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Monday 14 September 2015
Federal Judge Sentences Pittsburgh Drug Dealer to 30 Years in PrisonRead the Press Release
PITTSBURGH - A Pittsburgh drug dealer has been sentenced in federal court to 30 years in prison, followed by 10 years supervised release, on his conviction of violating federal drug laws, United States Attorney David J. Hickton announced today.
United States District Judge Terrence F. McVerry imposed the sentence on Kenyatta Robinson, 35.
According to information presented to the court at a non-jury trial on June 1, 2015, on Nov. 1, 2013, Robinson possessed with intent to distribute more than 280 grams of crack cocaine and less than 500 grams of powder cocaine. As noted by Judge McVerry, Robinson was “on the run from a half-way house” when he was arrested for this offense.
Prior to imposing sentence, Judge McVerry noted Robinson's lengthy criminal history, which includes three prior felony drug convictions, as well as numerous incidents involving firearms and assaults. As a result, Robinson has been properly designated as a Career Offender under the federal sentencing guidelines. While imposing the lengthy sentence, Judge McVerry further stated that Robinson’s extensive and ongoing contact with the criminal justice system reveals that he has no interest in changing his “destructive” behavior.
Assistant United States Attorneys Amy L. Johnston and Troy Rivetti prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the Federal Bureau of Investigation, Pittsburgh Bureau of Police, and the Western Pennsylvania Fugitive Task Force for the investigation leading to the successful prosecution of Kenyatta Robinson.
District Court Approves Transition Plan for Clinical and Housing Operations of Substance Abuse Provider Engaged in A Fraudulent Kickback SchemeRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, and Scott Lampert, Special Agent in Charge of the U.S. Department of Health and Human Services, Office of Inspector General’s (“HHS-OIG”) New York Region, announced that a transition plan for NARCO FREEDOM, INC. (“NARCO FREEDOM”), a provider of outpatient chemical dependency clinics and short-term housing in residences known as “three-quarter houses,” has been approved in Manhattan Federal Court. In April 2015, NARCO FREEDOM was enjoined from engaging in a fraudulent kickback scheme and a temporary receiver was appointed to take over NARCO FREEDOM’s operations. On September 11, 2015, the Court approved the receiver’s plan to transition the substance abuse clinics and the housing operated by NARCO FREEDOM to other healthcare providers. This transition prevents the imminent disruption of clinical services and housing for NARCO FREEDOM residents. U.S. District Judge John G. Koeltl entered the order last Friday.
Manhattan U.S. Attorney Preet Bharara said: “As the Complaint in this case alleged, Narco Freedom defrauded the government and profited from the exploitation of people most in need of their help. Enjoining Narco Freedom from continuing to engage in the kickback scheme and transitioning its clinics and houses to other providers will provide this vulnerable population with the continuity of care and housing they sorely need.”
HHS-OIG Special Agent in Charge Scott Lampert said: “The conduct displayed by Narco Freedom is a clear example of the damage personal greed does to our nation’s healthcare system. The transition approved by the Court puts an end to Narco Freedom’s illegal practices and allows important substance abuse treatment to continue to be provided without interruption. HHS-OIG recognizes the importance of such treatment, and will continue to ensure that those who provide those services do so in an honest fashion that complies with the law.”
As set forth in the complaint filed on October 28, 2014, in Manhattan federal court:
Since in or about 2006, NARCO FREEDOM was engaged in a scheme to induce individuals who qualified for Medicaid and lacked stable housing to enroll in and attend NARCO FREEDOM’s outpatient clinics in exchange for short-term housing in residences known as “three-quarter houses,” which NARCO FREEDOM referred to as “Freedom Houses.” NARCO FREEDOM allowed individuals without housing, many of whom had been released on parole, to reside in the Freedom Houses for approximately six to nine months, but required all Freedom House residents to enroll in and attend its outpatient clinics, and evicted residents who did not comply. NARCO FREEDOM operated the Freedom Houses specifically in order to drive business to its outpatient clinics, and forced residents of its Freedom Houses who were already enrolled in other outpatient programs to transfer to NARCO FREEDOM’s outpatient programs, in violation of the Patients’ Rights provision of the New York State Code.
On October 29, 2014, U.S. District Judge Koeltl granted the Government’s motion for a restraining order which enjoined NARCO FREEDOM from evicting the residents of its Freedom Houses for refusing to engage in the kickback scheme. On April 2, 2015, Judge Koeltl granted the Government’s motion for a preliminary injunction, concluding that NARCO FREEDOM provided numeration to Medicaid recipients in the form of below-market housing. Judge Koeltl found that by “[p]roviding below-market housing to Medicaid recipients increases costs to the Medicaid program through over-and inappropriate utilization. For those who need housing, the prospect of nearly free housing creates a strong incentive to overuse Narco Freedom’s drug treatment programs.” On April 3, 2015, the Court granted the Government request for an appointment of a temporary receiver to take over and manage the operations of NARCO FREEDOM. On July 28, 2015, New York State Office of Alcohol and Substance Abuse Services issued temporary emergency operating certificates for certain of the three-quarter houses, which were now being operated by the temporary receiver, certifying them as chemical dependence supportive living services.
Friday, Judge Koeltl granted the temporary receiver’s application to transition NARCO FREEDOM’s substance abuse clinics and houses to two other providers who will ensure the continuity of operations, subject to the Court’s order. Specifically the Court ordered Narco Freedom to transition all of its clinics and houses to two different providers, Samaritan Village and Acacia Network, effective on September 22, 2015. Both organizations currently provide housing and substance abuse services in New York City.
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Mr. Bharara thanked the Office of the Inspector General at HHS-OIG for its investigative efforts and support and assistance with the case, as well as the New York State Office of Alcohol and Substance Abuse Services and the New York City Human Resources Administration for their assistance and cooperation.
The case is being handled by the Office’s Civil Frauds Unit. Assistant U.S. Attorneys Kirti Vaidya Reddy and Cristine Irvin Phillips are in charge of the case.
Detroit man sentenced for federal heroin distributionRead the Press Release
Charleston, W.Va. – Dennis Pinckney, 23, of Detroit, Michigan, was sentenced today in federal court in Charleston to seven months in federal prison to be followed by three years of supervised release. Pinckney previously pled guilty in May of 2015 admitting that he had travelled with two other males from Detroit in June of 2014 to a residence in Rand, West Virginia with heroin that they intended to sell. During execution of a search warrant by agents of the Metropolitan Drug Enforcement Network Team (MDENT) at the Rand home, heroin was seized along with money that had been used by law enforcement to make undercover buys of heroin. Pinckney, who was in the house when agents arrived, was arrested. He admitted his involvement in transporting the heroin and serving as a “lookout” during drug deals.
This case is being prosecuted as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of heroin and prescription drugs. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal heroin and pill trafficking, eliminating open air drug markets, and curtailing the spread of opiate painkillers in communities across the Southern District.
Country Music Star Pleads Guilty to Obstructing the IRSRead the Press Release
CINCINNATI – David Allen Coe, 76, of Cincinnati, Ohio, pleaded guilty to one count of impeding and obstructing the due administration of the Internal Revenue laws. Coe faces a maximum of three years in prison and a fine of up to $250,000.
Carter M. Stewart, United States Attorney for the Southern District of Ohio, Kathy A. Enstrom, Special Agent in Charge, Internal Revenue Service Criminal Investigation, Cincinnati Field Office announced the guilty plea entered today before U.S. District Judge Timothy S. Black.
According to court documents, David Allen Coe was a national recording artist in the country music industry. Coe performed at least 100 concerts yearly throughout the United States where he earned income, including during the 2008 through 2013 calendar years. During this same time period, Coe either failed to file his individual income tax returns with the IRS or when Coe did file his individual income tax returns with the IRS, he failed to pay the taxes due and owing. In addition, during this same time period, Coe also owed money to the IRS for prior years of taxes due and owing. Instead of paying his taxes in full, Coe spent the money earned from performing concerts on other debts and gambling.
As part of his entertainer contract, when a concert was booked, Coe required that the total concert fee be deposited upfront. The deposit was either paid by wire or by check made payable to the booking manager's account. The booking manager took his fee out of the deposit and then wired the remaining amount directly to Coe or to Coe’s road manager's business account.
In approximately May 2009, Coe stopped receiving these payments by wire into his personal bank account after receiving correspondence from the IRS as to his current outstanding tax liabilities. This action prevented the IRS from levying his bank account to pay his income taxes. The remaining balance of the concert fee was to be paid in cash only, by 3:00p.m.on the day of the concert, with no $50 dollar bills allowed as Coe believed they were bad luck and would not gamble with them. Coe’s road manager picked up the cash, which he used to pay himself and the other band members, and then provided the remaining cash to Coe either in person or through MoneyGram or Western Union. Additionally, Coe would sometimes receive cash bonuses from playing concerts. Coe’s arrangement to be paid primarily in cash was also in an effort to impede the ability of the IRS to collect on the taxes owed.
Despite earning income from his concerts, Coe willfully failed to pay the income taxes due and owing when he filed his 2009, 2011 and 2013 individual income tax returns. As a result, Coe now owes the IRS $388,190.94 for the 2009 income tax year, $35,640.10 for the 2011 income tax year and $42,733.82 for the 2013 income tax year, which includes the income taxes owed plus interest and penalties.
Coe also owes restitution to the IRS for the taxes due and owing as a result of his 2008 and 2010 tax returns, which said amount will be determined at the time of sentencing.
"All taxpayers, regardless of their profession, must comply with their federal tax obligations," said Kathy A. Enstrom, Special Agent in Charge, IRS Criminal Investigation, Cincinnati Field Office. “As is evident from Mr. Coe’s guilty plea, schemes to evade the payment of taxes are a violation of the Federal Tax laws and postpones the eventual need to comply at an even higher cost, including federal criminal prosecution and having to pay back taxes with interest and steep penalties."
This case was prosecuted by Assistant United States Attorney Jessica W. Knight and was investigated by special agents of IRS-Criminal Investigation.
Cleveland man sentenced to life in prison for trafficking heroin, robbing rival drug dealersRead the Press Release
The leader of a group that brought large shipments of heroin from Atlanta and Chicago and sold it around the East Side of Cleveland was sentenced to life in prison, said Steven M. Dettelbach, U.S. Attorney for the Northern District of Ohio, and Stephen D. Anthony, Special Agent in Charge of the FBI’s Cleveland Office.
Keith Ricks, 33, was convicted on nine counts following a jury trial earlier this year. The jury found that Ricks led a conspiracy that included scores of people, robbed rival drug dealers and used violence to control the sale of heroin in the neighborhood around St. Clair Avenue and East 117th Street.
“This defendant led a group responsible for thefts, violence and the distribution of dozens of pounds of heroin,” Dettelbach said. "He is a predator that needed to be taken out of the community."
“Mr. Ricks is a violent drug dealer that deserves to be behind bars for a long time,” Anthony said. “The Northern Ohio Law Enforcement Task Force works tirelessly to rid the streets of the most dangerous criminals and Keith Ricks definitely is one of them.”
Ricks and others obtained heroin from suppliers in Atlanta and transported the drugs to Cleveland by mail or car. He then distributed the heroin to other traffickers in Cleveland, according to court documents and trial testimony.
Ricks and others planned and committed burglaries and robberies from other drug dealers, customers, and each other. This was done to fund their drug trafficking, to obtain heroin and other drugs, and to collect drug debts. Ricks then sold the stolen heroin at discounted prices or used the stolen money to obtain heroin, according to court documents and trial testimony.
Ricks identified potential victims through a variety of ways, including targeting those who appeared to have expensive jewelry or cars or by using women to gather information about potential victims and report back to them. He sometimes used firearms or zipties to restrain victims, according to court documents and trial testimony.
“Ricks was the leader of a large and wide-ranging heroin conspiracy that involved dozens of people and distributed heroin to large parts of Cleveland,” Assistant U.S. Attorney Matthew W. Shepherd wrote in the sentencing memo. “In addition to distributing heroin, members of the conspiracy committed robberies, thefts and burglaries to obtain heroin or funds to obtain heroin in support of the conspiracy.”
Ricks was among 60 people indicted in federal court in 2013 for their roles in the drug conspiracy. To date, 58 have been found guilty.
This case is being prosecuted by Assistant U.S. Attorneys Matthew W. Shepherd, Daniel J. Riedl and Matthew B. Kall following an investigation by the Northern Ohio Law Enforcement Task Force. The NOLETF is a task force comprised of investigators from the Federal Bureau of Investigation, Cleveland Division of Police, Cuyahoga Metropolitan Housing Authority, Drug Enforcement Administration, Internal Revenue Service, Cuyahoga County Sheriff’s Office, Ohio Bureau of Criminal Investigation and the police departments of Cleveland Heights, Euclid, Lakewood, the Regional Transit Authority, Westlake and Shaker Heights. The NOLETF is also one of the initial Ohio High Intensity Drug Trafficking Area initiatives, which supports and helps coordinate numerous Ohio drug task forces in their efforts to eliminate or reduce drug trafficking in Ohio.
Chicago Resident Sentenced Forwilliamson County Drug ConspiracyRead the Press Release
On September 11, 2015, Antuan D. Perkins, a/k/a "Little Man," was sentenced for a federal drug violation, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today.
Perkins, who had previously pled guilty to a one-count indictment charging conspiracy to distribute crack cocaine and heroin, was sentenced to 63 months in federal prison, to be followed by 3 years supervised release, and fined $200.00. The district court awarded Perkins 3 months credit for time previously served on a related state case. The offense occurred between 2012 and May 2014, in Williamson County. Evidence at the plea and sentencing hearings, established that defendant was involved with co-defendant Ahamad Atkins, a/k/a "Omar," "O," and others in the distribution of crack cocaine and heroin in Colp, Illinois. On multiple occasions, defendant and Atkins sold crack cocaine and heroin to confidential sources working for law enforcement. At sentencing, the district court found that Perkins was responsible for the distribution of at least 127 grams of heroin and 45 grams of crack cocaine. Perkins received a sentencing enhancement because he possessed firearms during his drug dealing. Co-defendant Atkins was previously sentenced to 216 months in prison for his role in the crack cocaine and heroin offense.
The ongoing investigation is being conducted by the Southern Illinois Enforcement and Drug Enforcement Administration. The Williamson County State’s Attorney’s Office assisted in the investigation.
The case was assigned to Assistant United States Attorney Amanda A. Robertson for prosecution.
