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27 October 2015
Preston Man Sentenced for Receiving Child PornographyRead the Press Release
POCATELLO - D. Gregory Schvaneveldt, 40, of Preston, Idaho, was sentenced today in United States District Court to 96 months in prison followed by seven years of supervised release, U.S. Attorney Wendy J. Olson announced. U.S. District Judge Edward J. Lodge also ordered Schvaneveldt to pay $10,250 in restitution to victims of the crime and to forfeit computers and related property used in the commission of the offense. Schvaneveldt pleaded guilty to the charge on August 12, 2015.
According to the plea agreement, an undercover special agent with Homeland Security Investigations was able to download 48 images and four videos of child pornography from Schvaneveldt’s shared computer files, after Schvaneveldt shared the password protecting the files with the agent during an online chat. This led to a federal search warrant for Schvaneveldt’s residence, where law enforcement agents seized two computers, an external hard drive, and related equipment. On the computers and external hard drive, law enforcement agents discovered approximately 1,638 images and 409 video files of suspected child pornography. The National Center for Missing and Exploited Children identified victims in over 600 of the images and videos.
When interviewed by law enforcement, Schvaneveldt admitted that there was child pornography on the computers in his residence and “hundreds” of images on the external hard drive. He stated that he had found child pornography on the Internet about a year prior and admitted saving images of child pornography from the Internet to his computer. He also admitted to receiving child pornography through an online chat function.
The case was investigated by U.S. Immigration and Custom Enforcement’s (ICE) Homeland Security Investigations (HSI) and 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.”
Port St. Lucie Resident Sentenced for Preparing False Tax Returns for Himself and his ClientsRead the Press Release
A Port St. Lucie resident was sentenced to 30 months in prison, followed by one year of supervised release for preparing false tax returns for himself and his clients. The defendant was also ordered to pay joint and several restitution in the amount of $558,000.
Wifredo A. Ferrer, U.S. Attorney for the Southern District of Florida, and Kelly R. Jackson, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), made the announcement.
Jean Pedro Jean Baptiste, 55, previously pled guilty to two counts of filing false tax returns, in violation of Title 26, United States Code, Section 7206(1), and four counts of assisting in filing false tax returns, in violation of Title 26, United States Code, Section 7206(2).
According to court documents, Baptiste was a paid tax return preparer who owned and operated JP and Sons Enterprises in Delray Beach, Florida. For tax years 2008 and 2009, Baptiste prepared individual income tax returns for customers using false income and deduction figures. Baptiste claimed deductions and credits for items that he knew the taxpayers were not entitled to take including, false Schedule C items and false Earned Income Credits, Additional Child Tax Credits, and First Time Home Buyer Credits. Baptiste failed to review the tax returns in detail with his clients and then electronically filed them for the taxpayers.
Baptiste also filed false Form 1040 income tax returns for himself for tax years 2008 and 2009. The 2008 tax return falsely claimed a First Time Home Buyer Credit, and the 2009 tax return falsely claimed an Additional Child Tax Credit, an Earned Income Credit, and falsely stated Schedule C income, gross receipts and sales. As a result, Baptiste received an inflated and unmerited tax refund payment.
The total loss to the United States is approximately $558,000.
Mr. Ferrer commended the investigative efforts of IRS-CI. This case is being prosecuted by Assistant U.S. Attorney Carmen M. Lineberger.
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.
Pittsburgh Man Charged with June Robbery of North Hills BankRead the Press Release
PITTSBURGH - A Pittsburgh resident of has been indicted by a federal grand jury in Pittsburgh on a charge of bank robbery, United States Attorney David J. Hickton announced today.
The one-count indictment named Boe Keenan, 33, of Pittsburgh, Pennsylvania, as the sole defendant.
According to the indictment presented to court, on or about June 30, 2015, Keenan stole $1,725 from the First National Bank located at 202 Devine Drive, Wexford, Pennsylvania.
The law provides for a maximum total sentence of 20 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 offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Ryan K. Hart is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation and Northern Regional Police Department 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.
Niagara Falls Man Pleads Guilty to Possession of Child PornographyRead 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 Jeremy Scouten, 37, of Niagara Falls, NY, pleaded guilty to possession of child pornography before Senior U.S. District Judge William M. Skretny. The charge carries a maximum penalty of 10 years in prison and a $250,000 fine.Assistant U.S. Attorneys Stephanie Lamarque and Kathleen A. Lynch, who are handling the case, stated that on August 6, 2012, law enforcement officers executed a search warrant at the 2502 Falls Street residence of the defendant. Officers recovered a computer being used by Scouten. A subsequent forensic examination determined that the computer contained approximately 200 images and 17 videos of child pornography. Some of the images included children under the age of 12 years old depictions of violence.
The plea is the culmination of an investigation by Immigration and Customs Enforcement, Homeland Security investigations, under the direction of Special Agent in Charge James C. Spero.
Sentencing is scheduled for March 9, 2016 before Judge Skretny.
New Haven Man Sentenced to 5 Years in Federal Prison for Selling Crack CocaineRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that LUIS E. RIVERA, also known as “Bebe,” 34, of New Haven, was sentenced today by U.S. District Judge Michael P. Shea in Hartford to 60 months of imprisonment, followed by five years of supervised release, for distributing crack cocaine.
This matter stems from “Operation Samson,” an initiative headed by the ATF and the Bridgeport and New Haven Police Departments that targeted violent criminals, illegal firearm possession and firearm trafficking. In the spring of 2014, approximately 40 ATF special agents and personnel from Connecticut and across the country were deployed with New Haven and Bridgeport Police to conduct numerous covert operations.
According to court documents and statements made in court, a confidential informant arranged to purchase an ounce of cocaine and a firearm from RIVERA and another individual in exchange for $1,500. On March 14, 2015, the confidential informant and an undercover ATF agent met with RIVERA and the other individual a location in New Haven to complete the transaction. At the location, RIVERA stated that he did not have the firearm. The undercover agent then paid $1,200 for an ounce of cocaine. On that date, RIVERA told the undercover agent that he knew how to “cook” cocaine into crack cocaine.
In the next two weeks, law enforcement conducted controlled purchases of approximately 57 grams of crack cocaine from RIVERA, and arranged another purchase of two ounces (approximately 57 grams) of crack from RIVERA. RIVERA was arrested on March 31, 2014. On that date, he possessed the approximately 57 grams of crack that he intended to sell. A subsequent search of apartment revealed more than 100 grams of cocaine, narcotics paraphernalia and more than $9,000 in cash.
RIVERA has been detained since his arrest. On December 9, 2014, he pleaded guilty to one count of possession with the intent to distribute, and distribution of, 28 grams or more of cocaine base (“crack cocaine”).
This case was prosecuted by Assistant U.S. Attorney William J. Nardini.
Naylor, Missouri Man Sentenced on Social Security Fraud ChargesRead the Press Release
Cape Girardeau, MO – RODGER SERATT, Naylor, Missouri, was sentenced to 41 months in prison on charges of falsifying documents to receive Social Security benefits, and a separate charge of tampering with a witness during the investigation. He appeared before United States District Judge Stephen N. Limbaugh, Jr., in Cape Girardeau, Missouri.
Seratt pled guilty in July to three felony counts of making false statements, and two felony counts of theft of government funds. The conduct underlying the charges occurred between October 15, 2009, and May 16, 2015, when, in an effort to prove his eligibility for Supplemental Security Income benefits, Seratt began making false statements to the Social Security Administration that he was dependent upon the financial resources of others and his physical disabilities prevented him from being employed. As the federal disability program provides a minimum level of income for aged, blind or disabled individuals, Seratt’s statements were material to the agency’s decision to grant his application for benefits.
However, during the time period Seratt made the false statements and fraudulently received federal disability benefits, he operated numerous businesses and owned rental property, his residence, an airplane and other property. When the State of Missouri outlawed the manufacture and distribution of synthetic drugs, Seratt conducted newspaper and television interviews with local media outlets, as well as a newspaper in Minneapolis, Minnesota, claiming that representatives with the State of Missouri and Stoddard County were causing him to lose $30,000 to $40,000 a month in income from the manufacture and distribution of synthetic drugs such as K2 and Spice. Between October 15, 2009, and March 31, 2013, Seratt fraudulently obtained more than $24,000 in federal government disability benefits as a result of his false statements to the Social Security Administration.
He also pled guilty to charges of tampering with a witness in a related case in which, on April 10, 2015, Seratt caused an employee of his business enterprise to withhold documents requested by a federal grand jury investigating additional false statements to the government agency.
This case was investigated by the Social Security Administration-Office of Inspector General. Assistant United States Attorney Tracy Berry handled the case for the U.S. Attorney’s Office.
Natick Man Pleads Guilty to Federal Heroin and Fentanyl ChargesRead the Press Release
BOSTON – A Natick man pleaded guilty yesterday in U.S. District Court in Boston in connection with selling heroin and white heroin – heroin laced with fentanyl and/or straight fentanyl – to addicts, one of whom ultimately died after overdosing.
Nicholas Ferraro, 25, of Natick, pleaded guilty yesterday to one count of conspiracy to distribute and possess with the intent to distribute fentanyl and 100 grams or more of heroin, one count of distribution of fentanyl and two counts of distribution of heroin. U.S. District Court Judge William G. Young scheduled sentencing for Jan. 21, 2016 at 2:00 p.m.
Beginning in January 2013 and continuing until March 2014, Ferraro conspired with others to distribute both heroin and fentanyl to addicts in the Framingham and Natick areas. Ferraro pleaded guilty to distributing 400 to 600 grams of heroin and 10 to 15 grams of fentanyl. In addition, Ferraro distributed fentanyl to an individual on Feb. 8, 2014, who later died of an overdose after injecting himself with the fentanyl. Ferraro also sold heroin on two occasions in March 2014 to an undercover officer.
This case was brought as part of the federal response to the growing opioid abuse epidemic in Massachusetts and other New England states. A recent surge in overdose deaths has been attributed in part to the addition of fentanyl to heroin, creating a toxic mixture substantially more potent, and more dangerous, than heroin alone.
The charge of conspiracy to distribute and possess with the intent to distribute fentanyl and 100 grams or more of heroin provides for a sentence of no greater than 40 years in prison, a mandatory minimum of four years and up to a lifetime supervised release and a fine of $5 million. The charges of distribution of fentanyl and heroin provide for a sentence of no greater than 20 years in prison, a minimum of three years and up to a lifetime of supervised release and a fine of $1 million. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Carmen M. Ortiz; Michael J. Ferguson, Special Agent in Charge of the Drug Enforcement Administration, Boston Field Division; Colonel Richard D. McKeon, Superintendent of the Massachusetts State Police; Natick Police Chief James Hicks; and Framingham Police Chief Kenneth Ferguson made the announcement today. The case is being prosecuted by Assistant U.S. Attorneys Eric Rosen and Katherine Ferguson of Ortiz’s Narcotics and Money Laundering Unit and Neil Gallagher of Ortiz’s Economic Crimes Unit.
Natchitoches man sentenced to 72 months in prison for possessing methamphetamineRead the Press Release
SHREVEPORT, La. – United States Attorney Stephanie A. Finley announced today that a Natchitoches man was sentenced to 72 months in prison for possessing methamphetamine.
Alfred Joseph Jackson, 40, of Natchitoches, La., was sentenced by U.S. District Judge Elizabeth E. Foote on one count of possession with intent to distribute methamphetamine. He was also sentenced to three years of supervised release. According to evidence presented at the July 30, 2015 guilty plea, a Sabine Parish K-9 officer stopped an 18-wheeler Jackson was driving for a traffic violation on March 2, 2015. After further investigation, the officer found methamphetamine, marijuana and cocaine inside of the vehicle.
The DEA and Sabine Parish Sheriff’s Office investigated the case. Assistant U.S. Attorney Brandon B. Brown prosecuted the case.
Multiple defendants plead guilty to Federal drug chargesRead the Press Release
BECKLEY, W.Va. – United States Attorney Booth Goodwin announced today that multiple defendants from southern West Virginia plead guilty to federal drug charges. Two defendants from Beckley and one defendant from Oak Hill entered their guilty pleas in federal court in Beckley, West Virginia. These crimes involved the unlawful distribution of drugs and the illegal facilitation of drug sales.
Shawn Haines, 43, of Beckley, plead guilty to distributing oxycodone. Haines admitted that on October 28, 2014, he sold oxycodone to a person cooperating with law enforcement on Christopher Drive in Beckley, West Virginia. Haines faces up to 20 years in federal prison and a $1,000,000 fine.
Another defendant from Beckley, Jamal Johnson, 25, plead guilty to distributing cocaine. Johnson admitted that on June 22, 2015, he sold cocaine to a confidential informant on Industrial Drive in Beckley. Johnson faces a sentence of up to 20 years in federal prison and a $1,000,000 fine.
Jason Treadway, 33, of Oak Hill, also plead guilty to using a telephone to twice arrange heroin deals. Treadway admitted that on March 12, 2015, and on May 6, 2015, he used a telephone to set up heroin deals on Robert C. Byrd Drive in Beckley with a person cooperating with law enforcement authorities. Treadway faces up to 8 years in federal prison and a $500,000 fine.
These defendants are all scheduled to be sentenced in federal court in Beckley on February 11, 2016.
The Beckley/Raleigh County Drug and Violent Crime Unit conducted the investigations of these crimes.
These cases were prosecuted as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat illegal drugs in our communities, including the illicit sale and misuse of prescription drugs and opiates. The United States Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal pill trafficking, eliminating open air drug markets, and curtailing the spread of opiate painkillers and heroin in communities across the Southern District.
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Montville Man Sentenced to Prison for Illegally Possessing FirearmsRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that JASON SCOTT, 37, of Montville, was sentenced yesterday by U.S. District Judge Stefan R. Underhill in Bridgeport to 13 months of imprisonment, followed by three years of supervised release, for possessing several firearms as a convicted felon.
