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Friday 4 September 2015
Tonawanda Man Pleads Guilty to Methylone ConspiracyRead 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 Alexander R. Filippone, 24, of Tonawanda, NY, pleaded guilty to conspiracy to possess with intent to distribute, and to distribute, methylone, before U.S. District Judge Richard J. Arcara. The charge carries a maximum penalty of 20 years in prison and a $1,000,000 fine.Assistant U.S. Attorney Frank T. Pimentel, who is handling the case, stated that on three dates in February, March, and April 2013 the defendant sold methylone, which is sometimes sold on the street as “molly,” to an undercover police officer in commercial parking lots in Tonawanda and Amherst, NY.
The plea is the result of an investigation on the part of Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Acting Special Agent in Charge J. Michael Kennedy, and the New York State Police, under the direction of Major Michael Ceretto.
Sentencing is scheduled for January 12, 2016, at 12:30 p.m. before Judge Arcara.
Third Detroit Resident Admits Role in Stamford Jewelry Store Smash-and-Grab RobberyRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that DAJUHN GRIFFIN, 26, of Detroit, Michigan, pleaded guilty today before U.S. District Judge Victor A. Bolden in Bridgeport for his role in a smash-and-grab robbery of a Stamford jewelry store in November 2014.
According to court documents and statements made in court, on November 26, 2014, GRIFFIN and two accomplices, armed with hammers, entered Sidney Thomas Jewelers, located in the Stamford Town Center Mall, during regular business hours. Soon after entering, they used the hammers to smash open a jewelry display case and removed more than $250,000 worth of Rolex watches. The three then fled with security guards in pursuit. One of GRIFFIN’s accomplices, Richard Mathew Bailey, was caught and apprehended inside the mall while fleeing.
GRIFFIN was arrested in Detroit on April 6, 2015.
GRIFFIN pleaded guilty to one count of interfering with commerce by robbery, an offense that carries a maximum term of imprisonment of 20 years. A sentencing date has not been scheduled. He is released on a $10,000 bond and conditions requiring home confinement and electronic monitoring.
Richard Matthew Bailey and Brian Moore, both from Detroit, previously pleaded guilty to the same charge. Moore helped organize and carry out the robbery by soliciting others to participate and partially funding it. He also drove accomplices from Detroit to Stamford to carry out the robbery and picked them up after the robbery in order to return to Detroit. Bailey and Moore await sentencing.
This case is being investigated by the Federal Bureau of Investigation and the Stamford Police Department. The case is being prosecuted by Assistant U.S. Attorney Gabriel J. Vidoni.
Tampa, Florida Man Pleads Guilty to Credit Card FraudRead 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 Jose Valdivia Quinones, 41, a Cuban National of Tampa, Florida, pleaded guilty before U.S. District Court Judge Richard J. Arcara, to bank fraud. The charge carries a maximum penalty of 30 years in prison, a fine of $1,000,000 or both.Assistant U.S. Attorney Russell T. Ippolito, Jr., who is handling the case, stated that Valdivia Quinones fraudulently obtained the credit/debit card numbers of actual people and then encoded counterfeit cards with the information illegally obtained. The defendant then used the counterfeit cards to purchase merchandise at Tops Markets stores in the Towns of Hamburg and East Aurora.
Valdivia Quinones was indicted along with Eduardo Quinones Hernandez, Yasser Carrillo Chartrand, Yaily Santurio Milian, Claudia Diaz Diaz, and Misael Toledo Rios. Hernandez has been convicted. Charges are pending against the remaining defendants. The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
The plea is the result of an investigation by Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Acting Special Agent in Charge J. Michael Kennedy, the U.S. Secret Service, under the direction of Special Agent in Charge C. Todd Laster, and the New York State Police, under the direction of Major Michael Cerretto.
Sentencing is scheduled on December 15, 2015, before Judge Arcara.
St. Louis Woman Pleads Guilty to Passing Counterfeit CurrencyRead the Press Release
Stephen R, Wigginton, United States Attorney for the Southern District of Illinois, announced today that on September 3, 2015, Shawnta L. Thomas, 37, of St. Louis, Missouri, pled guilty to one count of Conspiracy to Possess and pass Counterfeit United States Currency. Thomas faces up to 5 years in federal prison, a fine of up to $250,000 and up to 3 years of supervised release to follow any period of incarceration, when she is sentenced on December 10, 2015.
At her plea, Thomas admitted that between May 16, 2013, and May 19, 2013, she, along with two other individuals traveled into Southern Illinois to pass counterfeit currency at various businesses. Prior to being caught by law enforcement, Thomas and the other members of the conspiracy passed counterfeit United States Federal Reserve notes in Madison and St. Clair Counties. When arrested, Thomas was found to be in possession of an additional $380.00 in counterfeit currency that had not yet been passed.
The investigation was conducted by the United States Secret Service, Bethalto Police Department, and Pontoon Beach Police Department, and the case is being prosecuted by Assistant United States Attorney Ranley R. Killian.
St. Croix Man Sentenced to Federal Prison for Firearm ConvictionRead the Press Release
St. Croix, USVI – Chief District Court Judge Wilma A. Lewis on Thursday sentenced Vonne Bailey, 24, of St. Croix, to 12 months in prison for Unlawful Mailing of a Firearm, United States Attorney Ronald W. Sharpe announced. Judge Lewis also entenced Bailey to one year of supervised release and ordered him to pay a $1,000 fine.
In April of this year, Bailey pleaded guilty to Unlawful Mailing of a Firearm. As part of his plea, Bailey admitted that in May 2014, he sent his sister to the post office to pick up a package. The package, shipped from outside of the Virgin Islands, contained a pringfield Armory .40 caliber pistol, a magazine or ammunition storage device, and a Smith and Wesson AR-15 lower receiver with an obliterated serial number. Bailey claimed ownership and responsibility for the package.
The case was investigated by the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations and the United States Postal Inspection Service. It was prosecuted by Assistant U.S. Attorneys Rami S. Badawy and Rhonda Williams-Henry.
Six Men Arrested for Conspiracy to Possess Cocaine with Intent to DistributeRead the Press Release
St. Thomas, USVI – The U.S. Drug Enforcement Administration (DEA) today arrested six men from the Dominican Republic and Puerto Rico on a criminal complaint charging them with conspiracy to possess cocaine with intent to distribute, United States Attorney Ronald W. Sharpe announced. Three Dominican nationals, Alexandro Gerandino-Aracena, 39, Marco Asala, 35, and Pedro Antion Beltre Guzman, 36, and three men from Puerto Rico, Ricardo Cardona, 35, Wilfredo Perez, 30, and Jose Luis Ponce, 36, made their initial appearance today before U.S. Magistrate Judge Ruth Miller. Judge Miller remanded the men into the custody of the U.S. Marshals Service pending a preliminary and detention hearing on September 8, 2015.
According to the complaint, the men conspired to possess more than five kilograms of cocaine. The maximum sentence for conspiracy to possess cocaine with intent to distribute is life in prison and a fine of $50 million.
United States Attorney Sharpe eminds the public that a complaint is merely a formal charging document and is not evidence of guilt. Every defendant is presumed innocent until and unless proven guilty.
This case is the result of a joint investigation by the DEA, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, U.S. Postal Inspection Service, U.S. Customs and Border Protection, and the Federal Bureau of Investigation.
Rockport Man Arrested for Online Solicitation of A MinorRead the Press Release
CORPUS CHRISTI, Texas – Calvin Nesmith, 28, of Rockport, has been arrested on charges of coercion or enticement of a minor, announced U.S. Attorney Kenneth Magidson.
Nesmith was arrested today upon the filing of a criminal complaint. He is expected to make his initial appearance this afternoon before U.S. Magistrate Judge B. Janice Ellington.
The criminal complaint alleges Nesmith was communicating with a person he believed was the mother of two minor female children. In reality, he was actually talking to an undercover Homeland Security Investigations (HSI) agent from Laredo. During the course of the communications, Nesmith allegedly made arrangements to meet and engage in sexual activity with the mother’s minor female children. The complaint further alleges Nesmith also sent sexually explicit photographs depicting images of child pornography through text messages and emails to the undercover agent.
He was apprehended today as he arrived at the designated meeting place. At the time of his arrest, the complaint alleges he had several electronic devices and condoms with him.
The charges against Nesmith were the result of an investigation conducted by HSI with the assistance of the Corpus Christi Police Department-Internet Crimes Against Children Task Force.
This case, prosecuted by Assistant U.S. Attorney Hugo R. Martinez, 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."
A criminal complaint is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.Rochester Woman Sentecned for Giving Drugs to A MinorRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051ROCHESTER, N.Y.-U.S. Attorney William J. Hochul Jr. announced today that Tiffany St. Denis, 26, of Rochester, NY, who was convicted of distribution of drugs to a minor, was sentenced to 41 months in prison by Chief U.S. District Judge Frank P. Geraci.
Assistant U.S. Attorneys Tiffany H. Lee and Bradley Tyler, who are handling the case, stated that St. Denis gave drugs to a minor under the age of 18. In addition, between January 2012 and August 2012, the defendant conspired with Otis Willis to entice a female victim under the age of 18 to engage in commercial sex acts. Specifically, St. Denis posted ads for the female victim to engage in prostitution and Willis paid for hotel rooms at a Red Roof Inn.
Willis has been convicted and is awaiting sentencing.Today’s sentencing is the culmination of an investigation on the part of the Federal Bureau of Investigation's Child Exploitation Task Force which includes the Monroe County Sheriff’s Office, the Rochester Police Department, and U.S. Immigration and Customs Enforcement-Homeland Security Investigations.
Rochester Man Pleads Guilty to Sex Trafficking ChargeRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051ROCHESTER, N.Y. — U.S. Attorney William J. Hochul, Jr., announced today that Laree Greggs, 38, of Rochester, NY, pleaded guilty to conspiracy to commit sex trafficking of a minor before U.S. District Judge Elizabeth A. Wolford. The charge carries a maximum penalty of life in prison and a fine of $250,000.
Assistant U.S. Attorneys Tiffany H. Lee and Melissa M. Marangola, who are handling the case, stated that in April 2013, Greggs attempted to transport a minor from Rochester to the State of Pennsylvania for the purpose of engaging in prostitution in furtherance of the conspiracy. The defendant used Backpage.com to post ads for the minor.
Greggs was arrested in April 2014 along with Jodia Campbell and Jennifer Miller. Charges are pending against Campbell. Miller has been convicted and is awaiting sentencing. The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
The plea is the culmination of an investigation on the part of the Federal Bureau of Investigation's Child Exploitation Task Force which includes the Monroe County Sheriff’s Office, the Rochester Police Department, and U.S. Immigration and Customs Enforcement‐Homeland Security Investigations.
Rochester Man Pleads Guilty to ArsonRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051ROCHESTER, N.Y.-- U.S. Attorney William J. Hochul, Jr. announced today that Eddie L. Vaughn, a/k/a Elbow, 35, of Rochester, NY, pleaded guilty before Chief U.S. District Judge Frank P. Geraci, Jr. to arson of a commercial building and possession of a firearm by a convicted felon. The charges carry a mandatory minimum penalty of five years in prison, a maximum of 30 years, a fine of $500,000 or both. Vaughn also agreed to forfeit a sawed-off shotgun and rounds of ammunition seized in connection with the investigation.
Assistant U.S. Attorney Robert A. Marangola, who is handling the case, stated that on September 22, 2013, Vaughn threw a Molotov cocktail into the Miami Deli Grocery at
176 Genesee Street in Rochester. The Molotov cocktail landed on the floor of the store and exploded, spreading fire throughout the building. Both the interior and exterior of the store were burned and extensively damaged.The Miami Deli Grocery was a business which routinely purchased and sold goods from suppliers within and outside the state of New York and the United States. As such, the building was used in interstate and foreign commerce, giving rise to the federal arson investigation and prosecution.
In addition, between June 20 and June 26, 2014, the defendant possessed a firearm and ammunition after having been previously convicted of four felonies.
The conviction is the culmination of an investigation conducted by the Arson Task Force, which is comprised of Investigators of the Rochester Fire Department, Rochester Police Department, and Special Agents of the Bureau of Alcohol, Tobacco, Firearms and Explosives.Sentencing is scheduled for December 2, 2015 at 9:30 a.m. before Judge Geraci.
Professional Hockey Player Sentenced for Role in Gambling RingRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051ROCHESTER, N.Y. ‐‐ U.S. Attorney William J. Hochul, Jr. announced today that Nathan Paetsch, 32, of Spencerport, NY, who was convicted of transmission of wagering information and structuring transactions to evade reporting requirements, was sentenced to five years probation to include eight months home detention, and 400 hours of community service by Chief U.S. District Judge Frank P. Geraci.
The defendant has already forfeited $165,000 including $22,725 in lieu of a 2011 BMW X5, $76,941 in lieu of his interest in his residence at 25 King Fisher Drive,
Spencerport, and $67,197 in lieu of his interest in a residence at 218 Palmetto Dunes Circle, in Naples, Florida. The court also ordered Paetsch to satisfy a $100,000 money judgment.Assistant U.S. Attorney Robert A. Marangola, who handled the case, stated that Paetsch’s was involved in an illegal gambling business with Joseph Ruff, his brother Mark Ruff, both of Connecticut, and Paul Borrelli of Rochester. The gambling operation involved sports betting through multiple offshore internet gambling websites.
Specifically, Paetsch used wire communication facilities, including cellular telephones, to transmit in interstate and foreign commerce, bets, wagers and information which assisted in the placing of bets and wagers with the illegal internet gambling business on sporting events and contests. The defendant’s involvement included transmitting information over cellular telephones to assist professional hockey players and others he recruited to place bets. Paetsch’s transmissions entitled him to receive money or credit as a result of bets and wagers. The information transmitted by the defendant crossed state lines as well as the international boundary of the United States. The information provided by Paetsch included usernames and passwords to accounts for bettors to place internet wagers, odds on sporting events, credit limits and balances of bettors, making arrangements for the collection of cash payments from bettors in Canada, New York, New Jersey, Pennsylvania, and Florida, and bank account information to conceal payments for gambling debts owed from wagers placed with the illegal gambling business.
With respect to the structuring charges, on multiple occasions between January 2010 and June 24, 2014, Paetsch withdrew and deposited transactions from accounts at financial institutions, including but not limited to First Niagara Bank, in amounts less than $10,000. The defendant was aware that as a domestic financial institution, banks are obligated by law to report transactions in excess of $10,000. At the time that he made the transfers, Paetsch intended to evade the reporting requirements because he knew the funds involved proceeds of the illegal internet gambling business.
Mark Ruff and Joseph Ruff were convicted and sentenced to nine years and 41 months in prison respectively. Paul Borrelli was also convicted and is awaiting sentencing on September 8, 2015 at 3:00 pm before Judge Geraci.
The sentencing is the culmination of an investigation conducted by the Organized Crime Drug Enforcement Task Force, which includes the Federal Bureau of Investigation, Internal Revenue Service, under the direction of Shantelle P. Kitchen, Special Agent in Charge, New York Field Office, Rochester Police Department, under the direction of Chief Michael Ciminelli, Drug Enforcement Administration, under the direction of Special Agent in Charge James J. Hunt, New York Field Division, Bureau of Alcohol, Tobacco, Firearms, and Explosives, under the direction of Special Agent in Charge Delano A. Reid, New York Field Division, Greece Police Department, under the direction of Chief Patrick Phelan, the Webster Police Department, under the direction of Acting Chief Joseph Rieger, and Monroe County District Attorney’s Office, under the direction of District Attorney Sandra Doorley.
Portland Man Pleads Guilty to Crack Cocaine Distribution ChargesRead the Press Release
Contact: Julia M. Lipez
Assistant United States Attorney
Tel: (207) 780-3257Portland, Maine: United States Attorney Thomas E. Delahanty II announced that Samuel Collins, 46, of Portland, Maine, pleaded guilty yesterday in U.S. District Court to conspiring to distribute cocaine base, often referred to as crack cocaine.
Court records reveal that between December 2013 and January 2015, Collins conspired with others to sell crack cocaine in Portland, Maine. Members of the conspiracy would arrange for the acquisition of drugs out of state. Once the drugs were transported to Maine, they were provided to retail distributors, including Collins, who would sell the drugs in the Portland area. During the course of the investigation, law enforcement officers conducted controlled purchases of crack cocaine from Collins and determined that Collins let other members of the conspiracy sell drugs from his apartment.