Charleston woman sentenced to more than three years for pill distribution conspiracyRead the Press Release
Huntington, W.Va. – United States Attorney Booth Goodwin announced today that Bridgette Kelly, 23, of Charleston, was sentenced to 37 months in prison for her role in an oxymorphone distribution conspiracy. Beginning in November of 2013 and continuing until January 30, 2014, Kelly conspired with Gregory Lindsey of Detroit, Michigan to distribute oxymorphone pills, commonly known as “Opana”, from a residence at 21A Bailes Drive in Nitro, West Virginia. Lindsey made bi-weekly trips to and from Detroit and brought approximately 100 Opana pills each time for distribution by Kelly and others. Kelly also made trips with Lindsey to Detroit to obtain Opana pills for distribution. On January 30, 2014, officers executed a search warrant at the Bailes Drive residence and located a bag containing 23 30 mg oxymorphone pills, 34 40 mg oxymorphone pills, and a firearm in Lindsey’s possession.
Today’s sentence was imposed by Chief United States District Court Judge Robert C. Chambers.
Lindsey previously plead guilty to possession with intent to distribute oxymorphone and was sentenced to 57 months imprisonment.
The home owner, Jenifer Russell, has entered a guilty plea to maintaining a residence for the purpose of distribution and faces up to 20 years imprisonment when she is sentenced on December 7, 2015.
Karson Williams entered a guilty plea to aiding and abetting the distribution of oxymorphone relating to a controlled buy from the Bailes Drive residence in January of 2014. Williams is also schedule to be sentenced on December 7, 2015.
The case was investigated by the Metropolitan Drug Enforcement Network Team (MDENT). The prosecution is being handled by Assistant United States Attorney Monica D. Coleman.
Chairman of Boston-Based Biomedical Company Arrested in Stock-Fraud SchemeRead the Press Release
BOSTON – The chairman of a Boston-based biomedical company was arrested this morning on charges arising out of his participation in a scheme to defraud the market for the publicly traded stock of the company.
Edward Withrow, III, 51, of Malibu, Calif., was charged in U.S. District Court in Boston with one count of conspiracy, one count of securities fraud, two counts of wire fraud, and two counts of making false statements. Withrow’s co-conspirator, Marco Babini, 54, was charged with one count of conspiracy, one count of securities fraud, and two counts of wire fraud. Babini, who is believed to reside in Vancouver, Canada, remains at large.
In a parallel action, the Securities and Exchange Commission (SEC) announced securities fraud charges today against Withrow, Babini, and a third individual, Samuel Brown, in connection with the scheme. In addition, the SEC charged Withrow with failing to disclose his stock holdings in accordance with federal rules and regulations.
According to the indictment, in November 2012, Withrow became the chairman of Endeavor Power Corporation (Endeavor), a Boston-based biomedical company focused on infectious diseases, and became a significant owner of Endeavor’s stock. Around that time, Withrow, Babini and at least one other individual, allegedly orchestrated a promotional campaign and engaged in manipulative trading designed to inflate investor interest in Endeavor’s publicly traded stock. At that time, Withrow and Babini concealed their significant control over Endeavor’s publicly traded stock from potential investors. In March 2013, the SEC suspended trading in the securities of Endeavor, which stopped the scheme in progress. Thereafter, when Withrow was questioned under oath by SEC attorneys about the Endeavor scheme, he lied about his and others’ involvement.
The charges follow a multi-year investigation focusing on preventing fraud in the microcap stock markets. Microcap companies are small publicly traded companies whose stock often trades at pennies per share. Fraud in the microcap markets is of increasing concern to regulators as such markets have proven to be fertile grounds for fraud and abuse. This is, in part, because accurate information about microcap stocks may be difficult for the average investor to find, since many microcap companies do not file financial reports with the SEC.
Today’s charges follow a series of cases filed by the SEC and the U.S. Attorney for the District of Massachusetts in which more than 20 individuals have been criminally charged and convicted for using kickbacks and other schemes to trigger investment in, or manipulate the stock of, thinly-traded stocks.
The charge of conspiracy and securities fraud provides a sentence of no greater than 25 years in prison, three years of supervised release, and a fine of $250,000, or twice the gross gain or loss. The charge of wire fraud provides a sentence of no greater than 20 years in prison, three years of supervised release, and a fine of $250,000, or twice the gross gain or loss. The charge of making false statements provides a sentence of no greater than five years in prison, three years of supervised release, and a fine of $250,000, or twice the gross gain or loss. 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.
U.S. Attorney Ortiz and Acting SAC Bonavolonta made the announcement today. The criminal case is being prosecuted by Assistant U.S. Attorney Eric Christofferson of Ortiz’s Economic Crimes Unit and SEC Attorney Eric A. Forni, who was appointed as a Special Assistant U.S. Attorney.
The details contained in the indictment are allegations. The defendants are presumed to be innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
This case was brought in coordination with President Barack Obama’s Financial Fraud Enforcement Task Force. President Obama established the interagency Financial Fraud Enforcement Task Force to wage an aggressive, coordinated, and proactive effort to investigate and prosecute financial crimes. The task force includes representatives from a broad range of federal agencies, regulatory authorities, inspectors general, and state and local law enforcement who, working together, bring to bear a powerful array of criminal and civil enforcement resources. The task force is working to improve efforts across the federal executive branch, and with state and local partners, to investigate and prosecute significant financial crimes, ensure just and effective punishment for those who perpetrate financial crimes, combat discrimination in the lending and financial markets, and recover proceeds for victims of financial crimes.
Centralia Woman Sentenced on Federal Drug ChargesRead the Press Release
Stephen R. Wigginton, United States Attorney for the Southern District of Illinois, announced today that Jayme Lee Barnes, 36, of Centralia, Illinois, was sentenced today to 60 months in federal prison, to be followed by 4 years of supervised release, a $200 fine and a $200 special assessment. There is no parole in the federal system.
Court records showed that on June 9, 2015, Barnes entered a guilty plea to an indictment charging her and others with Conspiracy to Manufacture and Distribute Methamphetamine, and Possession of a Listed Chemical (Pseudoephedrine) Knowing It Would Be Used to Manufacture a Controlled Substance. The conspiracy is alleged to have existed from February 28 through October 1, 2014, in Marion and Clinton Counties.
Information leading to the conviction of Barnes was obtained in an investigation conducted by the FBI, the Marion County Sheriff’s Office, and the Clinton County Sheriff’s Department, assisted by the Illinois State Police Methamphetamine Response Team, and the Centralia Police Department. The case is being handled by Assistant United States Attorney Kit Morrissey.
California Army National Guard Member Pleads Guilty to Charges of Recruiting FraudRead the Press Release
FRESNO, Calif. — Nicholas Huerta, 33, of Fresno, pleaded guilty today to one count of wire fraud for a fraud scheme involving military recruiting bonuses, United States Attorney Benjamin B. Wagner announced.
According to court documents, the United States Army contracted with Document and Packaging Broker Inc. (DOCUPAK) to administer the Guard Recruiting Assistance Program (G-RAP). Under G-RAP, members of the California National Guard served as Recruiting Assistants. If a Recruiting Assistant referred a potential Guard member to a recruiting office and that person ultimately enlisted, the Recruiting Assistant was eligible to receive monetary compensation disbursed by DOCUPAK.
Huerta served in the California National Guard as a recruiter. In that position, he had access to names of recruits who had not been referred by any Recruiting Assistant. Huerta pleaded guilty to taking part in a scheme that caused DOCUPAK to issue compensation that was not earned by claiming that various enlistees had been referred by Recruiting Assistants when, in fact, they had not.
This case is the product of an ongoing investigation by the Army Criminal Investigative Command Major Procurement Fraud Unit, the Defense Criminal Investigative Service, and the Federal Bureau of Investigation. Assistant United States Attorney Michael G. Tierney is prosecuting the case.
“As today's guilty plea shows, the Defense Criminal Investigative Service and its law enforcement partners will continue to identify and investigate those individuals who seek to defraud the U.S. taxpayer,” said Special Agent In Charge Chris D. Hendrickson, Defense Criminal Investigative Service, Western Field Office. “Any individual, regardless of position, who attempts to prosper at the expense of the American taxpayer, will be brought to justice.”
“The California National Guard has fully cooperated with the U.S. Attorney's Office and the U.S. Army Criminal Investigation Command regarding these matters, and will continue to do so moving forward, as we expect any who contradict the California National Guard's core values to be held accountable,” said Capt. Will Martin, Public Affairs Officer for the California Military Department.
Huerta is scheduled to be sentenced by United States District Court Judge Lawrence J. O’Neill on December 7, 2015. Huerta faces a maximum statutory penalty of 20 years in prison and a $250,000 fine. The actual sentence, however, will 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.
Seven other National Guard members have been charged in six separate indictments for their roles in similar recruiting‑fraud scheme in Fresno and Sacramento. Brian Kaps, 40, of Chico, pleaded guilty on November 21, 2014, to one count of wire fraud; Sarah Nattress, 27, of Paradise, pleaded guilty on October 23, 2014, to one count of wire fraud, and Leonardo Pesta, 47, of Mountain View, pleaded guilty on July 27, 2015, to one count of wire fraud. The pending charges against the remaining four defendants are only allegations; they are presumed innocent until and unless proven guilty beyond a reasonable doubt.
Boston Man Pleads Guilty to Bronx Murder Arising Out of Dispute over Criminal Prostitution BusinessRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced that SAMUEL L. WHITESIDE pled guilty on September 10, 2015, in Manhattan federal court to traveling interstate to commit murder to further his prostitution business, and to persuading, inducing, enticing, and coercing women to travel interstate to engage in prostitution. He pled guilty before U.S. District Judge Paul A. Crotty.
Manhattan U.S. Attorney Preet Bharara said: “Samuel Whiteside has now admitted that he traveled from Boston to New York to murder a rival with whom he had a dispute over his prostitution business. Violence that is so often associated with the prostitution business led to a murder here. Thanks to the work of the FBI and the New York City Police Department, the murderer here has been brought to justice.”
According to the Superseding Indictment, other documents filed in Manhattan federal court, and statements made at various proceedings in this case, including yesterday’s guilty plea:
In the early morning hours of June 5, 2012, WHITESIDE murdered Anthony Martino (the “Victim”) by stabbing him to death in a motel room at the Metro Motel, in the Bronx, New York. WHITESIDE attacked Martino because of a dispute between Whiteside and Martino relating to their respective prostitution businesses.
Specifically, WHITESIDE and the Victim had a dispute about a woman who had worked for WHITESIDE as a prostitute. WHITESIDE believed that the Victim owed WHITESIDE money related to that woman, who had been traded and sold between WHITESIDE and the Victim. In the weeks leading up to Martino’s murder, WHITESIDE searched for Martino in order to confront him about the money he believed Martino owed to him for that prostitute.
On the evening of June 4, 2012, and continuing through the early morning hours of June 5, 2012, WHITESIDE was in telephone contact with Martino and learned that Martino was at the Metro Motel. During the course of that night, WHITESIDE traveled from New England to the Metro Motel. When he arrived, WHITESIDE forced his way into Martino’s room and attacked and stabbed the Victim with a knife three times, which resulted in the Victim’s death.
In addition, between at least January 2012 and February 2013, WHITESIDE operated a prostitution business in which he marketed the sexual services of women to male customers in exchange for money. WHITESIDE took the women to various locations in Massachusetts, Rhode Island, New York, New Jersey, North Carolina, and Illinois to engage in prostitution.
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WHITESIDE, 31, of Dorchester, Massachusetts, faces a maximum of life in prison and eight years of supervised release. The statutory maximum sentence is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge. WHITESIDE is scheduled to be sentenced by Judge Crotty on December 8, 2015.
Mr. Bharara praised the investigative work of the Federal Bureau of Investigation and New York City Police Department.
The case is being prosecuted by the Office’s Violent and Organized Crime Unit. Assistant U.S. Attorneys Kan M. Nawaday and Kristy J. Greenberg are in charge of the prosecution.
Bossier City resident pleads guilty to selling firearms to out-of-state resident at gun showRead the Press Release
SHREVEPORT, La. – United States Attorney Stephanie A. Finley announced today that a Louisiana resident pleaded guilty to selling firearms to an out-of-state resident.
Thomas Cleve Veillon, 68, of Bossier City, La., pleaded guilty before U.S. District Judge S. Maurice Hicks Jr. to one count of sale of a firearm to an out-of-state resident. According to evidence presented at the guilty plea, Veillon had numerous firearms for sale at a June 27, 2015 gun show in Shreveport. He was not a federally licensed firearms dealer. Veillon sold a .270 caliber rifle and a Glock .45 caliber pistol to a resident of Arkansas, knowing that the buyer resided out-of-state.
Veillon faces up to five years in prison, one to three years of supervised release and a $250,000 fine. A sentencing date of January 4, 2016 was set.
This investigation and prosecution is part of Project Safe Neighborhoods, which is a Department of Justice initiative to reduce firearm crimes by preventing the possession and use of firearms by dangerous and persistent felons and others not authorized to possess a firearm and to promote firearm safety.
The ATF conducted the investigation. Assistant U.S. Attorney Robert W. Gillespie Jr. is prosecuting the case.
Arizona man sentenced for cocaine traffickingRead the Press Release
CLARKSBURG, WEST VIRGINIA – Kwane Baker, 39, of Buckeye, Arizona, was sentenced today to 37 months in prison for cocaine trafficking, United States Attorney William J. Ihlenfeld, II, announced.
An investigation by the Mon Metro Drug and Violent Crime Task Force revealed that Baker sold crack cocaine in Monongalia County, West Virginia in July 2014. He pled guilty in May 2015 to one count of “Distribution of Cocaine Base.”
Assistant U.S. Attorney Zelda Wesley prosecuted the case on behalf of the government.
U.S. District Judge Irene M. Keeley presided.
Altamont Man Pleads Guilty to Identity Theft, Extortion, and Child Pornography OffensesRead the Press Release
On September 14, 2015, Stephen B. Mislich, 24, of Bowling Green, Ohio, formerly of Altamont, Illinois, pled guilty to identity theft, extortion, and child pornography offenses, United States Attorney for the Southern District of Illinois Stephen R. Wigginton, announced today.
Evidence at the plea hearing established that Mislich stole the online identity of a victim from Effingham County, Illinois, and then used that identity to extort and attempt to extort nude images and videos form several other victims in the area. One of the victims was 16 years old at the time of the offense and the images Mislich forced her to produce constituted child pornography under federal law.