According to court documents and statements made in court, in November 2014, an individual provided information to law enforcement that SCOTT was looking to sell firearms for cash. In December 2014, the FBI made a controlled purchase of a Hi-Point Firearms, Model 995, 9mm rifle from SCOTT.
SCOTT was arrested on December 19, 2015. A search of SCOTT’s residence on that date revealed a Mosin Nagant 7.62 x 54r, Model 44, rifle, and an Izhmash Saiga .308 semi-automatic rifle, as well as magazines, ammunition and ammunition reloading components.
Prior to December 2014, SCOTT had been convicted of a felony offense. It is a violation of federal law for a person previously convicted of a felony offense to possess a firearm or ammunition which has moved in interstate or foreign commerce.
On June 12, 2015, SCOTT pleaded guilty to one count of possession of a firearm by a convicted felon.
This case was investigated by the Federal Bureau of Investigation and prosecuted by Assistant U.S. Attorney Gabriel J. Vidoni.
Miller Man Indicted for Attempted Sex TraffickingRead the Press Release
United States Attorney Randolph J. Seiler announced that a Miller, South Dakota, man has been indicted by a federal grand jury for attempted Commercial Sex Trafficking of a Child and Attempted Enticement of a Minor Using the Internet.
Joseph Raleigh, age 34, was indicted on October 20, 2015. He appeared before U.S. Magistrate Judge Mark Moreno on October 21, 2015, and pled not guilty to the Indictment.
The penalty upon conviction is a mandatory minimum of 10 years in custody up to a maximum of life in prison, up to a $250,000 fine, supervised release of not less than 5 years and up to life, and a $5,000 assessment to the Domestic Trafficking Fund. Restitution may also be ordered.
The Indictment alleges that on October 16, 2015, in South Dakota, Raleigh did knowingly attempt to solicit a child to engage in a commercial sex act. It is alleged he used the Internet to attempt to engage in the commercial sex act.
The charges are merely an accusation and Raleigh is presumed innocent until and unless proven guilty.
The investigation is being conducted by the South Dakota Division of Criminal Investigation, U.S. Marshals Service, South Dakota Internet Crimes Against Children Task Force, and the Pierre Police Department. Assistant U.S. Attorneys Kirk Albertson and Tim Maher are prosecuting the case.
Raleigh was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has not been set.
Member of Cherry Hill Group ‘UDH’ Pleads Guilty to Racketeering Conspiracy, Including MurderRead the Press Release
Baltimore, Maryland – Dominic Evans, a/k/a “FlatLine,” age 25, of Baltimore, pleaded guilty today to conspiracy to participate in a racketeering enterprise in connection with his gang activities as a member of the UDH organization, which operates in the Cherry Hill section of Baltimore.
The guilty plea 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; Commissioner Kevin Davis of the Baltimore Police Department; and Baltimore City State’s Attorney Marilyn Mosby.
“Many of the shootings and murders in Baltimore City result from disputes between rival drug gangs,” said U.S. Attorney Rod J. Rosenstein. “Thanks to a lengthy and intensive investigation, we will hold accountable the criminals who turned Cherry Hill into a war zone.”
According to his plea agreement, from at least 2007 to 2013 Evans was a member of the UDH organization, which operates in the area of Cherry Hill known as “Up the Hill” or “Up da Hill.” UDH members and associates have been in a long-running dispute with members of an organization known as “Coppin Court” that is involved in criminal activity in the part of Cherry Hill known as “Down the Hill,” and since at least January 2011, have been in a dispute with members of “Little Spelman,” another organization that is involved in criminal activity in the Down the Hill section of Cherry Hill. UDH members and associates used violence and intimidation to protect themselves, the organization, and their control of the drug trade in part of Cherry Hill.
Evans admitted that as a member of UDH he sold crack cocaine, heroin and other narcotics with UDH members. In addition to selling drugs, Evans admitted that he participated in a robbery on January 15, 2007, in which the victim was stabbed. Evan also admitted that on October 5, 2010, he and a co-defendant committed an armed robbery of two individuals who were selling marijuana in the area, but who were not UDH members. After stealing $150 from one of the victims, Evans’ co-defendant began to shoot at the two individuals. One of the victims was shot once and survived his wound, but the other victim, who was shot at least three times, died from her wounds. The murder was captured on CCTV. A Baltimore City jury acquitted Evans and his co-defendant of this murder.
Finally, Evans admitted that November 11, 2013, in the 100 block of South Monroe Street in Baltimore, he started a fight with another individual, produced a large 10” kitchen knife and began stabbing and slicing at the victim. Evans took $50 from the victim. The victim was taken to Shock Trauma with stab wounds to his head, upper back and hands. The knife was recovered at the scene. CCTV captured the assault. Approximately 7 minutes later, Evans walked into a hospital four blocks away, complaining of a slice wound to the palm of his left hand. Evans pleaded guilty to this first degree assault in Baltimore City Circuit Court and was sentenced to 12 years in prison.
Throughout the course of Evans’ involvement in the UDH drug conspiracy Evans knew that the conspiracy involved between 840 grams and 2.8 kilograms of crack cocaine and between 3 and 10 kilograms of heroin
Evans and the government have agreed that if the Court accepts the plea agreement Evans will be sentenced to between 262 and 365 months in prison. U.S. District Judge George L. Russell, III has scheduled sentencing for February 5, 2016, at 2:00 p.m.
United States Attorney Rod J. Rosenstein praised the ATF, Baltimore Police Department, and Baltimore City State’s Attorney’s Office for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorneys Andrea L. Smith, Seema Mittal, and Patricia C. McLane, who are prosecuting this Organized Crime Drug Enforcement Task Force case.
Media Advisory: Domestic Violence Protection MonthRead the Press Release
Cedar Rapids, Iowa – The United States Attorney’s Office for the Northern District of Iowa will join Waypoint Services with other service providers and local law enforcement to hold a press conference on October 29th, the purpose of which is to discuss federal laws used to combat domestic violence. A Presidential Proclamation declared October as Domestic Violence Protection Month.
U.S. Attorney Kevin W. Techau will first meet with area service providers and local law enforcement then hold an on-site press conference following that meeting in an effort to raise public awareness about domestic abuse issues.
Event Details
When: Thursday, October 29, 2015
Where: Waypoint Services, 318 5th Street S.E., Cedar Rapids, Iowa
Time: 9:45 a.m.
A press release will be provided and interview opportunities will be available following the press conference.
Follow us on Twitter @USAO_NDIA.
Manhattan U.S. Attorney Charges Fifteen Defendants in $31 Million Fraudulent and Coercive Debt Collection SchemeRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced today the unsealing of an indictment charging TRAVELL THOMAS, the co-owner, chief executive officer, and president of a Buffalo, New York-based debt collection company (the “Company”), MAURICE SESSUM, a co-owner and chief operating officer of the Company, ANTHONY BRZEZOWSKI, the Company’s director of operations, three Company managers – JIMMY STOKES, HEATHER GASTA, and TACOBY THOMAS – and five Company debt collectors – ANTHONY CABA, COLUMBUS SIMMONS, CHARLES STARKS, WILLIAM CLARK, and MICHAEL CALLANDRA – with wire fraud and conspiracy to commit wire fraud in connection with a nationwide debt collection scheme that took in more than $31 million from thousands of victims across the United States. As alleged, the defendants tried to trick and coerce victims into making payments to the Company by making false threats and telling a host of lies, including that the Company was a law office and that warrants would be issued for the victims’ arrests if they failed to repay debts. Each of the individual defendants was arrested this morning and will be presented later today in federal court in Buffalo.
Also unsealed today were the guilty pleas of four Company employees – MARK LAVIN JOHN SALATINO, JESSICA MANN, and JENNIFER SHERK – for their participation in the fraudulent scheme. LAVIN, SALATINO, MANN, and SHERK each pled guilty pursuant to an information before U.S. District Judge Katherine Polk Failla.
Manhattan U.S. Attorney Preet Bharara said: “As alleged, the defendants engaged in what is believed to be the largest fraudulent debt collection scheme ever to be prosecuted, falsely threatening arrest and prosecution of countless Americans, including those who suffered from disabilities. The defendants charged today allegedly took ruthless advantage of the desperate situation in which their victims found themselves, using threats and lies to coerce payment and even trying to collect more money than the victims ever owed. Thanks to the tireless work of the criminal investigators in our office, those involved in this massive debt collection scheme will no longer be able to prey on vulnerable Americans burdened by debt.”
According to the allegations contained in the Indictment unsealed today in Manhattan federal court[1]:
Between 2010 and February 2015, the defendants routinely attempted to trick and coerce thousands of victims throughout the United States into paying millions of dollars in consumer debts through a variety of false statements and false threats. The defendants, using a variety of aliases, falsely told victims, among other things, that: (1) the Company was affiliated with local government and law enforcement agencies, including the “county” and the district attorney’s office; (2) the consumers had committed criminal acts, such as “wire fraud” or “check fraud,” and if they did not pay the debt immediately, warrants or other process would be issued, at which point they would be arrested or haled into court; (3) the victims would have their driver’s licenses suspended if they did not pay their debts immediately; (4) the Company was a law firm or mediation firm and that the Company’s employees were working with lawyers, a law firm, mediators, or arbitrators; and (5) a civil lawsuit would be filed, or was pending, against the victims for failing to pay their debts.
Employees of the Company at times prepared and sent correspondence to victims that made it falsely appear that the Company was affiliated with the government or courts. The defendants also routinely used legal-sounding terminology to invent legitimate-sounding but bogus explanations for the supposed criminal or legal action that had been or would be initiated against the victims for failure to repay purported debts, including that the victim had “breached a contractual agreement,” committed “theft of goods and services,” and engaged in “malicious intent to defraud a financial institution.” The defendants used these quasi-legal terms to frighten and coerce victims into paying actual or purported debts.
As a further part of the scheme, the defendants lied to victims by falsely inflating the balances of the debts so that they could collect more money from the victims than the victims actually owed, a practice known within the Company as “juicing” balances.
In total, from about January 2010 through November 2014, the Company collected more than approximately $31 million from thousands of victims across the United States. Of the money that the Company took in from victims, approximately $850,000 in cash was paid to SESSUM, approximately $750,000 in cash was paid to TRAVELL THOMAS, approximately $1.4 million was cashed from banks and ATMs, and tens of thousands of dollars was used to pay for TRAVELL THOMAS’s gambling expenses, tickets for professional sports games, TRAVELL THOMAS’s wedding reception, jewelry, and cosmetic surgery for his wife, among other expenses.
Collection Scripts
The defendants disseminated to Company employees and used collection “scripts” to solicit consumers by phone. The scripts contained various misrepresentations designed to trick victims into paying purported debts. For example, the scripts falsely stated, among other things: “In the next 48 hours we will be handing the matter over to our fraud department who will work together with your local district attorneys [sic] office in attempting to resolve the matter”; the collector was calling “from [the] law firm of Global Management Group”; the collector was a “claims associate calling on behalf of the legal processing firm” who would “file with our affiliate litigator in _____ county, to serve you to appear to plea”; and the consumers’ voice was being recorded on a “federally recorded line” for use “as admissible evidence.”
In about May 2015, following a federal criminal investigation of the Company, TRAVELL THOMAS instructed a former employee of the Company not to show Company scripts “to anyone” because they “weren’t legal.”
The Defendants’ Lies
The defendants made a variety of misrepresentations to victims across the country over the phone, and directed that those misrepresentations be made, including as follows:
- As a part of the scheme, TRAVELL THOMAS and SESSUM, the owners and officers of the Company, at times instructed employees of the Company to make misrepresentations to victims, including to “juice” balances, in order to trick them into paying debts.
- BRZEZOWSKI misrepresented to victims, including to a victim who stated that she was physically disabled and unable to work, that he was an attorney and an “associate with the firm” and was calling from an attorney’s office and would “handle their legals for free.” BRZEZOWSKI also instructed collectors on his team to falsely introduce him to victims on calls as an attorney in an effort to “close” a debt repayment.
- STOKES misrepresented to victims that he would have a bench warrant issued for their arrest, would contact the “county” to initiate legal proceedings, and was not calling from a collection agency.
- GASTA misrepresented to victims, including to a victim who stated that she was homeless, among other things, that “we are directly linked in with the court system,” her office had been “retained” regarding “bad check charges,” GASTA was working with attorneys, and the victims’ failure to repay the debt was a “federal issue.”
- TACOBY THOMAS misrepresented to victims that he was a “process server” from “U.S. Couriers” with “legal documents” to serve to victims, that victims had committed “check fraud,” and that TACOBY THOMAS was calling from an “arbitration firm.”
- CABA misrepresented to victims, including to the mother of a consumer undergoing dialysis for kidney failure, that he was a “legal investigator” calling from a law firm, the Company was not a collection agency, and victims had committed check fraud.
- SIMMONS misrepresented to victims that they had committed a felony by failing to repay debts and would face charges for “theft of services” and fraud, that their driver’s licenses would be suspended, and that SIMMONS would refer the matter to his “attorney network.”
- STARKS misrepresented to victims that they had committed a “federal offense” by failing to repay debt, that charges would be “press[ed],” victims were “under investigation for check fraud,” and that STARKS was working with attorneys.
- CLARK misrepresented to victims that he was “lead investigator” with a law office that has been retained by a particular company that issues payday loans (the “Payday Loan Company”) to bring an action for fraud and theft of goods and services, victims had committed fraud, including “social security fraud,” and victims would be served with process at their “home or place of employment” within 72 hours.
- CALLANDRA misrepresented to victims that they had committed fraud, including wire fraud under Title 18, United States Code, Section 1343, that CALLANDRA was “in contact with the magistrate,” and that “they’re en route right now . . . within 46 minutes they’ll be there to serve you.”