Collins faces up to 20 years in prison and a $1,000,000 fine. He will be sentenced after the completion of a presentence investigation report by the U.S. Probation Office.
This case was investigated by the Southern Maine Gang Task Force, which is comprised of investigators from the Federal Bureau of Investigation, the Portland Police Department, Homeland Security Investigations, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Drug Enforcement Administration. The Biddeford and Lewiston Police Departments, the Maine Drug Enforcement Agency, and the Maine State Police also assisted with the investigation.
The case also results from the ongoing effort of the Organized Crime Drug Enforcement Task Forces (OCDETF), a partnership between federal, state and local law enforcement agencies. The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply.
Pittsburg, Kan., Man Sentenced to 11+ Years on Federal Firearms, Drug ChargesRead the Press Release
WICHITA, KAN. – A Pittsburg, Kan., man was sentenced Thursday to 136 months in federal prison on federal firearms and drug charges, U.S. Attorney Barry Grissom said.
James D. Russian, 57, Pittsburg, Kan., was convicted June 17 on one count of unlawful possession of a firearm after a felony conviction, one count of unlawful possession of ammunition after a felony conviction, one count of unlawful possession of a firearm in furtherance of drug trafficking, and one count of possession with intent to distribute marijuana.
During trial, prosecutors presented evidence that on March 27, 2013, Russian led police on a car chase from Barton County, Mo., to Crawford County, Kan., when they tried to stop him to investigate a report he threatened two people with a machete and a gun. Russian abandoned his car and hid in a wooded area before he was arrested. Investigators found marijuana, firearms and ammunition in his possession. Because of a prior felony conviction, Russian was prohibited by federal law from possessing firearms or ammunition.
Grissom commended the Crawford County Sheriff’s Office, the Barton County Sheriff’s Office, the Liberal (Mo.) Police Department, the Pittsburg Police Department, the Bureau of Alcohol, Tobacco, Firearms and Explosives and Assistant U.S. Attorney Debra Barnett for their work on the case.
Nine Sentenced in Multi-Million Dollar Mortgage Fraud SchemeRead the Press Release
WASHINGTON – Nine individuals have been sentenced on federal charges stemming from a mortgage fraud scheme involving 45 properties and $16 million in mortgage loans used for the purchase of residential real estate in the District of Columbia and Maryland.
The sentences were announced today by Acting U.S. Attorney Vincent H. Cohen, Jr.; Olga Acevedo, Special Agent in Charge of the Mid-Atlantic Region, Office of the Inspector General, Federal Housing Finance Agency; Cary Rubenstein, Special Agent in Charge of the Mid-Atlantic Region of the Office of the Inspector General of the U.S. Department of Housing and Urban Development (HUD-OIG); and Andrew G. McCabe, Assistant Director in Charge of the FBI’s Washington Field Office.
The sentences, the most recent of which took place today, occurred before the Honorable Reggie B. Walton of the U.S. District Court for the District of Columbia. Defendants include:
Edward Dacy, 77, of West Melbourne, Fla. He was sentenced on Aug. 6, 2015 to six years in prison. Dacy was found guilty by a jury of 10 counts of conspiracy, bank fraud, and mail fraud. Upon completion of his prison term, Dacy will be placed on three years of supervised release. In addition, Judge Walton ordered that he pay $2,730,345 in restitution and an identical amount as a forfeiture money judgment.
Frank Davis, Jr., 49, of Washington, D.C. He was sentenced on Aug. 7, 2015 to five years in prison for conspiracy to commit bank fraud. Upon completion of his prison term, Davis will be placed on three years of supervised release. Judge Walton also ordered that Davis pay $2,730,345 in restitution and an amount of $2,296,463 as a forfeiture money judgment;
Frederick Robinson, Sr., 52, of Montgomery, Ala. He was sentenced on July 31, 2015 to 27 months in prison for conspiracy to commit bank fraud. Upon completion of his prison term, Robinson will be placed on three years of supervised release. Robinson also was ordered to pay $925,311 in restitution and an amount of $971,900 as a forfeiture money judgment.
Lonnie Johnson, 47, of Greensboro, N.C. He was sentenced on July 15, 2015 to one year and one day in prison for conspiracy to commit bank fraud. Upon completion of his prison term, Johnson will be placed on three years of supervised release. In addition, Judge Walton ordered that he pay $277,000 in restitution.
Cheryl E. Morrison, 54, of West Melbourne, Fla. She was sentenced on Aug. 5, 2015 to five years of probation for conspiracy to commit mail fraud; she was required to serve 90 days of that time in home detention. She also must pay $42,600 in restitution;
Howard Tutman, III, 54, of Woodstock, Md. He was sentenced on Aug. 4, 2015 to five years of probation for conspiracy to commit bank fraud; he was required to serve 20 weekends in jail. In addition, Judge Walton ordered Tutman to pay $484,370 in restitution and $606,414 in forfeiture;
Pauline Pilate, 50, of Washington, D.C. She was sentenced on July 16, 2015 to three years of probation for conspiracy to commit bank fraud; she was required to serve eight weekends in jail. In addition, Judge Walton ordered that she pay $1 million in restitution and an identical amount as a forfeiture money judgment;
A. Conrad Austin, 49, of Bowie, Md. He was sentenced on May 15, 2015 to five years of probation for conspiracy to commit bank fraud, mail fraud, and wire fraud; he was required to serve four weekends in jail. In addition, Judge Walton ordered that he pay $5,001 in restitution and an identical amount as a forfeiture money judgment.
Anthony Young, 47, of Clinton, Md. He was sentenced today to five years of probation for conspiracy to commit bank fraud; he is required to serve eight weekends in jail. In addition, Judge Walton ordered that he pay $300,600 in restitution.
Today’s sentencing concludes a three-year investigation relating to this mortgage fraud scheme involving the defrauding of banks, mortgage lenders, and the Federal Housing Administration, part of U.S. Department of Housing and Urban Development, of money by obtaining mortgage loans on residential real estate properties through false loan applications and documents and fraudulent settlements. These actions ultimately caused a loss to the banks, lenders, and FHA when mortgages were not paid. Some of the fraudulently-obtained mortgage loans were later resold in the secondary mortgage market to Freddie Mac and Fannie Mae.
“In this case, a group of greedy individuals teamed up with a real estate agent, a certified public accountant, employees of a settlement company, and others to carry out a far-reaching scheme that caused millions of dollars in losses to banks and other lending institutions,” said Acting U.S. Attorney Cohen. “These defendants took money that could have been used to help honest, hard-working people attain the dream of home ownership. They used straw buyers and falsified documents to carry out their long-running fraud. The prosecution in this case demonstrates our resolve to aggressively deal with those who engage in mortgage fraud at the expense of the entire community.”
“This was a multi-tiered scheme with multiple individuals playing a role, and every single one of them underestimated the ability and commitment of law enforcement to protect innocent victims and ultimately the taxpayers from mortgage fraud schemes,” said Special Agent in Charge Acevedo. “We are proud to be a part of the multi-agency effort to hold accountable those who engage in mortgage and bank fraud. FHFA-OIG will continue to carry out this work until all are held accountable.”
“This sentencing was the result of outstanding investigative work conducted by the HUD OIG, and our law enforcement partners,” said Special Agent in Charge Rubenstein. “This collaborative effort sends a clear message that we will commit the necessary resources to make sure that the fraudsters are brought to justice and are prosecuted to the full extent of the law.”
“Even though this $16 million mortgage fraud conspiracy targeted lenders, banks, and the Federal Housing Administration, the result of these criminal actions hurts our entire community,” said Assistant Director in Charge McCabe. “The FBI will continue to work with our law enforcement partners to ensure that these criminal schemes do not go unpunished.”
Davis and Robinson purchased properties in the names of general partnerships; Davis and Robinson then recruited individuals, or straw buyers, to re-purchase these same properties for higher amounts, funded by fraudulently obtained mortgage loans, by promising the buyers that they would not be required to: make financial contributions toward the purchase of the properties; pay the monthly mortgage payments or expenses; or maintain the properties. These mortgage loans were obtained by fraudulent statements and documents, including false loan applications and real estate contracts, phony cashier’s checks and verifications from banks, fabricated tax returns, and letters from a Certified Public Accountant.
Davis recruited Young, who assisted with recruiting other straw buyers; Pilate, who obtained her real estate license in order to create real estate sales contracts for the straw buyers, and Johnson, a bank employee who assisted in creating false verifications of deposits. In order to obtain mortgage loans in the names of some of the straw buyers, Robinson recruited Austin, a Certified Public Accountant (CPA), to create false CPA letters, inflated tax returns, and unjustified financial statements. Tutman was the loan officer on 14 loans or loan attempts, and knew that the borrowers were merely straw buyers for Davis and Robinson and the loan applications contained inflated salaries.
Morrison worked at the settlement company with Dacy, her husband. The settlement company received the funding from the mortgage lender and should have collected the buyers’ cash contributions; it was under the obligation to disburse the loan money only if all of the mortgage lender’s conditions were met and the buyer’s financial contributions collected. Morrison and Dacy handled the straw buyers’ settlement of the properties, with knowledge that the straw buyers did not pay the cash contribution as required by the lenders.
In announcing the sentences, Acting U.S. Attorney Cohen, Special Agent in Charge Acevedo, Special Agent in Charge Rubenstein, and Assistant Director in Charge McCabe expressed appreciation for the work performed by the Special Agents and analysts from the Offices of Inspector General of the Federal Housing Finance Agency and Department of Housing and Urban Development and the FBI, who investigated the case. They also expressed appreciation for the work of the U.S. Secret Service and the Offices of Inspector General of the Central Intelligence Agency, the Department of Justice, and Department of Homeland Security, which assisted in the investigation. They acknowledged the efforts of those working on the case from the U.S. Attorney’s Office for the District of Columbia, including Paralegal Specialists Ida Anbarian, Donna Galindo, Corinne Kleinman, Kristy Penny, Tasha Harris, and Heather Sales, former Paralegal Specialist Sarah Reis, and Assistant U.S. Attorneys Anthony Saler, Thomas Swanton, and Arvind K. Lal, who assisted with forfeiture issues. Finally, they commended the work of Assistant U.S. Attorneys Virginia Cheatham and David A. Last, who tried the case against Edward Dacy and handled the plea negotiations with Conrad Austin, and Virginia Cheatham who prosecuted the case.
New York Man Sentenced in Missoula to More Than 16 Years in Prison for Child Pornography CrimeRead the Press Release
David Woods, 38, of Corfu, New York, was sentenced today to 15 years of incarceration, for conspiracy to advertise child pornography. Woods was also required to 15 years of supervised release. Chief U.S. District Court Judge Dana Christensen sentenced Woods following a May 22, 2015, hearing, in which Woods pleaded guilty to the offense.
In an Offer of Proof filed by Assistant U.S. Attorney Cyndee Peterson, the government stated that if the case had proceeded to trial, the government would have proven that an invitation-only online bulletin board, referred to as Dark Moon, was created in 2011. It allowed members to advertise and exchange images of child pornography. In early 2012, Woods became an active member of the bulletin board and continued to be an active member in a more advanced role until April 2013. Woods made posts in the advanced member section of the board, which included URL links and preview images of child pornography. Woods also requested child pornography from other members of the Dark Moon and responded to and commented on child pornography posts made by other members. Law enforcement analysis of Woods’ digital and other devices revealed that he used hard drives, a computer, Woods’ digital devices and other evidence, which revealed that he used multiple hard drives and a computer, in commission of the crime. Woods was ordered to forfeit those items at the sentencing.
This case was initiated under the Department of Justice’s Project Safe Childhood initiative which was launched in 2006 to combat the proliferation of technology-facilitated crimes involving the sexual exploitation of children. Through a network of federal, state and local law enforcement agencies and advocacy organizations, Project Safe Childhood attempts to protect children by investigating and prosecuting offenders involved in child sexual exploitation. It is implemented through partnerships including the Montana Internet Crimes Against Children (ICAC) Task Force. The ICAC Task Force Program was created to assist state and local law enforcement agencies by enhancing their investigative response to technology facilitated crimes against children. Investigative agencies in the case include the FBI, Homeland Security Investigations and Montana Division of Criminal Investigation.
Assistant U.S. Attorney Cyndee Peterson prosecuted this case along with Maureen Cain, of the Department of Justice Child Exploitation & Obscenity Section. Because there is no parole in the federal system, Woods will have to serve at least 85 percent of his sentence before he is released from prison.
New York Man Sentenced in Missoula to 15 Years in Prison for Child Porn CrimeRead the Press Release
MISSOULA – David Woods, 38, of Corfu, New York, was sentenced today to 15 years’ incarceration followed by 15 years supervised release, for conspiracy to advertise child pornography. Chief U.S. District Court Judge Dana L. Christensen sentenced Woods following a May 22, 2015, hearing, in which Woods pleaded guilty to the offense.
In an Offer of Proof filed by Montana Assistant U.S. Attorney Cyndee Peterson and Trial Attorney Maureen Cain, of the U.S. Department of Justice’s Child Exploitation & Obscenity Section, the government stated that if the case had proceeded to trial, the government would have proven that an invitation-only online bulletin board, referred to as Dark Moon, was created in 2011. The bulletin board allowed members to advertise and exchange images of child pornography. In early 2012, Woods became an active member of the bulletin board and continued to be an active member in a more advanced role until April 2013. Woods made posts in the advanced member section of the board, which included URL links and preview images of child pornography. Woods also requested child pornography from other members of the Dark Moon, and responded to and commented on child pornography posts made by other members. Law enforcement analysis of Woods’ digital and other devices revealed that he used multiple hard drives and a computer in commission of the crime.
This case was initiated under the Department of Justice’s Project Safe Childhood initiative which was launched in 2006 to combat the proliferation of technology-facilitated crimes involving the sexual exploitation of children. Through a network of federal, state and local law enforcement agencies and advocacy organizations, Project Safe Childhood attempts to protect children by investigating and prosecuting offenders involved in child sexual exploitation. It is implemented through partnerships including the Montana Internet Crimes Against Children (ICAC) Task Force. The ICAC Task Force Program was created to assist state and local law enforcement agencies by enhancing their investigative response to technology facilitated crimes against children. Investigative agencies involved in the case include the FBI, Homeland Security Investigations, and the Montana Division of Criminal Investigation.
Assistant United States Attorney Cyndee Peterson prosecuted this case along with Trial Attorney Maureen Cain, of the U.S. Department of Justice’s Child Exploitation & Obscenity Section. Because there is no parole in the federal system, Woods will have to serve at least 85% of his sentence before he is released from prison.
Maryland Man Sentenced to Prison for Involuntary Manslaughter in Traffic Fatality in Northeast WashingtonRead the Press Release
WASHINGTON – Momodui I. Bello, 36, of Fort Washington, Md., was sentenced today to serve four years in prison on charges of involuntary manslaughter and driving under the influence of alcohol, stemming from a traffic fatality that took place earlier this year in Washington, D.C., Acting U.S. Attorney Vincent H. Cohen, Jr. announced.
Bello pled guilty to the charges in June 2015 in the Superior Court of the District of Columbia. The plea agreement, which was contingent upon the Court’s approval, called for a sentence between three and five years in prison. The Honorable Lynn Leibovitz accepted the plea and sentenced Bello to a total of five years in prison. She suspended a year of that time on the condition that Bello successfully complete five years of probation upon his release from prison; during that time, the judge ordered that he refrain from driving as well as alcohol.
According to the government’s evidence, on Sunday, March 22, 2015, at about 3:15 a.m., Bello was driving a Volkswagen Passat on Eastern Avenue with the victim, Nancy Tinoza, in the front seat, and a rear seat passenger. The group was coming from Mango Café in Bladensburg, Md., where Bello drank several alcoholic beverages. While driving in the 3400 block of Eastern Avenue NE, in the District of Columbia, Bello failed to maintain his lane or to reduce his speed and crashed the Volkswagen into the rear of a tractor-trailer combination truck that was parked in the curbside lane of Eastern Avenue. The passenger side of Bello’s Volkswagen struck the back of the truck, went under the truck, and came to a rest when it slammed into the truck’s rear wheels. The crash killed Ms. Tinoza, 26.