The offenses carry a maximum penalty of 63 years in federal prison, $2,000,000 in fines, and a lifetime of supervised release. Sentencing is currently scheduled to occur on December 29, 2015, at 10:00 a.m. Mislich continues to be held without bond pending sentencing. The investigation was conducted by the Federal Bureau of Investigation and the Effingham Police Department. The case is assigned to Assistant United States Attorney Thomas E. Leggans.
Albuquerque Man Pleads Guilty to Robbing US Bank Branch in January 2015Read the Press Release
ALBUQUERQUE – Joshua Hicks, 31, of Albuquerque, N.M., pleaded guilty today to robbing the US Bank Branch located on Carlisle Blvd. NE in Albuquerque, in Jan. 2015. The guilty plea was entered without the benefit of a plea agreement.
Hicks was arrested Feb. 9, 2015, based on a criminal complaint charging him with robbing the US Bank branch on Jan. 2, 2015. The criminal complaint alleged that Hicks robbed the bank on Jan. 2, 2015, by handing the bank teller a crumpled hand written note which included the words “have gun,” “robbed” and “money.” The teller recognized it as a robbery note and handed money over to Hicks who then left the bank.
Hicks was indicted on Feb. 10, 2015, and charged with committing a bank robbery in Bernalillo County, N.M.
At sentencing, Hicks faces a maximum penalty of 20 years in prison followed by up to three years of supervised release. He remains detained pending a sentencing hearing which has yet to be scheduled.
This case was investigated by the Albuquerque office of the FBI and the Albuquerque Police Department and is being prosecuted by Assistant U.S. Attorney Norman Cairns.
Airline Executive Charged with Attempting to Arrange Sex with a MinorRead the Press Release
PITTSBURGH – An American Airlines executive from Texas has been indicted by a federal grand jury in Pittsburgh on a charge of attempted coercion and enticement of a minor to engage in illegal sexual activity, United States Attorney David J. Hickton announced today.
The one-count indictment, returned on Aug 5, 2015, and unsealed today named Ray Wickliffe Howland, 55, of Arlington, Texas, as the sole defendant.
According to the indictment, on or about June 25, 2015, Howland used facilities and means of interstate and foreign commerce, specifically a computer, an iPad, the internet and the telephone, to knowingly attempt to persuade, induce, entice, and coerce a minor to engage in sexual activity.
The law provides for a maximum total sentence of life in prison, a fine of $750,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Jessica Lieber Smolar is prosecuting this case on behalf of the government.
The Office of the Pennsylvania Attorney General and the Federal Bureau of Investigation conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
2010 Congressional Candidate and Campaign Manager for His Opponent Sentenced for Committing Election ViolationsRead the Press Release
A 2010 Congressional candidate for Florida’s 25th Congressional District, along with the campaign manager for an opposing candidate from a different party, were sentenced today for violating federal election laws, in violation of Title 18, United States Code, Section 371.
Benjamin G. Greenberg, First Assistant United States Attorney, and George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, made the announcement.
United States District Court Judge Jose E. Martinez sentenced Jeffrey Garcia, 42, of Miami, to two years of probation, including 240 days of home detention, and Jose Rolando Arrojo, 41, of Miami, to one years of probation, including 180 days of home detention. The defendants had previously pled guilty to conspiring to make and accept excessive contributions to the 2010 Roly Arrojo for Congress Committee, in violation of the Federal Election Campaign Act of 1971. In 2010, the Federal Election Campaign Act of 1971, as amended, established a $2,400 per election limit on contributions from any individual to a federal candidates’ authorized campaign committee. Therefore, because the contributions did not exceed the permissible amount by more than $25,000, Garcia and Arrojo faced a maximum possible sentence of one year in prison.
According to court documents and information presented in court, during the 2010 election cycle, Garcia was the campaign manager for a candidate (“Candidate A”) opposing Arrojo in the general election. The objective of the conspiracy was to benefit Candidate A by splitting the general election votes of his opponents, by causing and funding the existence of Arrojo’s campaign. The information also alleges the conspirators used third party checks to conceal the contributions. A $12,000 check signed by Garcia, and drawn from the campaign account of Candidate A, was made payable to Palm Media, LLC, a company that was also owned and operated by Garcia. Garcia then signed two checks, made payable to cash in the amounts of $5,000 and $5,500, drawn from the Palm Media, LLC account. These checks were deposited by Arrojo into a personal account. Arrojo subsequently wrote a $10,500 check from the personal account made payable to “Roly Arrojo for Congress” which was deposited into the bank account for the Roly Arrojo for Congress Committee. Arrojo then caused a $10,440 check to issue from the Committee’s account to the Department of State, in order to cover his filing fee expenses. Arrojo submitted this check, along with an Oath of Candidate form, to the Department of State in order to be placed on the ballot in 2010 for Florida’s 25th Congressional District.
Mr. Greenberg commended the investigative efforts of the FBI Miami Area Corruption Task Force. This case is being prosecuted by Assistant U.S. Attorney Kimberly A. Selmore.
A criminal information is only an accusation and a defendant is presumed innocent unless and until proven guilty.
A copy of this press release may be found on the website of the United States Attorney’s Office for the Southern District of Florida at www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Friday 11 September 2015
Western Washington Programs Awarded more than $1 Million to Combat Domestic ViolenceRead the Press Release
The U.S. Department of Justice’s Office on Violence Against Women has awarded two grants totaling more than $1 million to provide services to youth and members of the LGBTQ community impacted by domestic violence, announced U.S. Attorney Annette L. Hayes. Domestic Violence and Sexual Assault Services of Whatcom County was awarded $698,529 and the Northwest Network of Bisexual, Trans, Lesbian & Gay Survivors of Abuse was awarded $402,000. Both grants are to provide services to those who have been victims of domestic violence, sexual assault and stalking.
“These grant funds will be in place for the next three years for outreach and coordination of needed services to youth, LGBTQ, tribal and other members of our community,” said U.S. Attorney Annette L. Hayes. “The Department of Justice recognizes the importance of helping local service providers connect with community partners to get services to those who most need them.”
The Whatcom County grant will fund the formation of community-coordinated response teams in the Blaine, Ferndale and Mt. Baker school districts. These teams will develop comprehensive policies, procedures, and protocols for a survivor-centered approach to sexual assault. The teams will conduct outreach and education for parents and community members; and will lead prevention education efforts. The teams will also recruit youth to form Safe Futures Youth Boards at each high school in each district. Domestic Violence and Sexual Assault Services of Whatcom County will partner with the DV Commission, Brigid Collins Family Support Center, Northwest Youth Services, Lummi Victims of Crime, and Nooksack Tribe Family Services to provide assistance specifically targeted to homeless/runaway youth, youth who identify as LGBTQ, and Native American youth populations.
The three year grant to the Northwest Network of Bisexual, Trans, Lesbian and Gay survivors of Abuse will continue to provide comprehensive services to LGBTQ victims of domestic violence, sexual assault, and stalking to enhance advocacy based counseling, support groups, safety planning, access to medical help, and referrals to address culturally-specific needs. Throughout the grant period, the NW Network will educate providers, inform community members, and foster new coalitions and networks to increase the capacity of the region to support underserved victims.
More information about these grants is available from the Outreach and Communications Division of the Office on Violence Against Women at (202) 307-6026.
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U.S. Attorney’s Office, Western District of Louisiana, honors the fallen from 9/11Read the Press Release
U.S. Attorney Stephanie Finley stated that the Western District of Louisiana remembers all of those who lost their lives on 9/11 and who gave the ultimate sacrifice in service of our country. Finley stated “This never gets easy. We all remember it clearly, where we were when we found out; the horror we saw, and the bravery displayed by so many first responders and courageous citizens who represented strength and grit of this nation in those critical days and hours after the attacks. We also recognize and honor all of the fallen soldiers from the Western District of Louisiana who answered the call to defend this nation. They are in our thoughts every time the Department of Justice works to eliminate threats to national security. No aspect of our work is more important or more urgent. As we reflect on this day, let’s take a moment to remember all of those who have died here and abroad and continue to keep their families in our prayers.”
Below is a list of Louisiana’s Fallen Heroes who served Honorably in Operation Iraqi Freedom and Operating Enduring Freedom. Thank you to all of those who continue to serve!
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Army Sgt. 1st Class Andrew T. Weathers, of DeRidder, La, Marine Lance Cpl. Christopher O. Grant, 20, of Richwood, La., Army Spc. Christopher R. Drake, 20, of Tickfaw, La., Army Chief Warrant Officer Bryan J. Henderson, 27, of Franklin, La., Air Force Tech. Sgt. Larry Bunn, 43, of Bossier City, La., Marine Sgt. Michael J. Guillory, 28, of Pearl River, La., Army Capt. Aaron D. Istre, 37, of Vinton, La., Naval Aircrewman (Helicopter) 1st Class Joseph P. Fitzmorris, 31, of West Monroe, La., Navy Lt. Cmdr. (SEAL) Jonas B. Kelsall, 32, of Shreveport, La., Navy Special Warfare Operator Chief Petty Officer (SEAL) Robert J. Reeves, 32, of Shreveport, La., Army Sgt. Christopher P. Soderlund, 23, of Pineville, La., Army Staff Sgt. Michael J. Garcia, 27, of Bossier City, La., Air Force Tech. Sgt. Daniel L. Douville, 33, of Harvey, La., Marine Cpl. Matthew T. Richard, 21, of Acadia, La., Army Staff Sgt. Quadi S. Hudgins, 26, of New Orleans, Army Spc. Christian J. Romig, 24, of Kenner, La., Marine Lance Cpl. Dakota R. Huse, 19, of Greenwood, La., Army Spc. Steven L. Dupont, 20, of Lafayette, La., Army Spc. Matthew C. Powell, 20, of Slidell, La., Marine Sgt. Joseph A. Bovia, 24, of Kenner, La., Marine Sgt. Joe L. Wrightsman, 23, of Jonesboro, La., Army Sgt. Jordan E. Tuttle, 22, of West Monroe, La., Army Pfc. Bryant J. Haynes, 21, of Epps, La., Army Maj. Ronald W. Culver Jr., 44, of Shreveport, La., Army Sgt. Joshua A. Tomlinson, 24, of Dubberly, La., Army Sgt. Patrick O. Williamson, 24, of Broussard, La., Army Pfc. Brian R. Bates Jr., 20, of Gretna, La., Army Spc. Michael S. Cote Jr., 20, of Denham Springs, La., Army Pfc. Matthew E. Wildes, 18, of Hammond, La., Army Pfc. Jason R. Watson, 19, of Many, La., Army Chief Warrant Officer 4 Milton E. Suggs, 51, of Lockport, La., Air Force Senior Airman Omar J. McKnight, 22, of Marrero, La., Army Sgt. 1st Class David J. Todd Jr., 36, of Marrero, La., Marine Staff Sgt. Danny P. Dupre, 28, of Lockport, La., Army Pfc. Bryan M. Thomas, 22, of Lake Charles, La., Army Sgt. 1st Class David R. Hurst, 31, of Kenner, La., Army Cpl. Justin R. Mixon, 22, of Bogalusa, La., Army Sgt. Joseph A. Richard III, 27, of Lafayette, La., Army Sgt. Terrell W. Gilmore, 38, of Baton Rouge, La., Army Staff Sgt. Michael J. Gabel, 30, of Crowley, La., Army Staff Sgt. Jarred S. Fontenot, 35, of Port Barre, La., Army Pvt. Justin T. Sanders, 22, of Watson, La., Army Spc. Charles E. Leonard Jr., 29, of Monroe, La., Army Sgt. 1st Class John M. Hennen, 26, of Vinton, La., Army Cpl. William J. Crouch, 21, of Zachary, La., Marine Cpl. Willie P. Celestine Jr., 21, of Lafayette, La., Army Pvt. Mark W. Graham, 22, of Lafayette, La., Army Staff Sgt. Ronnie L. Sanders, 26, of Thibodaux, La., Army Spc. Johnathan B. Chism, 22, of Gonzales, La., Army Staff Sgt. Jacob G. McMillan, 25, of Lafayette, La., Marine Lance Cpl. Myles C. Sebastien, 21, of Opelousas, La., Army Spc. Joshua B. Madden, 21, of Sibley, La., Army Sgt. Jay R. Gauthreaux, 26, of Thibodaux, La., Army Pvt. Joshua C. Burrows, 20, of Bossier City, La., Army Cpl. Joseph C. Dumas Jr., 25, of New Orleans, La., Marine Lance Cpl. Jon E. Bowman, 21, of Dubach, La., Marine Lance Cpl. John E. Hale, 20, of Shreveport, La., Army Cpl. Marcus A. Cain, 20, of Crowley, La., Army Sgt. Matthew J. Vosbein, 30, of Metairie, La., Marine Lance Cpl. Donald E. Champlin, 28, of Natchitoches, La., Army Sgt. 1st Class Terry O.P. Wallace, 33, of Winnsboro, La., Corpsman 3rd Class Lee Hamilton Deal, 23, of West Monroe, La., Army Spc. Brandon L. Teeters, 21, of Lafayette, La., Marine Lance Cpl. Derrick J. Cothran, 21, of Avondale, La., Marine Pfc. Chase A. Edwards, 19, of Lake Charles, La., Army Staff Sgt. Bryan A. Lewis, 32, of Bunkie, La., Marine 1st Lt. Brandon R. Dronet, 33, of Erath, La., Marine Lance Cpl. Matthew R. Barnes, 20, of West Monroe, La., Army Spc. William S. Hayes III, 23, of St. Tammany, La., Marine Lance Cpl. Billy D. Brixey Jr., 21, of Ferriday, La., Marine Lance Cpl. Ryan S. McCurdy, 20, of Baton Rouge, La., Army Sgt. Julia V. Atkins, 22, of Bossier City, La., Army Pfc. Benny S. Franklin, 19, of Hammond, La., Army Staff Sgt. Jens E. Schelbert, 31, of New Orleans, La., Army Sgt. Willard T. Partridge, 35, of Ferriday, La., Marine Cpl. David S. Stewart, 24, of Bogalusa, La., Navy Chief Fire Controlman (SEAL) Jacques J. Fontan, 36, of New Orleans, La., Marine Cpl. Chad W. Powell, 22, of West Monroe, La., Army Sgt. David J. Murray, 23, of Clinton, La., Army Sgt. 1st Class Peter J. Hahn, 31, of Kenner, La., Army Sgt. Robin V. Fell, 22, of Shreveport, La., Army Sgt. Bernard L. Sembly II, 25, of Bossier City, La., Army 1st Sgt. Michael J. Bordelon, 37, of Morgan City, La., Marine Cpl. Richard P. Schoener, 21, of Hayes, La., Army Sgt. Maj. Barbaralien Banks, 41, of Harvey, La., Army Sgt. Isiah J. Sinclair, 31, of Natchitoches, La., Army Sgt. Lee M. Godbolt, 23, of New Orleans, La., Army Sgt. Paul M. Heltzel, 39, of Baton Rouge, La., Army Sgt. Nicholas J. Olivier, 26, of Ruston, La., Army Spc. Seth R. Trahan, 20, of Crowley, La., Army Sgt. Rene Knox Jr., 22, of New Orleans, La., Army Spc. Christopher J. Ramsey, 20, of Batchelor, La., Army Spc. Michael S. Evans II, 22, Marrero, La., Army Staff Sgt. Jonathan R. Reed, 25, of Opelousas, La., Army Staff Sgt. William F. Manuel, 34, of Kinder, La., Army Sgt. Robert W. Sweeney III, 22, of Pineville, La., Army Spc. Warren A. Murphy, 29, of Marrero, La., Army Spc. Armand "Luke" Frickey, 20, Houma, La., Army Spc. Huey P.L. Fassbender, 24, of LaPlace, La., Army Spc. Bradley J. Bergeron, 25, of Houma, La., Army Sgt. Christopher J. Babin, 27, of Houma, La., Army Sgt. 1st Class Kurt J. Comeaux, 34, of Raceland, La., Army Sgt. Craig L. Nelson, 21, of Bossier City, La., Army 1st Lt. Christopher W. Barnett, 32, of Baton Rouge, La., Army Pfc. Lionel Ayro, 22, of Jeanerette, La., Marine Sgt. Jeffrey L. Kirk, 24, of Baton Rouge, La., Marine Lance Cpl. Justin D. McLeese, 19, of Covington, La., Marine Pfc. David P. Burridge, 19, of Lafayette, La., Army Spc. Joseph C. Thibodeaux 24, of Lafayette, La., Marine Lance Cpl. Larry L. Wells 22, of Mount Hermon, La., Army Pfc. Torey J. Dantzler 22; of Columbia, La., Army Pfc. Charles C. Persing 20, of Albany, La., Army Spc. Robert L. DuSang 24, of Mandeville, La., Army Spc. Jeremy M. Heines 25, of New Orleans, La., Army Cpl. David M. Fraise 24, of New Orleans, La., Army Staff Sgt. Robert J. Mogensen 26, of Leesville, La., Army Pfc. James P. Lambert 23, of Ascension Parish, La., Army Command Sgt. Maj. Edward C. Barnhill 50, of Shreveport, La., Army Staff Sgt. Toby W. Mallet 26, of Kaplan, La., Army Staff Sgt. Craig Davis 37, of Opelousas, La., Army Pfc. Kristian E. Parker, 23, of Slidell, La., Army Sgt. Taft V. Williams, 29, of New Orleans, La., Army Sgt. Floyd G. Knighten Jr., 55, of Olla, La., Army Spc. Levi B. Kinchen, 21, of Tickfaw, La., and Army Pfc. Wilfred D. Bellard, 20, of Lake Charles, La.