- CABA, SIMMONS, CLARK, and STARKS were members of the Company’s so-called “elite team,” which used particularly aggressive and egregious tactics in attempting to trick consumers into paying debts.
In November 2012, the Payday Loan Company advised TRAVELL THOMAS that it had learned that employees of the Company were making improper threats and misrepresentations in order to collect debts purportedly owed to the Payday Loan Company and falsely indicating to consumers that the Company was providing collection services on behalf of the Payday Loan Company. The Payday Loan Company issued a letter to TRAVELL THOMAS directing him to cease and desist using the Payday Loan Company’s name in collecting debt. TRAVELL THOMAS refused, and employees of the Company continued to attempt to collect debts purportedly on behalf of the Payday Loan Company.
* * *
TRAVELL THOMAS, 37, of Orchard Park, New York; SESSUM, 39, of Buffalo; BRZEZOWSKI, 49, of Buffalo; STOKES, 38, of Buffalo; GASTA, 41, of Buffalo; TACOBY THOMAS, 32, of Buffalo; CABA, 25, of Buffalo; SIMMONS, 46, of Buffalo; STARKS, 32, of Buffalo; CLARK, 30, of Buffalo; and CALLANDRA, 31, of Angola, New York, are each charged with one count of conspiracy to commit wire fraud, which carries a maximum sentence of 20 years in prison, and one count of wire fraud, which carries a maximum sentence of 20 years in prison. LAVIN, 45, of Buffalo; SALATINO, 34, of Amherst, New York; MANN, 30, of Dunkirk, New York; and SHERK, 27, of Buffalo, each pled guilty to one count of conspiracy to commit wire fraud, which carries a maximum sentence of 20 years in prison, and one count of wire fraud, which carries a maximum sentence of 20 years in prison. The maximum potential sentences are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by the judge.
Mr. Bharara praised the investigative work of the Criminal Investigators at the United States Attorney’s Office. He also thanked the Federal Trade Commission (“FTC”) for referring this case to this Office and the U.S. Marshals Service, Western District Regional Fugitive Task Force for their assistance. Mr. Bharara noted that the investigation remains ongoing.
If you believe you were a victim of this crime, including a victim entitled to restitution, and you wish to provide information to law enforcement and/or receive notice of future developments in the case or additional information, please contact the Victim/Witness Unit at the United States Attorney’s Office for the Southern District of New York, at (866) 874-8900. For additional information, go to http://www.usdoj.gov/usao/nys/victimwitness.html.
If you wish to report a crime by another debt collector, you may contact the FTC at 1-877-FTC-HELP. For guidance on coping with debt, and information about dealing with debt collection companies in particular, go to http://www.consumer.ftc.gov/articles/0149-debt-collection.
The prosecution of this case is being handled by the Office’s Complex Frauds and Cybercrime Unit. Assistant United States Attorneys Edward A. Imperatore and Jordan L. Estes are in charge of the prosecution.
The charges contained in the Indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Indictment and the description of the Indictment set forth herein constitute only allegations, and every fact described should be treated as an allegation.
Man Who Stole 111 Firearms from Smith & Wesson Factory Sentenced to More Than 17 Years in PrisonRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, and Daniel J. Kumor, Special Agent in Charge of the ATF Boston Field Division, announced that ELLIOT PEREZ, 30, of Bridgeport, was sentenced today by U.S. District Judge Alvin W. Thompson in Hartford to 210 months of imprisonment, followed by three years of supervised release, for stealing 111 firearms from the Smith & Wesson manufacturing plant in Springfield, Mass, and selling many of those firearms on the street.
“This defendant not only stole more than 100 firearms, but he quickly sold dozens of them on the street putting them directly into the hands of criminals,” said U.S. Attorney Daly. “Not only are the stolen guns now turning up in criminal investigations as far away as North Carolina, but one was used in a Bridgeport murder and another in a shooting at a Hartford night club. As more than 50 of these guns are still at large, there is no telling how many additional acts of violence will stem from this offense. These sobering facts make clear that this long prison term is fair and appropriate. We thank the Stratford and Bridgeport Police Departments for their excellent work in quickly arresting these defendants, and the ATF for their investigative work and ongoing efforts to identify and recover the missing firearms.”
“The theft of over 100 guns is a serious threat to public safety and this sentence sends the message that it will not be tolerated, said ATF Special Agent in Charge Kumor. “Firearms trafficking continues to be a top priority for ATF and our law enforcement partners and we are committed to identifying and disrupting the sources of illegal firearms, which jeopardize the safety of our communities.”
According to court documents and statements made in court, on November 8, 2012, PEREZ, a truck driver for Pace Motor Lines, picked up five boxes of firearms from the Smith & Wesson manufacturing plant in Springfield and placed the boxes in his truck. At the same time, PEREZ stole three additional boxes containing a total of 111 firearms. PEREZ then drove the truck containing all the firearms to his residence in Bridgeport where he met his cohort Michael Murphy. Shortly thereafter, PEREZ delivered the original five boxes of firearms to the trucking company’s distribution center in Stratford.
PEREZ and Murphy stored and ultimately sold many of the stolen guns.
On November 20, 2012, when interviewed by ATF special agents, PEREZ falsely stated that a “black male” at Smith & Wesson’s manufacturing plant told PEREZ which boxes he was supposed to load onto his truck, and that he delivered all of the firearms he picked up to the distribution center in Stratford.
Prior to November 2012, PEREZ had multiple felony convictions, including convictions for larceny and burglary, and Murphy had a felony conviction for burglary. It is a violation of federal law for a person previously convicted of a felony offense to possess a firearm or ammunition that has moved in interstate or foreign commerce.
PEREZ and Murphy were originally arrested by the Stratford Police Department on state firearms charges. PEREZ has been in custody since his state arrest on November 23, 2012, and Murphy has been in custody since his federal arrest on November 30, 2012.
On February 11, 2014, PEREZ pleaded guilty to one count of conspiracy to possess and sell stolen firearms, one count of possession of firearms by a convicted felon and one count of making a false statement to a federal law enforcement officer.
On December 12, 2013, Murphy pleaded guilty to one count of conspiracy to possess and sell stolen firearms and one count of possession of firearms by a convicted felon. He is scheduled to be sentenced on October 30, 2015,
This matter has been investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Stratford Police Department and the Bridgeport Police Department. The case is being prosecuted by Assistant U.S. Attorney Rahul Kale.
Man Who Hired Teenage Girl for Sex is Sentenced in Human Trafficking CaseRead the Press Release
LOS ANGELES – A South Bay man who admitted lying to federal investigators about his conduct with a 16-year-old girl he met online and hired for commercial sex has been sentenced to 57 months in federal prison for obstructing a sex-trafficking probe being conducted by U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) and the Long Beach Police Department.
Charles Goswitz, 59, of Torrance, appeared Tuesday morning before U.S. District Judge Beverly Reid O’Connell. Goswitz, a court videographer who used the online moniker “Baldy Cruiser,” pleaded guilty to the obstruction charge June 22. The case marks the first federal prosecution in the Los Angeles area of a so-called “John” in a teen sex-trafficking investigation.
“Human trafficking inflicts tremendous harm on its victims, especially when those victims are children,” said United States Attorney Eileen M. Decker. “We have a duty to protect children from these predators, which includes prosecuting those who purchase children for sex. The significant sentence the defendant received in this case should serve as a warning to adults who engage in this type of criminal conduct. Although this is the first case of its kind in this district, it will not be the last.”
The probe into Goswitz’s activities began in February 2013 after HSI special agents received a lead from the Long Beach Police Department about a missing teen whose father suspected she was involved in commercial sex. During the ensuing investigation, authorities located sexually explicit images of the victim in an advertisement Goswitz posted on Backpage.com soliciting sex.
According to the case affidavit, in April 2013 HSI special agents met with Goswitz to advise the teen was missing and that she was a potential human trafficking victim. The affidavit states Goswitz denied ever meeting the minor victim, claiming he obtained the photographs of her online. Two months later, HSI special agents again questioned Goswitz, at which time he admitted engaging in commercial sex acts with the victim. Additionally, Goswitz acknowledged he had contacted the victim after his initial meeting with investigators. He further confirmed he had the minor victim and other females with whom he engaged in commercial sex acts pose for explicit photos wearing t-shirts saying “I love Baldy Cruiser.” He then posted those images on Internet sex forums as proof of his sexual exploits.
“This case should put commercial sex patrons on notice,” said Claude Arnold, Special Agent in Charge for HSI Los Angeles. “Those who pay for sex with minors are contributing in no small way to the current epidemic of teen and child sex-trafficking. The clients in these cases are, for all intents and purposes, as culpable as the actual traffickers and we intend to hold them accountable for their actions.”
Judge O’Connell ordered Goswitz to surrender in 60 days to begin serving his sentence. Upon completion of his prison term, Goswitz will be subject to five years’ supervised release and will be required to register as a sex offender for life.
Man Pleads Guilty in Connection with Murder in Chautauqua CountyRead 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 Jonathan Conklin, 44, pleaded guilty to carjacking before Senior U.S. District Judge William M. Skretny. The charge carries a maximum sentence of 10 years in prison, a fine of $250,000, or both.Assistant U.S. Attorney Timothy C. Lynch, who is handling the case, stated that Conklin and co-defendant Charles Sanford robbed Mary Whitaker inside her Sherman, NY home on August 20, 2014. The two men approached the victim’s home and Sanford rang the doorbell. Soon after Whitaker answered the door, Conklin shot and killed her. Conklin and Sanford then stole her vehicle and drove it to Erie, Pennsylvania where they were arrested on August 22, 2014.
Charges are still pending against Charles Sanford. The fact Sanford has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
The plea is the culmination of an investigation on the part of the Chautauqua County Sheriff’s Office, under the direction of Sheriff Joseph A. Gerace, the Chautauqua County District Attorney’s Office, under the direction of District Attorney David W. Foley, the Federal Bureau of Investigation, and the City of Erie (Pennsylvania) Police Department, under the direction of Chief Randy M. Bowers.
Sentencing is scheduled for March 9, 2016 at 9:00 a.m. before Judge Skretny.
Man Indicted for Unlawful Possession of FirearmsRead the Press Release
POCATELLO - Matthew G. Burgett, 24, of Blackfoot, Idaho, was indicted today by a federal grand jury sitting in Pocatello for the unlawful possession of firearms in violation of 18 U.S.C. Sections 922(g)(4) and 924(a)(2), U.S. Attorney Wendy J. Olson announced.
The indictment alleges that on or about September 24, 2015, in the District of Idaho, the defendant, Matthew Burgett, having been adjudicated as a mental defective and committed to a mental institution, did knowingly possess two firearms in violation of Title 18, United States Code, Sections 922(g)(4) and 924(a)(2).
The charge of unlawful possession of a firearm is punishable by up to 10 years in prison, a maximum fine of $250,000, and not more than three years of supervised release.
The case is being investigated by Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) the Federal Bureau of Investigation (FBI), the Bingham County Sheriff’s Office, and the Blackfoot Police Department.
An indictment is a means of charging a person with criminal activity. It is not evidence. The person is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Maine Man Pleads Guilty to Clean Water Act ViolationRead the Press Release
CONCORD, NEW HAMPSHIRE – Acting United States Attorney Donald Feith announced that Christopher Garrity, of Leeds, Maine has pleaded guilty to a one-count information alleging that he discharged a pollutant into a navigable water, in this case the Piscataqua River, without a permit, in violation of the federal Clean Water Act.
On June 26, 2013, agents of the Environmental Protection Agency Criminal Investigations Division were called to the New Hampshire facility of Grimmel Industries, L.L.C., after the Portsmouth Harbor Master discovered polluted water from a tanker truck located on the Grimmel facility being discharged through a hose directly to the Piscataqua River. Garrity was employed as the terminal manager at the time of the discharge and he was aware that the tanker truck storage of the polluted water was part of a civil agreement between Grimmel Industries and the EPA to avoid discharges to the river. An investigation by the EPA identified Garrity as the individual responsible for connecting the hose to the truck and allowing the discharge to the river.
Garrity will be sentenced on February 2, 2016. He faces a statutory maximum sentence of three (3) years and a possible maximum fine of not less than $5,000 nor more than $50,000 per day of violation. If Garrity is sentenced to prison he will also serve a period of supervised release that begins upon his release from prison.
The case was investigated by the U.S. Environmental Protection Agency Criminal Investigation Division. The Portsmouth Harbor Master’s Office of the Pease Development Authority, Division of Ports and Harbors was instrumental in the successful investigation and prosecution of this case. Assistant U.S. Attorney Alfred Rubega is prosecuting this case.
Louisiana Man Sentenced for Involvement in Stolen Identity Tax Fraud SchemeRead the Press Release
A resident of Tangipahoa Parish, Louisiana, was sentenced to serve 15 months in prison to be followed by three years of supervised release for his involvement in a stolen identity refund fraud (SIRF) scheme, Acting Assistant Attorney General Caroline D. Ciraolo of the Justice Department’s Tax Division and U.S. Attorney Kenneth A. Polite of the Eastern District of Louisiana announced today.
Brad Lewis, aka Bird, 33, pleaded guilty on May 26 to one count of a multi-object conspiracy to defraud the United States and to commit mail fraud and theft of public money. U.S. District Judge Jay C. Zainey of the Eastern District of Louisiana imposed today’s sentence and also ordered Lewis to pay $1,136,966.94 in restitution owed to the Internal Revenue Service (IRS).
According to court documents, Lewis and his co-defendants conspired to prepare and file false income tax returns using stolen identities, including the victims’ names and social security numbers, to claim large tax refunds. The refund checks were mailed to addresses in Louisiana, including post office boxes that Lewis opened. Once the checks were received, Lewis and his co-defendants falsely endorsed and deposited the refund checks into bank accounts under their control. The co-conspirators then divided the proceeds of the refund checks amongst themselves.
The indictment also charged Cedrick Mitchell aka Skeet, 40; Corey Lewis, 37; Craig Lewis, 40; Angela Chaney, 43; Thaddeus Richardson, 49; and Martin Jackson Sr., 49, with conspiracy to defraud the United States, conspiracy to commit money laundering, conspiracy to commit mail fraud, conspiracy to commit theft of public money and other charges. On Sept. 15, Cedrick Mitchell was sentenced to 33 months in prison. On Sept. 29, Corey Lewis was sentenced to 75 months in prison. On Oct. 6, Thaddeus Richardson was sentenced to 51 months in prison. On Oct. 13, Angela Chaney was sentenced to 36 months in prison and Craig Lewis was sentenced to three years of probation. On Oct. 20, Martin Jackson Sr. was sentenced to 12 months and one day in prison.
Acting Assistant Attorney General Ciraolo and U.S. Attorney Polite commended special agents of IRS-Criminal Investigation and the U.S. Postal Inspection Service, who investigated the case and Assistant U.S. Attorneys Hayden Brockett and Dall Kammer of the Eastern District of Louisiana and Trial Attorney Lauren M. Castaldi of the Tax Division, who are prosecuting the case.
Local Defense Attorney Heads to Federal Prison in Connection to Scheme to Obstruct JusticeRead the Press Release
HOUSTON – A criminal defense attorney in Houston has been ordered to prison for 15 years following his convictions on 18 counts to include conspiracy, obstruction of justice, money laundering, conspiracy to commit money laundering and failure to file tax returns, announced United States Attorney Kenneth Magidson. Abraham Moses Fisch, 56, was convicted by a jury May 27, 2015, following a 15-day trial and approximately 14 hours of deliberations.
Today, U.S. District Judge Lee H. Rosenthal, who presided over the trial, handed Fisch a total sentence of 180 months in federal prison. He must also forfeit $1.15 million and serve five years of supervised release following completion of the prison term. Also sentenced today was Lloyd Glen Williams, 71, a former used car financier in Houston who previously entered a plea of guilty to conspiring to obstruct justice and to filing a false tax return. He will serve 84 months in federal prison to be followed by two years of supervised release. He will also forfeit $1.48 million.
At the hearing, a victim made a statement to the court. She is the mother of a defendant prosecuted in a drug case who was represented by Fisch. She testified that Fisch and Williams promised her and her son that they could get him probation by influencing Williams’ supposed contacts in Washington. The mother had used her retirement savings to hire Fisch and Williams based on this promise and paid them $80,000. She told the court that everything Fisch and Williams told her turned out to be a lie. She said that, as a result, she has lost faith in the justice system and does not know who to believe in the system anymore.
“Schemes to obstruct justice, such as the one concocted by these defendants, affect the hard work we try to do every day and the public’s perception of those efforts,” said Magidson. “These significant sentences should serve as a verdict for restoring faith in our federal justice system.”
The evidence at trial showed that Fisch and Williams conspired to defraud defendants who were facing federal criminal charges in Houston. The fraud was perpetrated in at least four different federal criminal cases pending in Houston, including U.S. v. Edilberto Portillo et al. (H-06-182), U.S. v. Hugo Barrera Cavazos et al. (H-06-422), U.S. v. Umawa Oke Imo et al. (H-09-426) and U.S. v. Clifford Ubani and Princewill Njoku et al. (H-09-421 and H-10-416).
The defendants in the four cases as well as their wives and associates testified that Williams and Fisch told them that in return for paying exorbitant fees, Williams would pay off his alleged government contacts in Washington D.C. in order to obtain a “guaranteed” dismissal of the criminal cases. Those individuals were supposedly officials at the Central Intelligence Agency, FBI, Department of Justice and Medicare.
Drug trafficker Edilberto Portillo and his wife, Elida Sanchez, paid $1.1 million to Fisch in order to obtain the dismissal of their charges. Fisch paid $700,000 of the Portillo/Sanchez fee to Williams. Umawa Oke Imo, a defendant in a large health care fraud case, testified that Fisch and Williams quoted him a fee of $3 million in order to obtain a dismissal. In reality, however, no officials were paid, no cases were dismissed, and Fisch and Williams simply split the fees between them.
The evidence showed that the scam undermined the functioning of the federal justice system by misleading defendants about the nature of the cooperation process with the government and interfering with defendants’ cooperation with the government, including failing to pass information from a defendant to the government. It also interfered with plea negotiations with the government by preventing defendants from timely entering guilty pleas because of the mistaken belief their case was going to be dismissed.
The scam also interfered with defendants’ relationships with former and subsequent counsel, including communicating with represented defendants unbeknownst to their legitimate counsel, causing them to fire counsel, not to communicate fully and truthfully with their attorneys and not to assist their attorneys in preparing their defense or in negotiating guilty pleas.
Fisch and Williams also insisted that defendants keep the nature of Williams’ so-called “assistance” secret from the court, the government and other attorneys.
Fisch was convicted of money laundering based on the deposit of the funds earned from the scheme, which totaled at least $1,150,000. The United States is seeking forfeiture of that amount as money derived from the criminal activity.
Previously released on bond, both Fisch and Williams were taken into custody following the sentencing today where they will remain pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The investigation that led to this indictment and the arrests and plea was conducted by the FBI and Internal Revenue Service – Criminal Investigation. The case is being prosecuted by Assistant U.S. Attorneys Robert S. Johnson and John P. Pearson.
Lincolnville Medical Practice Settles Federal Health Care Billing ComplaintRead the Press Release
Contact: John G. Osborn
Assistant United States Attorney
Tel: (207) 780-3257Portland, Maine: United States Attorney Thomas E. Delahanty II today announced that Maine Dermatology, LLC, a dermatology practice with an office in Lincolnville, Maine, has agreed to pay $629,816 to settle claims involving false billings to the Medicare federal health care program. Medicare provides health insurance primarily to disabled and elderly Americans.
The United States filed a civil complaint on October 26, 2015, alleging that Maine Dermatology violated the federal False Claims Act between June 2010 and August 2013 by billing Medicare for providing evaluation and management services to patients in violation of applicable Medicare billing guidelines. The complaint alleged that Maine Dermatology submitted $314, 908 in false claims to Medicare. The complaint sought damages equaling double the full amount of the false claims. Maine Dermatology cooperated in the investigation.
The investigation was conducted by the U.S. Department of Health & Human Services, Office of Inspector General, and the U.S. Attorney’s Office, led by Health Care Fraud Investigator Richard Fairfield.Laguna Pueblo Man Sentenced to Federal Prison for Domestic Assault by a Habitual Offender ConvictionRead the Press Release
ALBUQUERQUE – Anthony Riley, 38, was sentenced this morning in federal court in Albuquerque, N.M., to 13 months in prison to be followed by five months of residential treatment for his domestic assault by a habitual offender conviction. Thereafter, Riley will be on supervised release for a period of three years.
Riley, a member and resident of Laguna Pueblo, N.M., was arrested on May 1, 2015, on a criminal complaint charging him with domestic assault of an intimate partner by a habitual offender on March 4, 2015, in Indian Country in Cibola County, N.M. According to the criminal complaint, Riley was charged as a habitual offender based on his two prior domestic violence convictions in Laguna Tribal Court. Laguna Tribal Court records reflect that Riley’s prior convictions occurred in 2005 and 2009, and that the victim in those two incidents was Riley’s intimate partner. Riley was subsequently indicted on the same charge on May 28, 2015.
On July 21, 2015, Riley pled guilty to the indictment and admitted that on March 4, 2015, he assaulted the victim, his intimate partner by striking her in the head and face with his fists. He also acknowledged his prior tribal court domestic violence convictions.
This case was investigated by the Laguna Agency of the BIA’s Office of Justice Services and the Pueblo of Laguna Tribal Police Department. The case was prosecuted by Assistant U.S. Attorney David Adams pursuant to the Tribal Special Assistant U.S. Attorney (Tribal SAUSA) Pilot Project in the District of New Mexico which is sponsored by the Justice Department’s Office on Violence Against Women under a grant administered by the Pueblo of Laguna. The Tribal SAUSA Pilot Project seeks to train tribal prosecutors in federal law, procedure and investigative techniques to increase the likelihood that every viable violent offense against Native women is prosecuted in either federal court or tribal court, or both. The Tribal SAUSA Pilot Project was largely driven by input gathered from annual tribal consultations on violence against women, and is another step in the Justice Department's on-going efforts to increase engagement, coordination and action on public safety in tribal communities.
Judgment Granted Against Two Individuals Who Defrauded the Government Under U.S. Forest Service ContractsRead the Press Release
United States Attorney Randolph J. Seiler announced that civil judgment has been entered against Aurelio Munoz-Escalante, d/b/a Black Hills Thinning, of Rapid City, South Dakota, and Sergio Munoz-Escalante, d/b/a SM Logging & Services, of Hermosa, South Dakota, in the amounts of $759,999.12 and $458,374.02, respectively.
The monetary awards consist of treble damages and 44 separate penalties for employing undocumented aliens in U.S. Forest Service contract work related to thinning unhealthy timber in the Black Hills National Forest. Federal contracts do not permit work to be done by undocumented aliens. These contractors submitted invoices for payment, which falsely certified that the work was performed by legal workers.
The False Claims Act imposes treble damages and penalties liability on persons and companies who knowingly submit false claims to the government.
The U.S. Attorney’s Office places a high priority on criminal and civil cases involving all types of fraud committed against the government. As a result of investigations conducted by the U.S. Immigration and Customs Enforcement’s Homeland Security, in cooperation with the U.S. Forest Service, Rapid City Police Department, Pennington County Sheriff’s Office, South Dakota Division of Criminal Investigation, Custer County’s Sheriff’s Office, U.S. Department of Labor, and other federal and state law enforcement agencies, the U.S. Attorney’s Office was able to obtain criminal convictions for this fraudulent conduct. The civil lawsuit followed, which resulted in this judgment.
Civil settlements (totaling $455,000) were reached in November 2014 involving five other individuals: Angel Munoz-Escalante and Barbara Munoz, d/b/a Munoz Logging and Construction Company ($375,000); Rogelio Escalante Sr., d/b/a Escalante Logging and Services ($50,000); Rogelio Escalante Jr., d/b/a Escalante Logging and Thinning Company ($15,000); and Raul Munoz, d/b/a R Munoz Thinning ($15,000)).
All of these False Claim cases involving fraud committed against the U.S. Forest Service were handled by Assistant U.S. Attorney Cheryl Schrempp DuPris. The total civil recovery obtained by the United States Attorney’s Office amounts to $1,673,373.10.
Jicarilla Apache Man Pleads Guilty to Federal Assault ChargeRead the Press Release
ALBUQUERQUE – Christian Quintana, 20, an enrolled member of the Jicarilla Apache Nation who resides in Dulce, N.M., pleaded guilty this morning in federal court in Albuquerque, N.M., to a federal assault charge under a plea agreement with the U.S. Attorney’s Office.
Quintana was arrested on March 2, 2015, on an indictment charging him with assault with a dangerous weapon with intent to do bodily harm and assault resulting in serious bodily injury. The crimes charged in the indictment took place on July 19, 2014, in Indian Country in Rio Arriba County, N.M.
During today’s hearing, Quintana pled guilty to assault with a dangerous weapon and admitted that on July 19, 2014, during a physical confrontation with the victim, he pulled a knife out of his pocket and stabbed the victim twice. Quintana further admitted that as a result of the stabbing, the victim sustained a punctured lung that required surgery to repair.
Under the terms of his plea agreement, Quintana will be sentenced to a maximum of 24 months in prison followed by a term of supervised release to be determined by the court. Quintana is in federal custody pending a sentencing hearing has yet to be scheduled.
This case was investigated by the Jicarilla Apache Tribal Police Department and is being prosecuted by Assistant U.S. Attorney David Adams.
Hartford Man Sentenced to 70 Months in Prison for Armed Robbery of Bank in WindsorRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that ODAIN J. JOHNSON, 22, of Hartford, was sentenced today by U.S. District Judge Robert N. Chatigny in Hartford to 70 months of imprisonment, followed by three years of supervised release, for committing the armed robbery of the First Niagara Bank in Windsor in January.
According to court documents and statements made in court, on January 10, 2015, at approximately 9:15 a.m., two masked men, at least one of whom brandished a firearm, entered the First Niagara Bank at 2133 Poquonock Avenue in Windsor. The two men vaulted the teller counter, directed two bank employees to the bank vault and ordered one of the employees to open the vault. Once inside the vault, the men ordered the bank employees to the ground and took cash from the vault. The men also ordered bank employees to open teller drawers and proceeded to take an additional amount of money from the drawers. During the robbery, a customer entered the bank. One of the masked men pointed a gun at the customer, ordered him to the ground and told him not to look up. After exiting the bank, the men confronted a second customer who was about to enter the bank. One of the men pointed a gun at the customer and stated “If you say anything, we’ll shoot you….”
A total of $81,530 was stolen from the bank.
While investigating the robbery, Windsor Police were contacted by East Windsor Police who were investigating similar bank and credit union robberies in East Windsor and Glastonbury. East Windsor Police had recently obtained an arrest warrant for David M. Johnson with respect to the robbery of the Nutmeg State Federal Credit Union in East Windsor on July 21, 2014.
After further investigation, on January 10 at approximately 9:45 p.m., law enforcement executed a search warrant at David M. Johnson’s Enfield residence and found a total of $81,946 in cash, most of which was bound by First Niagara Bank strapping that was initialed by one of victim bank employees. Investigators also found and seized other items allegedly used during the robbery earlier that day, as well as a .380 caliber semi-automatic handgun with a fully-loaded magazine.