The evidence indicated that, at the time of the crash, Bello was traveling at 45 mph in the 25 mph zone, and that he did not apply his brakes or take any action to avoid the collision. While at a hospital after the crash, Bello submitted a urine sample which indicated the presence of alcohol with a concentration of .24 percent. A concentration of .10 percent of alcohol in urine is considered to be driving under the influence in the District of Columbia.
In announcing the sentence, Acting U.S. Attorney Cohen commended the work of those who investigated the case for the Metropolitan Police Department, including members of the Major Crash Investigations Unit and the Fifth District. He also expressed appreciation for those who worked on the case from the U.S. Attorney’s Office, including Paralegal Specialist Sandra Lane and Victim/Witness Advocate Jim Brennan. Finally, he commended the efforts of Assistant U.S. Attorney Edward A. O’Connell, who prosecuted the matter.
Manhattan U.S. Attorney Announces Extradition of Pakistani Nationals for Conspiring to Commit Narco-Terrorism and to Sell Missile Systems, Among Other OffensesRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, and Mark Hamlet, the Special Agent in Charge of the Special Operations Division of the United States Drug Enforcement Administration (“DEA”), announced today the extradition of PIRZADA KHAWAJA ABDUL HAMEED CHISHTI, a/k/a “Abdul Hameed Chishti Pirzada Khawaja,” a/k/a “Benny,” and PIRZADA KHAWAJA ABDUL WAHAB CHISHTI, a/k/a “Abdul Wahab Chishti Pirzada Khawaja,” a/k/a “Angel.” Both are citizens of Pakistan residing in Spain and are charged with conspiring to commit narco-terrorism, to provide material support to a foreign terrorist organization, to import heroin into the United States, and to unlawfully sell missile launching systems. HAMEED CHISHTI and WAHAB CHISHTI were arrested, along with co-defendants Sohail Kaskar and Ali Danish, in Spain on June 17, 2014, at the request of the United States. HAMEED CHISHTI and WAHAB CHISHTI arrived in the Southern District of New York today, and will be presented before United States Magistrate Judge Gabriel W. Gorenstein. The case is assigned to United States District Judge J. Paul Oetken.
Manhattan U.S. Attorney Preet Bharara said: “As alleged, Hameed Chishti and Wahab Chishti had no qualms selling multi-kilogram quantities of U.S.-bound heroin to individuals they believed to be members of a terrorist organization, the FARC. According to the complaint and indictment, they also planned to arm these purported terrorists with military-grade weapons, believing they would be used to protect the FARC’s drug-trafficking enterprise. Thanks to the dedicated work of the DEA, this entire conspiracy was foiled and these defendants will face justice on American soil.”
DEA Special Agent in Charge Mark Hamlet said: “Hameed and Wahab Chishti illustrate once again that drug trafficking and terror conspiracies often intersect, support, and facilitate each other’s dangerous and potential deadly plots. DEA and our global partners often uncover criminal activities where drug trafficking networks and terror organizations are one and the same. DEA will continue to work to strengthen our national security and rule of law by attacking these deadly transnational criminal groups who deal in weapons, drugs, and other crimes with the ultimate goal of bringing them to justice here in the United States.”
According to the allegations contained in the Indictment and the underlying Complaint unsealed in Manhattan federal court[1]:
From 2013 through the date of their arrests, HAMEED CHISHTI and WAHAB CHISHTI, and their co-defendants, Kaskar and Danish, participated in a conspiracy to import heroin into the United States, to distribute heroin that would be imported into the United States, and to support the Fuerzas Armadas Revolucionarias de Colombia (“FARC”), or the Revolutionary Armed Forces of Colombia. During meetings at locations in Spain and elsewhere, the defendants agreed to sell multi-kilogram quantities of heroin to individuals they believed to be representatives of the FARC. In fact, the purported FARC representatives were confidential sources working with the DEA. The defendants believed that the purported FARC representatives planned to transport the heroin to the United States. In April 2014, HAMEED CHISHTI and WAHAB CHISHTI arranged for the delivery of a one-kilogram sample of heroin to the purported FARC representatives in the Netherlands, for transport on to the United States.
During the course of the narcotics negotiations, the purported FARC representatives indicated that the FARC was interested in buying “Iglas” – the name of Russian-made surface-to-air missiles – to protect its drug-trafficking business in Colombia. From April 2014 through June 2014, HAMEED CHISHTI, WAHAB CHISHTI, and their co-conspirators participated in discussions where they agreed to sell several missiles to the purported FARC representatives for the purpose of protecting and furthering the FARC’s efforts to manufacture and distribute cocaine for importation, ultimately, into the United States. In April 2014, Danish told the purported FARC representatives that three to five missiles could be delivered directly to wherever they were needed, and that a larger quantity of missiles could be delivered to the FARC in Colombia by diverting the missiles from a “legitimate” order. In May 2014, HAMEED CHISHTI forwarded Danish’s bank account information to one of the purported FARC representatives to facilitate payment for the surface-to-air missiles.
* * *
The indictment charges HAMEED CHISHTI, 47, and WAHAB CHISHTI, 49, with conspiring to commit narco-terrorism, to provide material support to a foreign terrorist organization, to import heroin into the United States, and to unlawfully sell missile launching systems. The United States is seeking extradition of the remaining defendants in the indictment, Kaskar and Danish, from Spain.
If convicted, each defendant faces a maximum sentence of life in prison and a mandatory minimum term of 25 years in prison.The maximum and mandatory minimum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentences will be determined by the judge.
Mr. Bharara praised the outstanding efforts of the Special Operations Division of the DEA. Mr. Bharara also thanked the DEA’s New York Field Division and the New York Organized Crime Drug Enforcement Strike Force; the U.S. Customs and Border Patrol, National Targeting Center; the DEA’s Madrid Country Office, the Hague Country Office, the Bogota Country Office, and the Port of Spain Country Office; the Government of the Kingdom of Spain and the Guardia Civil, Central Operations Unit; the Government of the Kingdom of the Netherlands and the National Police of the Netherlands; the Government of the Republic of Colombia and the Colombian National Police; and the U.S. Department of Justice’s Office of International Affairs and National Security Division.
This case is being handled by the Office’s Terrorism and International Narcotics Unit.Assistant United States Attorneys Michael D. Lockard, Adam Fee, and Emil J. Bove III are in charge of the prosecution.
The charges contained in the indictment and complaint 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 Complaint and the description of the Indictment and Complaint set forth below constitute only allegations, and every fact described should be treated as an allegation.
Man Sentenced to Federal Prison for Drug Conspiracy and Firearm OffenseRead the Press Release
Stephen R. Wigginton, United States Attorney for the Southern District of Illinois, announced today that Christopher Jenkins, 42, of East St. Louis, Illinois, was sentenced today by United States District Court Judge David R. Herndon to 108 months in federal prison for conspiring to possess with intent to distribute at least 15 kilograms of cocaine and using or carrying firearms in furtherance of the drug conspiracy.
According to court documents, in July 2013, Jenkins agreed with two men to rob a drug stash house containing cocaine. Jenkins and another codefendant brought two loaded firearms with them to assist in the robbery. ATF agents, who had been investigating Jenkins and his codefendants’ plans to commit the robbery, arrested the three men in St. Louis. Jenkins was charged in federal court in East St. Louis, Illinois and pled guilty.
There is no parole in the federal prison system. In addition to the prison sentence, Judge Herndon also sentenced Jenkins to serve a total of five years of supervised release and to pay $200 in court fees.
The Bureau of Alcohol, Tobacco, Firearms, and Explosives investigated the case and Assistant United States Attorney Monica A. Stump prosecuted the case.
Major Gang Case Results in 37 Bloods Members Sentenced to over 415 Years in PrisonRead the Press Release
ALEXANDRIA, Va. – A multi-year investigation into the Nine Trey Gangsters Bloods criminal street gang, a set of the East Coast United Blood Nation, concluded yesterday as the final defendant in the district wide investigation pleaded guilty.
The Organized Crime Drug Enforcement Task Force (OCDETF) investigation into the Nine Trey Gangsters, designated Operation Ruby Red and Operation Full Blooded Ink, led to the arrest and prosecution of 37 gang members in the Eastern District of Virginia since 2013, resulting in a total of approximately 415 years in prison for the gang members. Much of the criminal activity in the investigation centered on the distribution of narcotics in Virginia, Maryland and the D.C. metro area, namely large quantities of crack cocaine. Other related criminal activity, which often accompanies criminal street gangs, was also discovered, including conspiracy to commit racketeering, violence in aid of racketeering, conspiracy to commit sex trafficking, conspiracy to commit armed robbery, conspiracy to distribute counterfeit currency, and possession and use of firearms.
“The ultimate success of this case is due in large part to the terrific effort of our prosecutors combined with our agency partners and case agents,” said Dana J. Boente, U.S. Attorney for the Eastern District of Virginia. “My hope is that our efforts to investigate and prosecute these gang members will send a clear message to our communities: Violent gangs and their members will not be tolerated. They will be aggressively pursued and prosecuted at every opportunity.”
“The results announced today are due in no small part to the coordination and cooperation of the law enforcement agencies and prosecutors focused on eliminating the threat posed by violent gangs in our region,” said Andrew G. McCabe, Assistant Director in Charge of the FBI’s Washington Field Office. “We will continue to investigate violent gang members through collaborative efforts with the U.S. Attorney’s Office and the agencies that worked this case.”
Below is a complete list of the individuals who were prosecuted, and the respective outcome of their case:
Michael Smallwood, aka Heavenly Sovereignty, 45, of Manassas: Pleaded guilty on April 9, 2013, to conspiracy to distribute crack cocaine. Sentenced on July 10, 2013, to 30 years in prison.
Raymond Dawes, aka Veins, 35, of Manassas: Pleaded guilty on April 23, 2013, to conspiracy to distribute crack cocaine. Sentenced on July 23, 2013, to 12 years 7 months in prison.
Lovell Ritchie, aka Snax, 31, of Manassas: Pleaded guilty on April 23, 2013, to conspiracy to distribute crack cocaine. Sentenced on Dec. 12, 2013, to 12 years 7 months in prison.
Amanda Ewell, aka Amanda Sovereignty, 30, of Manassas: Pleaded guilty on June 5, 2013, to conspiracy to distribute crack cocaine. Sentenced on Sept. 23, 2013, to 10 years in prison.
Brynn Lackey, aka BEZ, 33, of Washington DC: Pleaded guilty on July 3, 2013, to conspiracy to distribute crack cocaine. Sentenced on Oct. 01, 2013, to 10 years in prison.
Thaddaeus Snow, aka Storm, 25, of Manassas: Found guilty at trial on Feb. 21, 2014, of various crimes, including sex trafficking, distribution of narcotics, robbery and counterfeit money, violence in aid of racketeering, conspiracy to distribute 280 grams or more of crack cocaine, possession of a firearm, Hobbs Act Robbery, etc. Sentenced on May 9, 2014, to 40 years in prison.
Curtis Martino, aka Curtis Dodd, aka Red Rum, 31, of Elkridge, Maryland: Pleaded guilty on Nov. 20, 2013 to conspiracy to commit sex trafficking. Sentenced on March 21, 2014, to 21 years in prison.
William Sykes, aka Black Gambino, 31, of Bealeton: Found guilty at trial on Feb. 21, 2014, of various crimes, including sex trafficking, distribution of narcotics and counterfeit money, violence in aid of racketeering, conspiracy to distribute crack cocaine, and conspiracy to commit sex trafficking. Sentenced on May 9, 2014, to 30 years in prison.
George Williams, aka Champ, 30, of Bealeton: Pleaded guilty to conspiracy to commit racketeering, and use and discharge of a firearm during an act of violence in aid of racketeering. Sentenced on April 8, 2014, to 12 years in prison.
Markeith Kerns, aka LTK, 22, of Summerduck: Pleaded guilty on Oct. 16, 2013, to conspiracy to commit racketeering, and conspiracy to commit sex trafficking. Sentenced on Jan. 3, 2014, to 10 years in prison.
Janee Yates, aka Alazia, 25, of Warrenton: Pleaded guilty on Oct. 3, 2014, to conspiracy to commit racketeering, and conspiracy to distribute crack cocaine. Sentenced on Jan. 17, 2014, to 10 years in prison.
Deontae Holland, aka D-Boy, 29, of Bealeton: Pleaded guilty on Oct. 28, 2013, to conspiracy to commit racketeering, and conspiracy to distribute crack cocaine. Sentenced on Jan. 17, 2014, to 15 years in prison.
William Sharp Manning aka Ill Will, 26, of Warrenton: Pleaded guilty on Dec. 9, 2013, to conspiracy to commit racketeering, and conspiracy to distribute crack cocaine. Sentenced on March 7, 2014, to 15 years in prison.
James Watson, aka Black Kat, 36, of Gainesville: Pleaded guilty on Feb. 10, 2014, to conspiracy to commit racketeering with the predict acts being distribution of heroin, and marijuana and sex trafficking. Sentenced on April 28, 2014, to 2 ½ years in prison.
Christopher Head aka Briss, 27, of Washington, D.C.: Pleaded guilty on Nov. 25, 2014, to conspiracy to commit racketeering, and conspiracy to distribute crack cocaine. Sentenced on Feb. 21, 2014, to 11 years in prison.
Nicole Yates aka Merlot, 29, of Fairfax: Pleaded guilty on Oct. 3, 2013, to conspiracy to commit sex trafficking, and conspiracy to commit armed robbery. Sentenced on Jan. 3, 2014, to 10 years in prison.
Candy Minor, 30, of Fredericksburg: Pleaded guilty on Nov. 6, 2013, to conspiracy to commit sex trafficking. Sentenced on Jan. 24, 2014, to 2 years in prison.
Kaleef Tweedy, aka Bloody Tweed, 25, of Dumfries: Pleaded guilty on Dec. 13, 2013, to conspiracy to commit sex trafficking, conspiracy to commit armed robbery and using a firearm during a crime of violence in aid of racketeering. Sentenced on March 14, 2014, to 15 years in prison.
Justin Finley, aka J Mo, 26, of Manassas: Pleaded guilty on Nov. 26, 2013, to conspiracy to distribute crack cocaine. Sentenced on Feb. 28, 2014, to 11 years 8 months in prison.
Stephon Greene aka Blitz, 23, of Manassas: Pleaded guilty on Jan. 30, 2014, to conspiracy to distribute crack cocaine. Sentenced on April 18, 2014, to 10 years in prison.
LaTonya Snow, aka Lady Dynasty, 32, of Manassas: Pleaded guilty on Jan. 30, 2014, to conspiracy to violate the Mann Act by transporting prostitutes across state lines. Sentenced on April 18, 2014, to 90 days in prison and three years of active probation.
Devante Jordan, aka Trey, 23, of Alexandria: Pleaded guilty on Jan. 14, 2014, to conspiracy to commit armed robbery and using a firearm during a crime of violence. Sentenced on March 28, 2014, to 11 years 8 months in prison.
Aayron Marshal, aka Mook, 25, of Warrenton: Pleaded guilty on Oct. 10, 2013, to conspiracy to distribute crack cocaine. Sentenced on Jan. 17, 2014, to 10 years in prison.
Joshua Pendleton Brooks aka Wacko, 29, of Manassas: Pleaded guilty on Jan. 23, 2014, to conspiracy to distribute crack cocaine. Sentenced on April 8, 2014, to 5 years 10 months in prison.
Lionel Ritchie, aka Boogie, 31, of Remington: Pleaded guilty on Oct. 3, 2013, to conspiracy to distribute crack cocaine. Sentenced on Jan. 3, 2014, to 7 years in prison.
Jameel Aleem, aka Nino B, 33, of Washington, D.C.: Pleaded guilty on Nov. 12, 2014, to conspiracy to distribute crack cocaine. Sentenced on Dec. 12, 2014, to 3 years 4 months in prison.
Antwan Minor, aka Noid, 35, of Manassas: Pleaded guilty on Oct. 1, 2013, to conspiracy to distribute crack cocaine. Sentenced on Jan. 17, 2014, to 14 years in prison.