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This year the Department of Justice’s commemoration included a ceremonial planting of a seedling of the famed “Survivor Tree”—the Callery pear tree that once stood on the original World Trade Center Plaza. The collapse of the Twin Towers on September 11, 2001 nearly destroyed it, but it was nursed back to health, and today it stands strong again at the 9/11 Memorial in Manhattan, where it is often adorned with tributes from the Memorial’s millions of visitors. It is known around the world as the “Survivor Tree.”
Fruit from the Survivor Tree was harvested in the fall of 2011. In the summer of 2013, the students of John Bowne High School in Flushing, Queens, New York, took custody of the seedlings and have continued to care for them. The project is a learning experience for the students, teaching about the agriculture of the trees and the history of 9/11. The 9/11 Memorial graciously donated one of these very special Survivor Tree seedlings to the Department of Justice.
Find out more about the 9/11 Memorial at http://www.911memorial.org.
Two Defendants Sentenced in Baltimore Residential Mortgage Fraud SchemesRead the Press Release
Baltimore, Maryland – U.S. District Judge James K. Bredar sentenced Kevin Campbell, age 53, of Pyesville, Maryland today to 19 months in prison followed by five years of supervised release for conspiring to commit mail, wire and bank fraud arising from mortgage fraud schemes resulting in losses totaling approximately $1.2 million. Judge Bredar also entered an order that Campbell pay restitution of $1,182,822.
Yesterday, in a related case, Judge Bredar sentenced co-conspirator Jonathan L. Miles, age 45, of Perry Hall, Maryland to 18 months in prison followed by five years of supervised release for conspiring to commit bank fraud, and entered an order that Miles pay restitution of $1,182,822.
The sentences were announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Deputy Inspector General for Investigations Rene Febles of the Federal Housing Finance Agency Office of Inspector General; Special Agent in Charge Kevin Perkins of the Federal Bureau of Investigation; and Special Agent in Charge Fran Mace, of the Federal Deposit Insurance Corporation Office of Inspector General.
Campbell invested in Baltimore residential real estate, and controlled four companies that bought and sold residential real estate: KMJ Realty LLC; E&W Realty LLC; C Realty LLC; and City Realty LLC. Miles was a loan officer for a mortgage brokerage company formerly located in Reisterstown, Maryland.
According to their plea agreements, from 2005 to 2007, the defendants caused false information to be provided to mortgage lenders in order to enable prospective purchasers to qualify for 18 home mortgage loans on properties located in Baltimore that they could not actually afford. Unknown to the lenders, Campbell provided most of the down payments and all of the closing costs. As a result, the loan application and HUD-1 substantially overstated the amount of the down payment and closing costs that the purchasers brought to the closings, thereby making the purchasers appear to be more creditworthy and to have more of a personal investment in the property than was actually the case.
In addition, the agreed purchase price established for the properties substantially exceeded the actual market value. Miles caused the inflated purchase price to be supported by a misleading appraisal report. By inflating the purchase price, Campbell and Miles were able to obtain financing that was substantially in excess of the original purchase price for each property. This enabled Campbell to cover most of the purchase price and all of the closing costs with the proceeds he received from the transaction, while still earning a significant profit. Campbell also received additional hidden payments amounting to 10% of the sales price disguised in the HUD-1 as a real estate commission to City Realty. Miles received a significant commission as the loan broker on each transaction.
Sixteen of the 18 loans ultimately went into default, resulting in foreclosures and losses totaling approximately $1.2 million to mortgage lenders, as well as Fannie Mae, Freddie Mac and four individual purchasers who lost money they provided for down payments on the mortgages.
United States Attorney Rod J. Rosenstein praised the Federal Housing Finance Agency – OIG, FBI and FDIC-OIG for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Jefferson M. Gray, who prosecuted the case.
Tulalip Tribal Member Sentenced for Killing Bald EaglesRead the Press Release
A 44-year-old member of the Tulalip Tribes was sentenced today in U.S. District Court in Seattle to 111 days in prison and two years of supervised release for clubbing two bald eagles to death, and then attempting to sell them, announced U.S. Attorney Annette L. Hayes. SHANE MOSES pleaded guilty in May 2015 to violating the Lacey Act. The Lacey Act prohibits trafficking in “illegal” wildlife, fish, and plants. At sentencing, Chief U.S. District Judge Marsha J. Pechman said, “The destruction of these eagles is disturbing because they are a symbol of our country and because they are sacred to the tribes of our community.”
“The bald eagle is sacred to our Northwest Tribes and a symbol revered across our country,” said U.S. Attorney Annette L. Hayes. “The wanton clubbing of two of these majestic creatures is wrong and was punished today.”
According to records filed in the case, MOSES was crabbing on Tulalip Bay on December 27, 2013, when he saw two injured bald eagles in the water. MOSES clubbed both eagles in the head with a gaff, fracturing their skulls. He put the eagles in a bucket, returned to shore and asked an acquaintance to drive him to a taxidermist’s where he hoped to be paid for the dead birds. The Tulalip Tribal Police became aware the dead eagles were being transported in the truck, made a traffic stop and seized the eagles. Ultimately, MOSES admitted to clubbing the birds. One was dead when seized by Tulalip Police, the other was suffering and was euthanized because of the injuries inflicted by MOSES.
The case was investigated by the Tulalip Tribal Police and the United States Fish and Wildlife Service. The case was prosecuted by Assistant United States Attorney Seth Wilkinson.
St. Louis Businessman Pleads Guilty to Bankruptcy FraudRead the Press Release
St. Louis, MO – A St. Louis businessman, KENNETH HUTCHINSON, pled guilty to one count of bankruptcy fraud and admitted to lying about his income and assets in relation to his 2014 bankruptcy case filed in the United States Bankruptcy Court for the Eastern District of Missouri.
According to court documents, Hutchinson failed to disclose his real estate and business holdings, as well as the bank accounts he maintained and controlled, in his 2014 bankruptcy petition. In addition, Hutchinson misrepresented his personal income and failed to identify funds he withdrew from business accounts for his personal use. Hutchinson made these false declarations and statements in relation to his Chapter 7 bankruptcy filing, knowing them to be false, and did so with the intent to deceive his creditors, the trustee and the bankruptcy judge.
Hutchinson, St. Louis, pled guilty to one felony count of bankruptcy fraud before United States District Judge Henry Autrey. Sentencing has been set for December 7, 2015.
This charge carries a maximum penalty of five years in prison and/or fines up to $250,000. In determining the actual sentences, a judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.
This case was investigated by the Federal Bureau of Investigation. Assistant United States Attorney Charles Birmingham is handling the case for the U.S. Attorney’s Office.
Scientists Sentenced to Prison for Defrauding the Small Business Innovation Research ProgramRead the Press Release
Tampa, Florida – U.S. District Judge Virginia Hernandez Covington has sentenced Mahmoud Aldissi (a/k/a Matt) and Anastassia Bogomolova (a/k/a Anastasia) for conspiracy to commit wire fraud, wire fraud, aggravated identity theft, and falsification of records. Aldissi was sentenced to 15 years in federal prison and Bogomolova was sentenced to a term of 13 years. As part of their sentences, the court entered a money judgment in the amount of $10.6 million, representing the proceeds of the crime, and ordered them to pay $10.6 million in restitution. Aldissi and Bogomolova were found guilty on March 20, 2015.
According to testimony and evidence presented during the month-long trial, through their two companies, Fractal Systems, Inc., and Smart Polymers Research Corp., Aldissi and Bogomolova fraudulently obtained approximately $10.5 million of small business research awards from the federal government. In order to be awarded contracts, they submitted proposals using the stolen identities of real people to create false endorsements of and for their proposed contracts. In the proposals, they also lied about their facilities, costs, the principal investigator on some of the contracts, and certifications in the proposals.
"The Defense Criminal Investigative Service and its law enforcement partners are committed to protecting the integrity of all Department of Defense programs," said Special Agent in Charge John F. Khin, Southeast Field Office. “DCIS aggressively investigates those who defraud the DoD procurement process, and places the utmost importance on preserving precious American taxpayer dollars intended to support our Warfighters. "
“The NASA Office of Inspector General will continue to aggressively investigate those who undermine and defraud NASA programs and operations,” said Special Agent in Charge John Corbett, Central Field Office. “Today’s sentencing serves as a staunch reminder that such conduct will not be tolerated. The NASA OIG applauds the efforts of the entire investigative and prosecution team during this multi-year investigation, and we look forward to our continued cooperation with our law enforcement partners in the pursuit of justice.”
Allison Lerner, Inspector General at the National Science Foundation said, “Through their repeated lies, falsification of records, and other illegal practices, these individuals fraudulently obtained millions of taxpayer dollars intended to advance new technologies. I commend our law enforcement and prosecution partners whose diligent efforts led to today’s sentencing.”
"We are extremely pleased with the outcome of this investigation and today's sentencing," said the Director of the U.S. Army Criminal Investigation Command's Major Procurement Fraud Unit, Frank Robey. "This case is a prime example of various investigative agencies working closely together to solve a suspected crime and how their varying investigative skills, knowledge and expertise complement one another to bring those responsible to justice."
“Today’s sentencing of Mr. Aldissi and Ms. Bogomolova serves as a fitting end to their scheme to cheat legitimate business owners out of the opportunity to compete for government contracts,” said Jerry Polk, acting Special Agent in Charge, EPA OIG Atlanta Field Office. “Their fate is certainly a cautionary tale for other contractors to avoid these types of illegal activities. The EPA OIG is committed to guarding federal funds and aggressively investigating those who abuse the American taxpayer’s money.”
“The Department of Homeland Security Office of Inspector General applauds the efforts of the investigative and prosecution team during this complex investigation, and we look forward to our continued cooperation with our law enforcement partners and the United States Attorney’s Office in the pursuit of justice. The Small Business Innovation Research Program is one of the largest public-private partnerships in the United States, and the DHS Office of Inspector General will aggressively investigate those who seek to unjustly capitalize and benefit from it,” stated James J. DePalma, Senior Special Agent, DHS Office of Inspector General, Orlando.
"This sentencing serves as a reminder that fraud in the Small Business Innovation Research Program will not be tolerated," said Inspector General Gregory H. Friedman of the DOE. "The Small Business Innovation Research program is an essential Department of Energy program to support scientific excellence and technological innovation. I salute the work of the U.S. Attorney's Office and our investigative partners in pursuing this matter."
This case was investigated by Defense Criminal Investigative Service (DCIS), National Aeronautics and Space Administration’s Office of the Inspector General (NASA-OIG), the Major Procurement Fraud Unit (MPFU) of the United States Army Criminal Investigation Division (Army CID), National Science Foundation’s Office of the Inspector General (NSF-OIG), the Environmental Protection Agency’s Office of the Inspector General (EPA-OIG), the Department of Energy’s Office of the Inspector General (DOE-OIG), and the Department of Homeland Security’s Office of the Inspector General (DHS-OIG). It was prosecuted by Assistant United States Attorney Thomas N. Palermo.
San Francisco Resident Charged in Alleged Identity Theft, Bank Fraud, and Aggravated Identity Theft SchemeRead the Press Release
SAN FRANCISCO – Charlyne Basada, AKA Charlyne Melendres, was arrested today in connection with an alleged bank fraud, wire fraud, and identity theft scheme, announced Acting United States Attorney Brian Stretch and Jean Ackerman, Regional Director of the U.S. Department of Labor, Employee Benefits Security Administration.