ODAIN JOHNSON was arrested on January 17, 2015, in Lewiston, Maine, and has been detained since his arrest.
On May 29, 2015, ODAIN JOHNSON pleaded guilty to one count of armed bank robbery and admitted that he brandished a firearm during the offense.
On August 31, 2015, David M. Johnson pleaded guilty to one count of bank robbery related to the First Niagara Bank robbery, and also admitted that he committed the armed bank robbery of the Nutmeg State Federal Credit Union in East Windsor on July 21, 2014, and the Nutmeg State Credit Union in Glastonbury on November 7, 2014, stealing $109,166 and $84,145, respectively. He is detained while awaiting sentencing.
This matter has been investigated by the FBI and the Windsor, East Windsor and Glastonbury Police Departments, with the assistance of the Enfield Police Department, the Capital Region Emergency Services Team (CREST) and the Maine State Police. The case is being prosecuted by Assistant U.S. Attorneys Deborah R. Slater and Douglas P. Morabito.
Glen Burnie Tax Preparer Admits to Filing 29 False Tax ReturnsRead the Press Release
Baltimore, Maryland – Christine Little, age 43, of Glen Burnie, Maryland pleaded guilty today to aiding in the preparation of false tax returns.
The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein and Special Agent in Charge Thomas Jankowski of the Internal Revenue Service - Criminal Investigation, Washington, D.C. Field Office.
“IRS Criminal Investigation is determined to stop false tax refund schemes,” said Thomas Jankowski, IRS Criminal Investigation Special Agent in Charge, Washington D.C. Field Office. “Ms. Little’s guilty plea sends the message that participation in refund fraud schemes does not pay and those who choose to engage in defrauding the government will be prosecuted.”
According to her plea agreement, Little identified herself as the CEO of TNT Taxes. From February to June 2011, she recruited taxpayers to use her services, purporting to specialize in business and individual taxes and “amendments.”
Little admitted that she prepared 29 false federal tax returns. She placed information on the tax returns that did not reflect the information given by clients; falsely inflated withholdings and real estate taxes; and caused the returns to contain false personal property taxes, home mortgage interest and charitable deductions.
In April 2011, an undercover federal agent requested that Little prepare his individual federal tax return. The tax return prepared by Little did not accurately reflect the information the agent supplied to her. Instead, the tax return included false deductions and inflated withholding amounts, resulting in a fraudulent refund claim of more than $11,000.
Little admits that the loss resulting from the false tax returns she filed exceeded $330,000.
Little faces a maximum sentence of three years in prison. U.S. District Judge George L. Russell, III has scheduled sentencing for February 5, 2016 at 9:30 a.m.
United States Attorney Rod J. Rosenstein commended the IRS – Criminal Investigation for its work in the investigation and thanked Assistant U.S. Attorney Harry M. Gruber, who is prosecuting the case.
Georgia Real Estate Investor Admits to Bid Rigging and Mail Fraud Conspiracies at Home Foreclosures AuctionsRead the Press Release
A Georgia real estate investor pleaded guilty today for his role in conspiracies to rig bids and commit mail fraud at public real estate foreclosure auctions in Georgia.
Trent Gaines admitted that he and others conspired not to bid against one another at public real estate foreclosure auctions from October 2008 to November 2010 in Fulton County, Georgia, and from September 2006 to February 2011 in DeKalb County, Georgia. Gaines also admitted to conspiring with others to use the mail to carry out a scheme to fraudulently acquire title to selected Fulton and DeKalb properties sold at public auctions, to make and receive payoffs and to divert money to co-conspirators that should have gone to mortgage holders and others. The selected properties were then awarded to the conspirators who submitted the highest bids in private side auctions open only to Gaines and his co-conspirators.
“Today’s prosecution demonstrates the division’s continuing commitment to vigorously prosecute domestic cartels and fraud, and to obtain justice for victims of antitrust and fraud offenses,” said Assistant Attorney General Bill Baer of the Justice Department’s Antitrust Division. “The guilty plea is the 10th prosecution against defendants for bid rigging at public foreclosure auctions in Georgia.”
According to documents filed with the court, the purpose of the conspiracies was to suppress and restrain competition and divert money to the conspirators that otherwise would have gone to pay off the mortgage and other holders of debt secured by the properties, and, in some cases, the defaulting homeowner.
“This case again illustrates not only the problems regarding bid rigging at real estate auctions in Georgia but also the federal efforts involved in shutting this type of criminal activity down,” said Special Agent in Charge J. Britt Johnson of the FBI’s Atlanta Division. “The FBI reminds the public that such activity as seen in this case is a violation of federal law and, as such, the FBI will continue to work with the U.S. Department of Justice’s Antitrust Division in identifying, investigating and presenting for federal prosecution, those involved.”
Including Gaines, 10 cases have been filed as a result of the ongoing investigation being conducted by the Antitrust Division’s Washington Criminal II Section, the FBI’s Atlanta Division and the U.S. Attorney’s Office of the Northern District of Georgia.
Anyone with information concerning bid rigging or fraud related to public real estate foreclosure auctions in Georgia should contact the Antitrust Division’s Washington Criminal II Section at 202-598-4000, call the Antitrust Division’s Citizen Complaint Center at 1-888-647-3258 or visit www.justice.gov/atr/contact/newcase.htm.
The charges were brought in connection with the President’s Financial Fraud Enforcement Task Force, which was established to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices, and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. The task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets; and conducting outreach to the public, victims, financial institutions and other organizations.
The Justice Department has filed over 18,000 financial fraud cases against more than 25,000 defendants since fiscal year 2009. For more information about the task force, please visit www.StopFraud.gov.
Fort Collins Businessman Pleads Guilty to Failing to File an Income Tax Return with the IRSRead the Press Release
DENVER – Donald Dale Smith, age 67, of Fort Collins, Colorado, pled guilty today before U.S. Magistrate Judge Michael E. Hegarty to two counts of willful failure to file a tax return, United States Attorney John Walsh and IRS Criminal Investigation Acting Special Agent in Charge Steven Osborne announced. Judge Hegarty is scheduled to sentence Smith on January 19, 2016 at 10:00 a.m. Smith was charged by an Information in Denver on April 8, 2015.
According to the Information and the stipulated facts contained in the plea agreement, in late 2005, Smith became the owner/operator of Mountain West Children’s Academy, LLC (“MWCA”), a daycare center in Ft. Collins, Colorado. Smith had previously worked as a construction contractor. MWCA operated under Smith from September 2005 through June 2011. Smith was the only owner and operator of the business throughout the relevant tax years.
During the calendar years 2008 through 2010, MWCA was a profitable business and bank records reflect gross business deposits of $447,871 (2008), $439,182 (2009) and $442,169 (2010). As a result of his ownership of and draws from MWCA, Smith had a gross income for each of the calendar years 2008 through 2010 that required him to file personal federal income tax return with the IRS for each of those years. Specifically, Smith had gross income for each of the years as follows: $117,893 (2008), $110,770 (2009), and $134,138 (2010). As a result of Smith’s income, he had federal income taxes due and owing for years 2008 through 2010 in the total amount of $117,954.
In June 2013, IRS conducted an examination of Smith’s tax situation. From 2008 through 2010, Smith used money from the daycare business for gambling at casinos in Blackhawk, substantial country club and golf-related expenses, and cigars. Specifically, between January 1, 2008 and December 31, 2010, Smith spent a total of $110,500 for these expenditures.
Smith pled to two counts of willful failure to file a tax return, which each carries a penalty of not more than 1 year in federal prison, and a fine of up to $25,000.
This case was investigated by Internal Revenue Service – Criminal Investigation and is being prosecuted by Assistant U.S. Attorney Patricia Davies.
Former teacher sentenced for purchasing a firearm for a known felonRead the Press Release
CHARLESTON, W.Va. – United States Attorney Booth Goodwin announced that Jennifer Napier, 39, of East Bank, West Virginia was sentenced today in federal court in Charleston to one year and one day, as well as three years supervised release, for straw purchasing a firearm for a person she knew to be a convicted felon. In October of 2011, Napier purchased a firearm from the Trading Post, a federally licensed firearms dealer, in Marmet, West Virginia, and she filled out a Department of Justice form required for anyone who purchases a firearm from a federally licensed dealer. On that form, Napier falsely stated that she was the transferee/buyer of the firearm, when she knew that the true transferee of the firearm was her convicted drug felon boyfriend who was prohibited from purchasing or possessing firearms because of his felony conviction. Napier, a former teacher, agreed to voluntarily surrender her permanent professional teaching certificate and not reapply to get her certificate back until her federal sentence, including any term of supervision, has expired.
This case was investigated by the Kanawha County Sheriff’s Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives. The case is part of Project Safe Neighborhoods. Project Safe Neighborhoods is a nationwide commitment to reduce gun crime in the United States by networking existing local programs targeting gun crime.
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Former Texas D.P.S. Employee Arrested and Indicted in Fraudulent Drivers License SchemeRead the Press Release
In San Antonio, federal authorities have arrested two individuals indicted on federal charges in connection with a scheme to provide drivers’ licenses to undocumented aliens announced United States Attorney Richard L. Durbin, Jr., and Federal Bureau of Investigation (FBI) Special Agent in Charge Christopher Combs, San Antonio Division.
A six-count federal grand jury indictment unsealed yesterday, charges 53-year-old Jose A. Ytuarte, a former Texas Department of Public Safety Customer Service Representative in Hondo, TX, and 44-year-old Azeez Mistry of San Antonio with one count of conspiracy to transfer false identification documents, one count of transfer of false identification documents, and four counts of use of an interstate communication facility in aid of unlawful activity. According to the indictment, the defendants conspired from May 2013 to July 2015 to transfer identification documents, namely drivers licenses, knowing that such documents were produced without lawful authority. The indictment alleges that Mistry would direct undocumented and documented aliens who could not get a driver’s license legally to Ytuarte. Mistry would charge between $1,000 and $5,000 for each license and then pay a portion of that fee to Ytuarte as a cash bribe. The indictment further alleges that Ytuarte would input materially fraudulent information, namely that the individual was born in the United States, into the DPS computer system in order to process and issue a driver’s license to each undocumented alien.
Authorities arrested Mistry yesterday; Ytuarte, on Friday. Both have been released on bond pending further court proceedings.
Upon conviction, the defendants face up to 15 years in federal prison.
This case was investigated by the FBI, Texas Rangers and U.S. Customs and Border Protection. Assistant United States Attorney Christina Playton is prosecuting this case on behalf of the Government.
An indictment is merely a charge and should not be considered as evidence of guilt. The defendants are presumed innocent until proven guilty in a court of law.
Former Police Chief Convicted of Conspiracy and BriberyRead the Press Release
Orlando, Florida – United States Attorney A. Lee Bentley, III announces that a federal jury today found Thomas S. Jackson (58, Longwood) guilty of one count of conspiracy and three counts of bribery of an agent of a local government receiving federal funds. He faces a maximum penalty of 5 years in federal prison for the conspiracy count and up to 10 years’ imprisonment for each bribery count. His sentencing hearing has been set for January 11, 2016.
According to the evidence introduced at trial, from 1997 to May 28, 2010, Jackson was the Chief of Police of the Longwood Police Department (LPD). Between October 2007, and Jackson’s retirement on May 28, 2010, Samer Majzoub (54, Heathrow, FL), a convicted felon, paid Jackson more than $30,000 in bribes. In return, Jackson appointed Majzoub as an officer with the LPD. He also gave Majzoub the supervisory titles of commander, lieutenant, and sergeant. Jackson provided Majzoub with badges and credentials that represented Majzoub as an officer of LPD, and also assisted Majzoub in possessing firearms and ammunition. As a previously convicted felon, Majzoub was prohibited from possessing firearms and ammunition under federal law.
Majzoub has been charged by indictment with one count of conspiracy and three counts of bribery of an agent of a local government receiving federal funds. He has not been arrested and is a fugitive.
This case was investigated by the Federal Bureau of Investigation and the Internal Revenue Service – Criminal Investigation. It is being prosecuted by Assistant United States Attorneys Roger B. Handberg and James D. Mandolfo.
Former Hilton Middle School Teacher Pleads Guilty to Attempted Enticement of A MinorRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051
ROCHESTER, N.Y. - U.S. Attorney William J. Hochul, Jr. announced today that Charles Kane, 46, of Spencerport, NY, pleaded guilty to attempted online enticement of minor before U.S. District Court Judge Elizabeth A. Wolford. The charge carries a mandatory minimum sentence of 10 years in prison and a maximum of life, a fine of up to $250,000, or both.Assistant U.S. Attorney Craig R. Gestring, who is handling the case, stated that the defendant, a middle school teacher in the Hilton School District, was arrested April 2, 2015 as he attempted to meet with a person he thought was a 14 year old girl.
The investigation determined that in October 2014, the defendant posted an ad on Craigslist which read “daddy/daughter. Love younger women.” A federal law enforcement officer, working in an undercover capacity, posed as the father of a young daughter and conversed with Kane online for the next several months. During these conversations, Kane discussed traveling to meet the undercover and engaging in sexual activity with the undercover’s ten year old daughter.
On January 26, 2015, another undercover officer noticed a different sexually explicit ad on Craigslist which was traced back, once again, to the defendant. The officer responded to the ad in the persona of a 14 year old girl. Kane responded that he was “down with it.” The defendant asked the girl where she lived and said he wanted to meet her. The two remained in contact through March of 2015. During online chats, Kane sent the undercover officer photos of himself, including one he took in the men’s room at the Middle School where he taught, and repeatedly asked for photos of the 14 year old girl. Also during the chats, the defendant repeatedly discussed engaging in sexually explicit activity with the child and traveling to and meeting with the child for sexual purposes. One message read “I could get a room and I could sneak you there.” Kane acknowledged that he could get in “big trouble” and told the girl “this is between you and me.”