Deyonka Gaskins, 31, of Manassas: Pleaded guilty on Feb. 6, 2014, to conspiracy to distribute crack cocaine. Due to Gaskin’s lack of criminal history she was eligible for the safe valve guidelines for sentencing (which removes the ten year mandatory minimum portion of her final sentence). Sentenced to 6 days in prison and 3 years of active probation.
Gracier Isique, 30, of Manassas: Pleaded guilty on Jan. 16, 2014, to conspiracy to distribute crack cocaine. Sentenced to 3 years of active probation.
Ricardo Simmons, 26, of Alexandria: Pleaded guilty on April 21, 2014, to use and discharge of a firearm during an act of violence, and conspiracy to commit Hobbs Act robbery. Sentenced on July 11, 2014, to 12 years 6 months in prison.
Abdur Roland, aka Boo, 27, of Woodbridge: Pleaded guilty on Feb. 19, 2015, to Hobbs Act robbery, conspiracy to commit Hobbs Act robbery, brandishing of a firearm during an act of violence, and possession of a firearm by a convicted felon. Sentenced on May 08, 2015, 13 years in prison.
Brien Hughes, aka Poncho, 32, of Fredericksburg: Pleaded guilty on March 4, 2015, to two separate charges of brandishing of a firearm during an act of violence. Sentenced on Aug. 7, 2015, to 30 years in prison.
Jonathan Coleman, aka Swagg, 24, of Woodbridge: Pleaded guilty on March 18, 2015, to brandishing of a firearm during an act of violence. Sentenced on June 19, 2015, to 7 years in prison.
Robert Bates, aka Kid, 27, of Staunton: Pleaded guilty on April 16, 2015, to possession of a firearm during an act of violence. Sentenced on July 21, 2015, to 5 years in prison.
Joshua Lewis, aka Smiley, 25, of Woodbridge: Pleaded guilty on May 26, 2015, to possession of a firearm during an act of violence. Sentenced on Aug. 14, 2015, to 7 years in prison.
Dajuan Burrous, aka Baggz, 26, of Dumfries: Pleaded guilty on Sept. 3, 2015, to brandishing a firearm during or in a relation to a crime of violence. Sentencing set for Nov. 20, 2015.
The case was investigated by OCDETF, Operation Ruby Red. The OCDETF program is a federal multi-agency, multi-jurisdictional task force that supplies supplemental federal funding to federal and state agencies involved in the identification, investigation, and prosecution of major drug trafficking organizations. The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply.
Agencies who participated in some or all of this investigation include: FBI’s Washington Field Office, Fairfax County Police Department, Northern Virginia Regional Gang Task Force, Hampton Police Department, Fauquier County Sheriff’s Office, Manassas City Police Department, Prince William County Police Department and the United States Marshal Service. Assistant U.S. Attorneys Dennis Fitzpatrick, Angela Mastandrea-Miller, and Zach Terwilliger prosecuted the cases along with former Assistant U.S. Attorney Adam B. Schwartz and former Special Assistant U.S. Attorney Catherine Ahn. The federal prosecutors were assisted by the Prince William and Spotsylvania County Commonwealth Attorneys’ Offices.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER.
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Johnstown Crack Dealer Sentenced to 3 Years in Federal PrisonRead the Press Release
JOHNSTOWN, Pa. - A resident of Johnstown, Pa., has been sentenced in federal court to three years in prison and three years’ supervised release on his conviction of distribution of cocaine base, in the form commonly known as "crack," United States Attorney David J. Hickton announced today.
United States District Judge Kim R. Gibson imposed the sentence on Willie Gene Gulley, Jr., 47.
According to information presented to the court, on Aug. 18, 2014, Gulley distributed less than 28 grams of cocaine base.
Assistant United States Attorney John J. Valkovci, Jr., prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the Laurel Highlands Resident Agency of the Federal Bureau of Investigation and the Cambria County Drug Task Force for the investigation leading to the successful prosecution of Gulley.
Government Subcontractors Convicted for BriberyRead the Press Release
Anchorage, Alaska - U.S. Attorney Karen L. Loeffler announced that yesterday a federal jury in Anchorage convicted John Becker aka Jack Becker of bribing a public official. On August 27, 2015, ADA Station Communication, Inc. and Herschell Becker pled guilty to bribing a public official in connection with the same investigation. The offenses occurred in June and August 2014.
ADA Station Communication, Inc., based in Crossville, Tennessee and Herschell Becker, 48, of Grandview, Tennessee, pled guilty to three counts of bribing of a public official. Jack Becker, 53, of Crossville, Tennessee was found guilty of two counts of bribing of a public official.
ADA Station Communication, Inc. is a telecommunications company based in Crossville, Tennessee, which specializes in providing turnkey structured cabling infrastructures including analysis, design, engineering, installation, and maintenance of voice, video and data networks. ADA Station Communication has performed work on behalf of both federal and commercial entities.
Jeff Becker founded the company in 1995. Herschell Becker has been the Vice President of ADA Station Communication since 1995. Jack Becker has been an employee of ADA Station Communication since approximately 2003. Jeff Becker, Herschell Becker, and Jack Becker are brothers.
ADA Station Communication was awarded subcontracts to install and upgrade fiber optic cables on Joint Base Elmendorf Richardson (JBER) during 2014 and 2015. During the summer of 2014, ADA Station Communication was installing fiber optic cables on JBER under five contracts. On June 17, 2014, Herschell Becker and Jack Becker (hereinafter “the Beckers”) met with a United States Air Force Cable/Antenna Work Leader (hereinafter “Air Force official”) to complete quality assurance inspections on two of the five contracted project locations. During the inspections, the Air Force official discovered numerous discrepancies, informed the Beckers, and requested that the Beckers address and fix the issues.
Evidence at trial showed that On June 18, 2014, Herschell Becker and Jack Becker offered $10,000 to the Air Force official to accept the work previously identified as deficient that they performed as subcontractors installing fiber optic cables on JBER. During this meeting, the Beckers told the Air Force official they could “pad his pockets” and “the less people that know the better”. The Beckers knew that the Air Force official would make the final decision on whether to accept the work as complete and wanted the Air Force official to overlook the discrepancies. The Beckers told the Air Force official it would cost them $60,000 to fix the discrepancies and that they would pay $10,000 to the Air Force official if he would approve the work without the discrepancies being fixed. The Air Force official declined the $10,000. The Beckers again offered to pay the Air Force official $10,000.
On August 22, 2014, Herschell Becker and Jack Becker met with the Air Force official. Unbeknowst to the Beckers, the Air Force official had reported to law enforcement the Beckers’ offer of $10,000, and was now acting at the direction of the Air Force Office of Special Investigations. During the August 22, 2014 meeting, the Beckers and the Air Force official discussed the prior offer to bribe the Air Force official. Herschell Becker acknowledged that it was a big risk to offer to bribe the Air Force official, but that he would do it again because it cost him $60,000 to repair the problems and he would have much rather have given the Air Force official $10,000. The Beckers also mentioned that they were bidding on others jobs in Alaska and would like to win the business. The Beckers and the Air Force official also discussed the current status of the project and the failed test results on the fiber optic cables installed by ADA Station Communication. Herschell Becker acknowledged that they would not be able to pass the testing requirement at the 1490 nm wavelength. Herschell Becker and Jack Becker then described the additional costs they would incur if they had to remain in Alaska for a longer period of time should the Air Force official require them to try to fix the cables. Herschell Becker then offered the Air Force official $5,000 cash to accept ADA Station Communication’s deficient fiber optic installation work as is. The Air Force official, as directed by law enforcement, agreed. Herschell Becker directed the Air Force official to send him his address for payment.
On August 27, 2014, Jack Becker spoke with the Air Force official regarding the logistics of the $5,000 payment. Referring to the August 22 conversation, Jack Becker said that Herschell Becker would like to get the Air Force official’s address. Jack Becker indicated that ADA Station Communication needed the Air Force official to accept the work they did. Jack Becker also told the Air Force official that he knew there was more work coming up next summer and that ADA Station Communication was going to try to bid that too, so things could get better down the road. Later that day, on August 27, 2014, Herschell Becker told the Air Force official that he would get the full payment the next day in person and that if the Air Force official could help ADA Station Communication win the bid for the upcoming work next year, it would be well worth his while.
On August 28, 2014, Herschell Becker texted the Air Force official that Jack Becker would be “getting with him today”, and again said that if the Air Force official could put in a good word for ADA Station Communication to the review team for next year’s work, it would be well worth his while.
On August 28, 2014, an ADA Station Communication check signed by ADA Station Communication’s Accounting Manager in the amount of $6,500 was negotiated for petty cash funds. The ADA Station Communication Accounting Manager then wired $5,000 cash via MoneyGram from a Wal-Mart in Crossville, Tennessee to Jack Becker in Anchorage, Alaska. Jack Becker picked up the $5,000 cash from a Wal-Mart in Anchorage. Jack Becker then concealed the Wal-Mart envelope of $5,000 cash in a set of large papers. Jack Becker hand delivered the $5,000 cash to the Air Force official that afternoon.
Sentencing has been scheduled for November 6, 2015 and November 10, 2015, in Anchorage. The maximum penalty for Herschell Becker and Jack Becker for each count of conviction is up to 15 years in prison, three years’ supervised release, and a fine of up to $250,000. The maximum penalty for ADA Station Communication, Inc. is up to five years’ probation, and a fine of up to the greater of $500,000 or twice the gross gain or loss from the offense. In addition, the United States will be seeking restitution on behalf of the United States Air Force in the approximate amount of $345,000.00.
The investigation of this case began when the public official reported to law enforcement that the subcontractors had offered him $10,000 to look the other way on faulty work and accept their deficient work on behalf of the United States Air Force. This case was investigated by the Air Force Office of Special Investigations. The case was prosecuted by Assistant U.S. Attorney Yvonne Lamoureux.
Georgia Hospital System and Physician to Pay More than $25 Million to Settle Alleged False Claims Act and Stark Law ViolationsRead the Press Release
Columbus Regional Healthcare System (Columbus Regional) and Dr. Andrew Pippas have agreed to pay more than $25 million to resolve allegations that they violated the False Claims Act by submitting claims in violation of the Stark Law. Today’s settlement also resolves allegations that Columbus Regional and Pippas submitted claims for payment to federal health care programs that misrepresented the level of services they provided. Under the settlement agreement, Columbus Regional has agreed to pay $25 million, plus additional contingent payments not to exceed $10 million, for a maximum settlement amount of $35 million, and Pippas has agreed to pay $425,000.
“Today’s settlement demonstrates our continuing vigilance to ensure that health care referrals are based solely on the medical needs of the patient and that health care providers bill the government only for the care they provide,” said Principal Deputy Assistant Attorney General Benjamin C. Mizer, head of the Justice Department’s Civil Division. “Healthcare providers who seek to profit at the expense of taxpayers will face serious consequences.”
“The maximum amount of this settlement, some $35 million, is appropriate given the number of alleged violations involving the False Claims Act and the Stark Act,” said U.S. Attorney Michael Moore of the Middle District of Georgia. “Access to health care is on everyone’s mind, especially with respect to rural communities. The type of conduct alleged in this case puts that access at risk. This settlement reflects on the one hand, the Department of Justice’s commitment to make sure that hospitals and physicians who commit violations of federal law are held to account, and on the other hand, especially with the requirement of the monitoring agreement, makes sure that we continue to have appropriately functioning health care providers accessible to the wide array of communities they serve.”
The Stark Law prohibits physician referrals of certain health services for Medicare and Medicaid patients if the physician has a financial relationship with the entity to which he or she refers the patient. The United States alleged that between 2003 and 2013, Columbus Regional provided excessive salary and directorship payments to Pippas that violated the Stark Law.
The United States also alleged that from May 2006 through May 2013, Columbus Regional submitted claims to federal health care programs for services at higher levels than supported by the documentation, and between 2010 and 2012, they submitted claims to federal health care programs for radiation therapy at higher levels than the therapy that was provided.
Of the $25.425 million that Columbus Regional and Pippas have agreed to pay to resolve their respective civil claims, they will pay $24,666,040 to the federal government for federal healthcare program losses and $758,960 to the state of Georgia for the state share of its Medicaid losses.
Also as part of the settlement, Columbus Regional will enter into a Corporate Integrity Agreement (CIA) with the Department of Health and Human Services-Office of the Inspector General (HHS-OIG) that requires Columbus Regional to implement measures designed to avoid or promptly detect future conduct similar to that which gave rise to this settlement.
“Increasing referrals by self-dealing and violating the Stark statute – as the government contended in this case – undermines impartial medical judgment at the expense of patients and taxpayers,” said Special Agent in Charge Derrick L. Jackson of HHS-OIG. “Charging federal health care programs for pricier services than those actually provided will not be tolerated.”
The settlements resolve allegations filed in two lawsuits by Richard Barker, a former Columbus Regional executive, in federal court in Columbus, Georgia. The lawsuits were filed under the qui tam, or whistleblower, provisions of the federal False Claims Act and the Georgia False Medicaid Claims Act, which permit private individuals to sue on behalf of the federal and state governments, respectively, for false claims and to share in any recovery. Mr. Barker’s share of the settlement has not yet been determined.
This illustrates the government’s emphasis on combating health care fraud and marks another achievement for the Health Care Fraud Prevention and Enforcement Action Team (HEAT) initiative, which was announced in May 2009 by the Attorney General and the Secretary of Health and Human Services. The partnership between the two departments has focused efforts to reduce and prevent Medicare and Medicaid financial fraud through enhanced cooperation. One of the most powerful tools in this effort is the False Claims Act. Since January 2009, the Justice Department has recovered a total of more than $24.9 billion through False Claims Act cases, with more than $15.9 billion of that amount recovered in cases involving fraud against federal health care programs.
The civil settlement was handled by the U.S. Attorney’s Office of the Middle District of Georgia and the Civil Division’s Commercial Litigation Branch. These matters were investigated by HHS-OIG’s Office of Investigations, with assistance from the HHS Office of Counsel to the Inspector General and Office of General Counsel and Center for Medicare and Medicaid Services, and the state of Georgia’s Medicaid Fraud Control Unit.
The civil lawsuits are captioned United States ex rel. Barker v. Columbus Regional Healthcare System, et al., Case No. 4:12-cv-108 (M.D. Ga.) and United States ex rel. Barker v. Columbus Regional Healthcare System, et al., Case No. 4:14-cv-304 (M.D. Ga.). The claims resolved by the settlement are allegations only, and there has been no determination of liability.
Georgia Hospital System and Physician to Pay More Than $25 Million to Settle Alleged False Claims Act and Stark Law ViolationsRead the Press Release
Columbus Regional Healthcare System (Columbus Regional) and Dr. Andrew Pippas have agreed to pay more than $25 million to resolve allegations that they violated the False Claims Act by submitting claims in violation of the Stark Law. Today’s settlement also resolves allegations that Columbus Regional and Pippas submitted claims for payment to federal health care programs that misrepresented the level of services they provided. Under the settlement agreement, Columbus Regional has agreed to pay $25 million, plus additional contingent payments not to exceed $10 million, for a maximum settlement amount of $35 million, and Pippas has agreed to pay $425,000.
“The maximum amount of this settlement, some $35 million, is appropriate given the number of alleged violations involving the False Claims Act and the Stark Act,” said U.S. Attorney Michael Moore of the Middle District of Georgia. “Access to health care is on everyone’s mind, especially with respect to rural communities. The type of conduct alleged in this case puts that access at risk. This settlement reflects on the one hand, the Department of Justice’s commitment to make sure that hospitals and physicians who commit violations of federal law are held to account, and on the other hand, especially with the requirement of the monitoring agreement, makes sure that we continue to have appropriately functioning health care providers accessible to the wide array of communities they serve.”
The Stark Law prohibits physician referrals of certain health services for Medicare and Medicaid patients if the physician has a financial relationship with the entity to which he or she refers the patient. The United States alleged that between 2003 and 2013, Columbus Regional provided excessive salary and directorship payments to Pippas that violated the Stark Law.
The United States also alleged that from May 2006 through May 2013, Columbus Regional submitted claims to federal health care programs for services at higher levels than supported by the documentation, and between 2010 and 2012, they submitted claims to federal health care programs for radiation therapy at higher levels than the therapy that was provided.
Of the $25.425 million that Columbus Regional and Pippas have agreed to pay to resolve their respective civil claims, they will pay $24,666,040 to the federal government for federal healthcare program losses and $758,960 to the state of Georgia for the state share of its Medicaid losses.
Also as part of the settlement, Columbus Regional will enter into a Corporate Integrity Agreement (CIA) with the Department of Health and Human Services-Office of the Inspector General (HHS-OIG) that requires Columbus Regional to implement measures designed to avoid or promptly detect future conduct similar to that which gave rise to this settlement.
“Increasing referrals by self-dealing and violating the Stark statute – as the government contended in this case – undermines impartial medical judgment at the expense of patients and taxpayers,” said Special Agent in Charge Derrick L. Jackson of HHS-OIG. “Charging federal health care programs for pricier services than those actually provided will not be tolerated.”
The settlements resolve allegations filed in two lawsuits by Richard Barker, a former Columbus Regional executive, in federal court in Columbus, Georgia. The lawsuits were filed under the qui tam, or whistleblower, provisions of the federal False Claims Act and the Georgia False Medicaid Claims Act, which permit private individuals to sue on behalf of the federal and state governments, respectively, for false claims and to share in any recovery. Mr. Barker’s share of the settlement has not yet been determined.
This illustrates the government’s emphasis on combating health care fraud and marks another achievement for the Health Care Fraud Prevention and Enforcement Action Team (HEAT) initiative, which was announced in May 2009 by the Attorney General and the Secretary of Health and Human Services. The partnership between the two departments has focused efforts to reduce and prevent Medicare and Medicaid financial fraud through enhanced cooperation. One of the most powerful tools in this effort is the False Claims Act. Since January 2009, the Justice Department has recovered a total of more than $24.9 billion through False Claims Act cases, with more than $15.9 billion of that amount recovered in cases involving fraud against federal health care programs.
The civil settlement was handled by the U.S. Attorney’s Office of the Middle District of Georgia and the Civil Division’s Commercial Litigation Branch. These matters were investigated by HHS-OIG’s Office of Investigations, with assistance from the HHS Office of Counsel to the Inspector General and Office of General Counsel and Center for Medicare and Medicaid Services, and the state of Georgia’s Medicaid Fraud Control Unit.
The civil lawsuits are captioned United States ex rel. Barker v. Columbus Regional Healthcare System, et al., Case No. 4:12-cv-108 (M.D. Ga.) and United States ex rel. Barker v. Columbus Regional Healthcare System, et al., Case No. 4:14-cv-304 (M.D. Ga.). The claims resolved by the settlement are allegations only, and there has been no determination of liability.
Gahanna Woman Charged with Illegally Receiving VA BenefitsRead the Press Release
COLUMBUS, Ohio – A federal grand jury has charged Rita Green, 55, of Gahanna, Ohio, with illegally receiving Department of Veterans Affairs Dependency and Indemnity Compensation benefits in an indictment returned in Columbus, Ohio.
Carter M. Stewart, United States Attorney for the Southern District of Ohio, Gavin McClaren, Resident Agent in Charge, Department of Veterans Affairs Office of Inspector General (VA-OIG), and Angela L. Byers, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Field Division, announced the indictment returned yesterday.
The indictment alleges that Green kept $89,646.22 of Department of Veterans Affairs Dependency and Indemnity Compensation benefits to which she knew she was not entitled. Green’s mother was a recipient of the benefits, which are paid to surviving spouses of veterans who died in the line of duty or died from a disease or injury incurred or aggravated while on active duty. Those benefits were paid monthly to a bank account in the mother’s name.
It is alleged that after Green’s mother died in 2009, Green continued to withdraw the benefits from the bank account of her mother and use the money via a debit card in her mother’s name.
Theft of public money is a crime punishable by up to 10 years in prison and a $250,000 fine.
U.S. Attorney Stewart commended the investigation of this case by the VA-OIG and the FBI, and Assistant U.S. Attorney Peter Glenn-Applegate, who is prosecuting the case.
An indictment merely contains allegations, and the defendant is presumed innocent unless proven guilty in a court of law.
Four South Bay Residents Charged in Wide-Ranging Visa Fraud, Loan Fraud, and Money Laudering OperationRead the Press Release
SAN JOSE – Two residents of Cupertino and two residents of Sunnyvale were indicted, along with seven business entities they allegedly owned, in connection with conspiracy that included visa fraud and mail fraud, announced Acting United States Attorney Brian Stretch, U.S. Homeland Security Investigations Acting Special Agent in Charge Tatum King; Abel Salinas, Special Agent in Charge Department of Labor Office of the Inspector General; and U.S. State Department, Diplomatic Security Service, San Francisco Field Office Special Agent in Charge David Zebley.
In an indictment unsealed yesterday, Ragini Vecham, 36, of Cupertino; Kishore Pallapothu, 42, of Cupertino; Satyanarayana Tota, 45, of Sunnyvale; and Ramana Reddy, 44, of Sunnyvale, were indicted for their part in an alleged conspiracy by which individuals used companies to fraudulently submit fraudulent H-1B visa applications and other documents to the U.S. Department of Homeland Security and the U.S. Department of Labor. The companies indicted include Horizon Technologies, Inc., Softnet Technology Solutions, Inc., Rose Hayward LLC, Sage 20 Hayward LLC, Jasmine 20 Hayward LLC, Tulip 26 Hayward LLC, and Lily 20 Hayward LLC.
According to the indictment, since at least 2006, Vecham and Pallapothu held themselves out as staffing specialists for technology firms based in Santa Clara County. Along with Tota, they allegedly submitted fraudulent documents to DHS and DOL in connection with applications for H-1B visas. The documents, according to the indictment, contained false representations and material omissions. For example, several of the documents allegedly falsely stated that Atiric Software was a legitimate business with a legitimate need for H-1B beneficiaries, a statement which was not true. Also according to the indictment, as part of the scheme, Vecham and Pallapothu created and funded numerous limited liability companies for the purpose of purchasing commercial and residential real estate to conceal funds generated from the illegal visa fraud and conceal assets from the Government investigation. Vechum and Pallapothu allegedly also fraudulently obtained several loans to finance the purchases that were then titled in the names of the limited liability companies.
The indictment also describes criminal behavior undertaken by the defendants to avoid having the conspiracy exposed. For example, the indictment contains allegations that Vecham, Pallapothu, and Tota lied to federal law enforcement authorities when interviewed about the visa fraud. Pallapothu is also charged with attempting to persuade visa beneficiaries to provide false and misleading information to federal agents, including allegedly providing visa beneficiaries with false facts about job offers they were supposed to have received and facts about jobs they were supposed to have performed.
Vecham, Pallapothu, Tota, and Reddy all are charged with participating in a conspiracy to commit visa fraud, mail fraud, obstruction of justice, witness tampering and to defraud the United States, in violation of 18 U.S.C. § 371. In addition, Vecham and Pallapothu are charged with thirteen counts of visa fraud, in violation of 18 U.S.C. § 1546; thirteen counts of mail fraud, in violation of 18 U.S.C. § 1341; five counts of loan fraud, in violation of 18 U.S.C. § 1014; one count of wire fraud, in violation of 18 U.S.C. § 1343; and two counts of money laundering, in violation of 18 U.S.C. § 1957. Additionally, Pallapothu and Tota are charged with one count each of obstruction of justice, in violation of 18 U.S.C. § 1505, and Pallapothu is charged with two counts of witness tampering, in violation of 18 U.S.C. § 1512.
The individual defendants made their initial appearances in federal court yesterday and were released pursuant to various individual bond restrictions. All the individual defendants are next scheduled to appear on September 17, 2015, for further status before U.S. Magistrate Judge Howard R. Lloyd in San Jose.
An indictment merely alleges that crimes have been committed, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt. If convicted, the maximum term of imprisonment for conspiracy to commit fraud is 5 years; the maximum term of imprisonment for visa fraud is 10 years; the maximum term for imprisonment for mail fraud is 20 years; the maximum term of imprisonment for money laundering is 10 years; the maximum term for obstruction of justice is 5 years; the maximum term for loan fraud is 30 years; the maximum term for wire fraud is 20 years; and the maximum term for witness tampering is 20 years. Additional periods of supervised release, fines, and special assessments also could be imposed. Any sentence following conviction would be imposed by the court only after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Assistant U.S. Attorney Timothy Lucey is prosecuting the case with the assistance of Laurie Worthen and Yolanda Singletary. The prosecution is the result of an investigation by U.S. Department of Labor, Office of Inspector General; U.S. State Department, Diplomatic Security Service; and U.S. Homeland Security Investigations.
Former School Teacher Sentenced to 2 1/2 Years in Prison for Sexually Abusing Fourth Grade Student in ClassroomRead the Press Release
WASHINGTON – Giovanni Pena, 31, a former teacher from Washington, D.C., was sentenced today to a 2 ½-year prison term on charges stemming from the sexual abuse of a fourth-grade student at Oyster-Adams Bilingual School, a D.C. Public School, Acting U.S. Attorney Vincent H. Cohen, Jr. announced.
Pena pled guilty in June 2015, in the Superior Court of the District of Columbia, to one count of second-degree child sexual abuse and one count of obscenity. He was sentenced by the Honorable Michael Ryan. Following his prison term, Pena will be placed on 10 years of supervised release. He also must register as a sex offender for 10 years. Under the Court’s voluntary sentencing guidelines, Pena could have faced a maximum prison term of five and a half years. The government asked for a 4 ½-year term, and the defense asked that Pena be sentenced to time-served, to be followed by a period of supervised release. Pena has been in custody since his arrest on June 2, 2015.
According to the government’s evidence, Pena was the victim’s fourth-grade teacher during the 2013 – 2014 school year. Pena sexually abused the child by touching the child’s clothed penis and buttocks. Pena told detectives with the Metropolitan Police Department’s Youth Investigations Division that he was curious whether a child that age could have an erection. Pena also had the child touch Pena’s clothed penis. These incidents took place in the classroom during the school day.
Additionally, Pena sent nude photos of his erect penis to the child, as well as a photo of Pena’s sperm. Pena used the mobile application Snapchat to transmit these images. Pena also taught the child about masturbation.
In announcing the sentence, Acting U.S. Attorney Cohen commended the work of the detectives of the Metropolitan Police Department’s Youth Investigations Division. He also commended the efforts of staff from the U.S. Attorney’s Office, including Child Forensic Interview Specialists Tracy Owusu and Karen Giannakoulias, Victim/Witness Advocate Elsa Maltese, Criminal Investigator John Marsh, Paralegal Specialists Joyce Arthur and D’Yvonne Key, Legal Intern Allison Denton, and Assistant U.S. Attorney John L. Hill, who prosecuted the case.
Former Insurance Salesman Arrested for Tax EvasionRead the Press Release
BOSTON – A former insurance salesman was arrested this morning in connection with the theft of more than $500,000 he stole from three clients.
Paul Disidoro, 64, of Georgetown, Mass., was charged in a criminal complaint with attempting to evade income taxes. He is scheduled to appear in U.S. District Court in Boston at 3:30 p.m. today before U.S. District Court Magistrate Judge M. Page Kelley.
The complaint alleges that for many years Disidoro operated an insurance business from his home, and that he sold fixed annuities for Sun Life Financial. From 2007 through 2010, Disidoro stole $515,597 from three of his clients and used the money for his personal benefit, including spending more than $100,000 for online horse race betting. Disidoro did not report any of the stolen funds as income on his federal income tax returns and did not pay any taxes on the funds. Instead, Disidoro filed tax returns reporting only the commissions he had received from various insurance companies, which the insurance companies also had reported, as required, to the IRS.
The charge of tax evasion provides a sentence of no greater than five years in prison, three years of supervised release, a fine of $250,000, or twice the gross gain or loss, whichever is greater. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Carmen M. Ortiz; William P. Offord, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston; and Anthony DiPaolo, Chief of Investigations of the Insurance Fraud Bureau of Massachusetts, made the announcement today. The case is being prosecuted by Assistant U.S. Attorney Sandra S. Bower of Ortiz’s Economic Crimes Unit.
The details contained in the complaint are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Five Arrested on Federal Drug Distribution ChargesRead the Press Release
Contact: Joel B. Casey
Assistant United States Attorney
Tel: (207) 945-0373Bangor, Maine: United States Attorney Thomas E. Delahanty II announced that five individuals charged in separate federal complaints were arrested on Thursday evening in Bangor. Specifically,
Mario Lee, 40, of Bangor, was arrested on a federal criminal complaint charging him with four counts of distribution of heroin.
Kliton Xhemali, 34, of Bangor, was arrested on a federal criminal complaint charging him with two counts of distribution of cocaine.
Antonio Gordon, 32, of Bangor, was arrested on a federal criminal complaint charging him with three counts of distribution of cocaine base (“crack”).
Syrian Baldwin, 29, of Bangor, was arrested on a federal criminal complaint charging him with two counts of distribution of cocaine base (“crack”).
Tawana Greene, 23, of Bangor, was arrested on a federal criminal complaint charging her with two counts of distribution of cocaine base (“crack”).
On the drug distribution charges, each defendant faces up to twenty years in prison, a $1,000,000 fine, or both.
The cases resulted from a year-long joint investigation among the Maine Drug Enforcement Agency, the U.S. Drug Enforcement Administration and the Bangor Police Department into the activities of drug trafficking organizations operating in the Bangor area. DEA Special Agent in Charge Michael J. Ferguson said: “These arrests demonstrate the strength and continued commitment of our federal, state and local law enforcement partners to work together to address a continuing drug problem in the Bangor area."
A complaint is merely a written allegation of criminal conduct. All defendants are presumed innocent until proven guilty beyond a reasonable doubt.
Final Defendant Pleads Guilty in Massive Heroin Trafficking CaseRead the Press Release
NORFOLK, Va. – The final defendant in a major drug case that ultimately dismantled a massive heroin trafficking operation in the Tidewater area pleaded guilty today. All eight co-conspirators have now pleaded guilty for their involvement in the organization’s distribution of between 30 and 90 kilograms of heroin.
Deyonta Hinton, 31, of Portsmouth, pleaded guilty today for his involvement in a massive heroin trafficking operation. Hinton faces a mandatory minimum penalty of 20 years in prison and a maximum penalty of life in prison when he is sentenced on Dec. 10, 2015.
Alonzo Outten, the head of the Outten Organization, and seven of his co-conspirators were indicted by a grand jury earlier this month. In the early morning hours of July 14, 2015, search warrants were executed simultaneously on 14 properties in Portsmouth, Chesapeake, and Suffolk, by more than 250 law enforcement officials from three states and the District of Columbia. Seven weeks later all eight co-conspirators have pleaded guilty to conspiracy to manufacture, distribute, and possess with the intent to distribute heroin.
Name
Date of Guilty Plea
Date of Sentencing
Jermaine Jones
July 29, 2015
Oct. 29, 2015
Garnett Brown
July 29, 2015
Nov. 2, 2015
Latina Jackson
July 29, 2015
Nov. 5, 2015
Alonzo Outten
July 30, 2015
Nov. 2, 2015
Troy Gay
Aug. 6, 2015
Nov. 5, 2015
Jerald Outten
Aug. 10, 2015
Nov. 17, 2015
Sherita Nicks
Aug. 10, 2015
Nov. 17, 2015
Deyonta Hinton
Sept. 4, 2015
Dec. 10, 2015
According to the statement of facts in Deyonta Hinton’s case, he set up a base of operations to sell his heroin at the Sleep Inn and Comfort Suites motels on Western Branch Boulevard in Portsmouth. Hinton used at least six identified individuals to help facilitate the distribution of heroin and paid for one family member to live at the Sleep Inn to help generate a consistent presence that would regularly bring in heroin addicts. Hinton, whose primary supplier of heroin was Alonzo Outten, admits to distributing more than 3.5 kilograms of heroin during the course of the conspiracy.
Alonzo Outten, the leader of the organization from November 2013 to July 2015, managed the manufacture and distribution of between 30 and 90 kilograms of heroin (an estimated street value between $1.5 and $4.5 million dollars). The Outten Organization supplied kilogram amounts of heroin to at least two Bloods gang sets: the Imperial Gangsta Bloods led by “Godfather” Chris Smith aka Killa, who pleaded guilty July 28, 2015, and the Gorilla Mafia Piru gang led by “Godfather” Theodore Vann aka Flatline, who pleaded guilty on June 25, 2015.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Mark R. Herring, Attorney General of Virginia; and John S. Adams, Special Agent in Charge of the FBI’s Norfolk Field Office, made the announcement after the plea were accepted by U.S. District Judge Mark S. Davis.
This case was investigated by the FBI’s Norfolk Field Office and the Chesapeake Police Department with the assistance of the Portsmouth Police Department, the Virginia State Police, and the Naval Criminal Investigative Service. Virginia Assistant Attorney General and Special Assistant U.S. Attorney John F. Butler, and Assistant U.S. Attorneys Joseph E. DePadilla and Andrew C. Bosse are prosecuting the case.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:15-cr-80 (Outten, et. al.); 2:15-cr-93 (Jackson); 2:15cr7 (Smith); and 2:15cr60 (Vann).
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Eleven Men and Women Charged with Conspiracy to Distribute MethamphetamineRead the Press Release
Donita Urban, 46, and Brian Swartz, 48, from Waterloo, Iowa and Scott Mathews, 51, Daniela Castellanos, 28, Rogelio Avalos-Sanchez, 22, Jennifer Mares-Flores, 20, Miguel Mendoza, a/k/a “Loko,” 23, Alvaro Hernandez, 30, Marcos Perez-Trevino, 45, Francis Gasca, 25, and Alejandro Becerra, a/k/a Juan Flores, 27, from Marshalltown, Iowa, have been charged with one count of conspiracy to distribute methamphetamine. The charges are contained in an Indictment unsealed on September 1, 2015 in United States District Court in Cedar Rapids.
The Indictment alleges that, between the Spring of 2013 and continuing to the present, all individuals conspired to distribute methamphetamine.
If convicted, Urban, Swartz, Hernandez, and Perez-Trevino face a mandatory minimum sentence of ten years’ imprisonment and a possible maximum sentence of life imprisonment, a $10,000,000 fine, $100 in special assessments, and at least five years of supervised release following any imprisonment. Mathews, Castellanos, Avalos-Sanchez, Mares-Flores, Mendoza, Gasca, and Becerra face a possible maximum sentence of 20 years’ imprisonment, a $1,000,000 fine, $100 in special assessments, and at least three years of supervised release following any imprisonment.
Hernandez appeared on September 1, 2015, in federal court in Cedar Rapids and was held without bond. Urban, Swartz, Mares-Flores, and Avalos-Sanchez appeared on September 3, 2015, and were held without bond pending a detention hearing set for September 8, 2015. Trial in this matter is set for November 2, 2015.
As with any criminal case, a charge is merely an accusation and a defendant is presumed innocent until and unless proven guilty.
The case is being prosecuted by Assistant United States Attorney Lisa C. Williams as part of the Organized Crime Drug Enforcement Task Force (OCDETF) program of the United States Department of Justice through a cooperative effort of the Tri-County Drug Task Force, comprised of the Waterloo Police Department, Black Hawk County Sheriff’s Office, Cedar Falls Police Department, LaPorte City Police Department, Hudson Police Department, Evansdale Police Department, University of Northern Iowa Police Department, Waverly Police Department and the Bremer County Sheriff’s Office; the Mid-Iowa Task Force, comprised of the Marshalltown Police Department, Marshall County Sheriff’s Office, Tama County Sheriff’s Office, Grundy County Sheriff’s Office, Hardin County Sheriff’s Office, Iowa Falls Police Department, Eldora Police Department and the Dysart Police Department; and the Drug Enforcement Administration (DEA) Task Force consisting of the DEA; the Linn County Sheriff's Office; the Cedar Rapids Police Department; the Marion Police Department; the Iowa City Police Department; and the Iowa Division of Narcotics Enforcement.
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is CR 15-2037.
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Duval County Man Sentenced to Federal Prison for Manufacturing Counterfeit CurrencyRead the Press Release
Jacksonville, Florida – United States District Judge Timothy J. Corrigan has sentenced Christopher Jon Kirkland (42, Jacksonville) to two years and six months in federal prison for manufacturing counterfeit Federal Reserve notes. As part of his sentence, Kirkland has agreed to forfeit computer equipment that was used to manufacture the counterfeit currency. He was also ordered to pay restitution.
According to the plea agreement, in August 2013, Kirkland began manufacturing counterfeit $20 and $100 Federal Reserve notes. Once he manufactured the notes, his co-defendants, William Brinkley, Jr. and Timothy Larry Malden, drove him to various businesses in Florida and Georgia to pass the counterfeit currency. They passed the notes to obtain merchandise and reloadable gift cards. They also returned fraudulently obtained merchandise to obtain genuine currency. From approximately August 2013 to December 2013, the group passed or attempted to pass approximately $32,600 in counterfeit currency throughout Florida and Georgia.
Brinkley and Malden previously pleaded guilty for their roles in this case. On September 3, 2015, Brinkley was sentenced to 36 months’ probation. The sentencing hearing for Malden is scheduled for October 29, 2015.
This case was investigated by United States Secret Service Jacksonville Field Office. It is being prosecuted by Assistant United States Attorney Kevin C. Frein.
Doctors Convicted in $2.5 Million Health Care Fraud SchemeRead the Press Release
Greenbelt, Maryland - A federal jury convicted two doctors, Paramjit Singh Ajrawat, age 60, and his wife, Sukhveen Kaur Ajrawat, age 57, both of Potomac, Maryland, on charges related to their health care fraud scheme. Paramjit Singh Ajrawat was convicted of one count of health care fraud, two counts of making a false statement related to a health care program, one count of obstruction of justice, four counts of wire fraud, and one count of aggravated identity theft. Sukhveen Kaur Ajrawat was convicted of one count of health care fraud, four counts of making a false statement related to a health care program, one count of obstruction of justice, four counts of obstructing an audit, four counts of wire fraud, and two counts of aggravated identity theft. The convictions are in connection with the pain clinic they owned and operated.
The convictions were announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Robert Craig of the Defense Criminal Investigative Service - Mid-Atlantic Field Office; Special Agent in Charge Nicholas DiGiulio, Office of Investigations, Office of Inspector General of the Department of Health and Human Services; Special Agent in Charge Drew Grimm, Office of Personnel Management, Office of Inspector General; Special Agent in Charge Kevin Perkins of the Federal Bureau of Investigation; Special Agent in Charge Steven Anderson, of the Washington Regional Office, U.S. Department of Labor - Office of Inspector General, Office of Labor Racketeering and Fraud Investigations; and Special Agent in Charge Paul L. Bowman of the U.S. Postal Service, Office of Inspector General.
P. Ajrawat was a licensed physician in Maryland who specialized in interventional pain management. S. Ajrawat was a licensed psychiatrist in Maryland. The Ajrawats owned and operated Washington Pain Management Center (WPMC) located in Greenbelt.
According to evidence presented at the eight day trial, from at least January 2011 through May 2014, the Ajrawats defrauded federal health benefit programs including: Medicare, Medicaid, TRICARE, Federal Employees Health Benefits Program and the Office of Workers’ Compensation Programs. The Ajrawats filed claims for procedures that were not performed. Specifically, the Ajrawats performed less expensive procedures but falsely billed for procedures that provided higher reimbursement amounts. The Ajrawats also submitted claims indicating that they had met the requirements for reimbursement, when in fact, they had not met those requirements. Finally, the Ajrawats submitted claims for procedures that had not been performed at all.
For example, the Ajrawats submitted claims that P. Ajrawat had performed nerve block injections with the use of an imaging guidance machine, when in fact he neither owned nor used such a machine. The Ajrawats also falsely documented patient files to indicate that an imaging guidance machine had been used to verify needle placement and caused the alteration or destruction of patient files to conceal the scheme from auditors and law enforcement.
The government seeks forfeiture of at least $2.5 million, the proceeds of the scheme.
The defendants face a maximum sentence of 10 years in prison for each count of health care fraud, five years in prison for each count of making a false statement related to a health care program; and 20 years in prison for each count of obstruction of justice and each count of wire fraud. Additionally, S. Ajrawat faces five years in prison for each count of obstructing a federal audit. U.S. District Judge Deborah K. Chasanow has scheduled sentencing for February 1, 2016 at 9:30 a.m.
United States Attorney Rod J. Rosenstein praised DCIS, HHS-Office of Inspector General, OPM-Office of Inspector General, FBI, U.S. Department of Labor-Office of Inspector General, and the U.S. Postal Service-Office of Inspector General for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorneys Kelly O. Hayes and Mara Zusman Greenberg, who are prosecuting the case.
Denver Man Sentenced for Taking His Deceased Mother's Government BenefitsRead the Press Release
DENVER – Ernie Atchley, a 73 year old Denver resident, was sentenced to serve 15 months in federal prison, followed by 3 years of supervised release after previously pleading guilty to failure to disclose an event affecting entitlement to Social Security benefits, the U.S. Attorney’s Office and the Social Security Administration Office of the Inspector General announced. The defendant was also ordered to pay restitution of $465,349.13 to the Social Security Administration as well as two state government entities in California. The sentence was pronounced by U.S. District Court Judge Wiley Y. Daniel.
Atchley was indicted by a federal grand jury on October 8, 2014. He pled guilty before Judge Daniel on March 17, 2015 and was sentenced on August 19, 2015.
According to court documents, including the stipulated facts contained in the defendant’s plea agreement, Atchley’s mother was receiving Social Security survivor’s benefits when she died on July 21, 2001. Although her entitlement to these benefits terminated at her death, monthly benefit payments continued to be made into her bank account through August 2012. At the time she died, the defendant’s mother was receiving $897 per month in Social Security benefits. By 2012, that had increased to $1277 a month. By the time the payments terminated, $151,526 worth of benefits had been overpaid into the account.
Atchley’s mother had also been receiving retirement benefits from the California Public Employees’ Retirement System (CalPERS) and the Los Angeles County Employees’ Retirement Association (LACERA). These payments, too, erroneously continued after her death. LACERA payments continued through March 2013. CalPERS payments continued through June 2013. At the time of death, LACERA was paying $706.24 per month and CalPERS was paying $1126.72 a month. Those amounts increased over time. LACERA’s final payment (in March 2013) was $1017.57. CalPERS’ final payment (in June 2013) was $1503.94. Altogether, LACERA paid $114,492.12 after death. CalPERS paid $203,178.94 after death.
Prior to his mother’s death, the defendant was appointed in state court to be her conservator. All of the payments Atchley received after his mother’s death went into a bank account held by him jointly with a relative whom had no knowledge of the fraud.
Shortly after her death, Atchley began illegally taking money from the account. He would write checks for “medical supplies” or “medical services” to a relative with whom he held a joint account. Defendant would then forge that relative’s endorsement on the check and deposit it into that joint account. From there, he would use the funds to pay various bills—primarily credit cards, but also phone and energy bills.
“Concealing the death of a loved one in order to steal their Social Security benefits is reprehensible,” said Wilbert Craig, Special Agent in Charge of the Social Security Administration’s Office of the Inspector General. “The Social Security Administration’s (SSA) Office of the Inspector General (OIG), in partnership the United States Attorney’s Office, will continue to vigorously respond to allegations of fraud against the SSA and its beneficiaries.”
This case was investigated by the Social Security Administration Office of the Inspector General. The defendant was prosecuted by Special Assistant U.S. Attorney Daniel Burrows.
David Anthony Shoemaker Sentenced to 120 Months in Prison on Federal Child Pornography ChargesRead the Press Release
KNOXVILLE, Tenn.- On August 31, 2015, David Anthony Shoemaker, 29, of Knoxville, Tenn., was sentenced by the Honorable Pamela R. Reeves, U.S. District Judge, to serve 120 months in prison for receiving child pornography. Following his release from prison, Johnson will be supervised by the U.S. Probation Office for a term of 15 years and will be required to register with the sex offender registry in any state in which he resides, works, or attends school.
Shoemaker pleaded guilty in April 2015 to a federal charge stemming from his use of peer-to-peer computer file sharing software to obtain child pornography via the internet. A search warrant for Johnson’s computers revealed that he had had saved a large cache of child pornography to his computers via the use of search terms designed to find depictions of sexual abuse of minors. The Court found that Shoemaker had also distributed child pornography via the peer-to-peer software.
This investigation was conducted by the Knoxville Police Department Internet Crimes Against Children Task Force and U.S. Homeland Security Investigations. Assistant U.S. Attorney Matthew Morris represented the United States.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
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Dade City Gang Member Sentenced to More Than 11 Years in Federal PrisonRead the Press Release
Tampa, Florida – U.S. District Judge Virginia M. Hernandez Covington has sentenced Domingo Zamora (47, Dade City) to 11 years and 6 months in federal prison on drug conspiracy charges. He pleaded guilty on November 21, 2014.
According to court documents, Zamora, a previously convicted felon who was affiliated with a Dade City street gang, sold large amounts of methamphetamine to undercover ATF agents and brokered drug deals between the agents and other sources of supply. He also sold a firearm to an agent on at least one occasion during a drug transaction.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives. It was prosecuted by Assistant United States Attorney Stacie B. Harris.
This is another case prosecuted as a part of the Department of Justice’s “Project Safe Neighborhoods” Program - a nationwide, gun-violence reduction strategy. United States Attorney A. Lee Bentley, III, along with Regina Lombardo, Special Agent in Charge, ATF, is coordinating the Project Safe Neighborhoods effort here in the Middle District of Florida in cooperation with federal, state, and local law enforcement officials. It is also a part of ATF’s Frontline strategy to reduce violence in communities.
Controlled Substance User Sentenced to Prison for FirearmRead the Press Release
Kareem Pollard, 28, of Granite City, Illinois, was sentenced today in the United States District Court to 3 years in prison for two counts of Unlawful User of a Controlled Substance in Possession of a Firearm, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, has announced. Pollard will also be on federal supervised release for 2 years following his term of imprisonment. Pollard has been in custody since his arrest on March 26, 2015.
Court documents establish that on May 13, 2014, Pollard was seen walking into a convenience store in Madison, Illinois with a gun in the pocket of his sweatshirt. Law enforcement officers stopped him while he was walking away from the store and located a Rohm .22 caliber revolver in his pocket. When Pollard was interviewed by Madison officers, he admitted to being in possession of the firearm and admitted that he has been addicted to heroin for approximately four years. Then, between December 2, 2014 and January 2, 2015, the Metropolitan Enforcement Group of Southwestern Illinois (MEGSI) caught Pollard selling small amounts of heroin on four separate occasions. During a subsequent search of his residence, a Taurus Judge Revolver was found in Pollard’s bedroom.
The investigation was conducted by the Madison Police Department and the Metropolitan Enforcement Group of Southwestern Illinois (MEGSI). The case was prosecuted by Assistant United States Attorney Ali Summers and Special Assistant United States Attorney Vanessa Lu.
Burlington Man Sentenced for Child Pornography OffenseRead the Press Release
The Office of the United States Attorney for the District of Vermont stated that Malcolm Lewis, 38, of Burlington, Vermont, was sentenced on September 3, 2015, in United States District Court in Burlington, Vermont, to serve 106 months incarceration and a 10 year period of supervised release following his conviction on one count of distribution of child pornography, in violation of 18 U.S.C. § 2252(a)(2). Chief U.S. District Judge Christina Reiss also ordered Lewis to pay a $100 special assessment.
According to court records and proceedings, on May 1, 2014, a law enforcement officer was conducting undercover operations on the Ares file-sharing network. The officer observed that a computer using a particular Internet Protocol (IP) address was offering to share videos and still images of child pornography. The officer downloaded three video files from the user of the IP address. These video files depicted small children engaged in sexual activity with adult men, including sadistic and masochistic conduct. Law enforcement traced the IP address to a Burlington address, and obtained a warrant to search the location. Lewis lived at that location and during an interview with law enforcement, he admitted that he downloaded and collected videos and still images he knew to depict child pornography. During a forensic examination of Lewis’ computer, it was discovered that Lewis had more than 2,300 images and 100 videos depicting child pornography. Lewis personally produced approximately 21 of the videos depicting child pornography.
"Few things are more disturbing, heartbreaking, or upsetting to hear than that a child has been harmed by someone who is close to the family," said Matthew Etre, special agent in charge of Homeland Security Investigations (HIS) Boston. "HSI is committed to bringing these predators to justice, and protecting those who shouldn't have to protect themselves."
United States Attorney Eric S. Miller commended HSI’s efforts in the investigation and prosecution of Lewis. The prosecution of Lewis was handled by Assistant U.S. Attorney Barbara A. Masterson. Lewis was represented by David L. McColgin.
U.S. Attorney Miller noted that this prosecution is part of the U.S. Department of Justice's Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the U.S. Attorney's Offices, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Brevard County Man Sentenced for Receiving and Possessing Child PornographyRead the Press Release
Orlando, Florida – U.S. District Judge Roy B. Dalton, Jr. has sentenced Billie Jay Rufrano (31, Titusville) to 10 years and 1 month in federal prison for receiving and possessing child pornography. He was also ordered to pay restitution to two victims.
Rufrano was indicted on January 14, 2015, and he pleaded guilty on April 28, 2015.
According to court documents, on October 3, 2014, a state search warrant was executed at Rufrano’s residence and several computers were seized. Forensic analyses of the computer media subsequently revealed 223 movies and 114 images depicting child pornography.
This case was investigated by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations. It was prosecuted by Assistant United States Attorney Ilianys Rivera Miranda.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Armed Bank Robber Sentenced to 211 Months ImprisonmentRead the Press Release
OXFORD, Miss. - Felicia C. Adams, United States Attorney for the Northern District of Mississippi, and Special Agent in Charge Donald Alway, Federal Bureau of Investigation, announced that Cordette Lindell Mottley, 28, of Como, Mississippi, was sentenced yesterday by United States District Judge Michael P. Mills in Oxford, Mississippi, to 211 months imprisonment followed by 3 years of supervised release, restitution in the amount of $1200 and a special assessment of $100.
Mottley, a career offender, previously pled guilty on May 12, 2015, to the armed robbery of First Security Bank, Como, Mississippi, in violation of 18 U. S. C. Sections 2113(a) and (d). Mottley was remanded to the custody of the U. S. Marshal Service pending designation by the Federal Bureau of Prisons.
This case was investigated by the Federal Bureau of Investigation and the Panola County Sheriff’s Office and was prosecuted by the United States Attorney’s Office for the Northern District of Mississippi.
Albuquerque Man Pleads Guilty to Narcotics Trafficking and Firearms Charges Arising Out of Armed Robberies of Two Retail Pharmacies in January and June 2015Read the Press Release
ALBUQUERQUE – Blake Gallardo, 22, of Albuquerque, N.M., pleaded guilty this morning in federal court to narcotics trafficking and firearms charges arising out of the armed robberies of two Albuquerque-area retail pharmacies in Jan. 2015. Under the terms of his plea agreement, Gallardo will be sentenced to a prison term within the range of 15 to 20 years.
The guilty plea was announced by U.S. Attorney Damon P. Martinez, 2nd Judicial District Attorney Kari E. Brandenburg, Special Agent in Charge Carol K.O. Lee of the FBI’s Albuquerque Division, Special Agent in Charge Will R. Glaspy of the DEA’s El Paso Division, Chief Gorden Eden, Jr., of the Albuquerque Police Department, Chief Pete N. Kassetas of the New Mexico State Police.
Gallardo was one of six defendants charged in four indictments that were announced by federal and local officials on April 29, 2015. The indictments alleged that the six defendants robbed retail pharmacies in Albuquerque to illegally obtain Oxycodone and other highly addictive opioid painkillers. The four indictments charged Gallardo, his co-defendant Josephine Duran, 23, and four other Albuquerque residents with crimes arising out of the armed robberies of retail pharmacies, including violations of the Controlled Substance Registrant Protection Act and the Safe Doses Act, laws passed to address the theft and diversion of prescription drugs.
At the time the indictments were announced, Gallardo and Duran had not been arrested and were considered fugitives. Thereafter, Duran was arrested on May 22, 2015, and Gallardo was arrested on June 11, 2015.
Gallardo and Duran were charged in Indictment 15-CR-1504 with (1) violating the Hobbs Act by interfering with interstate commerce by robbery and violence; (2) brandishing a firearm during a crime of violence; (3) violating the Controlled Substance Registrant Act by robbery involving controlled substance; (4) violating the Safe Doses Act by theft of medical products; and (5) possession of Oxycodone with intent to distribute. These charges arose out of the armed robbery of a Walgreens Pharmacy located at 6565 Paradise Blvd. NW in Albuquerque on Jan. 30, 2015.
Today Gallardo entered a guilty plea to Counts 1, 2, 3 and 5 of the indictment, charges arising out of the Jan. 30, 2015 robbery of the Walgreens Pharmacy on Paradise Blvd. He also pleaded guilty to a felony information charging him with robbery involving controlled substance, a charge arising out of the June 6, 2015 robbery of a Walgreens Pharmacy located at 1201 Unser Blvd. NW in Albuquerque.
In his plea agreement, Gallardo admitted robbing both Walgreens Pharmacies at gunpoint. With respect to the Jan. 30, 2015 robbery, Gallardo entered the pharmacy, jumped over the pharmacy counter while brandishing a firearm, and ordered the pharmacist to open a locker in which controlled substances were stored. Gallardo pointed his firearm at the pharmacist, took her keys, opened the locker, and filled a bag with oxycodone. Gallardo and his co-defendant were arrested on state charges shortly after the robbery.
With respect to the June 6, 2015 robbery, the plea agreement states that Gallardo was armed with a firearm when he entered the pharmacy and jumped over on the pharmacy counter. He grabbed two pharmacy employees and directed them to the pharmacy’s controlled substance locker. Gallardo took several bottles of oxycodone from the locker and ran out of the pharmacy.
Gallardo has been in federal custody since his arrest and remains detained pending his sentencing hearing, which has not yet been scheduled. His co-defendant, Josephine Duran, has entered a not guilty plea to the indictment. She remains in federal custody pending trial.
With respect to the four defendants who are charged in three other pharmacy robbery cases, three have entered not guilty pleas and are detained pending trial. The fourth has entered a guilty plea.
On July 1, 2015, Victor Hurtado, 20, pled guilty to felony charges arising out of the Jan.6, 2015 armed robbery of the Smith’s Pharmacy located at 4016 Louisiana Blvd. NE in Albuquerque. Under the terms of his plea agreement, Hurtado will be sentenced to a prison term within the range of ten to 18 years. He remains in federal custody pending his sentencing hearing, which is scheduled for Oct. 1, 2015.
Charges in indictments are merely accusations and defendants are presumed innocent unless found guilty in a court of law.
These cases were investigated by the Albuquerque office of the FBI, the Tactical Diversion Squad of the DEA in Albuquerque, and the Albuquerque Police Department, with assistance from the 2nd Judicial District Attorney’s Office in Bernalillo County. The cases are being prosecuted by Assistant U.S. Attorneys Joel R. Meyers and Shaheen P. Torgoley.
DEA’s Tactical Diversion Squads combine DEA resources with those of federal, state and local law enforcement agencies in an innovative effort to investigate, disrupt and dismantle those suspected of violating the Controlled Substances Act or other appropriate federal, state or local statutes pertaining to the diversion of licit pharmaceutical controlled substances or listed chemicals.
These cases are being prosecuted pursuant to a federal anti-violence initiative that targets “the worst of the worst” offenders 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.
The cases also are being prosecuted pursuant to the New Mexico Heroin and Opioid Prevention and Education (HOPE) Initiative. The HOPE Initiative is a collaborative effort between the U.S. Attorney’s Office and the University of New Mexico Health Sciences Center that is partnering with the Bernalillo County Opioid Accountability Initiative with the overriding goal of reducing the number of opioid-related deaths in the District of New Mexico. The HOPE Initiative comprised of five components: (1) prevention and education; (2) treatment; (3) law enforcement; (4) reentry; and (5) strategic planning. The law enforcement component of the HOPE Initiative is led by the Organized Crime Section of the U.S. Attorney’s Office and the DEA in conjunction with their federal, state, local and tribal law enforcement partners. Targeting members of major heroin and opioid trafficking organizations for investigation and prosecution is a priority of the HOPE Initiative.
The Controlled Substance Registrant Protection Act was enacted in 1984, to combat the theft of prescription drugs from individuals and businesses registered with the DEA. It created penalties for entering a pharmacy’s premises for the purpose of stealing controlled substances, and includes enhanced punishment for using a dangerous weapon. The Safe Doses Act was enacted in Oct. 2012, to fight medical theft and protect patients from unknowingly using stolen and mishandled drugs. It provides for enhanced sentences for those who rob pharmacies of controlled substances; individuals who steal medical products; and “fences” who knowingly obtain stolen medical products for resale in the supply chain.
Administrator of Chicago-Area Home Visiting Physician Practice Sentenced to More Than Seven Years in Prison for Role in $4 Million Health Care Fraud SchemeRead the Press Release
The lead administrator of a Chicago-area visiting physician practice was sentenced to 87 months in prison for his role in a $4 million health care fraud scheme.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Zachary T. Fardon of the Northern District of Illinois, Special Agent in Charge Lamont Pugh III of the U.S. Department of Health and Human Services-Office of Inspector General (HHS-OIG) in Chicago and Acting Special Agent in Charge John A. Brown of the FBI’s Chicago Division made the announcement.
Rick Brown, 58, of Rockford, Illinois, was convicted in May 2015 following a jury trial of one count of conspiracy to commit health care fraud, six counts of health care fraud and three counts of false statements relating to a health care matter. In addition to imposing the prison term, U.S. District Judge Gary Feinerman of the Northern District of Illinois ordered Brown to pay $1.3 million in restitution.
From 2007 to 2011, Brown was the President of Home Care America Inc., which managed the daily business operations of Medicall Physicians Group Ltd. (Medicall), a physician practice that visited patients in their homes and prescribed home health care. The evidence at trial showed that Brown and his co-conspirators routinely billed Medicare for overseeing patient care plans (a service known as “care plan oversight” or CPO) when in fact the doctors at Medicall rarely did so. The evidence at trial also showed that Brown and his co-conspirators billed Medicare for services that were never provided, including services rendered to patients who were deceased, services purportedly provided by medical professionals no longer employed by Medicall, and services purportedly provided by medical professionals who, based on billing records, worked over 24 hours per day.
According to the evidence presented at trial, during the five-year conspiracy, Medicall submitted bills to Medicare for more than $4 million in services that were never provided. Medicare paid more than $1 million on those claims.
Mary Talaga, 54, of Elmwood Park, Illinois, and Roger A. Lucero, 64, of Elmhurst, Illinois, also have been convicted of offenses based on their roles in the scheme. Talaga, Home Care America’s biller, was convicted along with Brown at trial and is scheduled to be sentenced Sept. 18, 2015. Lucero, Medicall’s Medical Director, pleaded guilty and will be sentenced at a later date.
The case was investigated by HHS-OIG and the FBI, and was brought as part of the Medicare Fraud Strike Force, under the supervision of the Criminal Division’s Fraud Section and the U.S. Attorney’s Office of the Northern District of Illinois. This case was prosecuted by Trial Attorney Brooke Harper and Senior Trial Attorney Jon Juenger of the Criminal Division’s Fraud Section.
Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged over 2,300 defendants who collectively have billed the Medicare program for over $7 billion. In addition, the HHS Centers for Medicare & Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
To learn more about the Health Care Fraud Prevention and Enforcement Action Team (HEAT), go to: www.stopmedicarefraud.gov.
Thursday 3 September 2015
Wire Fraud Defendant Convicted of Failure to Surrender for Service of SentenceRead the Press Release
HONOLULU - A federal jury yesterday convicted Ruben Carrillo Gonzalez, age 53, for failing to surrender to federal authorities for service of his term of imprisonment. U.S. District Court Judge Leslie E. Kobayashi had ordered Gonzalez to self-surrender on January 5, 2015 at a federal correctional institution in California, but Gonzalez failed to surrender on that date.
Florence T. Nakakuni, United States Attorney for the District of Hawaii, said as a result of this conviction for failure to surrender for service of his sentence, Gonzalez is facing a sentence of up to ten years imprisonment which is required to be consecutive, or in addition, to the term of imprisonment for which he failed to surrender. Gonzalez had been sentenced by Judge Kobayashi on September 13, 2012, to 41 months imprisonment for committing wire fraud and had remained out of custody during the time of the appeal of this conviction to the Ninth Circuit Court of Appeals, which ultimately rejected the appeal and affirmed the conviction. According to information produced during the trial, the United States Marshal’s Service arrested Gonzalez on January 9, 2015 in Arizona where he resided pursuant to an arrest warrant issued after he failed to surrender.
This case was investigated by the Marshal’s Service with the assistance of the United States Pre-Trial Services Office. Assistant United States Attorney Chris A. Thomas prosecuted the case.
Waterloo is Awarded a Department of Justice Grant to Combat Drug CrimesRead the Press Release
CEDAR RAPIDS, IOWA—Today the city of Waterloo was awarded an Edward Byrne Memorial Justice Assistance Grant by the United States Department of Justice for fiscal year 2015. The $58,833 grant will be used in a joint effort by the City of Waterloo, Cedar Falls and Black Hawk County to provide continuing support for the Tri-County Drug Enforcement Task Force.
The Task Force is a multi-jurisdictional law enforcement unit responsible for investigating drug related crimes. The funds from this grant will be used to investigative major drug related crimes and support prosecution efforts.
United States Attorney for the Northern District of Iowa, Kevin W. Techau, stated, “This grant supports the common federal, state and local goal of strengthening law enforcement capabilities to investigate targets for the successful prosecution of drug traffickers.”
Currently, the Tri-County Drug Enforcement Task Force has full time investigators from the Waterloo and Cedar Falls Police Departments and the Black Hawk County Sheriff’s Office assigned to it. The Task Force investigates targets and assists in the prosecution of drug traffickers. It also responds to citizens’ complaints and concerns related to drug investigations.
In fiscal year 2014, the Task Force initiated 430 cases and made 173 arrests. It also seized $301,030 in cash and a large amount of illegal drugs with an estimated street value of $2,195,797. It also processed 17 methamphetamine lab sites.
This continued funding will assist in the enforcement against major drug trafficking organizations. The dismantling of these organizations is a priority and has resulted in the disruption of the distribution in the tri-county area of crack cocaine, marijuana, methamphetamine, heroin, hash oil and other illegal narcotics.
The Office of Justice Programs (OJP), which oversees these grants, provides innovative leadership to federal, state, local, and tribal justice systems, by disseminating state-of-the art knowledge and practices across America, and providing grants for the implementation of these crime fighting strategies. Because most of the responsibility for crime control and prevention falls to law enforcement officers in states, cities, and neighborhoods, the federal government can be effective in these areas only to the extent that it can enter into partnerships with these officers. OJP does not directly carry out law enforcement and justice activities. Instead, OJP works in partnership with the justice community to identify the most pressing crime-related challenges confronting the justice system and provides information, training, coordination, and innovative strategies and approaches for addressing these challenges.
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Two Local Men Sentenced on Federal Explosives and Weapons ChargesRead the Press Release
St. Louis, MO – OLAJUWON DAVIS and BRANDON ORLANDO BALDWIN were each sentenced to 84 months in prison on charges of planning and conspiring to ignite explosive devices during the Ferguson protests and procuring firearms for convicted felons.
According to court documents, in August 2014, Olajuwon Davis, a member of the New Black Panther Party, became a frequent protester in Ferguson, Missouri. During the protests, Davis met a fellow protestor by the name of Brandon Orlando Baldwin, who was employed at Cabela’s Inc., Hazelwood, Missouri. Cabela’s is a federally-licensed firearms dealer. Davis and Baldwin began to discuss how they could help arm some of the individuals taking part in the Ferguson protests. Baldwin volunteered that he could use his position at Cabela’s, and thereafter, Davis related to several people that he could procure firearms for convicted felons through Baldwin at the Cabela’s store. In fact, three such purchases were made: one on October 22, 2014, and two on November 7, 2014.
By early to mid-November, Davis and Baldwin’s talk of procuring guns had shifted into acquiring bombs. The discussions included types of bombs, blast radius and cost. Public buildings, police vehicles and police were discussed as possible targets. Also mentioned as possible targets were the St. Louis County Prosecutor and the Ferguson Chief of Police. On November 12, 2014, an undercover informant showed the defendants a recording of a controlled explosion that would be produced by the type of pipe bomb the defendants were talking about purchasing. The defendants requested a delivery date of Friday November 21, 2014.
On Thursday evening November 20, the arranged sale of three bombs was scheduled for shortly after midnight in the early morning hours of Friday. The reason for the delay was so that one of the defendants would be able to withdraw an additional $150 from an ATM machine to complete the purchase price of $250 for the three pipe bombs. The parties then met at a prearranged location in Hazelwood where the exchange of money for the three would-be bombs took place. Immediately upon the exchange taking place, Davis and Baldwin were arrested.
Olajuwon Davis, St. Louis, pled guilty in June to one felony count each of conspiracy to damage or destroy a building, vehicle and other property by use of an explosive, conspiracy to make false written statements in connection with the purchase of firearms and the transfer of firearms to a felon and two felony counts of aiding and abetting in the making of false written statements in connection with a firearms purchase.
Brandon Orlando Baldwin, St. Louis, Missouri, pled guilty in June to one felony count each of conspiracy to damage or destroy a building, vehicle and other property by use of an explosive, conspiracy to make false written statements in connection with the purchase of firearms and the transfer of firearms to a felon and two felony counts of making false written statements in connection with a firearms purchase. Both defendants appeared today for sentencing before United States District Judge Henry Autrey.
United States Attorney Richard Callahan congratulated law enforcement for preventing what potentially could have been a major disaster. "The disruption of this plot, coming as it did on the eve of the expected Grand Jury announcement, undoubtedly saved lives. Luckily for all of us, we’ll never know just how many," he said.
"We are pleased both members of the New Black Panther Party, St. Louis Chapter admitted their guilt before the Court," said William P. Woods, Special Agent in Charge of the FBI St. Louis Division. "The ultimate satisfaction is that we prevented their violent acts during the Ferguson protests, which saved lives."
This case was investigated by the Federal Bureau of Investigation, U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), Bureau of Alcohol, Tobacco, Firearms & Explosives, St Louis County Police Department and the St Louis Metropolitan Police Department.
Two Former Executives of Athletic Equipment Company Sentenced for Roles in Extensive Fraud on New Jersey SchoolsRead the Press Release
NEWARK, N.J. – The former chief financial officer and chief executive officer of a leading supplier of athletic equipment and reconditioning services were sentenced today for their roles in a conspiracy to defraud schools in New Jersey and elsewhere, U.S. Attorney Paul J. Fishman announced.
Mitchell Kurlander, 57, of Allentown, Pennsylvania, was sentenced to 41 months in prison and his father-in-law, Alan Abeshaus, 83, of Highland Beach, Florida, was sentenced to three years of probation, including nine months of home confinement. Each defendant previously pleaded guilty before U.S. District Judge William H. Walls to one count of mail and wire fraud conspiracy. Judge Walls imposed the sentences today in Newark federal court.
According to documents filed in the case and statements made in court:
Circle System Group Inc. (Circle) sold and reconditioned athletic equipment, uniforms, and apparel. Although its services were marketed nationally, a large portion of Circle’s business focused on middle schools, high schools, colleges, and youth sports programs in New Jersey. Circle’s business depended primarily on a sales force that attempted to maintain relationships with the school officials—including athletic directors, equipment managers, trainers, and coaches—who were responsible for purchasing athletic equipment and reconditioning services on behalf of the schools. Kurlander was the CFO and Abeshaus was the CEO.
From at least 1997 to June 2007, Circle engaged in a number of business practices aimed at defrauding schools, including keeping duplicate payments by schools that should have been returned or credited back to schools, submitting fake quotes to school officials, and submitting fraudulent invoices to schools.
Circle sent invoices and monthly statements of account to schools. Schools often paid both the invoices and statements, paying twice for the same items or services. At the direction of Kurlander and Abeshaus, Circle improperly retained at least $822,000 in overpayments from various schools in New Jersey and elsewhere and converted these overpayments to the personal use and benefit of Abeshaus.
Circle and its sales staff often would provide multiple price quotes, including some that appeared to come from other companies, to allow schools with requirements to obtain multiple price quotes to justify a contract with Circle. Using quote forms with the letterhead of other companies, Circle administrative staff would prepare fake, higher quotes at the direction of Kurlander and others. Circle submitted numerous such fake quotes to schools in New Jersey and elsewhere during the course of the conspiracy.
As a routine business practice, and to ingratiate Circle with school officials, Kurlander authorized Circle employees to make gifts and donations to schools and school officials, and often would take officials on golf outings and to meals. Kurlander routinely inflated Circle’s invoices for services and goods to those schools to reimburse Circle for these donations and gifts. Gifts provided by Circle to school officials included computers, digital cameras, flat-screen TVs, golf clubs, leather jackets and other personal apparel.
Circle sometimes also submitted bid packages and price quotations for goods and reconditioning services that were lower than the prices that Circle intended to charge schools. After Circle obtained a school’s business, Circle would, at Kurlander’s direction, garner its desired profits by fraudulently inflating the quantity or nature of the reconditioning work or by fraudulently inflating other invoices to those schools for reconditioning services.
In addition to the prison term, Judge Walls sentenced Kurlander to three years of supervised release, fined him $15,000 and ordered him to pay $1,052,942 in restitution. Abeshaus was fined $250,000, ordered to forfeit $300,000, and pay $1 million in restitution.
Three other individuals previously pleaded guilty to their involvement in the conspiracy. On Dec. 22, 2008, former Circle president David Drill pleaded guilty to conspiring to defraud, among other Circle customers, various New Jersey schools. Two school officials—former Long Branch High School Athletic Director Charles Ferrara Jr. and former Elizabeth High School official Robert Firestone—pleaded guilty on Nov. 22, 2010, and Jan. 5, 2011, respectively, to participating in the conspiracy. Ferrara and Firestone admitted, among other things, that they received items from Circle for their personal use and directed Circle to fraudulently bill the cost of those items back to their respective schools. Drill is awaiting sentencing before U.S. District Judge Esther Salas. Ferrara was sentenced by U.S. District Judge Jose L. Linares in June 2014 to one year of probation. Firestone was sentenced by U.S. District Judge Claire C. Cecchi in November 2014 to one year of probation.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Richard M. Frankel in Newark; and U.S. Department of Education, Office of Inspector General, under the direction of Special Agent in Charge Steven Anderson of the Mid-Atlantic Region and Special Agent in Charge Brian Hickey of the Northeastern Region, with the investigation leading to today’s sentences.
The government is represented by Assistant U.S. Attorney Lee M. Cortes Jr. and Senior Litigation Counsel J Fortier Imbert of the U.S. Attorney’s Office Special Prosecutions Division in Newark.
Defense counsel:
Kurlander: William A. DeStefano Esq., Philadelphia
Abeshaus: Kevin H. Marino Esq., Chatham, New Jersey
Torrington Man Charged with Child Pornography OffensesRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, and Patricia M. Ferrick, Special Agent in Charge of the New Haven Division of the Federal Bureau of Investigation, today announced that TIMOTHY J. ALLEN, 34, of Torrington, was arrested yesterday and charged by federal criminal complaint with receipt and possession of child pornography.
Following his arrest, ALLEN appeared before U.S. Magistrate Judge Sarah A.L. Merriam in New Haven and was released on a $50,000 bond under electronic monitoring.
The charge of receipt of child pornography carries a mandatory minimum term of imprisonment of five years, a maximum term of imprisonment of 20 years and a fine of up to $250,000. The charge of possession of child pornography carries a maximum term of imprisonment of 20 years and a fine of up to $250,000.
U.S. Attorney Daly stressed that a complaint is only a charge and is not evidence of guilt. Charges are only allegations, and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This matter is being investigated by the Federal Bureau of Investigation and the Connecticut Child Exploitation Task Force, which includes federal, state and local law enforcement agencies. The case is being prosecuted by Assistant U.S. Attorney Jacabed Rodriguez-Coss.
This prosecution is part of the U.S. Department of Justice’s Project Safe Childhood Initiative, which is aimed at protecting children from sexual abuse and exploitation. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
To report cases of child exploitation, please visit www.cybertipline.com.
Ten Arrested on Firearms and Narcotics Trafficking Charges During Two-Day Law Enforcement Operation in Eddy CountyRead the Press Release
ALBUQUERQUE – A series of undercover investigations by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Pecos Valley Drug Task Force and the Artesia Police Department have resulted in the filing of federal firearms and narcotics trafficking charges against eleven individuals. On Sept. 1 and 2, 2015, law enforcement officers engaged in a multi-agency operation in Eddy County, N.M., and arrested seven of the federal defendants. The officers also arrested three others on state felony narcotics trafficking charges during the two-day law enforcement operation.
The results of the undercover investigations were announced by U.S. Attorney Damon P. Martinez, Special Agent in Charge Thomas G. Atteberry of the Phoenix Division of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Commander James A. McCormack of the Pecos Valley Drug Task Force, and Chief Don Raley of the Artesia Police Department.
The seven federal defendants arrested during the law enforcement operation made their initial appearances in federal court in Roswell, N.M., this morning. One of the federal defendants is in state custody and will be transferred to federal custody to face the charges against him, and two others have yet to be apprehended and are considered fugitives. The eleventh federal defendant was shot and killed on Tuesday morning when officers attempted to arrest him.
The undercover investigations leading to the federal charges were led by the ATF office Las Cruces, the Pecos Valley Drug Task Force and the Artesia Police Department. During the course of the undercover investigations, law enforcement officers seized or purchased 21 firearms and ammunition, 49 ½ sticks of dynamite, approximately 240.16 grams of methamphetamine, a pound of marijuana, and 33 tablets of prescription opioids.
The following ten defendants are facing federal charges as a result of the undercover investigations:
- Victor R. Castillo, 36, of Artesia, N.M., is charged with being a felon in possession of a firearm and ammunition and unlawful possession of an unregistered short-barreled shotgun. The indictment alleges that Castillo committed the crimes in Eddy County in Jan. 2015. If convicted, Castillo faces a statutory maximum penalty of ten years in prison. Castillo was arrested on Sept. 1, 2015.
- Frederic Dodd, 39, of McIntosh, N.M., is charged with being a felon in possession of firearms and ammunition. The indictment alleges that Dodd committed the crime in Eddy County in May 2014. If convicted, Dodd faces a statutory maximum penalty of ten years in prison. Dodd was arrested on Sept. 1, 2015.
- Charles E. Gist, 56, of Artesia, N.M., and Jose Alfredo Villa, 34, of Lake Arthur, N.M., are charged with conspiracy to distribute methamphetamine and distribution of methamphetamine. The indictment alleges that the crimes were committed in Eddy County in Nov. and Dec. 2014. If convicted, each man faces a statutory mandatory minimum penalty of five years and a maximum of 40 years in prison. Gist was arrested on Sept. 2, 2015, and Villa was arrested on Sept. 1, 2015.
- Dallas Ellis Hnulik, 27, of Artesia, N.M., is charged with distributing methamphetamine on two occasions. The indictment alleges that he committed the crimes in Eddy County in June and July 2014. If convicted, Hnulik faces a statutory mandatory minimum penalty of five years and a maximum of 40 years in prison. Hnulik is in state custody on other charges and will be transferred to federal custody to face the charges in the indictment.
- Albert Douglas Lotts, 36, and Jackie Dean Brown, III, 34, both of Artesia, N.M., are charged with being felons in possession of firearms and ammunition. The indictment alleges that the two men committed these crimes in Eddy County in Jan. 2014. If convicted, each man faces a statutory maximum penalty of ten years in prison. Lotts was arrested on Sept. 1, 2015. Brown has yet to be arrested and is considered a fugitive.
- Jesus Adam Perez, 39, of McIntosh, N.M., is charged with the unlawful possession of a firearm and ammunition by a person convicted of a domestic violence misdemeanor and distributing marijuana. The indictment alleges that Perez committed these crimes in Eddy County in Nov. 2014. If convicted, Perez faces a statutory maximum of ten years in federal prison. Perez has yet to be arrested and is considered a fugitive.
- Floyd Albert Sherrell, 33, of Artesia, N.M. is charged with being a felon in possession of firearms and ammunition and distributing methamphetamine. The indictment alleges that he committed the crimes in Eddy County in June 2014. If convicted, Sherrell faces a statutory maximum penalty of ten years on the firearms charge and a statutory mandatory minimum penalty of five years and a maximum of 40 years in prison on the methamphetamine charge.
- Ronald Troy Bettencourt, 54, of Artesia, N.M., is charged in a five-count indictment that also charged Michael Todd Evans, 47. Bettencourt is charged with being a felon in possession of firearms and ammunition, being a felon in possession of explosives, and distributing methamphetamine. Bettencourt is alleged to have committed the crimes in Eddy County in Jan. 2014. If convicted, Bettencourt faces a statutory maximum penalty of ten years in prison on the firearms and explosives counts and a statutory mandatory minimum penalty of five years and a maximum of 40 years in prison on the methamphetamine charge. Bettencourt was arrested on Sept. 1, 2015. Evans was shot and killed on Sept. 1, 2015 when he opened fire on officers who were seeking to execute a warrant authorizing his arrest.
The prosecutions of Bettencourt, Brown, Castillo and Hnulik are being pursued under a federal anti-violence initiative that targets “the worst of the worst” offenders 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. This initiative recognizes that on a per capita basis, New Mexico’s violent crime rates, including that of Eddy County, significantly exceed the national average.
The following defendants, all of whom reside in Carlsbad, N.M., were arrested on state felony narcotics trafficking charges: Ricky Gauntt, 61, Leah Hayhurst, 29, and Amanda Lujan, 27.
Charges in indictments and criminal complaints are merely accusations and defendants are presumed innocent unless found guilty beyond a reasonable doubt.
Assistant U.S. Attorney Maria Y. Armijo of the U.S. Attorney’s Las Cruces Branch Office is prosecuting the federal cases. The state cases are being prosecuted by the 5th Judicial District Attorney’s Office. The federal cases were investigated by the Las Cruces office of ATF, the Pecos Valley Drug Task Force and the Artesia Police Department. The following agencies participated in the Sept. 1-2, 2015 law enforcement operation: ATF, Pecos Valley Drug Task Force, Artesia Police Department, Carlsbad Police Department, Eddy County Sheriff’s Office, Lake Arthur Police Department, and the Probation and Parole Division of the New Mexico Corrections Department.
The Pecos Valley Drug Task Force is comprised of officers from the Eddy County Sheriff’s Office, Carlsbad Police Department and Artesia Police Department and is part of the HIDTA Region VI Drug Task Force. The High Intensity Drug Trafficking Areas (HIDTA) program was created by Congress with the Anti-Drug Abuse Act of 1988. HIDTA is a program of the White House Office of National Drug Control Policy (ONDCP) which provides assistance to federal, state, local and tribal law enforcement agencies operating in areas determined to be critical drug-trafficking regions of the United States and seeks to reduce drug trafficking and production by facilitating coordinated law enforcement activities and information sharing.
Photographs of the federal fugitives, Jackie Dean Brown, III, and Jesus Adam Perez are attached to this press release. Anyone with information on the whereabouts of these fugitive is asked to contact the ATF in Las Cruces at 575-522-0699.
Tampa Man Pleads Guilty to Sexual Enticement of A ChildRead the Press Release
Orlando, Florida – United States Attorney A. Lee Bentley, III announces that Christopher James Everding (28, Tampa) has pleaded guilty to one count of attempting to entice a child to engage in illicit sexual conduct. He faces a mandatory minimum sentence of 10 years, up to life, in federal prison. His sentencing hearing is scheduled for November 16, 2015.
According to the plea agreement, from May 15, 2015, to May 22, 2015, Everding engaged in communications via the Internet with an undercover officer about his intent to engage the undercover officer’s 13-year-old fictitious daughter in sex and bestiality. On May 22, 2015, Everding traveled from Tampa to Brevard County for the purpose of engaging the “child” in illicit sexual conduct and was arrested.
This case was investigated by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations and the Brevard County Sheriff’s Office. It is being prosecuted by Assistant United States Attorney Ilianys Rivera Miranda.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Superseding Indictment Against Washington State Auditor Troy X. