.S. Secret Service made the announcement.
Vladimir Drinkman, 34, of Syktyvkar, Russia, and Moscow, pleaded guilty before Chief U.S. District Judge Jerome B. Simandle of the District of New Jersey to one count of conspiracy to commit unauthorized access of protected computers and one count of conspiracy to commit wire fraud. Drinkman was arrested in the Netherlands on June 28, 2012, and was extradited to the District of New Jersey on Feb. 17, 2015. Sentencing is scheduled for Jan. 15, 2016.
“This hacking ring’s widespread attacks on American companies caused serious harm and more than $300 million in losses to people and businesses in the United States,” said Assistant Attorney General Caldwell. “As demonstrated by today’s conviction, our close cooperation with our international partners makes it more likely every day that we will find and bring to justice cyber criminals who attack America – wherever in the world they may be. As law enforcement around the world responds to the cyber threat that affects us all, I am confident that this type of international cooperation that led to this result will be the new normal.”
“Defendants like Vladimir Drinkman, who have the skills to break into our computer networks and the inclination to do so, pose a cutting edge threat to our economic well-being, our privacy and our national security,” said U.S. Attorney Fishman. “The crimes to which he admitted his guilt have a real, practical cost to our privacy and our pocketbooks. Today’s guilty plea is a tribute to the skill and perseverance of the agents and prosecutors who brought him to justice.”
“This cyber case highlights the effectiveness of global law enforcement partnerships in the detection and dismantling of criminal enterprises targeting U.S. citizens,” said Director Clancy. “The support of U.S. Attorney’s offices and the resulting plea enhances the Secret Service’s commitment to vigorously pursue transnational threats to the U.S. financial infrastructure.”
According to documents filed in this case and statements made in court, Drinkman and four co-defendants allegedly hacked into the networks of corporate victims engaged in financial transactions, retailers that received and transmitted financial data and other institutions with information that the conspirators could exploit for profit, including the computer networks of NASDAQ, 7-Eleven, Carrefour, JCP, Hannaford, Heartland, Wet Seal, Commidea, Dexia, JetBlue, Dow Jones, Euronet, Visa Jordan, Global Payment, Diners Singapore and Ingenicard.
According to the indictment in this case and statements made in court, the five defendants each played specific roles in the scheme. Drinkman and Alexandr Kalinin, 28, of St. Petersburg, Russia, allegedly specialized in penetrating network security and gaining access to the corporate victims’ systems. Drinkman and Roman Kotov, 34, of Moscow, allegedly specialized in mining the networks to steal valuable data. The hackers hid their activities using anonymous web-hosting services allegedly provided by Mikhail Rytikov, 28, of Odessa, Ukraine. Dmitriy Smilianets, 32, of Moscow, allegedly sold the information stolen by the other conspirators and distributed the proceeds of the scheme to the participants.
Drinkman and Kalinin were previously charged in New Jersey as “Hacker 1” and “Hacker 2” in a 2009 indictment charging Albert Gonzalez, 34, of Miami, in connection with five corporate data breaches, including the breach of Heartland Payment Systems Inc., which at the time was the largest ever reported. Gonzalez is currently serving 20 years in federal prison for those offenses. Kalinin is also charged in two federal indictments in the Southern District of New York: the first charges Kalinin in connection with hacking certain computer servers used by NASDAQ and the second charges him and another Russian hacker, Nikolay Nasenkov, with an international scheme to steal bank account information from U.S.-based financial institutions. Rytikov was previously charged in the Eastern District of Virginia in an unrelated scheme.
Drinkman and Smilianets were arrested at the request of the United States while traveling in the Netherlands on June 28, 2012. Smilianets was extradited on Sept. 7, 2012, and remains in federal custody. Kalinin, Kotov and Rytikov remain at large.
The Attacks
According to documents filed in this case and statements made in court, the five defendants penetrated the computer networks of several of the corporate victims and stole user names and passwords, means of identification, credit and debit card numbers and other corresponding personal identification information of cardholders. The conspirators allegedly acquired more than 160 million card numbers through hacking.
The initial entry was often gained using a “SQL injection attack.” SQL, or Structured Query Language, is a type of programming language designed to manage data held in particular types of databases; the hackers allegedly identified vulnerabilities in SQL databases and used those vulnerabilities to infiltrate a computer network. Once the network was infiltrated, the defendants allegedly placed malicious code (malware) in the system. This malware created a “back door,” leaving the system vulnerable and helping the defendants maintain access to the network. In some cases, the defendants lost access to the system due to companies’ security efforts, but were allegedly able to regain access through persistent attacks.
Instant message chats obtained by law enforcement revealed that the defendants allegedly targeted the victim companies for many months, waiting patiently as their efforts to bypass security were underway, sometimes leaving malware implanted in multiple companies’ servers for more than a year.
The defendants allegedly used their access to the networks to install “sniffers,” which were programs designed to identify, collect and steal data from the victims’ computer networks. The defendants then allegedly used an array of computers located around the world to store the stolen data and ultimately sell it to others.
Selling the Data
According to documents filed in this case and statements made in court, after acquiring the card numbers and associated data – which they referred to as “dumps” – the conspirators sold it to resellers around the world. The buyers then sold the dumps through online forums or directly to individuals and organizations. Smilianets was allegedly in charge of sales, selling the data only to trusted identity theft wholesalers. He allegedly charged approximately $10 for each stolen American credit card number and associated data, approximately $50 for each European credit card number and associated data and approximately $15 for each Canadian credit card number and associated data – offering discounted pricing to bulk and repeat customers. Ultimately, the end users encoded each dump onto the magnetic strip of a blank plastic card and cashed out the value of the dump by withdrawing money from ATMs or making purchases with the cards.
Covering Their Tracks
According to documents filed in this case and statements made in court, the defendants allegedly used a number of methods to conceal the scheme. Unlike traditional Internet service providers, Rytikov allegedly allowed his clients to hack with the knowledge he would never keep records of their online activities or share information with law enforcement.
Over the course of the conspiracy, the defendants allegedly communicated through private and encrypted communications channels to avoid detection. Fearing law enforcement would intercept even those communications, some of the conspirators allegedly attempted to meet in person.
To protect against detection by the victim companies, the defendants allegedly altered the settings on victim company networks to disable security mechanisms from logging their actions. The defendants also allegedly worked to evade existing protections by security software.
As a result of the scheme, financial institutions, credit card companies and consumers suffered hundreds of millions of dollars in losses – including more than $300 million in losses reported by just three of the corporate victims – and immeasurable losses to the identity theft victims in costs associated with stolen identities and false charges.
The charges and allegations contained in indictments are merely accusations and the defendants are presumed innocent unless and until proven guilty.
The case is being investigated by the U.S. Secret Service’s Criminal Investigations Division and Newark, New Jersey, Division. The case is being prosecuted by Trial Attorney Richard Green of the Criminal Division’s Computer Crime and Intellectual Property Section, Chief Gurbir S. Grewal of the District of New Jersey’s Economic Crimes Unit and Assistant U.S. Attorney Andrew S. Pak of the District of New Jersey. The Criminal Division’s Office of International Affairs, public prosecutors with the Dutch Ministry of Security and Justice and the National High Tech Crime Unit of the Dutch National Police also provided valuable assistance.
Drinkman Plea Agreement
Russian National Admits Role in Largest Known Data Breach Conspiracy Ever ChargedRead the Press Release
Hackers Targeted Major Payment Processors, Retailers and Financial Institutions Around the World
CAMDEN, N.J. – A Russian national today admitted his role in a worldwide hacking and data breach scheme that targeted major corporate networks, compromised more than 160 million credit card numbers and resulted in hundreds of millions of dollars in losses – the largest such scheme ever prosecuted in the United States.
The guilty plea was announced by New Jersey U.S. Attorney Paul J. Fishman, U.S. Secret Service Director Joseph P. Clancy and Assistant Attorney General Leslie Caldwell.
Vladimir Drinkman, 34, of Syktyvkar, Russia, and Moscow, pleaded guilty before Chief U.S. District Judge Jerome B. Simandle of the District of New Jersey to one count of conspiracy to commit unauthorized access of protected computers and one count of conspiracy to commit wire fraud. Drinkman was arrested in the Netherlands on June 28, 2012, and was extradited to the District of New Jersey on Feb. 17, 2015.
“Defendants like Vladimir Drinkman, who have the skills to break into our computer networks and the inclination to do so, pose a cutting edge threat to our economic well-being, our privacy and our national security,” U.S. Attorney Fishman said. “The crimes to which he admitted his guilt have a real, practical cost to our privacy and our pocketbooks. Today’s guilty plea is a tribute to the skill and perseverance of the agents and prosecutors who brought him to justice.”
“This hacking ring’s widespread attacks on American companies caused serious harm and more than $300 million in losses to people and businesses in the U.S.,” said Assistant Attorney General Caldwell. “As demonstrated by today’s conviction, our close cooperation with our international partners makes it more likely every day that we will find and bring to justice cyber criminals who attack America – wherever in the world they may be. As law enforcement around the world responds to the cyber threat that affects us all, I am confident that this type of international cooperation that led to this result will be the new normal.”
“This cyber case highlights the effectiveness of global law enforcement partnerships in the detection and dismantling of criminal enterprises targeting United States citizens,” Director Clancy said. “The support of U.S. Attorney’s offices and the resulting plea enhances the Secret Service’s commitment to vigorously pursue transnational threats to the U.S. financial infrastructure”.
According to documents filed in this case and statements made in court:
Drinkman and four co-defendants hacked into the networks of corporate victims engaged in financial transactions, retailers that received and transmitted financial data and other institutions with information that the conspirators could exploit for profit, including the computer networks of NASDAQ, 7-Eleven, Carrefour, JCP, Hannaford, Heartland, Wet Seal, Commidea, Dexia, JetBlue, Dow Jones, Euronet, Visa Jordan, Global Payment, Diners Singapore and Ingenicard.
The five defendants each played specific roles in the scheme. Drinkman and Alexandr Kalinin, 28, of St. Petersburg, Russia, specialized in penetrating network security and gaining access to the corporate victims’ systems. Drinkman and Roman Kotov, 34, of Moscow, also a hacker, specialized in mining the networks to steal valuable data. The hackers hid their activities using anonymous web-hosting services provided by Mikhail Rytikov, 28, of Odessa, Ukraine. Dmitriy Smilianets, 32, of Moscow, sold the information stolen by the other conspirators and distributed the proceeds of the scheme to the participants.
Drinkman and Kalinin were previously charged in New Jersey as “Hacker 1” and “Hacker 2” in a 2009 indictment charging Albert Gonzalez, 34, of Miami, Florida, in connection with five corporate data breaches – including the breach of Heartland Payment Systems Inc., which at the time was the largest ever reported. Gonzalez is currently serving 20 years in federal prison for those offenses. Kalinin is also charged in two federal indictments in the Southern District of New York: the first charges Kalinin in connection with hacking certain computer servers used by NASDAQ and the second charges him and another Russian hacker, Nikolay Nasenkov, with an international scheme to steal bank account information from U.S.-based financial institutions. Rytikov was previously charged in the Eastern District of Virginia with an unrelated scheme.
Drinkman and Smilianets were arrested at the request of the United States while traveling in the Netherlands on June 28, 2012. Smilianets was extradited Sept. 7, 2012, and remains in federal custody. Kalinin, Kotov and Rytikov remain at large.
The Attacks
The five defendants penetrated the computer networks of several of the corporate victims and stole user names and passwords, means of identification, credit and debit card numbers and other corresponding personal identification information of cardholders. The conspirators allegedly acquired more than 160 million card numbers through hacking.
The initial entry was often gained using a “SQL injection attack.” SQL, or Structured Query Language, is a type of programing language designed to manage data held in particular types of databases; the hackers identified vulnerabilities in SQL databases and used those vulnerabilities to infiltrate a computer network. Once the network was infiltrated, the defendants placed malicious code, or malware, in the system. This malware created a “back door,” leaving the system vulnerable and helping the defendants maintain access to the network. In some cases, the defendants lost access to the system due to companies’ security efforts, but were able to regain access through persistent attacks.
Instant message chats obtained by law enforcement revealed the defendants often targeted the victim companies for many months, waiting patiently as their efforts to bypass security were underway. The defendants had malware implanted in multiple companies’ servers for more than a year.
The defendants used their access to the networks to install “sniffers,” which were programs designed to identify, collect and steal data from the victims’ computer networks. The defendants then used an array of computers located around the world to store the stolen data and ultimately sell it to others.
Selling the Data
After acquiring the card numbers and associated data – which they referred to as “dumps” – the conspirators sold it to resellers around the world. The buyers then sold the dumps through online forums or directly to individuals and organizations. Smilianets was in charge of sales, selling the data only to trusted identity theft wholesalers. He charged approximately $10 for each stolen American credit card number and associated data, approximately $50 for each European credit card number and associated data and approximately $15 for each Canadian credit card number and associated data – offering discounted pricing to bulk and repeat customers. Ultimately, the end users encoded each dump onto the magnetic strip of a blank plastic card and cashed out the value of the dump by withdrawing money from ATMs or making purchases with the cards.
Covering Their Tracks
The defendants used a number of methods to conceal the scheme. Unlike traditional Internet service providers, Rytikov allowed his clients to hack with the knowledge he would never keep records of their online activities or share information with law enforcement.
Over the course of the conspiracy, the defendants communicated through private and encrypted communications channels to avoid detection. Fearing law enforcement would intercept even those communications, some of the conspirators attempted to meet in person.
To protect against detection by the victim companies, the defendants altered the settings on victim company networks to disable security mechanisms from logging their actions. The defendants also worked to evade existing protections by security software.
* * *
As a result of the scheme, financial institutions, credit card companies and consumers suffered hundreds of millions in losses – including more than $300 million in losses reported by just three of the corporate victims – and immeasurable losses to the identity theft victims in costs associated with stolen identities and false charges. The charges and allegations contained in indictments against the remaining defendants are merely accusations and the defendants are presumed innocent unless and until proven guilty.
The count of conspiracy to commit wire fraud in a manner affecting a financial institution to which Drinkman pleaded guilty carries a maximum potential penalty of 30 years in prison and a fine of the greatest of $1 million or twice the gain or loss from the offense. The count of conspiracy to gain unauthorized access to computers to which Drinkman pleaded guilty carries a maximum potential penalty of five years in prison and a fine of the greatest of $250,000 or twice the gain or loss from the offense. Sentencing is scheduled for Jan. 15, 2016.
U.S. Attorney Fishman credited the special agents of the U.S. Secret Service, Criminal Investigations, under the direction of Director Clancy, and the Newark Division, under the direction of Special Agent in Charge Carl Agnelli, for the ongoing investigation leading to today’s guilty plea.
The government is represented by Gurbir S. Grewal, Chief of the U.S. Attorney’s Office Economic Crimes Unit, and Assistant U.S. Attorney Andrew S. Pak of the Computer Hacking and Intellectual Property Section of the Economic Crimes Unit, Trial Attorneys Richard Green of the Criminal Division’s Computer Crime and Intellectual Property Section, and Judith Friedman of the Office of International Affairs.
U.S. Attorney Fishman also thanked public prosecutors with the Dutch Ministry of Security and Justice and the National High Tech Crime Unit of the Dutch National Police.
Defense counsel: Florian Miedel Esq., New York; Bart Stapert Esq., Amsterdam, Netherlands
Rhode Island Businessman Pleads Guilty to Marketing and Selling Unapproved Remedies for Cancer Mitigation and Treatment, Tax EvasionRead the Press Release
PROVIDENCE, R.I. – James Feijo, 68, owner and operator of Daniel Chapter One, a Portsmouth, R.I., based company, pleaded guilty in federal court in Providence to marketing and selling products not approved by the U.S. Food and Drug Administration (FDA) as cancer mitigation and treatment options, and failing to pay more than $218,000 in employment taxes due the IRS, announced United States Attorney Peter F. Neronha, Michael Mangiacotti, Resident Agent in Charge of the FDA Office of Criminal Investigations, and William P. Offord, Special Agent in Charge of IRS Criminal Investigation.
Appearing before U.S. District Court Judge John J. McConnell, Jr., Feijo pleaded guilty to one count of introduction of a new unapproved drug and one count of tax evasion.
At the time of his guilty plea, Feijo admitted to the court that he engaged in the marketing, sale and distribution of unapproved health products and supplements, 7 Herb Formula, Bio Shark and GDU, which were not generally recognized as safe and effective for use by the FDA. Additionally, the products, as marketed, were not generally recognized as safe and effective by qualified experts for the cure, mitigation, treatment, or prevention of cancer. The products were marketed and sold through various websites, in-store advertisements, a call center, on the Feijos’ daily radio program, and through the use of promotional materials and publications.
In addition, at the time of his guilty plea, Feijo admitted to the court that from 2006 through 2011, he falsely represented to Daniel Chapter One employees that they were independent contractors, when in truth they were employees of Daniel Chapter One. During that time, Feijo failed to issue IRS Wage and Tax Statements, Forms W-2, accounting for employees’ wages and taxes withheld. Feijo admitted that through 2011, Daniel Chapter One employees were paid by checks written out to cash, and that for at least sixteen quarters he failed to collect, account for and pay over employment taxes due the IRS totaling $218,408.04.
Feijo is scheduled to be sentenced by U.S. District Court Judge John J. McConnell, Jr., on January 12, 2016.
The case is being prosecuted by Assistant U.S. Attorney Terrence P. Donnelly.
The matter was investigated by the Rhode Island FDA Task Force and by IRS Criminal Investigation.
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Contact:
Jim Martin (401) 709-5357
email: [email protected]
on Twitter @USAO_RI
Retired Master Deputy Sheriff Sentenced to 20 Years in Prison for Child Pornography ChargesRead the Press Release
A retired master deputy sheriff was sentenced today to 20 years in prison for receiving, distributing and possessing child pornography, announced Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Wifredo A. Ferrer of the Southern District of Florida, Special Agent in Charge Alysa D. Erichs of the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI) Miami Field Division and Sheriff Ken J. Mascara of the St. Lucie County, Florida, Sheriff’s Office.
Cameron Dean Bates, 50, of Port St. Lucie, Florida, was found guilty by a jury on June 11, 2015, of four counts of receipt of child pornography, one count of distribution of child pornography and one count of possession of child pornography. In addition to imposing the prison term, Chief U.S. District Judge K. Michael Moore of the Southern District of Florida ordered Bates to pay $3,500 in restitution to a victim.
In March 2011, St. Lucie County Sheriff’s Office detectives and members of the South Florida Internet Crimes Against Children Task Force (ICAC) began an investigation using peer-to-peer (P2P) software. According to evidence presented at trial, investigators discovered that, between December 2010 and June 2012, several Internet protocol (IP) addresses linked to Bates in both St. Lucie County and Palm Beach County were used to download and share child pornography files. The trial evidence showed that a laptop computer recovered during a search of Bates’ home contained numerous images and videos of child pornography, including at least one image depicting a child under the age of 12.
This case was investigated by the St. Lucie County Sheriff’s Office, the South Florida ICAC and ICE-HSI, with assistance from the Palm Beach County, Florida, Sheriff’s Office. The case is being prosecuted by Trial Attorney Reginald E. Jones of the Criminal Division’s Child Exploitation and Obscenity Section (CEOS) and Assistant U.S. Attorney Ben Widlanski of the Southern District of Florida.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched by the Justice Department in May 2006 to combat the growing epidemic of child exploitation and abuse. Led by U.S. Attorney’s Offices and CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Retired Master Deputy Sheriff Sentenced to 20 Years in Prison for Child Pornography ChargesRead the Press Release
A retired master deputy sheriff was sentenced today to 20 years in prison, to be followed by 15 years of supervised release, for receiving, distributing and possessing child pornography, announced U.S. Attorney Wifredo A. Ferrer of the Southern District of Florida, Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, Special Agent in Charge Alysa D. Erichs of the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI) Miami Field Division and Sheriff Ken J. Mascara of the St. Lucie County, Florida, Sheriff’s Office.
Cameron Dean Bates, 50, of Port St. Lucie, Florida, was found guilty by a jury on June 11, 2015, of four counts of receipt of child pornography, one count of distribution of child pornography and one count of possession of child pornography. In addition to imposing the prison term, Chief U.S. District Judge K. Michael Moore of the Southern District of Florida ordered Bates to pay $3,500 in restitution to a victim.
In March 2011, St. Lucie County Sheriff’s Office detectives and members of the South Florida Internet Crimes Against Children Task Force (ICAC) began an investigation using peer-to-peer (P2P) software. According to evidence presented at trial, investigators discovered that, between December 2010 and June 2012, several Internet protocol (IP) addresses linked to Bates in both St. Lucie County and Palm Beach County were used to download and share child pornography files. The trial evidence showed that a laptop computer recovered during a search of Bates’ home contained numerous images and videos of child pornography, including at least one image depicting a child under the age of 12.
This case was investigated by the St. Lucie County Sheriff’s Office, the South Florida ICAC and ICE-HSI, with assistance from the Palm Beach County, Florida, Sheriff’s Office. The case is being prosecuted by Trial Attorney Reginald E. Jones of the Criminal Division’s Child Exploitation and Obscenity Section (CEOS) and Assistant U.S. Attorney Ben Widlanski of the Southern District of Florida.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched by the Justice Department in May 2006 to combat the growing epidemic of child exploitation and abuse. Led by U.S. Attorney’s Offices and CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
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.
Readout of Assistant Attorney General for National Security John P. Carlin’s Address at French American Foundation EventRead the Press Release
Speaking today at the French American Foundation, Assistant Attorney General for National Security John P. Carlin called for French and European cooperation on combating nation state-sponsored theft of intellectual property, as well as destructive cyber-attacks.
Carlin highlighted the recent massive cyberattack by purported jihadis on French TV5Monde to illustrate a common purpose. “It’s not a matter of whether a nation will fall prey to a cyber-attack, but when,” said Carlin. He stressed the importance of global cooperation to increase the cost of hacking. “It’s about deterrence. Until nation states and terrorists stop stealing and committing bullying, destructive cyber-attacks, we must increase the cost. Whether you are the Syrian Electronic Army, ISIL or a state-sponsored hacker, we can and will find you. And when we do, there will be consequences. Prosecution, sanctions, diplomacy and designations are just some of the many options we have. Together, we will find the right tool, or right combination of tools, to make this activity very, very costly.” Carlin committed to playing the long game, saying, “As international partners, we need to keep at it, keep applying that pressure. That’s how you change behavior. It will not happen overnight.”
Carlin has long stressed the need for global responsibility. He told today’s attendees, including French and U.S. government officials, think tanks, private industry, academia and security and insurance professionals, “It was true when we said it in May 2014 following the PLA indictment, and it remains true today: we are aware of no nation that publicly states that theft of information for commercial gain is acceptable. It is time for us to, once and for all, come to a common agreement about acceptable state behavior in cyberspace.”
Carlin also addressed the importance of executive involvement in cybersecurity and managing cyber risk:
“These are C-suite decisions. You cannot manage your corporate cyber risk if you do not understand and prioritize it. You must make cyber defense a key component of your business strategy, and then invest in it. Also consider cyber insurance to protect your bottom line and – most important from my vantage point – do not go it alone. The Justice Department is here to help you when you encounter cyber threats.”
Carlin also highlighted the need for nations to apply the lessons learned in counterterrorism to emerging threats in cyberspace. He closed his remarks by saying:
France is one of America’s oldest and closet allies, and has long stood with us in our efforts to combat terrorism. When nations band together to combat terrorism, as we did following the brutal attack at the offices of the Charlie Hebdo magazine, we are strong and we will win. But that principle is not limited to terrorism – it extends to all threats to our nations’ security. We are in this fight together, and we have to learn from one another, so that the same actors, using the same tools and signatures, cannot simply move from one country’s network to another, targeting our intellectual property and innovation or damaging our networks. Digital security is vital to national security.
Pottawattamie County Resident Sentenced to Five Years in Prison for Interstate Travel with Intent to Engage in a Sexual Act with a JuvenileRead the Press Release
COUNCIL BLUFFS, IA - On September 14, 2015, Tyler Lewis Gunderson, a 25 year-old resident of Pottawattamie County, Iowa, was sentenced by Senior United States District Court Judge Robert Pratt, to 60 months in prison on the charge of interstate travel with intent to engage in a sexual act with a juvenile, announced United States Attorney Nicholas A. Klinefeldt. Gunderson was also ordered to serve ten years of supervised release following the period of imprisonment.
Gunderson entered a guilty plea to the charge on July 2, 2015. The guilty plea proceeding established that Gunderson travelled from Iowa to Omaha, Nebraska, to pick-up a juvenile he had met in Omaha, and that Gunderson then drove the juvenile to various locations in and around Council Bluffs, Iowa, for the purposes of engaging in sexual intercourse.
The investigation of this matter was conducted by the Council Bluffs, Iowa, Police Department, the Omaha, Nebraska, Police Department, and the Federal Bureau of Investigation. The case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
Postal Worker Pleads Guilty for Delay or Destruction of MailRead the Press Release
U.S. Attorney Kenneth A. Polite announced that AVA SMITH, age 21, of Harvey, pled guilty yesterday for delay or destruction of mail.
According to court records, on December 16, 2014, the Office of Inspector General for the United States Postal Service (“Postal OIG”) received information that a significant amount of First Class and Standard mail had been discarded. It was determined that the mail was to be delivered on December 8, 2014, by postal carrier SMITH. A review of the discarded mail revealed 573 pieces of First Class Mail, 142 pieces of Standard Mail, and 30 pieces of Non-Profit Mail. The First Class Mail included bank and insurance statements/invoices, credit card and other bills/statements.
SMITH faces a maximum penalty of five years imprisonment, followed by up to three years of supervised release, and a $250,000 fine. U.S. District Judge Susie Morgan set sentencing on December 16, 2015.
U.S. Attorney Polite praised the work of the U.S. Postal Inspection Service, Office of Inspector General in investigating this matter. The prosecution of this case is being handled by Fraud Unit Chief, Assistant U.S. Attorney Brian M. Klebba.
Postal Employee Charged with Misappropriation of Postal FundsRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced today Lori Haberle, age 45, of Kelayres, PA, has been charged in a one-count Indictment with misappropriation of Postal funds by a federal grand jury in Scranton.
According to United States Attorney Peter Smith, in January through March 2015, Haberle, a Postal Service support employee, misappropriated postal funds at the Kelayres and Quakake Post Offices in Schuylkill County, resulting in a loss of at least $1,155 to the United States Postal Service.
The investigation of this case was conducted by the United States Postal Service. Prosecution is assigned to Assistant United States Attorney John C. Gurganus, Jr.
Haberle faces a maximum sentence of 10 years imprisonment and fines totaling $250,000.
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.
Under the Federal Sentencing Guidelines, the Judge is 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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Philadelphia Man Charged with RobberyRead the Press Release
Mikel Smith, 25, of Philadelphia, PA, was charged today by information with robbery which interfered with interstate commerce for the armed robbery on November 16, 2014 of approximately $400 from the Dunkin Donuts, located at 717 East Girard Avenue, Philadelphia, Pennsylvania; announced United States Attorney Zane David Memeger. Defendants brandished a handgun during each of the four robberies. Smith is also charged with possession of a firearm by a convicted felon.
If convicted of the charge, defendant faces a maximum sentence of 20 years imprisonment, a maximum period of supervised release of three years, a substantial fine, a special assessment, and restitution.
This case was investigated by the Federal Bureau of Investigation, the Philadelphia Police Department, and the Philadelphia District Attorney's Office, and is being prosecuted by Assistant United States Attorney Ewald Zittlau.
An Indictment or an Information is an accusation. A defendant is presumed innocent unless and until proven guilty.
Philadelphia Man Charged with False Statements and TheftRead the Press Release
PHILADELPHIA - Benjamin Twiggs, 37, of Philadelphia, Pennsylvania, was charged by indictment yesterday with one count of making a false statement and one count of transportation of goods taken by fraud, announced United States Attorney Zane David Memeger. The fraud is in connection with the federal Computers For Learning (CFL) program, a program meant to allow federal agencies to donate excess computer equipment to schools and educational nonprofit organizations.
According to the indictment, in October 2013, Twiggs used a false document to state to the Department of Homeland Security that his organization was an IRS-recognized tax-exempt organization, when Twiggs knew that it was not. The indictment charges further that in January 2015, Twiggs transported in interstate commerce 96 computer monitors that he had taken by fraud from the U.S. Patent and Trademark Office, which had donated them through the CFL program.
If convicted of the charges, the defendant faces a maximum possible statutory sentence of 15 years in prison, three years of supervised release, a fine of up to $500,000, a $200 special assessment, and forfeiture.
The case was investigated by the General Services Administration's Office of Inspector General. It is being prosecuted by Assistant United States Attorney Elizabeth Abrams.
An Indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Pensacola Man Sentenced to 240 Months for Receipt of Child PornographyRead the Press Release
PENSACOLA, FLORIDA – Shawn P. Caldwell, 36, a registered sex offender who resides in Pensacola, Florida, was sentenced to 240 months in prison yesterday for receipt of child pornography. The sentence was announced by Christopher P. Canova, Acting United States Attorney for the Northern District of Florida.
During an undercover operation, law enforcement officers discovered Caldwell was in possession of 76 child pornography files at his Pensacola residence. At his plea hearing on June 24, 2015, Caldwell admitted that, between April 2011 and April 2015, he received child pornography images and videos from the internet, which he downloaded from several peer-to-peer programs. A forensic review of Caldwell’s electronic devices revealed approximately 263 videos and more than 1,000 images of child pornography, including images of children under the age of 12.
The charges were the result of an investigation by the Federal Bureau of Investigation, the Florida Department of Law Enforcement, and the Pensacola Police Department. The case was prosecuted by Assistant United States Attorney Jeffrey Tharp.
The United States Attorney's Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. The office strives to protect and serve the citizens of the Northern District of Florida through the ethical, vigorous, and impartial enforcement of the laws of the United States, to defend the national security, to improve the safety and quality of life in our communities through the protection of civil rights, and to protect the public funds and financial assets of the United States. To access public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
For more information, contact:
Amy Alexander, Public Information Officer
(850) 216-3854, [email protected]Pensacola Man Sentenced to 240 Months for Receipt of Child PornographyRead the Press Release
PENSACOLA, FLORIDA – Shawn P. Caldwell, 36, a registered sex offender who resides in Pensacola, Florida, was sentenced to 240 months in prison yesterday for receipt of child pornography. The sentence was announced by Christopher P. Canova, Acting United States Attorney for the Northern District of Florida.
During an undercover operation, law enforcement officers discovered Caldwell was in possession of 76 child pornography files at his Pensacola residence. At his plea hearing on June 24, 2015, Caldwell admitted that, between April 2011 and April 2015, he received child pornography images and videos from the internet, which he downloaded from several peer-to-peer programs. A forensic review of Caldwell’s electronic devices revealed approximately 263 videos and more than 1,000 images of child pornography, including images of children under the age of 12.
The charges were the result of an investigation by the Federal Bureau of Investigation, the Florida Department of Law Enforcement, and the Pensacola Police Department. The case was prosecuted by Assistant United States Attorney Jeffrey Tharp.
The United States Attorney's Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. The office strives to protect and serve the citizens of the Northern District of Florida through the ethical, vigorous, and impartial enforcement of the laws of the United States, to defend the national security, to improve the safety and quality of life in our communities through the protection of civil rights, and to protect the public funds and financial assets of the United States. To access public court documents online, please visit the
U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
For more information, contact:
Amy Alexander, Public Information Officer
(850) 216-3854,
Peculiar Man Indicted for Tax EvasionRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that a Peculiar, Mo., man has been indicted by a federal grand jury for tax evasion.
Harold R. Stanley, 61, of Peculiar, was charged in a two-count indictment returned by a federal grand jury in Kansas City, Mo., on Aug. 25, 2015.
Stanley was an independent contractor who was employed by companies as a consultant. Today’s indictment alleges that Stanley failed to file any tax returns for 2005 and 2006. For tax years 2007 through 2009, Stanley allegedly filed substantially correct returns but left the tax line entry blank and failed to submit any payment.
According to the indictment, the total tax loss for 2005 through 2009 is $264,294.
Stanley is charged with one count of tax evasion and one count of endeavoring to obstruct and impede the due administration of the internal revenue laws. According to the indictment, Stanley submitted fake money orders for payment to the Internal Revenue Service, returned documents to the Internal Revenue Service claiming that the tax assessments were satisfied because they were “Accepted for Value,” filled out payment vouchers with his name in all capital letters but didn’t submitting payment and submitted a false criminal referral to IRS – Criminal Investigation.
Dickinson cautioned that the charges contained in this indictment are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorney Paul S. Becker. It was investigated by IRS-Criminal Investigation.
Pascua Yaqui Tribe Receives Nearly $260,000 in Federal Grant Funds to Support Sex Offender Registration and Notification EffortsRead the Press Release
PHOENIX – Today, U.S. Attorney John S. Leonardo announced that $257,011 in additional grant funds have been made available to the Pascua Yaqui Tribe to support, maintain, and refine jurisdiction-wide programs and functions under the Sex Offender Registration and Notification Act (“SORNA”). These funds will assist in improving victim notification services, providing educational services, and increasing service capacity. The grant funds were awarded by the Sex Offender Sentencing, Monitoring, Apprehending, Registering, and Tracking (“SMART”) Office, which is a component of the Department of Justice’s Office of Justice Programs (“OJP”).
Information about OJP and its programs can be found at:http://www.ojp.usdoj.gov.
RELEASE NUMBER: 2015-072_PASCUA GRANT (2015-AW-BX-0020)
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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.
Pace Man Sentenced to 180 Months for Receipt of Child PornographyRead the Press Release
PENSACOLA, FLORIDA – Timothy S. Faircloth, 44, a registered sex offender who resides in Pace, Florida, was sentenced to 180 months in prison yesterday for receipt of child pornography. The sentence was announced by Christopher P. Canova, Acting United States Attorney for the Northern District of Florida.
During an online investigation, federal agents discovered that, on 40 occasions between March 8, 2014, and January 27, 2015, Faircloth received or attempted to receive child pornography images and videos. At his plea hearing on June 17, 2015, Faircloth admitted that, between March 2014 and January 2015, he received child pornography images and videos from the internet as charged in the Indictment. A forensic review of Faircloth’s desktop and laptop computers revealed approximately 30 child pornography images, including images of children under the age of 12.
The charges were investigated by the U.S. Immigration and Customs Enforcement Homeland Security Investigations. The case was prosecuted by Assistant United States Attorney Jeffrey Tharp.
The United States Attorney's Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. The office strives to protect and serve the citizens of the Northern District of Florida through the ethical, vigorous, and impartial enforcement of the laws of the United States, to defend the national security, to improve the safety and quality of life in our communities through the protection of civil rights, and to protect the public funds and financial assets of the United States. To access public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
For more information, contact:
Amy Alexander, Public Information Office:
(850) 216-3854, [email protected]Pace Man Sentenced to 180 Months for Receipt of Child PornographyRead the Press Release
PENSACOLA, FLORIDA – Timothy S. Faircloth, 44, a registered sex offender who resides in Pace, Florida, was sentenced to 180 months in prison yesterday for receipt of child pornography. The sentence was announced by Christopher P. Canova, Acting United States Attorney for the Northern District of Florida.
During an online investigation, federal agents discovered that, on 40 occasions between March 8, 2014, and January 27, 2015, Faircloth received or attempted to receive child pornography images and videos. At his plea hearing on June 17, 2015, Faircloth admitted that, between March 2014 and January 2015, he received child pornography images and videos from the internet as charged in the Indictment. A forensic review of Faircloth’s desktop and laptop computers revealed approximately 30 child pornography images, including images of children under the age of 12.
The charges were investigated by the U.S. Immigration and Customs Enforcement Homeland Security Investigations. The case was prosecuted by Assistant United States Attorney Jeffrey Tharp.
The United States Attorney's Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. The office strives to protect and serve the citizens of the Northern District of Florida through the ethical, vigorous, and impartial enforcement of the laws of the United States, to defend the national security, to improve the safety and quality of life in our communities through the protection of civil rights, and to protect the public funds and financial assets of the United States. To access public court documents online, please visit the
U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
For more information, contact:
Amy Alexander, Public Information Officer
(850) 216-3854,
Pace Doctor Sentenced to 12 Months in Prison for Tax FraudRead the Press Release
PENSACOLA, FLORIDA – Dr. Sheila Mohammed, 55, of Pace, Florida, was sentenced yesterday afternoon to 12 months and one day in prison for seven counts of submitting false tax returns, followed by two years of supervised release, and ordered to pay $255,158 in restitution to the Internal Revenue Service. The sentence was announced by Christopher P. Canova, Acting United States Attorney for the Northern District of Florida.
Mohammed pled guilty on April 22, 2015, to the seven-count Indictment returned earlier this year. During her plea, Dr. Mohammed admitted she signed and caused to be filed, false personal tax returns that grossly underreported her total income for tax years 2010 through 2013. In addition, Dr. Mohammed admitted that, as president and owner of The Industrial Medicine Institute Inc., a medical practice in Pace, Florida, she signed and caused to be filed, false corporate tax returns for The Industrial Medicine Institute Inc., for the years 2010 through 2012.
At Mohammed’s sentencing hearing, the government showed that, between February 2010 and June 2014, Mohammed used the money she failed to disclose to the Internal Revenue Service, totaling approximately $1,166,632, to purchase vehicles and properties located in Pensacola, Pace, and Destin, Florida, and Hawaii and New Mexico.
The charges were the result of an investigation by the Internal Revenue Service – Criminal Investigation, with assistance from the Santa Rosa County Sheriff’s Office. The case was prosecuted by Assistant United States Attorney Tiffany H. Eggers.
The United States Attorney's Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. The office strives to protect and serve the citizens of the Northern District of Florida through the ethical, vigorous, and impartial enforcement of the laws of the United States, to defend the national security, to improve the safety and quality of life in our communities through the protection of civil rights, and to protect the public funds and financial assets of the United States. To access public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office, Northern
District of Florida, visit http://www.justice.gov/usao/fln/index.html.
For more information, contact:
Amy Alexander, Public Information Officer
(850) 216-3854, [email protected]Pace Doctor Sentenced to 12 Months in Prison for Tax FraudRead the Press Release
PENSACOLA, FLORIDA – Dr. Sheila Mohammed, 55, of Pace, Florida, was sentenced yesterday afternoon to 12 months and one day in prison for seven counts of submitting false tax returns, followed by two years of supervised release, and ordered to pay $255,158 in restitution to the Internal Revenue Service. The sentence was announced by Christopher P. Canova, Acting United States Attorney for the Northern District of Florida.
Mohammed pled guilty on April 22, 2015, to the seven-count Indictment returned earlier this year. During her plea, Dr. Mohammed admitted she signed and caused to be filed, false personal tax returns that grossly underreported her total income for tax years 2010 through 2013. In addition, Dr. Mohammed admitted that, as president and owner of The Industrial Medicine Institute Inc., a medical practice in Pace, Florida, she signed and caused to be filed, false corporate tax returns for The Industrial Medicine Institute Inc., for the years 2010 through 2012.
At Mohammed’s sentencing hearing, the government showed that, between February 2010 and June 2014, Mohammed used the money she failed to disclose to the Internal Revenue Service, totaling approximately $1,166,632, to purchase vehicles and properties located in Pensacola, Pace, and Destin, Florida, and Hawaii and New Mexico.
The charges were the result of an investigation by the Internal Revenue Service – Criminal Investigation, with assistance from the Santa Rosa County Sheriff’s Office. The case was prosecuted by Assistant United States Attorney Tiffany H. Eggers.
The United States Attorney's Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. The office strives to protect and serve the citizens of the Northern District of Florida through the ethical, vigorous, and impartial enforcement of the laws of the United States, to defend the national security, to improve the safety and quality of life in our communities through the protection of civil rights, and to protect the public funds and financial assets of the United States. To access public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office, Northern
District of Florida, visit http://www.justice.gov/usao/fln/index.html.
For more information, contact:
Amy Alexander, Public Information Officer
(850) 216-3854,
North Carolina Receives $63 Million to Help Crime VictimsRead the Press Release
RALEIGH – United States Attorney Thomas G. Walker announced today that local community agencies that assist crime victims will benefit from $60,012,054 that has been awarded to the State of North Carolina by the U.S. Department of Justice’s Office of Victims of Crime (OVC).
The North Carolina Department of Public Safety’s Governor’s Crime Commission will distribute these funds to domestic violence shelters, rape crisis centers, and other local agencies to provide services to victims, such as crisis intervention, counseling, emergency shelter, and criminal justice advocacy.
U.S. Attorney Walker said, “This program can make a tremendous difference for crime victims and their families, and it is especially satisfying to know that the support they receive is funded not by the taxpayers but by the offenders themselves.”
Additionally, on July 31, the state’s Victim Compensation section received an annual grant of $3,558,000. OVC provides financial assistance to each state’s crime victim compensation program that equals 60 percent of what the program spends in state money annually. These supplemental funds help crime victims every day by paying for the costs of medical care, mental health counseling, lost time at work, as well as funerals and other expenses that families face in the aftermath of a homicide.
These combined federal awards, totaling $63,570,054, represent the federal government’s efforts to insure that much needed assistance is provided to innocent crime victims, and has resulted in a true federal-state partnership to aid victims.
These awards come from the Crime Victims Fund, which was established by the Victims of Crime Act of 1984 (VOCA), as amended. Criminal fines collected by U.S. Attorneys, the U.S. Courts, and the Bureau of Prisons are deposited into the Crime Victims Fund, which is administered by OVC. The Fund supports these annual victim assistance awards to all 50 states, the District of Columbia, and the territories. Fines collected in one year are available for grant awards the following year.
The federal victim assistance grant program is designed to supplement state victim assistance programs. OVC awards the annual grants to state agencies selected by governors, which sub-grant the federal dollars to local community agencies that assist crime victims.
For more information about North Carolina’s victim assistance program, visit the Governor’s Crime Commission website at https://www.ncdps.gov/index2.cfm?a=000003%2C000011
or by telephone at 919-733-4564. Information about OVC and its programs is available at http://ojp.gov/ovc/ or by calling 202-307-5983.
New York Doctor Charged with Falsely Certifying Physical Examinations for Commercial DriversRead the Press Release
A criminal complaint was unsealed this morning in Brooklyn federal court charging Gerald Surya, M.D., with falsely certifying physical examinations for commercial drivers. Specifically, the complaint charges that Dr. Surya certified that he had examined applicants for commercial driver’s licenses (CDLs) and found them physically fit to drive heavy commercial vehicles when in fact he had not performed those examinations. The defendant’s initial appearance is scheduled later today before United States Magistrate Judge Roanne L. Mann, at the United States Courthouse, 225 Cadman Plaza East, Brooklyn, New York.
The charge was announced by Kelly T. Currie, Acting United States Attorney for the Eastern District of New York, and Douglas Shoemaker, Regional Special Agent-in-Charge, United States Department of Transportation-Office of Inspector General (USDOT-OIG).
As set forth in the complaint, drivers of certain commercial vehicles, such as school buses and heavy transportation trucks, must possess a CDL, issued by the New York State Department of Motor Vehicles (DMV), pursuant to regulations set forth by the United States Department of Transportation (USDOT). Before obtaining a CDL, all applicants must pass written and road tests related to safely driving such large vehicles. In addition, the applicants must be examined and certified fit to drive such vehicles by a physician or other qualified medical personnel authorized by the USDOT to conduct such examinations. Upon receipt of the certification, the applicant must file a copy with the DMV. Further, on a monthly basis, USDOT certified medical examiners are required to electronically transmit to USDOT copies of certifications they have executed for CDL applicants.
As alleged in the complaint, Dr. Surya was authorized to conduct USDOT mandated medical examinations and certifications for CDL applicants and purportedly performed such examinations at his JFK Medport office, located at JFK airport in Queens, New York. In fact, the applicants were not examined by Dr. Surya, but instead by other JFK Medport staff members who had little or no medical training and were not authorized to conduct the mandated medical examinations.
“Dr. Surya’s conduct put at risk pedestrians as well as other drivers. We are committed to aggressively investigating and prosecuting those who would commit crimes that compromise the safety of the public,” stated Acting United States Attorney Currie. Mr. Currie extended his appreciation to the Federal Motor Carrier Safety Administration for its assistance.
“As evidenced by the arrest of Dr. Gerald Surya on charges related to unlawful medical examinations for applicants of Commercial Driver’s Licenses, ensuring safety on the nation’s roadways remains a high priority for the Office of Inspector General (OIG), the Department of Transportation (DOT) and the Federal Motor Carrier Safety Administration (FMCSA),” said DOT-OIG regional Special Agent-in-Charge Shoemaker. “Working with our DOT, FMCSA, law enforcement and prosecutorial colleagues, we will continue our vigorous efforts to prevent, detect, and prosecute violations of laws and regulations, CDL and otherwise, designed to ensure the public’s safety.”
The charge in the complaint is merely an allegation, and the defendant is presumed innocent unless and until proven guilty. If convicted, the defendant faces a maximum sentence of 15 years of imprisonment.
The government’s case is being prosecuted by the Office’s Public Integrity Section. Assistant United States Attorney Michael H. Warren is in charge of the prosecution.
The Defendant:
GERALD SURYA
Age: 45
Residence: New Hyde Park, New YorkE.D.N.Y. Docket No. 14-M-853
Navajo Man from Thoreau, N.M., Sentenced to 140 Months in Federal Prison for Child Sexual Abuse ConvictionRead the Press Release
ALBUQUERQUE – Bronson Ranger, 36, an enrolled member of the Navajo Nation who resides in Thoreau, N.M., was sentenced this morning in federal court in Santa Fe, N.M., to 140 months in prison followed by 25 years of supervised release for his aggravated child sexual abuse conviction. Ranger will be required to register as a sex offender after completing his prison sentence.
Ranger was arrested on Dec. 12, 2012, on an indictment alleging that he sexually abused an Indian child under the age of 12 years between Aug. 1, 2008 and Oct. 30, 2008. The indictment alleged that Ranger violated the young victim in a location within the Navajo Indian Reservation in McKinley County, N.M.
On April 30, 2015, Ranger entered a guilty plea to a felony information charging him with aggravated sexual abuse. In entering his guilty plea, Ranger admitted sexually molesting the victim in a location within the Navajo Indian Reservation.
This case was investigated by the Gallup office of the FBI and the Crownpoint office of the Navajo Nation Division of Public Safety. The case was prosecuted by Assistant U.S. Attorney Kyle T. Nayback as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice (DOJ) to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices and DOJ’s Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/.
Morgan City man pleads guilty to stealing from federally funded nonprofitRead the Press Release
LAFAYETTE, La. – United States Attorney Stephanie A. Finley announced today that a Morgan City man pleaded guilty to stealing loan money from a federally funded nonprofit.
Timothy Daigle, 32, of Morgan City, La., pleaded guilty before U.S. District Judge Richard T. Haik to one count of fraud concerning program receiving federal funds. According to the guilty plea, while working as a loan officer and agent at the nonprofit Southern Mutual Help Association (SMHA) in New Iberia, La., Daigle stole more than $90,000. On four separate occasions from September 2013 until February 2014, Daigle, acting as an agent of SMHA, helped to fraudulently approve loans in the names of friends and associates in New Iberia and Morgan City.
Daigle faces up to 10 years in prison, three years of supervised release, a $250,000 fine and restitution. A sentencing date was not set.
The FBI investigated the case. Assistant U.S. Attorneys David C. Joseph and Kelly P. Uebinger are prosecuting the case.
Mission Man Sentenced for Assault Resulting in Serious Bodily Injury and Child AbuseRead the Press Release
Acting United States Attorney Randolph J. Seiler announced that a Mission, South Dakota, man convicted of Assault Resulting in Serious Bodily Injury and Child Abuse was sentenced on September 14, 2015, by U.S. District Judge Roberto A. Lange.
Frederick Leo Marshall, age 57, was sentenced to 120 months in custody on the assault charge, and 36 months in custody on the child abuse charge, to be served consecutively. Marshall was also sentenced to 3 years of supervised release, and a $200 special assessment to the Federal Crime Victims Fund. He was also ordered to pay restitution to the victim in the amount of $1,677.14, and to South Dakota Medicaid in the amount of $11,581.76.
Marshall was indicted by a federal grand jury on December 9, 2014. He pled guilty on June 29, 2015.
The conviction stems from incidents on October 30, 2014. Marshall was at a home in Sicangu Village with his wife, the victim. There had been recent talks about divorce and Marshall had moved out of the marital home for a period of time. That evening, they were reconciling and he had returned to the house. Marshall drank alcohol, became jealous, and argued with the victim. He later punched her in front of some of their children, and he also forced her into a bathroom and their bedroom and further beat and assaulted her. He threatened and slapped her with a sword. The beating also caused a fractured eye socket and profusely swollen eyes, to the point where she could not see. Marshall used scissors to cut off the victim’s hair and did other things to her. Their children witnessed the abuse.
Marshall also brought the children towards the bedroom to witness some of what was occurring, and how their mother was being beaten, humiliated, and degraded. One of the children went into the room and personally witnessed some of the abuse. The child heard her mom begging to not be killed, and also heard Marshall verbally abusing their mother, telling the child how he was making an example of their mother. The child also saw her mom bloodied and beaten, which tormented the child. The child was frightened and, for a time, thought her mother was going to be killed.
This case was investigated by the Federal Bureau of Investigation and the Rosebud Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Timothy M. Maher prosecuted the case.
Marshall was immediately turned over to the custody of the U.S. Marshals Service.
Louisiana Resident Sentenced for Role in Stolen Identity Tax Fraud SchemeRead the Press Release
A resident of Hammond, Louisiana, was sentenced today to serve 33 months in prison to be followed by three years of supervised release for his role in a triple-object conspiracy to defraud the United States, to commit theft of public money, and mail fraud, announced Acting Assistant Attorney General Caroline D. Ciraolo of the Justice Department’s Tax Division and U.S. Attorney Kenneth A. Polite of the Eastern District of Louisiana.
Cedrick Mitchell, aka Skeet, 40, pleaded guilty on June 17 to one count of a triple-object conspiracy to defraud the United States, to commit theft of public money, and mail fraud. U.S. District Judge Jay C. Zainey of the Eastern District of Louisiana imposed today’s sentence and set a later date to determine Mitchell’s the restitution amount that Mitchell will have to pay to the Internal Revenue Service (IRS).
According to court documents, Mitchell and his co-defendants conspired to file false federal income tax returns using stolen identities. The conspirators used stolen names and social security numbers to prepare false tax returns that claimed tax refunds. The refund checks were mailed to addresses in Louisiana, including to post office boxes that were opened and controlled by the conspirators. The conspirators then falsely endorsed and cashed the checks. Mitchell also deposited refund checks from the U.S. Treasury into a bank account under his control.
The indictment also charged Corey Lewis, aka Coco, 37; Angela Chaney, 43; Craig Lewis, 40; Brad Lewis, aka Bird, 32; Thaddeus Richardson, 49; and Martin Jackson Sr., 48, with conspiracy. In addition, Corey Lewis, Chaney, Richardson and Jackson Sr. were charged with various counts of theft of public money. Chaney was also charged with six counts of mail fraud and five counts of aggravated identity theft. Corey Lewis was additionally charged with three counts of aggravated identity theft. All of the defendants in this case have pleaded guilty to various charges and are awaiting sentencing.
Acting Assistant Attorney General Ciraolo and U.S. Attorney Polite commended special agents of IRS-Criminal Investigation and the U.S. Postal Inspection Service, who investigated the case, and Assistant U.S. Attorneys Hayden Brockett and Dall Kammer and Trial Attorney Lauren Castaldi of the Tax Division, who are prosecuting the case.
Louisiana Resident Sentenced for Role in Stolen Identity Tax Fraud SchemeRead the Press Release
WASHINGTON – A resident of Hammond, Louisiana, was sentenced today to serve 33 months in prison to be followed by three years of supervised release for his role in a triple-object conspiracy to defraud the United States, to commit theft of public money, and mail fraud, announced Acting Assistant Attorney General Caroline D. Ciraolo of the Justice Department’s Tax Division and U.S. Attorney Kenneth A. Polite of the Eastern District of Louisiana.
Cedrick Mitchell, aka Skeet, 40, pleaded guilty on June 17 to one count of a triple-object conspiracy to defraud the United States, to commit theft of public money, and mail fraud. U.S. District Judge Jay C. Zainey of the Eastern District of Louisiana imposed today’s sentence and set a later date to determine Mitchell’s the restitution amount that Mitchell will have to pay to the Internal Revenue Service (IRS).
According to court documents, Mitchell and his co-defendants conspired to file false federal income tax returns using stolen identities. The conspirators used stolen names and social security numbers to prepare false tax returns that claimed tax refunds. The refund checks were mailed to addresses in Louisiana, including to post office boxes that were opened and controlled by the conspirators. The conspirators then falsely endorsed and cashed the checks. Mitchell also deposited refund checks from the U.S. Treasury into a bank account under his control.
The indictment also charged Corey Lewis, aka Coco, 37; Angela Chaney, 43; Craig Lewis, 40; Brad Lewis, aka Bird, 32; Thaddeus Richardson, 49; and Martin Jackson Sr., 48, with conspiracy. In addition, Corey Lewis, Chaney, Richardson and Jackson Sr. were charged with various counts of theft of public money. Chaney was also charged with six counts of mail fraud and five counts of aggravated identity theft. Corey Lewis was additionally charged with three counts of aggravated identity theft. All of the defendants in this case have pleaded guilty to various charges and are awaiting sentencing.
Acting Assistant Attorney General Ciraolo and U.S. Attorney Polite commended special agents of IRS-Criminal Investigation and the U.S. Postal Inspection Service, who investigated the case, and Assistant U.S. Attorneys Hayden Brockett and Dall Kammer and Trial Attorney Lauren Castaldi of the Tax Division, who are prosecuting the case.
Long-Time Drug Trafficker and Money Launderer Sentenced to 15 Years in Prison for Supplying Drugs to Alaska and MissouriRead the Press Release
Anchorage, Alaska - U.S. Attorney Karen L. Loeffler announced that on September 14, 2015, Steven Nicholas Taylor, aka “Nicky”, aka “Louie V”, 44, was sentenced in Alaska U.S. District Court for his convictions in two separate federal cases. In the Alaska case, Taylor was sentenced on his pleas of guilty to conspiracy to distribute controlled substances, primarily cocaine, and conspiracy to commit money laundering. In a separate but related case arising in the Eastern District of Missouri, Taylor was sentenced on his plea of guilty to drug trafficking conspiracy.
Chief Judge Ralph R. Beistline imposed a 15-year composite sentence on Taylor for both cases, to be followed by five years of supervised release. Taylor also agreed in his plea agreement to forfeit and abandon any interest in his Seattle home, which, according to the investigation, he was actively attempting to sell so that he could finance future drug trafficking activities.
According to court documents, Taylor and his accomplices were major sources of supply for cocaine in Alaska going back 20 years. In the late 1990’s, Taylor was charged in Seattle as being part of a continuing criminal enterprise that supplied drugs to Alaska as early as 1991. In that case, Taylor was convicted of drug conspiracy, money laundering, and interstate travel in aid of racketeering, and served 121 months in federal prison. Court documents reflect that in 2009, shortly after court-ordered supervision was terminated in the Seattle case, Taylor resumed drug trafficking operations with several of the same accomplices, and supplied cocaine and other drugs to Alaska and Missouri. In the Alaska case, Judge Beistline found that Taylor directed the activities of Timothy Northcutt, Joseph Irving, Etienne Devoe, Leonard Charles, Joshua Haynes, and others.
At sentencing, Assistant U.S. Attorney Frank Russo, who prosecuted the Alaska case, called Taylor a “drug-trafficking aficionado,” who was caught on court-ordered wiretaps discussing drug trafficking with co-conspirators in hundreds of conversations. According to the government’s sentencing memorandum, Taylor also was caught on the wiretaps discussing Department of Justice press releases on drug traffickers in Alaska, as well as the outcomes of those cases. During the wiretap investigation, Taylor was particularly concerned about the outcome of the case involving Terrance Fleming, and admitted on recorded conversations that he supplied Fleming with 15 kilograms of cocaine that were seized by the U.S. Postal Inspection Service. In his sentencing comments, Judge Beistline noted that Taylor “knew the consequences of drug dealing” but nonetheless “chose to victimize society.”
In total, Taylor admitted to supplying between 15 and 50 kilograms of cocaine to Alaska, as well as an additional 5 to 15 kilograms to Missouri. DEA Special Agent in Charge Keith Weis was very pleased with the sentence, stating that, “The dedicated work of our prosecutors and investigators, have shut down this extremely calculating career criminal for a long time.” Seattle Division Inspector in Charge Anthony Galetti of the U.S. Postal Inspection Service stated, “Postal Inspectors worked closely with the U.S. Attorney’s Office and our partners in law enforcement on this investigation and will continue to vigorously protect the U.S. Mail against all forms of criminal attack and misuse.”
Taylor also directed and instructed his co-conspirators on money laundering. The purpose of the money laundering was the continuation of Taylor’s drug conspiracy operation, from which Taylor was the primary beneficiary. Devoe, Northcutt, Leonard, and Charles participated in the money laundering activities, including exchanging text messages with Taylor on how to launder the money, and what bank accounts to use.
“Narcotics trafficking is a dirty business. Steven Taylor and his crew infested our communities with drugs for years,” said Special Agent in Charge Teri Alexander of IRS Criminal Investigation. “IRS Criminal Investigation is proud to continue our long tradition of working with our law enforcement partners to clean up our streets by sending drug dealers where they belong: prison.”
Taylor’s co-defendants in the case received the following sentences:
- James Brown, Sr., 56 months
- Leonard D. Charles, 60 months
- Etienne Q. Devoe, 126 months
- Shawn Cortez Cloyd, 36 months
- Timothy W. Northcutt, 72 months
- Joshua J. Haynes, 30 months
- Gabrielle P. Haynes, 18 months
- Joseph E. Irving, 21 months
The Alaska case was prosecuted by Deputy Criminal Chief Frank Russo of the U. S. Attorney’s Office for the District of Alaska, and was investigated by the Drug Enforcement Administration (DEA), the Internal Revenue Service Criminal Investigation (IRS-CI), and the United States Postal Inspector Service (UPSIS). The Missouri case was prosecuted by Assistant U.S. Attorney John Davis in St. Louis, and was investigated by the St. Louis divisions of the DEA and USPIS.
Local Man Pleads Guilty to Federal Hate Crime Against Gay African American ManRead the Press Release
CORPUS CHRISTI, Texas - A Texas man has pleaded guilty to hate crime offenses for his role in a Mar. 8, 2012, assault of a gay African American man in Corpus Christi, announced U.S. Attorney Kenneth Magidson and Principal Deputy Assistant Attorney General Vanita Gupta, head of the Department of Justice’s Civil Rights Division.
Ramiro Serrata Jr., 22, pleaded guilty in federal court in Corpus Christi to one count of conspiracy to commit hate crimes and one count of a hate crime violation based on sexual orientation.
During the plea hearing, Serrata admitted that he and others conspired to assault a gay African American man because of his race, color and sexual orientation. Serrata admitted that during the assault, he and his co-conspirators punched and kicked the man and assaulted him with various dangerous weapons, including a frying pan, a mug, a sock filled with batteries, a broom and a belt.
Serrata admitted that when the victim began to bleed, the conspirators forced him to remove all of his clothing and clean up the blood throughout the apartment. After the victim was completely naked, one of the conspirators pointed a gun at the victim, while Serrata sodomized him with a broom. During the assault, the conspirators poured bleach onto the man’s face and eyes, pistol-whipped him with a handgun and whipped him with a belt.
Serrata acknowledged that throughout the assault, the conspirators repeatedly called the victim racial and homophobic slurs and made other anti-black and anti-gay statements. The conspirators also prevented the man from leaving the apartment by physical force and threats of force. The victim eventually escaped the apartment by jumping out of a window.
Serrata will be sentenced on Dec. 9, 2015, and faces a maximum sentence of 15 years in prison. Serrata is incarcerated pending sentencing.
Jimmy Garza Jr. is also charged with related hate crimes in connection to this offense. His trial is scheduled for Sept. 29, 2015. He has pleaded not guilty, and is presumed innocent unless and until proven guilty.
This case was investigated by the FBI’s Corpus Christi Resident Agency with assistance from the Corpus Christi Police Department and is being prosecuted by Assistant U.S. Attorney Ruben Perez and Trial Attorneys Jared Fishman and Nicholas Durham of the Civil Rights Division.
Local Attorney Pleads Guilty to Operating an Unlicensed Money Transmitting BusinessRead the Press Release
Assistant U.S. Attorneys Luella Caldito and Daniel C. Silva at (619) 546-9713
NEWS RELEASE SUMMARY – September 15, 2015
SAN DIEGO – Attorney Richard Medina, Jr. pleaded guilty today in federal court, admitting that he and others operated an unlicensed money transmitting business that illegally conducted almost $12 million worth of international financial transactions in violation of the Bank Secrecy Act.
Medina entered his plea before U.S. Magistrate Judge Bernard G. Skomal. In his plea agreement, Medina admitted that he and other defendants operated a commercial enterprise that collected cash from clients in the U.S. and transferred it to points around the world without registering the business with the Secretary of the Treasury, as required by law. Medina also pleaded guilty to a conspiracy charge.
Medina and his co-conspirators, Omar Trevino Caro Del Castillo and Francisco Cuevas, obtained commissions for their services, extracting a fee from the millions of dollars transmitted abroad. Caro Del Castillo and Cuevas have already pleaded guilty and are awaiting sentencing.
Medina, in his role in the conspiracy, illegally utilized his law firm’s “Interest on Lawyers’ Trust Accounts” (IOLTA) for receipt, transport, and transmission of cash to international destinations. Civil attorneys routinely receive client funds, known as “Trust money,” to be held in trust for future use – including IOLTA Accounts.
Medina acknowledged in his plea agreement that he “knew or had reason to know that the cash transactions described [therein] were proceeds of unlawful activity, or were intended to promote unlawful activity.”
Medina is scheduled to be sentenced on December 7, 2015 by U.S. District Court Judge Roger T. Benitez. U.S. Magistrate Judge Skomal allowed Medina to remain on pretrial release, pursuant to the terms of a bond posted by Medina.
DEFENDANT Case No. 14cr2936
Richard Medina Age: 39
SUMMARY OF CHARGES
Operating an Unlicensed Money Transmitting Business – Title 18, U.S.C., Section 1960
Maximum penalty: Five years in prison, $250,000 fine, and forfeiture
Conspiracy – Title 18, U.S.C., Section 371
Maximum penalty: Five years in prison
AGENCY
Federal Bureau of Investigation
Drug Enforcement Administration
Internal Revenue Service
Loan Officer Pleads Guilty to Bank FraudRead the Press Release
COEUR D'ALENE - Randy Gard Teall, 67, of Post Falls, Idaho, pleaded guilty today to bank fraud, U.S. Attorney Wendy J. Olson announced. Teall was indicted by a federal grand jury in Coeur d'Alene on June 17, 2014.
According to the plea agreement, Teall admitted he was a loan officer at Global Credit Union, a federally insured financial institution in Coeur d’Alene, Idaho. With the intent to defraud, Teall executed a scheme to procure loans from Global Credit Union using false promises or statements on loans he approved to individuals with whom he had a business relationship. Teall failed to disclose his personal and business relationship and the borrowers’ true financial worth. Some of Global’s loan funds were used to pay rent to Teall.
The charge of bank fraud is punishable by up to 30 years in prison, a maximum fine of $250,000, and up to five years of supervised release.
Sentencing is set for December 15, 2015, before Senior U.S. District Judge Edward J. Lodge at the federal courthouse in Coeur d'Alene.
The case was investigated by the Federal Bureau of Investigation.