Following repeated requests, the girl agreed to meet the defendant at a theatre in Webster on April 2, 2015. The defendant was observed entering a pharmacy just before meeting with the undercover, where they learned that Kane purchased a box of condoms. Kane was arrested as soon as he pulled up to the theatre parking lot. He has been in federal custody since his arrest, and was held following a detention hearing last month.
The plea is the culmination of an investigation by the New York State Police, under the direction of Major Craig Hanesworth and the Federal Bureau of Investigation Child Exploitation Task Force, under the direction of Adam S. Cohen. The task force includes the Monroe County Sheriff’s Office, the Rochester Police Department, and U.S. Immigration and Customs Enforcement-Homeland Security Investigations..
Sentencing is scheduled for January 26, 2016 at 2:00 p.m. before Judge Wolford.
Former Executive Admits Guilt in Conspiracy Affecting Water Treatment ChemicalsRead the Press Release
A former executive of a water treatment chemicals manufacturer has pleaded guilty for his role in a conspiracy to eliminate competition by fixing prices, rigging bids and allocating customers for liquid aluminum sulfate supplied to municipalities and pulp and paper companies in the United States.
Frank A. Reichl, of Flanders, New Jersey, admitted to agreeing not to compete for contracts for liquid aluminum sulfate, a coagulant used by municipalities to treat drinking and waste water, and by pulp and paper companies in their manufacturing processes.
“By agreeing not to disturb each other’s ‘historical’ business, Reichl and his co-conspirators cheated municipalities and paper companies out of competitive prices for their supplies of liquid aluminum sulfate, a key water treatment chemical,” said Assistant Attorney General Bill Baer of the Justice Department’s Antitrust Division. “We continue to work with our partners at the FBI to hold offenders in this industry criminally accountable.”
According to documents filed with the court, from 1997 until July 2010, Reichl and his co-conspirators met to discuss each other’s liquid aluminum sulfate business, submitted intentionally losing bids to favor the intended winner of the business, withdrew inadvertently winning bids and discussed prices to be quoted or bid to customers. Reichl is the first defendant to plead guilty to participating in this decade-and-a-half-long conspiracy.
“Reichl and his co-conspirators colluded to circumvent competitive bidding and independent pricing for liquid aluminum sulfate contracts, and conspired to raise prices by submitting artificially inflated bids to their customers,” said Special Agent in Charge Richard M. Frankel of the FBI’s Newark Division. “They also allocated customers in furtherance of their collusive scheme. By agreeing to violate both the spirit and the letter of the competitive process, Reichl and others defrauded municipalities as well as pulp and paper companies out of millions of dollars.”
A violation of the Sherman Act carries a maximum penalty of 10 years in prison and a $1 million fine for individuals. The maximum fine for a Sherman Act charge may be increased to twice the gain derived from the crime or twice the loss suffered by the victims if either amount is greater than the statutory maximum fine.
The investigation into collusion in the liquid aluminum sulfate industry is being conducted by the Antitrust Division’s New York Office and the FBI’s New Jersey Office. Anyone with information regarding price fixing, bid rigging or customer allocation in the liquid aluminum sulfate industry should contact the Antitrust Division’s New York Office at 212-335-8000, call the Antitrust Division’s Citizen Complaint Center at 1-888-647-3258 or visit www.justice.gov/atr/contact/newcase.htm.
Former Employee of Yatahey Contract Postal Unit Pleads Guilty to Federal Misdemeanor Embezzlement ChargeRead the Press Release
ALBUQUERQUE – Ahmed Abder-Rahman, 25, of Gallup, N.M., pleaded guilty today in federal court in Albuquerque, N.M., to a misdemeanor charge of theft of government property. Under the terms of his plea agreement, Abder-Rahman will be sentenced to a term of probation and ordered to pay $10, 242.00 in restitution to the U.S. Postal Service (USPS), the victim of his criminal conduct.
Abder-Rahman was arrested on June 18, 2015, on an indictment charging him with theft of government property and theft of money orders. According to the indictment, Abder-Rahman stole 13 money orders with a total value of $10,242.00 from the Yatahey Contract Postal Unit (CPU) of the USPS from April 30, 2014 through May 12, 2014, in McKinley County, N.M. At the time the crimes were committed, Abder-Rahman was employed by the Yatahey CPU.
During today’s plea hearing, Abder-Rahman pled guilty to a misdemeanor information charging him with theft of government property. In entering his guilty plea, Abder-Rahman admitted that he had access to USPS funds, supplies and equipment at the Yatahey CPU, and fraudulently negotiated money orders in the aggregate amount of $10,242.00 in April and May 2014, without having received the money payable on the money orders. Court records reflect that Abder-Rahman used some of the money to pay off personal debts.
A sentencing hearing for Abder-Rahman has yet to be scheduled.
This case was investigated by the U.S. Postal Service Office of Inspector General and is being prosecuted by Assistant U.S. Attorney Elaine Y. Ramirez.
Former Employee Pleads Guilty to $130,000 Bank Theft SchemeRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that an employee of Community National Bank in Aurora, Mo., has pleaded guilty in federal court to a $130,000 bank embezzlement scheme.
Jo Ann Nickell, 45, of Aurora, pleaded guilty before U.S. Magistrate Judge David P. Rush on Monday, Oct. 27, 2015, to the charge contained in a Nov. 5, 2014, federal indictment.
Nickell was employed by Community National Bank as a customer service representative and back-up teller from Aug. 17, 2009, to July 19, 2013. By pleading guilty, Nickell specifically admitted that she embezzled $6,000 from the account of one of the bank’s customers.
As a result of Nickell’s criminal actions, Community National Bank and Federal Insurance Company experienced a total loss of approximately $130,268.
Under federal statutes, Nickell is subject to a sentence of up to 30 years in federal prison without parole, plus a fine up to $1 million and an order of restitution. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorneys Abram McGull II and Nhan Nguyen. It was investigated by the Aurora, Mo., Police Department and the U.S. Secret Service.
Former Employee of Planet Fitness Holdings, LLC Pleads Guilty to Mail FraudRead the Press Release
CONCORD, N.H. – Nicholas Selby, age 31, pleaded guilty to engaging in a scheme to defraud Planet Fitness Holdings, LLC, Newington, New Hampshire (“Planet Fitness”) of more than $920,000, announced Acting United States Attorney Donald Feith.
Planet Fitness owns and operates 58 health clubs in eight states and Canada. An additional 942 health clubs are operated under franchise agreements with Planet Fitness.
Selby worked as a systems engineer at Planet Fitness. From November 2013 to March 2015, Selby caused Planet Fitness to pay for more than 1,800 iPads by submitting more than 90 invoices to the company’s accounts payable department that falsely described the items purchased. Selby bought the iPads from technology vendors with whom Planet Fitness maintained credit accounts. The iPads were shipped via interstate commercial mail carriers to Planet Fitness’ corporate office, where Selby took delivery and sold them to companies in Rexburg, Idaho, and Lawton, Oklahoma.
Selby’s scheme was discovered when an employee of Planet Fitness had a telephone call concerning the status of a legitimately ordered iPad which led to the vendor discussing the orders placed by Selby. Planet Fitness then conducted an internal investigation to document the fraud and reported it to the Newington Police.
A former resident of Madbury, New Hampshire, Selby now lives in Snellville, Georgia.
Selby will be sentenced by Chief United States District Court Judge Joseph N. Laplante on January 28, 2016.
The maximum prison term for the offense to which Selby pleaded guilty, mail fraud, is 20 years. The maximum fine for mail fraud is the amount that is equal to twice the gross gain or gross loss caused by the offense, whichever is greater.
The case was investigated by the Newington, New Hampshire Police Department and the Federal Bureau of Investigation.
Dominican Woman Pleads Guilty to Drug Smuggling at Logan AirportRead the Press Release
BOSTON – A Dominican woman pleaded guilty yesterday to smuggling nearly five kilograms of cocaine concealed in a wheelchair into the United States at Boston’s Logan International Airport. The cocaine had a street value of more than $250,000.
Ireline Aponte Melende, 30, pleaded guilty to one count of unlawful importation of a controlled substance. U.S. District Court Judge Denise L. Casper scheduled sentencing for March 2, 2016.
On May 10, 2015, Melende was stopped at Logan International Airport after she arrived on a flight from the Dominican Republic using a motorized wheelchair that was inoperable. Customs and Border Protection officers x-rayed the wheelchair, and noticed abnormalities in the wheelchair batteries. The batteries were opened, revealing four packages containing a white powdery substance. Testing revealed that the packages contained 4.965 kilograms of cocaine.
The charging statute provides a sentence of no greater than 20 years in prison, three years of supervised release and a fine of $1 million. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Carmen M. Ortiz and Matthew Etre, Special Agent in Charge of Homeland Security Investigations in Boston, made the announcement today. The case is being prosecuted by Assistant U.S. Attorney Seth B. Orkand of Ortiz’s Major Crimes Unit.
District Man Sentenced to Three Years in Prison for Burglary in Rock Creek Park NeighborhoodRead the Press Release
WASHINGTON – Antoine Woodfolk, 51, of Washington, D.C., has been sentenced to a prison term of three years for a burglary last summer of a residence in Northwest Washington, U.S. Attorney Channing D. Phillips announced today.
Woodfolk pled guilty in August 2015, in the Superior Court of the District of Columbia, to second-degree burglary. He was sentenced on Oct. 23, 2015, by the Honorable Anita Josey-Herring. Following his prison term, he will be placed on two years of supervised release.
According to the government’s evidence, on July 17, 2015, at about 2:15 P.M., the Metropolitan Police Department (MPD) received a 911 call regarding a burglary in progress at a residence in the 6300 Block of 16th Street NW. Although the residents were not present, MPD officers were informed that one of them observed, via an online surveillance system, an unknown individual kicking the front door, entering the residence, and leaving with a red and white bicycle. When officers arrived, they observed Woodfolk walking down the front porch pushing a red and white bicycle. Woodfolk attempted to flee on the bicycle and was apprehended a short time later. In his possession, officers found a GPS device, a silver watch, and the bicycle.
In announcing the sentence, U.S. Attorney Phillips commended the work of the Metropolitan Police Department. He also expressed appreciation for the efforts of those who worked on the case from the U.S. Attorney’s Office, including Paralegal Specialist Debra McPherson and Assistant U.S. Attorney Ali D. Kargbo, of the Felony Major Crimes Trial Section, who investigated and prosecuted the matter.
District Man Sentenced to 100-Month Prison Term for Federal Drug OffenseRead the Press Release
WASHINGTON –Michael Lee Smith, 32, of Washington, D.C., was sentenced today to 100 months in prison on a federal charge stemming from an investigation into the sale of drugs from a home in Southeast Washington, announced U.S. Attorney Channing D. Phillips and Cathy L. Lanier, Chief of the Metropolitan Police Department (MPD).
Smith pled guilty in August 2015, in the U.S. District Court for the District of Columbia, to one count of unlawful possession with intent to distribute 28 grams or more of cocaine base and aiding and abetting. He was sentenced by the Honorable Tanya S. Chutkan. Following completion of his prison term, Smith will be placed on five years of supervised release.
According to the government’s evidence, on Aug. 19, 2014, officers with the Metropolitan Police Department’s First District vice unit executed a search warrant at a home in the 5400 block of C Street SE. Smith and two other men were in the house. One man, the person who lived at the residence, was quickly detained by police next to a chair in the living room, where a plastic wrap that contained approximately 6.5 grams of crack was recovered. Smith and the other man, meanwhile, ran out the back door. They jumped a fence in the back yard and escaped. However, they were later identified and captured by MPD officers.
Overall, officers recovered over 170 grams of crack cocaine in a search of the residence, including 149.6 grams from a plate that was on top of a china cabinet in the dining room. Officers also recovered empty zip lock bags, a glass bowl, a scale spoon, a razor blade, and other items used to manufacture and distribute narcotics. In his guilty plea, Smith accepted responsibility for possession with the intent to distribute more than 112 grams but less than 196 grams of a mixture and substance containing cocaine base.
In announcing the sentence, U.S. Attorney Phillips and Chief Lanier commended the work of those who investigated the case from Metropolitan Police Department. They also acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Paralegal Specialists Jeannette Litz and Teesha Tobias, and Assistant U.S. Attorney Emory V. Cole, who investigated and prosecuted the case.
District Man Found Guilty of Armed Kidnapping, Sexual Abuse, and Other Charges for Attacking Woman at Her HomeRead the Press Release
WASHINGTON – Levi Ruffin, 37, of Washington, D.C., was found guilty today of charges stemming from a nighttime attack on a woman as she tried to enter her home in Northwest Washington, announced U.S. Attorney Channing D. Phillips.
Ruffin was found guilty by a jury of six counts: kidnapping while armed; third-degree sexual abuse while armed; first-degree burglary while armed; attempted robbery while armed; assault with a dangerous weapon, and assault causing significant bodily injury. The verdict was returned following a trial in the Superior Court of the District of Columbia. He is to be sentenced by the Honorable Rhonda Reid Winston on Dec. 18, 2015. He faces a maximum of 30 years in prison for all offenses except for assault with a dangerous weapon, which carries a maximum of 10 years, and assault causing significant bodily injury, which carries up to three years in prison.
According to the government’s evidence, on Sept. 14, 2013, at about 9 p.m., the victim was entering the door to her home in Northwest Washington after an outing with her friends. As she entered the residence, she was rushed from behind by Ruffin, who placed his hand over her mouth. Ruffin pulled out a knife, placed it next to the woman’s face, and demanded she drop her belongings. Ruffin then forced her inside her home and demanded money. When the woman told Ruffin she had no money and attempted to give him her credit cards, Ruffin slapped the credit cards away and began to sexually assault her. The woman fought Ruffin when he touched her. During the fight, Ruffin cut the woman on both her hands and bit her face and back.
The bite marks on the woman’s face were swabbed for potential DNA. DNA was recovered from those bite marks and was traced to Ruffin. A warrant for Ruffin’s arrest was issued, and when Ruffin was arrested on Aug. 6, 2014, he was found to have generally matched the description the woman gave of the attacker. Ruffin also had a knife that matched the description provided by the woman of the knife used during the attack.
In announcing the verdict, U.S. Attorney Phillips commended the work of those who investigated the case from the Metropolitan Police Department. He also expressed appreciation for the assistance provided by the District of Columbia Department of Forensic Sciences and Bode Technologies. In addition, he acknowledged the efforts of those who handled the case for the U.S. Attorney’s Office, including Paralegal Specialists Mark Morse and Wanda Trice; Victim/Witness Advocate Veronica Vaughan; Litigation Technology Specialist Karen McColman; Criminal Investigators Nelson Rhone and Melissa Matthews; Legal Interns Emma McArthur and Meghan Monahan, and Michael Ambrosino, Special Counsel for DNA and Forensic Evidence Litigation. Finally, he commended the work of Assistant U.S. Attorneys Kenechukwu Okocha and Akhi Johnson, who prosecuted the matter, and Assistant U.S. Attorney Jodi Lazarus, who indicted the case.
Detroit Job Fair Attracts 1,500 Job SeekersRead the Press Release
Nearly 1,500 individuals participated in a reentry job and resource fair at the Northwest Activities Center in Detroit today. The event connected individuals returning from prison with community resources and employment opportunities. The fair was organized by the U.S. Attorney’s Office, Mayor Mike Duggan’s Office, Detroit Employment Solutions, the Michigan Department of Corrections, the U.S. Probation Department, the U.S. Bureau of Prisons and the Cherry Health Community Treatment Center-West Residential Reentry Center. Employers participating at the job and resource fair included manufacturing, construction, recycling, staffing and service companies. The job and resource fair also included representatives from job training programs, community colleges and service providers. Each year, more than 13,000 citizens return from prison to their communities in Michigan. Statistics show that about one-third of them will reoffend. Offenders identify joblessness as their biggest barrier to success, and research shows that unemployment and crime go hand-in-hand. Sending returning citizens back to their communities with no ability to get a job leads to recidivism. “Taxpayers pay about $34,000 a year to incarcerate a single prisoner,” stated U.S. Attorney Barbara McQuade. “Rather than watching returning citizens go back to prison through the revolving door, it makes fiscal sense to invest in helping them find jobs. If we want to reduce crime, we need to find jobs for our returning citizens. Otherwise, we will all continue to pay their debt to society.” Lawmakers understand the public safety and fiscal benefits of finding jobs for returning citizens. New federal and state laws encourage employers to hire returning citizens by providing tax incentives for hiring felons and bonding to protect employers from liability. The job and resource fair follows and informational breakfast for employers in May featuring "Orange is the New Black" author Piper Kerman. Organizers asked employers to consider hiring citizens returning from prison. The job and resource fair provided an opportunity to connect employers with returning citizens.Department of Justice Releases Report on the Ambush of Police OfficersRead the Press Release
The Department of Justice today announced the release of an Office of Community Oriented Policing Services (COPS Office) report that addresses ambushes and violence against police officers. The report, Ambushes of Police: Environment, Incident Dynamics, and the Aftermath of Surprise Attacks against Law Enforcement, analyzes ambushes of the police and provides new information that can guide police executives, trainers, supervisors, policymakers and researchers in addressing the issue.
“Law enforcement officers regularly put their lives on the line in order to protect our communities and serve our nation,” said Attorney General Lynch. “As part of our work to support these brave men and women, the Department of Justice is committed to extensive efforts aimed at preventing violent action against the police. This report will serve as a critical base of knowledge as we work to defend our law enforcement and ensure our officers’ safety.”
“Every day, law enforcement officers serve this nation with distinction by protecting all of us from harm,” said Director Ronald Davis of the COPS Office. “That protection, however, comes at great risk to the men and women who courageously don the uniform and wear the badge. We know that the murder of a police officer in the line of duty is an assault on the entire community. When that murder is a result of an ambush, it also attacks the very foundation of our democracy. We must act to address this persistent threat. This ambush report is an important first step.”
The report, compiled by CNA, investigates methods for preventing, responding to, and effectively responding to ambushes of police officers. Ambush attacks against law enforcement officers remain a threat to officer safety, with the number of attacks per year holding steady since a decline in the early 1990s and the proportion of fatal attacks on officers attributable to ambushes increasing.
The report examines the environmental factors prevalent in ambush situations, and considers factors that may impact the survivability of an ambush assault. It also examines how police organizations can learn in the wake of these critical incidents and aid in the development and evaluation of policies and training programs aimed at improving outcomes following an ambush assaults against an officer.
The report, Ambushes of Police: Environment, Incident Dynamics, and the Aftermath of Surprise Attacks against Law Enforcement, is available here: https://cops.usdoj.gov/RIC/ric.php?page=detail&id=COPS-P340.
The COPS Office is a federal agency responsible for advancing community policing nationwide. Since 1995, the COPS Office has invested more than $14 billion to advance community policing, including grants awarded to more than 13,000 state, local and tribal law enforcement agencies to fund the hiring and redeployment of more than 126,000 officers and provide a variety of knowledge resource products including publications, training and technical assistance. For additional information about the COPS Office, please visit www.cops.usdoj.gov.
Department of Justice Releases Report on Officer Safety and WellnessRead the Press Release
Report Highlights Four Police Departments with Effective Programs
The Department of Justice today announced the release of a new report that focuses on advancing the health and safety of police officers across the country. The publication, Health, Safety, and Wellness Program Case Studies in Law Enforcement, focuses on the innovative approaches to promoting officer safety and wellness taken by four police agencies. The report was released by the Department of Justice’s Office of Community Oriented Policing Services (COPS Office).
“The health and wellness of law enforcement officers is essential to public safety,” said Attorney General Lynch. “In order to ensure that our communities are kept as secure as possible, we must provide the officers who serve them with the tools they need to protect their health, ensure their well-being, and manage the rigors of their difficult work. The case studies in this report offer an important guide as we seek to support and care for men and women who risk their lives for us every day.”
“The safety and well-being of our police officers are as important to community policing and public safety as are building community trust and confidence,” said Director Ronald Davis of the COPS Office. “We know police work is tough, stressful, and dangerous. Officers are put in dangerous situations every day. We must make police officer wellness and safety a top priority.”
The four case studies presented in the publication offer an opportunity to better understand the significance and value that officer wellness programs present in successfully reducing officer sickness, injuries and deaths associated with poor health or traffic-related accidents. The case studies serve as models for safety, health and wellness programs and each offers practical strategies that have shown positive results. The four law enforcement agencies featured in this publication are the Boca Raton Police Department, the Prince George’s County Police Department, the Fairfax County Police Department and Reno Police Department.
The report is the product of the Attorney General’s Officer Safety and Wellness Group, led by the COPS Office and Bureau of Justice Assistance, in partnership with the Major Cities Chiefs Association. The group is comprised of representatives from police associations and unions, federal government agencies, universities and local law enforcement agencies, with additional subject matter experts and guest presenters with expertise on specific topics.
The publication, Health, Safety, and Wellness Program Case Studies in Law Enforcement, is available here: https://cops.usdoj.gov/RIC/ric.php?page=detail&id=COPS-P332.
The COPS Office is a federal agency responsible for advancing community policing nationwide. Since 1995, the COPS Office has invested more than $14 billion to advance community policing, including grants awarded to more than 13,000 state, local and tribal law enforcement agencies to fund the hiring and redeployment of more than 127,000 officers and provide a variety of knowledge resource products including publications, training and technical assistance. For additional information about the COPS Office, please visit www.cops.usdoj.gov.
Department of Justice Announces New Guidebook on 21st Century PolicingRead the Press Release
Attorney General Lynch to Launch Phase Two of Six-City Community Policing Tour Highlighting Jurisdictions that Effectively Implement Recommendations in the 21st Century Policing Guidebook
The Department of Justice today released a new resource guide called The President’s Task Force on 21st Century Policing Implementation Guidebook, which outlines strategies to help communities, law enforcement and local government implement recommendations in the President's Task Force on 21st Century Policing Report. President Obama announced the new guidebook today at the International Association of Chiefs of Police Convention in Chicago.
As part of the announcement, the Attorney General will launch Phase Two of the Justice Department’s Community Policing Tour. Each stop along the six-city tour will highlight a jurisdiction that is effectively implementing one of the six pillars outlined in the task force guidebook.
“The Department of Justice is dedicated to building trust between law enforcement officers and the communities they serve; enlisting the public’s assistance in reducing crime; and creating the stronger and safer communities that all Americans deserve,” said Attorney General Loretta E. Lynch. “This implementation guide offers a crucial blueprint for elected officials, law enforcement officers, and community leaders alike as they work to put important policies and reforms into practice across the country.”
“The President’s Task Force on 21st Century Policing Implementation Guide highlights specific actions for local elected and appointed government officials, law enforcement agencies, communities and other stakeholders to support a comprehensive approach to reduce crime and build trust and legitimacy,” said Director Ronald Davis of the Office Community Oriented Policing Services (COPS Office). “Success will require collaboration and partnerships among these groups.”
Guidebook Summary on 21st Century Policing: Five Ways Stakeholder Groups Can Implement the Task Force’s Recommendations
Communities
1. Engage with local law enforcement; participate in meetings, surveys, and other activities.
2. Participate in problem-solving efforts to reduce crime and improve quality of life.
3. Work with local law enforcement to ensure crime-reducing resources and tactics are being deployed that mitigate unintended consequences.
4. Call on state legislators to ensure that the legal framework does not impede accountability for law enforcement.
5. Review school policies and practices, and advocate for early intervention strategies that minimize involvement of youth in the criminal justice system.
Law enforcement
1. Review and update policies, training, and data collection on use of force, and engage community members and police labor unions in the process.
2. Increase transparency of data, policies, and procedures.
3. Call on the POST Commission to implement all levels of training.
4. Examine hiring practices and ways to involve the community in recruiting.
5. Ensure officers have access to the tools they need to keep them safe
Local government
1. Create listening opportunities with the community.
2. Allocate government resources to implementation.
3. Conduct community surveys on attitudes toward policing, and publish the results.
4. Define the terms of civilian oversight to meet the community’s needs.
5. Recognize and address holistically the root causes of crime.
The President’s Task Force on 21st Century Policing was charged by President Barack Obama with identifying best practices and offering recommendations on how policing practices can promote effective crime reduction while building public trust. The task force submitted its final report to the President in May 2015. In July 2015, the White House and the COPS Office convened a forum of elected officials, police executives and community members to jointly discuss the task force recommendations and share strategies for implementation.
The implementation guide is a companion to the task force report and is informed by strategies shared at the July convening and feedback from the field. It provides guidance on implementing the task force’s 59 recommendations and 92 action items and serves as a resource for law enforcement, local government, community members and other stakeholders interested in concrete examples of how to turn the task force recommendations into action.
The President’s Task Force on 21st Century Policing Implementation Guidebook is available here: https://cops.usdoj.gov/RIC/ric.php?page=detail&id=COPS-P341. Further information about the President’s Task Force on 21st Century Policing is available here: https://www.cops.usdoj.gov/default.asp?Item=2761.
The COPS Office is a federal agency responsible for advancing community policing nationwide. Since 1995, the COPS Office has invested more than $14 billion to advance community policing, including grants awarded to more than 13,000 state, local and tribal law enforcement agencies to fund the hiring and redeployment of more than 127,000 officers and provide a variety of knowledge resource products including publications, training and technical assistance. For additional information about the COPS Office, please visit www.cops.usdoj.gov.
Deming Residents Sentenced to Lengthy Federal Prison Terms for Kidnapping and Firearms ConvictionsRead the Press Release
ALBUQUERQUE – This morning a U.S. District Court Judge sitting in Las Cruces, N.M., sentenced Jessie Hopper, Sr., 55, and Polly Hopper, 61, of Deming, N.M., to lengthy prison terms for their convictions on conspiracy, kidnapping and firearms charges. Hopper, Sr. was sentenced to 366 months (30.5 years) in prison followed by five years of supervised release, while his sister, Polly Hopper, was sentenced to 292 months (24.3 years) in prison followed by five years of supervised release.
The sentences imposed on the Hoppers were announced by U.S. Attorney Damon P. Martinez, 6th Judicial District Attorney Francesca Martinez-Estevez, Special Agent Carol K.O. Lee of the Albuquerque Division of the FBI, Special Agent in Charge Thomas G. Atteberry of the Phoenix Division of the Bureau of Alcohol, Tobacco, Firearms and Explosives, New Mexico State Police Chief Pete Kassetas and Luna County Sheriff Jonathon Mooradian.
“Jessie Hopper, Sr., and Polly Hopper, were both prosecuted under the federal ‘worst of the worst’ anti-violence initiative because of their extensive prior criminal histories, which included convictions for attempted murder, and the despicable nature of the violent crimes they were convicted of in this case,” said U.S. Attorney Damon P. Martinez. “Through this initiative, the federal law enforcement community is working with its state, local and tribal partners to make New Mexico safer by taking violent and repeat offenders like the Hoppers off our streets for as long as possible.”
“The 6th Judicial District Attorney’s Office is proud of its role in bringing about the sentencings imposed today on Jessie Hopper, Sr., and Polly Hopper,” said 6th Judicial District Attorney Francesca Martinez-Estevez. “Prosecutors from my office worked closely with local, county and state law enforcement officers to preserve the crime scene and gather the evidence that supported the federal convictions in this case, and our victim advocates supported the victim and her family in the aftermath of the victim’s traumatic experience. Working together with our partners at the FBI, ATF and U.S. Attorney’s Office, we were able to bring justice to the victim.”
“Today’s sentencings send a strong message the FBI and its law enforcement partners will aggressively investigate and prosecute violent crime,” said Special Agent in Charge Carol K.O. Lee of the FBI’s Albuquerque Division. “The FBI would like to thank the U.S. Attorney's Office and the other federal, state and local agencies that worked closely together and made the successful resolution of this case possible.”
Hopper, Sr., Polly Hopper, and their co-defendant Jessie A. Hopper, Jr., 30, also of Deming, were arrested in June 2014, on a federal criminal complaint charging them with kidnapping and firearms charges. The three defendants subsequently were charged with conspiracy and kidnapping in a six-count indictment filed in May. 2014. The indictment also charged Hopper, Sr., and Hopper Jr., with brandishing a firearm in relation to a crime of violence, being felons in possession of firearms, and unlawfully possessing a sawed-off shotgun.
Hopper, Jr., entered a guilty plea to the five charges against him on Nov. 21, 2014. At sentencing, he faces a maximum of life imprisonment on the kidnapping charges as well as a seven-year prison sentence for brandishing a firearm that must be served consecutive to any sentence imposed on the kidnapping charges. Hopper, Jr., remains in federal custody pending a sentencing hearing which has yet to be scheduled.
On Feb. 27, 2015, a federal jury returned a verdict finding Hopper, Sr., and Polly Hopper guilty on all charges against them after a five-day trial. The evidence at trial established that Hopper, Jr., and Hopper, Sr., kidnapped the victim in Hot Springs, Ark., on May 8, 2014, with the assistance of Polly Hopper. Hopper, Jr., handcuffed the victim and a firearm was brandished at the victim to force her to comply with Hopper, Jr.’s demands, including a demand that she telephone family members to assure them that she was voluntarily leaving Arkansas with Hopper, Jr. On May 8 and 9, 2014, the defendants drove the victim from Arkansas to the defendants’ residence in Deming, where Hopper, Jr., and Hopper Sr., sexually assaulted the victim several times.
The three defendants initially were arrested by the New Mexico State Police on state charges on May 10, 2014. They remained in state custody until they were transferred to federal custody on May 16, 2014, to face the charges in this federal case. The state charges, which were filed by the 6th Judicial District Attorney’s Office for the State of New Mexico, were dismissed in favor of federal prosecution.
ATF Special Agent in Charge Thomas G. Atteberry said, “Taking violent criminals off the streets and putting them behind bars has always been a focus of ATF and our enforcement mission in New Mexico. I commend the agents and officers who repeatedly risked their lives to remove these violent offenders from our communities. I also wish to recognize the leadership of U.S. Attorney Damon P. Martinez and his office in their relentless prosecution of these violent offenders.”
“The cooperative effort between law enforcement agencies has made our communities safer,” said New Mexico State Police Chief Pete Kassetas. “This case is a great example of how local, state and federal law enforcement agencies are working with State District Attorneys and the U.S. Attorney to prosecute violent criminals. I cannot express my gratitude enough to all the agencies involved.”
“It is always encouraging when local, state and federal law enforcement partners work together for the good of our communities,” said Luna County Sheriff John Mooradian. “When we share resources and intelligence, we truly get the upper hand on the criminal element. My hope now is that the victim in this case was able to get the help and support necessary to move beyond this ordeal.”
This case was investigated by the Las Cruces office of the FBI, the Las Cruces office of the Bureau of Alcohol, Tobacco, Firearms and Explosives, the New Mexico State Police and the Luna County Sheriff’s Office, with assistance from the 6th Judicial District Attorney’s Office for the State of New Mexico. The FBI in Little Rock, Ark., the Garland County (Arkansas) Sheriff’s Office, and the U.S. Attorney’s Office for the Western District of Arkansas also assisted in the investigation. The case is being prosecuted by Assistant U.S. Attorneys Randy M. Castellano and Maria Y. Armijo of the U.S. Attorney’s Las Cruces Branch Office.
The case against the Hoppers is being prosecuted as part of a federal anti-violence initiative that targets “the worst of the worst” offenders based primarily on their criminal histories for federal prosecution. Under this initiative, the U.S. Attorney’s Office and federal law enforcement agencies work with New Mexico’s District Attorneys and state, local and tribal law enforcement agencies to target violent or repeat offenders for federal prosecution with the goal of removing repeat offenders from communities in New Mexico for as long as possible. Because New Mexico’s violent crime rates, on a per capita basis, are amongst the highest in the nation, New Mexico’s law enforcement community is collaborating to target repeat offenders from counties with the highest violent crime rates, including Luna County under this initiative.
Couple Headed to Prison for Methamphetamine SmugglingRead the Press Release
LAREDO, Texas – A local woman has been ordered to prison for nearly 20 years following her conviction of trafficking liquid methamphetamine, announced U.S. Attorney Kenneth Magidson. A federal jury convicted Brenda Rodriguez-Garcia, 23, of Laredo, following a two-day trial on June 30, 2015,
Today, U.S. District Judge Diana Saldaña, who presided over the trial, ordered Rodriguez-Garcia to serve a total of 235 months in federal prison to be immediately followed by five years of supervised release. Also sentenced today was Luis Hernandez-Cabello, 30, of Nuevo Laredo, Mexico, who pleaded guilty June 9, 2015. He will serve 37 months in prison. He is expected to face deportation proceedings following his release.
At trial, Border Patrol (BP) and the Drug Enforcement Administration (DEA) agents described their Feb. 9, 2015, discovery of methamphetamine concealed in the running boards of the couple’s Chevrolet Suburban. Testimony revealed that Rodriguez and Hernandez had passed through the same checkpoint in a different vehicle three days earlier. Although the couple was allowed to proceed with their travel on that date, an agent later found crystals on his uniform and tools that tested positive as methamphetamine. Rodriguez and Hernandez were recognized when they attempted to pass through the same check point on the later date. The jury also heard from DEA drug chemists and drug value experts who testified that the confiscated drug was methamphetamine and had a value between approximately $340,000 and $400,000.
At the hearing today, Rodriguez-Garcia asked the court for a minimal sentence, but the judge refused. The court noted that she believed Rodriguez-Garcia was the most culpable - driving the vehicles each time, organizing the trips, securing the vehicles and giving inconsistent statements. The Judge pointed out the jury’s finding of guilty, the significant quantities of methamphetamine involved and Rodriguez-Garcia’s refusal to accept responsibility for her actions.
Both defendants will remain in custody pending transfer to U.S. Bureau Prisons facilities to be determined in the near future.
The charges were the result of an investigation conducted by BP and DEA. Assistant U.S. Attorneys Christopher dos Santos, Mike Eaton and Homero Ramirez prosecuted the case.
Chief Financial Officer at BVU IndictedRead the Press Release
ABINGDON, VIRGINIA – A federal grand jury sitting in the United States District Court for the Western District of Virginia in Abingdon has charged the chief financial officer at Bristol Virginia Utilities [BVU] with a variety of tax and fraud charges in a 15-count federal indictment.
The grand jury has charged Stacey Pomrenke, a.k.a. Stacey Bright, 43, of Abingdon, Virginia, with one count of conspiracy to commit tax fraud, three counts of making false statements, three counts of extortion, one count of program theft, one count of conspiracy to commit wire fraud and six counts of wire fraud.
The indictment, returned October 26, 2015, alleges that Pomrenke, through her position as chief financial officer with BVU, used her power to obtain things of value from vendors who were engaged in business relationships with BVU. Those things of value included, allegedly, tickets to baseball and football games, alcohol and the funding of official BVU company functions. Pomrenke is also charged with conspiring to defraud the United States by falsely reporting wages and other financial benefits of BVU employees to the Internal Revenue Service.
If convicted, Pomrenke faces a maximum possible penalty of up to 20 years in prison and/or a fine of up to $250,000.
The investigation of the case, which remains ongoing, is being conducted by the Federal Bureau of Investigation and the Internal Revenue Service, Criminal Investigation. Assistant United States Attorney Zachary Lee will prosecute the case for the United States.
A Grand Jury Indictment is only a charge and not evidence of guilt. The defendant is entitled to a fair trial with the burden on the government to prove guilt beyond a reasonable doubt.
Charlotte Man Pleads Guilty to $2 Million Health Care Fraud SchemeRead the Press Release
CHARLOTTE, N.C. – The former co-owner and operator of a Charlotte-area company providing services to Medicaid beneficiaries with intellectual/developmental disabilities has admitted to defrauding the government program of over $2 million, announced Jill Westmoreland Rose, U.S. Attorney for the Western District of North Carolina. Eric Bernard Mitchell, 43, of Charlotte, appeared before U.S. Magistrate Judge David S. Cayer and pleaded guilty to health care fraud and money laundering charges.
U.S. Attorney Rose is joined in making today’s announcement by Derrick Jackson, Special Agent in Charge, Department of Health and Human Services, Office of the Inspector General (HHS-OIG), Office of Investigations, Atlanta Region and Thomas J. Holloman III, Special Agent in Charge of the Internal Revenue Service, Criminal Investigation Division (IRS-CI).
According to filed court documents and today’s plea hearing, from about 2007 to about 2009, Mitchell co-owned and operated Angelic Community and Family Services, L.P. (Angelic), which provided alternative care to Medicaid recipients with intellectual/developmental disabilities in a non-institutional setting. Angelic later became defunct, and in 2009, Mitchell assisted in the creation of another company, identified in court documents as “Company #1,” which provided the same type of services as Angelic. Mitchell operated significant portions of Company #1’s business and had exclusive control of the company’s bank accounts. Both Angelic and Company #1 were approved by Medicaid to provide such services to beneficiaries and to receive reimbursement from the government program.
According to court records, in or about 2006, Mitchell created an unincorporated company, Mitchell Connor & Associates (MCA), which provided operational services to Company #1, including the submission of reimbursement claims to Medicaid. Mitchell admitted in court today that from about October 2009 to about June 2014, he submitted through MCA fraudulent claims to Medicaid on behalf of Company #1, seeking reimbursement for services which were never provided to beneficiaries with developmental disabilities. Mitchell also admitted that he submitted the fraudulent claims using the Medicaid beneficiary information of former clients of Angelic, who Mitchell knew were approved to receive such services. Over the course of the scheme, Mitchell admitted to submitting at least $2.5 million in fraudulent claims using the beneficiaries’ stolen information and to receiving over $2 million in payments from Medicaid.
According to court records, Medicaid directed payments for Company #1’s reimbursement claims, including the fraudulent ones, to multiple bank accounts exclusively controlled by Mitchell. Over the course of the conspiracy, Mitchell used portions of the Medicaid funds to cover personal expenses, including to make multiple car payments to a Mercedes dealer and to pay for various car repair services.
Mitchell was released on bond after the plea hearing. The health care fraud charge and the money laundering charge each carry a maximum prison term of 10 years. A sentencing date for Mitchell has not been set yet.
The investigation was handled by HHS-OIG and IRS-CI. U.S. Attorney Rose also thanked the North Carolina Medicaid Investigations Division for their assistance. Assistant U.S. Attorney Kelli Ferry of the U.S. Attorney’s Office in Charlotte is prosecuting the case.
The investigation and charges are the work of the Western District’s joint Health Care Fraud Task Force. The Task Force is multi-agency team of experienced federal and state investigators, working in conjunction with criminal and civil Assistant United States Attorneys, dedicated to identifying and prosecuting those who defraud the health care system, and reducing the potential for health care fraud in the future. The Task Force focuses on the coordination of cases, information sharing, identification of trends in health care fraud throughout the region, staffing of all whistle blower complaints, and the creation of investigative teams so that individual agencies may focus their unique areas of expertise on investigations. The Task Force builds upon existing partnerships between the agencies and its work reflects a heightened effort to reduce fraud and recover taxpayer dollars.
If you suspect Medicare fraud please report it by phone at 1-800-447-8477 (1-800-HHS-TIPS), or E-Mail at [email protected]. To report Medicaid fraud in North Carolina, call the North Carolina Medicaid Investigations Division at 919-881-2320.
Central Man Pleads Guilty to Child Porn PossessionRead the Press Release
Contact Person: Bill Watkins (864) 282-2100
Columbia, South Carolina ---- United States Attorney Bill Nettles stated today that Joel Estrada-Secundino, age 49, of Central, pled guilty today in federal court in Greenville, to possession of child pornography, a violation of Title 18, United States Code, Section 2252A(a)(5)(B). United States District Judge J. Michelle Childs, of Greenville accepted the plea and will impose sentence after she has reviewed the presentence report which will be prepared by the U.S. Probation Office.
Evidence presented at the change of plea hearing established that in April 2015 agents investigating crimes against children downloaded two files from the Ares computer network that appeared to be child pornography. The files were being shared by the computer’s owner. The IP address was traced to Estrada-Secundino’s apartment in Central, South Carolina.
After further investigation, on August 19, 2015, a federal search warrant was executed at the apartment. Once inside the residence, law enforcement located Estrada-Secundino in an upstairs bedroom with a HP laptop computer in his possession. During a post-Miranda interview, Estrada-Secundino confirmed his laptop did contain pornography with children engaged in sexual activity. A forensic examination of the computer revealed multiple images and videos of children engaged in sexually explicit conduct.
Mr. Nettles stated the maximum penalty Estrada-Secundino can receive is a fine of $250,000 and/or imprisonment for 20 years, supervised release for life, plus a special assessment of $100.
The case was investigated by agents of the Department of Homeland Security, Office of Investigations and the South Carolina Attorney General’s Office. Assistant United States Attorney Bill Watkins of the Greenville office handled the case.
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