In an indictment unsealed this morning, Basada, 38, of San Francisco, was charged with fraudulently making payments to herself from her employers’ checking accounts. According to the indictment, Basada was employed by three separate companies between 2010 and 2015, and at each company, she obtained access to the payment systems of her employer. The indictment alleges that Basada devised and executed a scheme to defraud by using these corporate payment systems to initiate fraudulent payments to herself. In so doing, she created the false appearance that she was entitled to funds for wages, reimbursements, and other payments. The indictment further alleges that vendors for the companies were not paid and employee contributions to retirement plans were not made in order to help conceal the fraud.
Also alleged in the indictment, Basada prepared checks that were intended to pay personal vendors of one of her employers. Her employer signed these checks believing that they would be paid to vendors. However, Basada fraudulently completed the payee portion of the check to “cash” and deposited the checks into her own personal bank account. Basada was charged with twelve counts of bank fraud, in violation of 18 U.S.C. § 1344; four counts of wire fraud, in violation of 18 U.S.C. § 1343; and two counts of aggravated identity theft, in violation of 18 U.S.C. § 1028A(a)(1).
Basada was arrested this morning by Special Agents from the United States Department of Labor’s Office of the Inspector General. She was then arraigned and released on a $100,000 bond. Her next court appearance is scheduled for September 24, 2015, at 2:00 p.m., for an initial appearance before U.S. District Judge Charles R. Breyer.
An indictment merely alleges that crimes have been committed, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt. If convicted, the maximum statutory penalty for bank fraud is 30 years’ imprisonment and $1,000,000 or twice the gross gain or loss The maximum statutory penalty for each count of wire fraud is 20 years’ imprisonment and $250,000 or twice the gross gain or loss. The maximum statutory penalty for aggravated identity theft is a mandatory two years of imprisonment in addition to any sentence imposed. Additional periods of supervised release, fines, and special assessments also could be imposed. However, any sentence following conviction would be imposed by the court only after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Assistant U.S. Attorney Benjamin Kingsley is prosecuting the case with the assistance of Mary Mallory and Jessica Meegan. The prosecution is the result of an investigation conducted by the San Francisco Regional Office of the United States Department of Labor, Employee Benefits Security Administration.
Rochester Man Sentenced on Drug Charge and Gun ChargeRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051ROCHESTER, N.Y. -- U.S. Attorney William J. Hochul, Jr. announced today that Jesus Velez, 21, of Rochester, NY, who was convicted of possession with intent to distribute cocaine and possession of a firearm during a drug trafficking crime, was sentenced to 66 months in prison by U.S. District Court Judge Charles J. Siragusa.
Assistant U.S. Attorney Jennifer M. Noto, who handled the case, stated that the defendant was observed by members of the Rochester Police Department carrying a loaded firearm while possessing cocaine that he intended to sell on July 11, 2014, in the City of Rochester.
The sentencing is the culmination of an investigation on the part of Special Agents of the Bureau of Alcohol, Tobacco, Firearms and Explosives under the direction of Special Agent in Charge Delano A. Reid, and officers of the Rochester Police Department under the direction of Chief Michael Ciminelli.
PAE Government Services and RM Asia (HK) Limited to Pay $1.45 Million to Settle Claims in Alleged Bid-Rigging SchemeRead the Press Release
PAE Government Services Inc. (PAE) and RM Asia (HK) Limited (RM Asia) have agreed to pay the United States $1.45 million to resolve allegations that they engaged in a bid-rigging scheme that resulted in false claims for payment under a U.S. Army contract for services in Afghanistan, the Justice Department announced today. PAE, headquartered in Arlington, Virginia, provides integrated global mission services. RM Asia, located in Hong Kong, provides motor vehicle parts and supplies.
“Our national security and those of our allies depend on quality goods and services delivered at a fair price,” said Principal Deputy Assistant Attorney General Benjamin C. Mizer, head of the Justice Department’s Civil Division. “Today’s settlement demonstrates our continuing vigilance to ensure that those doing business with the government do not engage in bidrigging or other anticompetitive conduct.”
In 2007, the Army awarded PAE a contract to provide vehicle maintenance capabilities and training services for the Afghanistan National Army at multiple sites across Afghanistan. PAE partnered with RM Asia to supply and warehouse vehicle parts. The government alleged that former managers of PAE and RM Asia funneled subcontracts paid for by the government to companies owned by the former managers and their relatives by using confidential bid information to ensure that their companies would beat out other, honest competitors.
In a related criminal investigation, the U.S. Attorney’s Office of the Eastern District of Virginia previously obtained guilty pleas from former PAE program manager Keith Johnson; Johnson’s wife, Angela Gregory Johnson; and RM Asia’s former project manager, John Eisner, and deputy project manager, Jerry Kieffer, for their roles in the scheme.
“This resolution, following criminal charges that were also brought against the individuals involved, represents the government’s efforts to use all of the criminal and civil tools available to the government to remedy fraudulent conduct,” said U.S. Attorney Dana J. Boente of the Eastern District of Virginia.
The allegations resolved by this settlement arose from a lawsuit filed by Steven D. Walker, a former employee of PAE, under the qui tam, or whistleblower, provisions of the False Claims Act, which permit private individuals to sue on behalf of the government for false claims and share in the recovery. Mr. Walker will receive $261,000.
This case was handled by the Civil Division’s Commercial Litigation Branch, the U.S. Attorney’s Office of the Eastern District of Virginia, the Defense Criminal Investigative Service, the U.S. Department of the Army Criminal Investigation Command-Major Procurement Fraud Unit and the Defense Contract Audit Agency.
The lawsuit is captioned United States ex rel. Walker v. PAE, et al., 1:11CV382-LO/TCB (E.D. Va.). The claims resolved by the settlement are allegations only; there has been no determination of liability.
PAE Government Services and RM Asia (HK) Limited to Pay $1.45 Million to Settle Claims in Alleged Bid-Rigging SchemeRead the Press Release
ALEXANDRIA, Va. – PAE Government Services Inc. (PAE) and RM Asia (HK) Limited (RM Asia) have agreed to pay the United States $1.45 million to resolve allegations that they engaged in a bid-rigging scheme that resulted in false claims for payment under a U.S. Army contract for services in Afghanistan.
“This resolution, following criminal charges that were also brought against the individuals involved, represents the government’s efforts to use all of the criminal and civil tools available to the government to remedy fraudulent conduct,” said Dana J. Boente, U.S. Attorney for the Eastern District of Virginia.
PAE, headquartered in Arlington, provides integrated global mission services. RM Asia, located in Hong Kong, provides motor vehicle parts and supplies. In 2007, the Army awarded PAE a contract to provide vehicle maintenance capabilities and training services for the Afghanistan National Army at multiple sites across Afghanistan. PAE partnered with RM Asia to supply and warehouse vehicle parts. The government alleged that former managers of PAE and RM Asia funneled subcontracts paid for by the government to companies owned by the former managers and their relatives by using confidential bid information to ensure that their companies would beat out other, honest competitors.
“Our national security and those of our allies depend on quality goods and services delivered at a fair price,” said Principal Deputy Assistant Attorney General Benjamin C. Mizer, head of the Justice Department’s Civil Division. “Today’s settlement demonstrates our continuing vigilance to ensure that those doing business with the government do not engage in bidrigging or other anticompetitive conduct.”
In a related criminal investigation, this office previously obtained guilty pleas from former PAE program manager Keith Johnson; Johnson’s wife, Angela Gregory Johnson; and RM Asia’s former project manager, John Eisner, and deputy project manager, Jerry Kieffer, for their roles in the scheme.
The allegations resolved by this settlement arose from a lawsuit filed by Steven D. Walker, a former employee of PAE, under the qui tam, or whistleblower, provisions of the False Claims Act, which permit private individuals to sue on behalf of the government for false claims and share in the recovery. Walker will receive $261,000.
This case was handled by the Civil Division’s Commercial Litigation Branch, the U.S. Attorney’s Office of the Eastern District of Virginia, the Defense Criminal Investigative Service, the U.S. Department of the Army Criminal Investigation Command-Major Procurement Fraud Unit and the Defense Contract Audit Agency.
The lawsuit is captioned United States ex rel. Walker v. PAE, et al., 1:11CV382-LO/TCB (E.D. Va.). The claims resolved by the settlement are allegations only; there has been no determination of liability.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER.
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New Jersey Resident Sentenced to 35 Years in Federal PrisonRead the Press Release
A New Jersey resident was sentenced to 35 years in federal prison yesterday following his guilty plea to two counts of sexual exploitation of children, announced United States Attorney Barbara L. McQuade. Joining in the announcement was Special Agent in Charge David P. Gelios, Federal Bureau of Investigation, Detroit Division. Receiving the sentence was Christopher DeKruif, 28. The sentencing took place before United States District Judge Laurie Michelson in Flint, Michigan. "It is important that victims report to police when they are extorted by online predators," McQuade said. "Parents should tell their children they should never be too ashamed to tell them when they are in trouble and need help.” At the time of his plea, DeKruif admitted that he began an online relationship with the victim, a minor female, in 2012. After obtaining nude pictures of the minor, DeKruif coerced her into photographing explicit sexual acts. DeKruif threatened to disseminate explicit photographs of the victim and to have her and her cousin raped if the victim did not comply. In response to these threats, the victim provided to DeKruif visual depictions of the sexual acts he demanded. After an extensive multi-jurisdictional FBI investigation, which began in Flint, Michigan, DeKruif was identified and arrested in New Jersey. He was then transferred back to Michigan where he had been charged by the United States Attorney's Office. Following DeKruif’s arrest by the FBI in New Jersey, additional evidence was obtained from his computer and social networking which revealed that DeKruif victimized at least eight other girls throughout the United States. That conduct is also incorporated into the plea agreement. The 35-year sentence saves at least nine victims from having to appear and testify in DeKruif’s presenceNaperville Engineer Sentenced to 12 1/2 Years in Prison for Cutting Communication Cables and Setting Fire to Air Traffic Control Center in AuroraRead the Press Release
CHICAGO — A Naperville engineer who severed critical communication cables at an air-traffic control center in Aurora – causing thousands of flight cancellations and delays throughout the country – was sentenced today to 12 ½ years in federal prison.
BRIAN HOWARD used wire cutters to sever multiple telecommunication cables at the Chicago Air Route Traffic Control Center in Aurora on Sept. 26, 2014, disabling the Control Center’s communication with critical data centers and in-flight aircraft. He then set fire to the equipment to inflict further damage. The result was the immediate grounding of planes flying over the Midwest, and several days of flight cancellations and delays across the country.
Howard, 37, pleaded guilty in May to one count of willfully damaging, destroying or disabling an air navigation facility, and one count of using fire to commit a federal felony. In addition to the 150-month prison term, U.S. District Judge Gary Feinerman ordered Howard to pay $4,502,361 in restitution to the Federal Aviation Administration.
“Brian Howard attacked a critical piece of infrastructure in our nation’s airspace, causing one of the most severe disruptions to air travel in recent memory,” said Assistant U.S. Attorney Andrew Polovin. “He committed a violent crime that put thousands of lives at risk, and his crime warranted the sentence he received.”
At the time of the incident, Howard worked as an engineer for Harris Corp., a telecommunications contractor for the Federal Aviation Administration. This position enabled Howard to gain access to an area of the Control Center’s basement that housed key components of the Control Center’s telecommunication infrastructure.
Howard admitted in his plea agreement that by severing the cables and setting fire to the Control Center’s telecommunication equipment, he increased the risk to aircraft traveling through the Control Center’s airspace. He further acknowledged in the plea agreement that his actions were intended to disrupt air travel and to effectively shut down the Control Center.
Paramedics arrived at the Control Center shortly after the incident and found Howard attempting to slice his own throat with a knife, according to a criminal complaint and affidavit. Howard told the paramedics to leave him alone, but the paramedics took the knife out of his hand and administered treatment, the affidavit states.
The sentence was announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois; John A. Brown, Acting Special Agent-in-Charge of the Chicago Office of the Federal Bureau of Investigation; and Jeffery Magee, Special Agent in Charge of the Chicago Field Division of the Bureau of Alcohol, Tobacco, Firearms and Explosives.
The government is represented by Mr. Polovin.
Individuals impacted by this incident who wish to receive notice about case developments are encouraged to contact the U.S. Attorney’s Office’s Victim Hotline: (866) 364-2621; or log on to the U.S. Attorney’s Office’s Victim Resources Website: http://www.justice.gov/usao-ndil/information-victims-large-cases.
Mission Man Sentenced for Assault with a Dangerous WeaponRead the Press Release
Acting United States Attorney Randolph J. Seiler announced that a Mission, South Dakota, man convicted of Assault with a Dangerous Weapon was sentenced on September 9, 2015, by U.S. District Judge Roberto A. Lange.
Kenneth Littlewolf, a/k/a Kenneth Little Wolf, age 27, was sentenced to 44 months in custody, followed by 3 years of supervised release, and a special assessment of $100 to the Federal Crime Victims Fund.
Littlewolf was indicted by a federal grand jury on March 10, 2015. He pled guilty on June 24, 2015.
The conviction stems from an incident on January 31, 2015, when Littlewolf was at a bar near Mission, and was asked to give a ride to two people. Littlewolf agreed, but got into an argument with them and stabbed both people. The bar owner, along with another bartender, broke up that fight, but Littlewolf, who was wearing work boots, kicked and stabbed the victims. The bar owner and the bartender again tried to stop Littlewolf, who ultimately fled the area in his vehicle.
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.
Littlewolf was immediately turned over to the custody of the U.S. Marshals Service.
Midamar and ISA Owners Plead GuiltyRead the Press Release
Jalel Aossey, age 40, and Yahya Nasser Aossey, age 45, both of Cedar Rapids, Iowa, and owners of Midamar Corporation (Midamar) and ISA, Inc., d/b/a “Islamic Services of America” (ISA) pleaded guilty today in United States District Court in Cedar Rapids.
Jalel Aossey, President of Midamar, pleaded guilty to Count 1 of the indictment filed December 5, 2014, charging a conspiracy to commit the following federal offenses: mail and wire fraud; covering up material facts by a scheme; making and using false statements and documents in a matter within the jurisdiction of the Department of Agriculture; making false statements on export certificates with the intent to defraud; and selling misbranded meat in interstate commerce with the intent to defraud.
As part of the factual stipulations submitted in support of the guilty plea, it was established Jalel Aossey knew USDA establishment numbers were falsified on meat products and documents in order to export beef products to Malaysia and Indonesia. He also knew several representations made on the corporate websites of Midamar and ISA were false and fraudulent, including claims that: 1) certain beef products had been “hand-slaughtered by a Muslim slaughterman;” 2) “the use of penetrative captive bolt stunning negates the Halal slaughter process,” despite the fact that meat products sold by Midamar and certified as Halal by ISA had been killed using brain penetrating captive bolt stunning; and 3) Kosher is different than Halal, yet sold Kosher-slaughtered meat as Halal.
As part of the plea agreement Jalel Aossey will be required to resign any position he now holds with Midamar or North American Halal Food Industries (HFP) (another Cedar Rapids business owned by the Aosseys), entities regulated by the United States Department of Agriculture (USDA). Jalel Aossey further agreed to divest himself of any ownership in either business, and to take no part in the operations of either business for a period of five years. Jalel Aossey will be permitted to file an appeal challenging the jurisdiction of district court.
The conspiracy charge is punishable by: (1) up to five years’ imprisonment without the possibility of parole; (2) a fine of up to $250,000 or twice the gross gain or loss resulting from the offense, whichever is greater; (3) a mandatory special assessment of $100; and (4) a term of supervised release of up to three years.
Yahya Aossey pleaded guilty as a responsible corporate officer to two counts of selling, transporting, and offering for sale and transportation in commerce, meat and meat food products that were misbranded at the time of sale or transportation, as alleged in an Information filed yesterday. As part of his plea agreement, prosecution on the conspiracy charge contained in Count 1 of the Indictment will be deferred for a period of five years, subject to compliance with the terms of a pretrial diversion agreement.
The misbranding charges are each punishable by: (1) up to one year imprisonment without the possibility of parole; (2) a fine of up to $100,000; (3) a mandatory special assessment of $25; and (4) a term of supervised release of up to one year.
In addition to the above pleas of guilty, Jalel Aossey, Yahya Aossey, Midamar Corporation, and HFP will be subject to terms and conditions of consent decrees entered into with the USDA. Pursuant to those agreements, each of the parties will be required abide by certain conditions concerning the oversight and management of the food businesses. Any violation of those consent agreements could result in the USDA revoking the operating authority of Midamar or HFP.
The case is being prosecuted by Assistant United States Attorney Richard L. Murphy and was investigated by the Department of Agriculture Office of Inspector General Office of Investigations, and the Internal Revenue Service Criminal Investigations.
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is 14-CR-00138-LRR.
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Miami Resident Sentenced in Identity Theft Tax Fraud Scheme Involving Thousands of Deceased and Other Individuals’ Personal Identifying InformationRead the Press Release
A Miami resident was sentenced to 36 months in prison, followed by three years of supervised release, for participating in an identity theft tax fraud scheme involving thousands of deceased and other individuals’ personal identifying information (PII).
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Neil Melofchik, Acting Special Agent in Charge, U.S. Secret Service (USSS), Miami Field Office, Kelly R. Jackson, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), and J. Scott Dennis, Chief, North Miami Beach Police Department (NMBPD), made the announcement.
Yovaris Pardo, 40, of Miami, previously pled guilty to one count of possessing a counterfeit access device, in violation of Title 18, United States Code, Section 1029(a)(1), one count of possessing fifteen or more unauthorized access devices with the intent to defraud, in violation of Title 18, United States Code, Section 1029(a)(3), and one count of aggravated identity theft, in violation of Title l8, United States Codes Section 1028A.
According to court documents, on April 22, 2013, Pardo knowingly used a counterfeit credit card to purchase tires at a Pep Boys Store in North Miami, Florida. Pardo knew that the credit card was counterfeit and acted with the intent to defraud. On July l0, 2013, law enforcement encountered Pardo and executed a search warrant for the contents of her vehicle in Miami-Dade County. In her vehicle, Pardo had numerous counterfeit credit cards, counterfeit driver's licenses, social security cards belonging to other individuals, debit cards also in the names of other individuals that contained fraudulent tax refunds, numerous tax documents, printouts of death record search results (containing names, dates of birth, and social security numbers for deceased people), and notebooks containing handwritten identities (names, dates of birth, social security numbers). Pardo knowingly possessed the approximately 1,320 unauthorized access devices (i.e. debit card numbers, credit card numbers, social security numbers) that were found in her vehicle. Pardo did not have permission or authority to possess or use the PII belonging to the other individuals.
In addition, a forensic examination of Pardo's laptop that was found in the trunk of her vehicle revealed approximately 4,095 death record search results (containing names, dates of birth, and social security numbers for deceased people) and 48 additional credit card numbers. The laptop also contained pictures of credit card skimmers, embossing machines, and credit card readers, as well as software to make fraudulent credit cards, and subscriptions to fraud programs.
Mr. Ferrer commended the investigative efforts of the USSS, IRS-CI and NMBPD. This case is being prosecuted by Assistant U.S. Attorney Vanessa Snyder.
A copy of this press release may be found on the website of the United States Attorney’s Office for the Southern District of Florida at www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Luzerne County Man Charged with Theft from Postal ServiceRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that a Criminal Information was filed in U.S. District Court in Scranton charging a Luzerne county man with stealing over $20,000 from the United States Postal Service by submitting multiple false insurance claims over an eight month period.
According to United States Attorney Peter Smith, on multiple occasions between October 2011 and June 2013, David Steele, age 44, of Luzerne County, Pennsylvania, submitted false insurance claims to the United States Postal Service, resulting in losses totaling $20,903.13.
The government filed a plea agreement in the case which is subject to the approval of the court.
This case was investigated by the United States Postal Service Office of the Inspector General. Prosecution is assigned to Assistant United States Attorney Peter Hobart.
Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law is 10 years of imprisonment, a term of supervised release following imprisonment, and a $250,000 fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Lubbock Man Sentenced to 200 Months in Federal Prison for Producing Child PornographyRead the Press Release
LUBBOCK, Texas — Jeffrey William McCall, 42, was sentenced this morning by U.S. District Judge Sam R. Cummings to 200 months in federal prison, following his guilty plea in June 2015 to one count of production of child pornography, announced U.S. Attorney John R. Parker of the Northern District of Texas.
According to documents filed in the case, on April 7, 2015, McCall obtained a video of a minor female child by hiding his cellular telephone in the bathroom and turning on the video camera when the child went into the bathroom to take a shower. McCall carefully positioned and aimed the lens of the camera with the intent of obtaining images of the child.
The matter was brought as part of Project Safe Childhood, a nationwide initiative, which was launched in May 2006 by the Department of Justice, to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals, who sexually exploit children, and identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/. For more information about internet safety education, please visit http://www.justice.gov/psc/ and click on the tab “resources.”
The FBI and the Lubbock Police Department’s Internet Crimes Against Children Task Force investigated. Assistant U.S. Attorney Steven M. Sucsy prosecuted the case.
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Louisiana Man Gets 10-Year Prison Sentence for Robbing Pittsburgh BankRead the Press Release
PITTSBURGH - A former resident of Crowley, Louisiana, has been sentenced in federal court on his conviction of bank robbery. Kirk Stutes, 52, received a sentence of 120 months imprisonment, followed by three years supervised release. Stutes was ordered to pay restitution in the amount of $700.00, a Special Assessment in the amount of $100.00. In addition, the Court ordered that $3,148.00 shall be paid through forfeiture of funds recovered from Stutes.
United States District Judge Nora Barry Fischer imposed the sentence on Stutes.
According to information presented to the court, on Jan. 16, 2015, Stutes robbed First National Bank located at 6298 Steubenville Pike, in Pittsburgh, Pa. The bank is insured by the Federal Deposit Insurance Corporation.
Assistant United States Attorney Cindy K. Chung prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the Federal Bureau of Investigation, Robinson Township Police Department, North Fayette Police Department, Allegheny County Police Department, Allegheny County Sheriff’s Department, and the Pennsylvania State Police for conducting the investigation leading to the successful prosecution of Stutes.
Lewiston Man Pleads Guilty to Tax ChargeRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051
BUFFALO, N.Y.-U.S. Attorney William J. Hochul Jr. announced today that Jon DiBernardo, 51, of Lewiston, NY, pleaded guilty to tax evasion before U.S. District Judge Richard J. Arcara. The charge carries a maximum sentence of five years in prison, a fine of $100,000 or both.Assistant U.S. Attorney Maura K. O’Donnell, who is handling the case, stated that the defendant was the owner of Water Street Landing, a restaurant in Lewiston, NY. Between 2006 and 2009, DiBernardo submitted tax returns to the Internal Revenue Service understating business revenues thereby evading payment of income tax. In addition, the defendant paid employees off the books and as a result failed to pay employment taxes.
DiBernardo failed to report a total of $419,221 in taxable income resulting in a loss of $111,377 to the IRS. In addition, the defendant failed to report $285,705 in employee wages resulting in a loss of $43,712 to the IRS.
The plea is the culmination of an investigation by Special Agents of the Internal Revenue Service, Criminal Investigation Division, under the direction of Special Agent-In-Charge Shantelle P. Kitchen.
Sentencing is scheduled for January 20, 2016 at 1:00 p.m. before Judge Arcara.
Jury finds Monroe tax preparer guilty of filing false returnsRead the Press Release
MONROE, La. – United States Attorney Stephanie A. Finley announced today that a federal jury found a Monroe tax preparer guilty of filing multiple false tax returns.
The jury found Richard Allan Scott, 38, of Monroe, guilty of multiple counts of aiding or subscribing a false tax return. United States District Judge Robert G. James presided over the trial, which started Wednesday and ended today. The jury deliberated for approximately an hour and a half. Evidence admitted at trial revealed that more than 50 false tax returns for years 2011 and 2012 were prepared. Many of the returns contained fictitious information pertaining to W-2 withholdings, dependent care expenses and tax credits. The total amount stolen during the scheme was approximately $338,380.
“We are pleased with today’s conviction,” Finley stated. “Our tax system is built on the premise that taxpayers voluntarily file accurate and timely tax returns. Mr. Scott used his knowledge of this system to fraudulently manipulate tax returns to steal from the U.S. Treasury and now will have to pay for this crime. To ensure confidence in the tax system, the U.S. Attorney’s Office and the IRS remain committed to the aggressive pursuit and prosecution of individuals who intentionally violate the nation’s tax laws.”
Scott faces up to three years in prison, five years supervised release, a $250,000 fine and restitution for each count. A sentencing date of January 4, 2016 was set.
The IRS-Criminal Investigations and the Monroe Police Department conducted the investigation. Assistant U.S. Attorney Earl M. Campbell is prosecuting the case.
Jury Finds Husband and Wife Guilty in Antelope Home ArsonRead the Press Release
SACRAMENTO, Calif. — After a 10-day trial before Chief United States District Judge Morrison C. England Jr., a jury returned its verdict today finding a Sacramento couple guilty on all four counts related to the arson of their former home in Antelope, United States Attorney Benjamin B. Wagner announced.
The jury found Alexander Sakhanskiy, 43, and Larisa Sakhanskiy, 46, guilty of arson to commit another felony, two counts of mail fraud, and arson affecting interstate commerce. After today’s verdict, the judge ordered the defendants to be taken into custody.
According to evidence introduced at trial, on May 22, 2010, a gasoline-fueled fire destroyed the defendants’ home, a single-family house at 5745 Hawkeye Lane, in Antelope, California; the home was also being used as the business location of “Alex’s Plumbing.” Prior to the fire, the defendants removed most of their personal belongings from the house. Firefighters testified that the residential fire sprinkler system and smoke detectors had been deactivated. The fire resulted in the total destruction of the house, however, firefighters were able to prevent the fire from spreading to neighboring homes.
Evidence at trial showed that the defendants had set the fire or caused the fire to be set in order to collect insurance money from Farmers Insurance Group, Mid-Century Insurance Company. In filing the claim, the defendants falsely claimed that hundreds of thousands of dollars of property was destroyed in the fire, when in reality, most of the contents of the house had been removed and hidden before the fire.
Eric Harden, ATF Acting Special Agent in Charge of the San Francisco Field Division, said: “Arson is an act of violence and endangers our communities. Let this case be a warning, we are committed to aggressively pursue arson investigations with our law enforcement partners.”
This case is the product of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Sacramento Metropolitan Fire District. The Sacramento County District Attorney’s Office assisted investigators with the initial fire investigation. Assistant U.S. Attorneys Michael D. Anderson and Nirav Desai are prosecuting the case.
The defendants are scheduled to be sentenced on December 4, 2015. They face a minimum statutory penalty of 10 years in prison, a $250,000 fine, and a three-year term of supervised release for the charge of arson to commit another felony. The mail fraud counts carry a potential penalty of up to 20 years in prison, a $250,000 fine, and a three-year term of supervised release. The actual sentences, however, will 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.
Jury Convicts Houston Psychiatrist in $158 Million Medicare Fraud SchemeRead the Press Release
A Houston psychiatrist was convicted late yesterday by a federal jury of participating in a $158 million Medicare fraud scheme involving false claims for mental health treatment.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Kenneth Magidson of the Southern District of Texas, Special Agent in Charge Perrye K. Turner of the FBI’s Houston Field Office, Special Agent in Charge C.J. Porter U.S. Department of Health and Human Services-Office of Inspector General (HHS-OIG) Dallas Region, the Texas Attorney General’s Medicaid Fraud Control Unit (MFCU) and Special Agent in Charge D. Richard Goss of the Internal Revenue Service-Criminal Investigation Division (IRS-CI) Houston Field Office made the announcement.
Sharon Iglehart, 58, of Harris County, Texas, was convicted of one count of conspiracy to commit health care fraud, one count of health care fraud and three counts of making false statements relating to health care matters, following a seven-day jury trial before U.S. District Judge Ewing Werlein Jr. of the Southern District of Texas. Iglehart is scheduled to be sentenced on Dec. 5, 2015.
According to evidence presented at trial, from 2006 until June 2012, Iglehart and others engaged in a scheme to defraud Medicare by submitting, through Riverside General Hospital (Riverside), approximately $158 million in false and fraudulent claims for partial hospitalization program (PHP) services to Medicare. A PHP is a form of intensive outpatient treatment for severe mental illness.
The evidence presented at trial showed that the Medicare beneficiaries for whom Riverside billed Medicare did not receive PHP services. In fact, according to evidence presented at trial, most of the Medicare beneficiaries for whom Riverside billed Medicare rarely saw a psychiatrist and did not receive intensive psychiatric treatment.
In addition, evidence presented at trial showed that Iglehart personally billed Medicare for individual psychotherapy and other treatment to patients at Riverside locations – treatment that she never provided. The evidence at trial also demonstrated that Iglehart falsified the medical records of patients at Riverside’s inpatient facility to make it appear as if she provided psychiatric treatment when, in fact, she did not.
To date, 12 others previously have been convicted of offenses based on their roles in the fraudulent scheme. Earnest Gibson III, the former president of Riverside; Earnest Gibson IV, the operator of one of Riverside’s PHP satellite locations; Regina Askew, a group home owner and patient file auditor; and Robert Crane, a patient recruiter, were all convicted after a jury trial in October 2014. Earnest Gibson III was sentenced to 45 years in prison. Earnest Gibson IV was sentenced to 20 years in prison. Regina Askew was sentenced to 12 years in prison. Robert Crane has not yet been sentenced. Mohammad Khan, an assistant administrator at the hospital, who managed many of the hospital’s PHPs, pleaded guilty and was sentenced to 40 years in prison. William Bullock, an operator of a Riverside satellite location, as well as Leslie Clark, Robert Ferguson, Waddie McDuffie and Sharonda Holmes, who were all involved in paying or receiving kickbacks, also pleaded guilty. Bullock, Clark and Ferguson await sentencing.
The case was investigated by the FBI, HHS-OIG, Texas MFCU, and IRS-CI with assistance from the Railroad Retirement Board-Office of Inspector General (RRB-OIG) Chicago Field Office and the Office of Personnel Management-Office of Inspector General, and was brought as part of the Medicare Fraud Strike Force, under the supervision of the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Southern District of Texas. The case is being prosecuted by Assistant Chief Laura M.K. Cordova and Trial Attorney Ashlee C. McFarlane of the Criminal Division’s Fraud Section.
Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged more than 2,300 defendants who have collectively billed the Medicare program for more than $7 billion. In addition, HHS’s Centers for Medicare & Medicaid Services, working in conjunction with HHS-OIG, is taking steps to increase accountability and decrease the presence of fraudulent providers.
To learn more about the Health Care Fraud Prevention and Enforcement Action Team (HEAT), go to www.stopmedicarefraud.gov.
Humboldt County Juvenile Corrections Officer Sentenced to 60 Months in Prison for Possession of Child PornographyRead the Press Release
SAN FRANCISCO – Keith Monroe Wallace was sentenced today to 60 months in prison for possession of child pornography, announced Acting United States Brian J. Stretch and U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) Special Agent in Charge Ryan L. Spradlin.
Wallace, 53, of Eureka, Calif., pleaded guilty on June 24, 2015, to possession of child pornography. According to the plea agreement the defendant admitted to knowingly possessing 600 or more visual depictions of prepubescent minors or minors who had not attained 12 years of age engaging in sexually explicit conduct. The images included depictions of sadistic or masochistic conduct or other depictions of violence. Wallace was indicted by a federal grand jury on March 10, 2015, and charged with one count of possession of child pornography, in violation of 18 U.S.C. §§ 2252(a)(4)(B) and (b)(2).
At the time of his arrest, Wallace was employed by the Humboldt County Juvenile Probation Office as a Supervising Juvenile Corrections Officer in the Northern California Regional Facility in Eureka. According to court documents, federal law enforcement agents with HSI were led to Wallace as a result of an investigation into the sexual exploitation of children in the Northern District of California. On February 26, 2015, a federal search warrant was executed at Wallace’s residence in Eureka. HSI agents and Humboldt County District Attorney Investigators seized various computers and digital media storage devices pursuant to the search warrant. A forensic review of the computers and digital media storage devices seized from Wallace’s residence revealed the existence of videos and images depicting minors engaging in sexually explicit conduct. Wallace was taken into federal custody at the time of the execution of the search warrant.
The sentence was handed down by the Honorable Charles R. Breyer, U.S. District Judge. Judge Breyer also sentenced Wallace to a ten-year period of supervised release and a number of other conditions. One such condition is that Wallace will be required to register with the state sex offender registration agency as required by state law. Restitution will be determined by the court at a later date. The defendant will begin serving his prison term immediately.
Assistant U.S. Attorney Claudia A. Quiroz is prosecuting the case with the assistance of Marina Ponomarchuk. The prosecution is the result of an investigation by the HSI Child Exploitation Investigations Group, as well as investigators from the Humboldt County District Attorney’s Office.
If members of the public have any information relevant to this investigation or regarding child sexual exploitation crimes they are encouraged to call the ICE tip line at 1-866-347-2423 (1-866-DHS-2ICE).
Hudson County, New Jersey, Man Sentenced to 15 Months in Prison for Role in Illegal Online Gambling EnterpriseRead the Press Release
NEWARK, N.J. – A Bayonne, New Jersey, man was sentenced today to 15 months in prison for conspiring with a criminal enterprise that engaged in illegal sports betting in New Jersey and elsewhere, U.S. Attorney Paul J. Fishman announced.
Mark A. Sanzo, 57, previously pleaded guilty before U.S. District Judge Claire C. Cecchi to an information charging him with one count of racketeering conspiracy. Judge Cecchi imposed the sentence today in Newark federal court.
According to documents filed in this case and statements made in court:
Members of the conspiracy, referred to as “agents,” were given access to Beteagle.com, a website located in Costa Rica and used to facilitate illegal online sports betting. Before the advent of computerized betting, these agents would have been referred to as “bookmakers” or “bookies.” The agents had the ability to track the “sub-agents,” under them and the wagers placed by their bettors. The agent or sub-agent maintained a group of bettors (the “package”) and were responsible for those bettors. Sanzo was an agent of the gambling enterprise.
To place bets online, the agent or sub-agent issued the bettor a username and password to access Beteagle. This access was not given online and no money or credits were made or transferred through the website. Instead, Sanzo and his conspirators paid out winnings and collected losses in person. During his plea hearing, Sanzo admitted that he conspired to commit racketeering acts in connection with the illegal sports betting operation, and that he and other conspirators profited from the scheme.
In addition to the prison term, Judge Cecchi ordered Sanzo to serve three years of supervised release and pay a $5,000 fine.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Richard M. Frankel in Newark; the Bayonne Police Department, Special Investigations Unit, under the direction of Chief Drew Niekrasz; IRS-Criminal Investigation under the direction of Special Agent in Charge Jonathan D. Larsen; the N.J. State Police, under the direction of Superintendent Rick Fuentes; the Monmouth County Prosecutor’s Office, under the direction of Acting Prosecutor Christopher Gramiccioni; and the Waterfront Commission of New York Harbor, under the direction of Executive Director Walter M. Arsenault, with the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorney Anthony Moscato of the U.S. Attorney’s Office Criminal Division in Newark.
Defense counsel: Christopher L. Patella Esq., Bayonne, New Jersey
Howard County Man Sentenced to over 15 Years in Prison for Armed Robbery and Being an Accessory to a MurderRead the Press Release
Baltimore, Maryland – U.S. District Judge George L. Russell, III sentenced Avery Terry, age 23, of Laurel, Maryland, today to 181 months in prison followed by three years of supervised release for robbery, using and brandishing a firearm during the robbery, and accessory after the fact to a second robbery resulting in death.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge William P. McMullan of the Bureau of Alcohol, Tobacco, Firearms and Explosives - Baltimore Field Division; Chief Gary Gardner of the Howard County Police Department; and Howard County State’s Attorney Dario Broccolino.
According to his plea agreement, on January 21, 2014, Terry and another individual robbed the CVS Pharmacy in Elkridge, Maryland at gun point. A store video camera recorded the robbery, including the distinctive clothing worn by the robbers. Terry texted a picture of himself holding the handgun used in the robbery two days prior. Terry had a previous felony conviction for drug distribution and was prohibited from possessing a gun or ammunition.
On January 26, 2014, Howard County Police executed an arrest warrant for another individual who was a suspected shooter in a January 23, 2014 robbery and homicide. Law enforcement saw Terry and the suspect leaving the suspect’s home and get into Terry’s car. Police made a traffic stop and arrested the suspected shooter. A black .38 caliber revolver, different from the gun used in the CVS robbery, was found under the driver’s seat where Terry was driving. Ammunition was also found in Terry’s car.
A Howard County detective who was investigating the CVS robbery was also participating in the execution of the arrest warrant that day. The detective noticed clothing in Terry’s car that matched the distinctive clothing worn by the CVS robbers on January 21. Law enforcement executed a search warrant at Terry’s home and recovered a mask and other clothing matching that worn by one of the CVS robbers.
After Terry’s arrest, Howard County Police monitored Terry’s jail calls, including a call in which he asked his mother to get his employer to provide a false alibi for him at the time of the CVS robbery. Terry’s mother called the employer and asked him to provide the alibi, but the employer refused and promptly reported the call to police. Cell site data from Terry’s phone revealed that it was used to send calls or data through a cell tower location near the CVS Pharmacy at the time of the robbery.
Subsequent investigation revealed additional information concerning Terry’s knowledge of the January 23, 2014, robbery/homicide. Call records show that between January 21 and January 26, 2014, Terry had frequent telephone communication with two individuals charged with that crime. In addition, Terry admitted that at the time of the alleged shooter’s arrest in Terry’s car, they were attempting to get rid of the murder weapon. The alleged shooter, Desmick Lewis, age 23, of Columbia, is facing murder charges in Howard County Circuit Court. A second alleged co-conspirator, Pepe Taylor, age 21, of Laurel, is charged federally for his role in the robbery and murder. Taylor has pleaded not guilty and his trial is scheduled to begin November 30, 2015. 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 ATF, Howard County Police Department and Howard County State’s Attorney’s Office for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorneys Sandra Wilkinson and Zachary A. Myers, who prosecuted the case.
Hollister Man Pleads Guilty to Producing Child Porn, Faces at Least 15 Years in PrisonRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that a Hollister, Mo., man has pleaded guilty in federal court to producing child pornography.
Michael Shane Tyson, 30, of Hollister, pleaded guilty on Thursday, Sept. 10, 2015, before U.S. District Judge M. Douglas Harpool to the charge contained in a May 13, 2015, federal indictment.
By pleading guilty, Tyson admitted that he sexually assaulted a 9-year-old child over a two-year period and created several videos of the abuse with his cell phone.
According to the plea agreement, a Hollister, Mo., police officer responded to Cox Hospital in Branson, Mo., on April 7, 2015, to a report of child molestation. The mother of the child victim told the officer that Tyson had sexually assaulted her daughter the previous week. The mother also told the officer that the abuse had been occurring over the past two years. The child victim did not report the abuse, she said, because Tyson had threatened to kill her if she told anyone.
The child victim was interviewed at the Branson West Child Advocacy Center. She reported that Tyson made videos of her with his cell phone. When she told Tyson she did not want to engage in sexual activities, the plea agreement says, he became angry and threatened her by brandishing a knife taken from a knife block in the kitchen.
Law enforcement officers executed a search warrant at Tyson’s residence and seized seven cell phones, two laptop computers and four flash drives. Investigators discovered several video recordings on one of Tyson’s cell phones in which he placed his phone in the bathroom and secretly recorded two additional child victims, of similar ages to the first victim, undressing, showering and drying off. Investigators also discovered videos and images of the sexual assault of the first child victim on Tyson’s laptop computer, along with 20 images of child pornography that had been downloaded over the Internet.
Under the terms of the plea agreement, Tyson must forfeit to the government the laptop computer and Droid Razr Maxx cell phone that were used to commit the offense. Tyson will be required under the Sex Offender Registration and Notification Act to register as a sex offender and keep the registration current in each of the jurisdictions where he resides, where he is employed and where he is a student.
Under federal statutes, Tyson is subject to a mandatory minimum sentence of 15 years in federal prison without parole, up to a sentence of 30 years in federal prison without parole, plus a fine up to $250,000 and an order of restitution to his victim. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Ami Harshad Miller. It was investigated by the FBI.
Project Safe Childhood
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."
Four Men Indicted Federally in the Wake of an Increase in Gun Violence in West Palm BeachRead the Press Release
Four men were indicted yesterday in the wake of an increase in gun violence in West Palm Beach.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Dave Aronberg, State Attorney, Palm Beach County, Hugo Barrera, Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Miami Field Office, Bryan Kummerlen, Chief, West Palm Beach Police Department and Ric Bradshaw, Sheriff, Palm Beach County Sheriff’s Office, made the announcement.
Patrick D. Turner, 30, Antonio Gaynus, 24, Devontae L. Colbert, 20, and Adrian Coleman, 25, all of West Palm Beach, were charged by indictment with being felons in possession of a firearm. If convicted and determined to be Armed Career Criminals, Turner and Coleman, face a mandatory minimum sentence of 15 years to life in prison. Gaynus and Colbert face a statutory maximum sentence of 10 years in prison.
The criminal complaints allege that on various dates the four defendants unlawfully possessed firearms.
On July 25, 2015, Turner, a convicted felon, was found in possession of a loaded semi-automatic pistol. On July 24, 2015, Gaynus, a convicted felon, was found in possession of a loaded 9mm semi-automatic pistol. On June 29, 2015, law enforcement officers with the West Palm Beach Police Department responded to a shooting at the Roosevelt Full Service Center School in West Palm Beach and found Colbert, a convicted felon, on the scene. Colbert allegedly attempted to conceal a firearm he possessed, by throwing it on top of a container. A forensic examination was conducted and Colbert’s blood and DNA was allegedly discovered on the recovered firearm. On July 15, 2015, Coleman, was the rear passenger of a vehicle and attempted to flee from the police during a traffic stop. Following his arrest, law enforcement discovered that Coleman had placed and attempted to conceal a loaded.45 caliber pistol in the vehicle.
These cases are the result of Project Safe Neighborhoods (PSN). PSN is a Department of Justice nationwide initiative that combines traditional law enforcement activities with community-based support and intervention programs. The two primary goals of the PSN initiative are to reduce and prevent violent crimes and to help past offenders adjust and re-enter the community.
Mr. Ferrer commended the investigative efforts of the ATF, West Palm Beach Police Department and Palm Beach County Sheriff’s Office. These cases are being prosecuted by Assistant U.S. Attorney Adam McMichael.
A criminal indictment is only an accusation and the defendants are presumed innocent until proven guilty beyond a reasonable doubt.
A copy of this press release may be found on the website of the United States Attorney’s Office for the Southern District of Florida at www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Former Marin Attorney Charged in Securites Fraud, Money Laundering SchemeRead the Press Release
SAN JOSE – James Seltzer, a former attorney and resident of Marin County, appeared today in San Jose on charges he defrauded several clients by convincing them to make contributions for sham investments, announced Acting United States Attorney Brian Stretch, FBI Special Agent in Charge David J. Johnson, and IRS Criminal Investigation Special Agent in Charge José M. Martinez. Seltzer was apprehended in Hawaii and ordered to appear in San Jose to face the charges presented in an indictment filed the Northern District of California.
According to the indictment unsealed today, beginning in 2005 through 2011, Seltzer, 67, of Belvedere, approached several clients of his law practice, as well as their friends and acquaintances, to solicit funds for sham investments. For some potential investors, Seltzer invited them to invest in real estate outside the United States. For other potential investors, Seltzer convinced them to hand over funds for stock investments. For example, Seltzer allegedly represented to victims that he could purchase shares of private companies before the companies were acquired by publically traded companies. Seltzer allegedly told his victims that his status as a shareholder of the private companies gave him special access to the shares before the companies were acquired. Then, rather than invest the money as he promised, Seltzer deposited the funds from potential investors into his own personal bank accounts. According to the indictment, Seltzer spent the money on his own personal expenses including home mortgages, credit card bills, and international travel. In addition, Seltzer engaged in a “Ponzi” scheme in which he diverted monies received from later investors to return monies to earlier investors. In sum, Seltzer was charged with five counts of securities fraud, in violation of 15 U.S.C. § 78; one count of mail fraud, in violation of 18 U.S.C. § 1341; and three counts of money laundering, in violation of 18 U.S.C. § 1957.
An indictment merely alleges that crimes have been committed, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt. If convicted, the maximum term of imprisonment for securities fraud is 20 years for each count, the maximum term of imprisonment for mail fraud is 20 years, and the maximum term of imprisonment for money laundering is 10 years for each count. Additional periods of supervised release, fines, and special assessments also could be imposed. Any sentence following conviction would be imposed by the court only after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Seltzer remains free on a bond and is scheduled to appear on September 17, 2015, before U.S. Magistrate Judge Howard R. Lloyd to assess the conditions of release pending trial.
Assistant U.S. Attorneys Timothy Lucey and Arvon Perteet are prosecuting the case with the assistance of Laurie Worthen and Yolanda Singletary. The prosecution is the result of an investigation by the Federal Bureau of Investigation and IRS-Criminal Investigation.
Former Independence, Missouri, Police Officer Pleads Guilty to Federal Civil Rights ChargeRead the Press Release
Principal Deputy Assistant Attorney General Vanita Gupta, head of the Justice Department’s Civil Rights Division and U.S. Attorney Tammy Dickinson of the Western District of Missouri announced that former Independence, Missouri, police officer Timothy Runnels pleaded guilty today for violating the constitutional rights of a minor who was in his custody.
Documents filed in connection with the guilty plea state that Runnels, while employed as an officer of the Independence Police Department, deprived the minor of his civil rights by deliberately dropping the minor face first onto the ground while the minor was restrained and not posing a threat to Runnels or others. According to the court filings, Runnels’ actions resulted in bodily injury to the minor.
Runnels faces a statutory maximum sentence of 10 years in prison and a fine of $250,000 for his conviction for violating the minor’s civil rights.
“The department remains committed to ensuring that police officers who violate their sworn oaths by using excessive force are held accountable,” said Principal Deputy Assistant Attorney General Gupta. “I am hopeful that today’s plea brings a measure of closure for the victim.”
“The use of excessive force by law enforcement officers is a serious offense that strikes at the heart of Constitutional protections for all citizens,” said U.S. Attorney Dickinson of the Western District of Missouri. “This former police officer who violated his sworn duty to protect and serve should not reflect upon the vast majority of officers who perform their duties with integrity and professionalism.”
This case was investigated by the FBI’s Kansas City Division and is being prosecuted by Trial Attorney Shan Patel of the Civil Rights Division and First Assistant U.S. Attorney David Ketchmark of the Western District of Missouri.
Former Federal Employee Indicted for Using Stolen Money Order Receipts in Fraud SchemeRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that a former federal employee has been indicted by a federal grand jury for using stolen money order receipts in a fraud scheme to avoid paying his medical bills.
Byron G. Gorman, 50, of St. Joseph, Mo., was charged in a six-count indictment returned under seal by a federal grand jury in Kansas City, Mo., on Thursday, Sept. 10, 2015. That indictment was unsealed and made public today upon Gorman’s arrest and initial court appearance.
Gorman was employed as an information technology specialist for the U.S. Department of Agriculture's Office of Inspector General, assigned to the Heart of America Regional Computer Forensics Laboratory in Kansas City, Mo., an FBI-facilitated laboratory where he was being trained to become a computer forensic examiner.
The federal indictment alleges that Gorman used stolen money order receipts – taken by Gorman as he participated in a criminal investigation – as fraudulent evidence in court, both to defend himself against a lawsuit against him by his creditors and in his own lawsuit against his creditors. The indictment also alleges that Gorman stole the identities of several persons by forging their signatures on documents he created to use as evidence in court.
According to the indictment, Gorman was a defendant in a civil collection lawsuit in Buchanan County, Mo., in which a judgment had been entered against him and a garnishment of his wages had been ordered to recover monies owed on medical bills incurred at the Heartland Regional Medical Center in St. Joseph. On Sept. 28, 2012, Gorman’s creditors filed a second civil collection lawsuit against him in Buchanan County to recover monies owed on additional unpaid medical bills.
On May 22, 2012, Gorman participated in the execution of a federal search warrant at the offices of a private business in Kansas City, Kan. Gorman was there to search for computer-related evidence. He allegedly found and took five blank U.S. Postal Service money order receipts belonging to the private business for the purpose of facilitating a scheme to defraud Heartland Regional Medical Center and related entities to whom he owed medical bills for services provided at Heartland Regional Medical Center.
The federal indictment alleges that Gorman used the stolen money order receipts and other fraudulent documents created as evidence in his defense. Gorman allegedly claimed that he had submitted postal money orders to his creditors, but the payments had not posted. As evidence, he allegedly provided the five stolen money order receipts, which were filled out to make it appear that money orders had been made out to Heartland Regional Medical Center, as well as a number of forged letters displaying the names and purported signatures of postal employees.
Gorman also used the stolen money order receipts and other fraudulent documents he created as evidence in a lawsuit he caused to be filed against his creditors, according to the indictment. Gorman allegedly placed the names and forged signatures of the actual persons onto letters purporting to be from the U.S. Postal Service and the U.S. Federal Trade Commission onto two letters and two certified mail receipts as part of his wire fraud scheme.
Gorman is charged with one count of mail fraud, two counts of wire fraud and three counts of aggravated identity theft. The federal indictment also contains a forfeiture allegation, which would require Gorman to forfeit to the government any property derived from the proceeds of the alleged offenses, including $18,000.
As an examiner in training, Gorman did not perform any computer forensic examinations unless under the supervision of a fully certified Heart of America Regional Computer Forensic Laboratory (HARCFL) examiner.
Upon learning of the allegations regarding Gorman, the Heart of America Regional Computer Forensic Laboratory did a complete and thorough review of any cases which Gorman may have assisted in the examination of computer forensic evidence. No inconsistencies, errors or issues were noted with any evidence. The HARCFL is a fully accredited laboratory facility following a strict protocol for the examination of evidence and the training protocol for examiners in training.
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 John E. Cowles. It was investigated by the FBI and the U.S. Postal Inspection Service.
Former Business Manager Charged with Theft from Labor UnionRead the Press Release
A former business manager of the Local 657 of the Laborers International Union of North America (LIUNA) was charged with stealing from the organization.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, Assistant Director in Charge Paul M. Abbate of the FBI’s Washington, D.C., Field Office, Special Agent in Charge Steven D. Anderson of the Department of Labor Office of Inspector General’s Office of Labor Racketeering and Fraud Investigations Washington, D.C., Regional Office and District Director Mark Wheeler of the Department of Labor’s Office of Labor Management Standards Washington, D.C., District Office made the announcement.
Anthony Wendel Frederick Sr., 49, of Upper Marlboro, Maryland, the former Business Manager of Local 657 of LIUNA based in Washington, D.C., was charged by criminal complaint with one count of theft from a labor organization. The defendant was arrested today and is scheduled to have his initial appearance at 1:45 p.m. EDT before U.S. Magistrate Judge G. Michael Harvey of the District of Columbia.
LIUNA is a labor organization that represents laborers in the construction industry. LIUNA’s Local 657 represents construction laborers in Washington, D.C. and five adjacent counties. For approximately 10 years, until June 2014, Frederick served as the business manager for Local 657.
The criminal complaint alleges that, from May 2013 to June 2014, Frederick directed more than $1.7 million in Local 657 funds to STS Contracting of Greenbelt, Maryland, without the knowledge or authorization of the Local 657 Executive Board or officials in LIUNA International. Specifically, according to the criminal complaint, a routine audit of the local union by LIUNA in June 2014 revealed that Frederick had paid nearly $1.1 million to STS Contracting for minimal renovations at the Local 657 administrative building. In addition, the complaint alleges that, without authorization, Frederick directed over $580,000 in Local 657 funds to STS Contracting for expediting permits for the construction of a new training center for Local 657, which project was being handled by another construction firm. According to the criminal complaint, the LIUNA auditor also discovered that Frederick grossly overpaid STS Contracting for expediting various permits, including $20,000 to expedite a $143 excavation permit, and over $20,000 to renew existing permits, which could have been accomplished online for approximately $250 apiece.
The criminal complaint further alleges that STS Contracting paid a down payment of $225,000 on a home purchased by Frederick, and directed more than $600,000 to a corporation owned in part by Frederick’s wife. In addition, STS Contracting principals allegedly depleted a company bank account, which contained only stolen Local 657 funds, by withdrawing more than $500,000 in cash and using the remainder for personal items, entertainment, shopping trips, hotel stays and overseas travel.
The charges and allegations contained in a criminal complaint are merely accusations. The defendant is presumed innocent until and unless proven guilty.
The case is being investigated by the FBI and the Department of Labor. The case is being prosecuted by Trial Attorney Vincent Falvo of the Criminal Division’s Organized Crime and Gang Section.
Frederick Criminal Complaint
Florida Man Pleads Guilty in Bank Fraud SchemeRead the Press Release
PITTSBURGH - A Florida resident pleaded guilty in federal court to a charge of conspiracy to commit bank fraud, United States Attorney David J. Hickton announced today.
Mark Anthony Sosso, 43, pleaded guilty to one felony count before United States District Judge Arthur J. Schwab.
According to information presented to the Court, Sosso knowingly and willfully conspired with other individuals to commit an offense against the United States, that is, bank fraud, in connection with a co-conspirator’s purchase of the real property located in Longboat Key, Fla. Sosso, through a company controlled by him - Sosso Homes, Inc. - sold the property on July 27, 2007, to the co-conspirator for the ostensible purchase price of $3,000,000 and fraudulently induced Washington Mutual Bank into making a mortgage loan to the co-conspirator in the amount of $2,377,000 in order to fund the transaction.
It was part of the conspiracy that Sosso and the co-conspirator submitted false and fraudulent loan documents to Washington Mutual Bank. As part of the conspiracy, Sosso and the co-conspirator submitted to Washington Mutual Bank a HUD-1 Settlement Statement that falsely represented that the co-conspirator had paid Sosso Homes a $600,000 cash deposit, well knowing that the co-conspirator had never paid, or intended to pay, the $600,000 cash deposit. It was also part of the conspiracy that Sosso paid $458,350 of the mortgage loan monies to the co-conspirator as kickbacks, without the knowledge or approval of Washington Mutual Bank. It was further a part of the conspiracy that $1,677,598 of the mortgage loan monies were used to pay off Sosso Homes’ mortgage debt to another bank.
Judge Schwab scheduled sentencing for Jan. 14, 2016. The law provides for a maximum total sentence of five years in prison, a fine of $250,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Pending sentence, the court released Sosso on bond.
Assistant United States Attorney Mary McKeen Houghton is prosecuting this case on behalf of the government.
The United States Secret Service and the Internal Revenue Service/Criminal Investigation Division conducted the investigation leading to the Information in this case.
Federal Jury Finds New York Man Guilty of Heroin Trafficking OffensesRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that a federal jury in Hartford has found WILMER ANTONIO GOMEZ-RODRIGUEZ, 29, a citizen of the Dominican Republic last residing in New York, New York, guilty of heroin trafficking offenses. The trial began on September 8 and the jury returned guilty verdicts on two counts of an indictment yesterday.
According to trial testimony and the evidence disclosed during the trial, this matter stems from an investigation by the Drug Enforcement Administration’s Bridgeport High Intensity Drug Trafficking Area (HIDTA) and the Norwalk Police Department into suspected cocaine and heroin distribution by Omar Andrade. In September 2014, Andrade agreed to provide one kilogram of heroin to a DEA Task Force officer acting in an undercover capacity. Andrade, GOMEZ and Joel A. Estrella-Disla, were arrested on September 30, 2014, after they delivered approximately one kilogram of heroin to a pre-arranged location in Norwalk.
The jury found GOMEZ guilty of one count of conspiracy to possess with intent to distribute, and to distribute, one kilogram or more of heroin, an offense that carries a mandatory minimum term of imprisonment of 10 years and a maximum term of imprisonment of life. The jury also found GOMEZ guilty of one count of possession with intent to distribute, and distribution of, 100 grams or more of heroin, an offense that carries a mandatory minimum term of imprisonment of five years and a maximum term of imprisonment of life. He is scheduled to be sentenced by U.S. District Judge Vanessa L. Bryant on December 3, 2015.
GOMEZ, who had been released on bond, was remanded at the conclusion of the trial.
In August 2015, Andrade and Estrella each pleaded guilty to one count of conspiracy to possess with intent to distribute, and to distribute, 100 grams or more of heroin, an offense that carries a mandatory minimum term of imprisonment of five years and a maximum term of imprisonment of 40 years. They await sentencing.
Andrade, a citizen of Mexico last residing in Norwalk, has been detained since his arrest. Estrella, a citizen of the Dominican Republic last residing in New York, New York, is released on a $500,000 bond.
This case is being prosecuted by Assistant U.S. Attorney H. Gordon Hall.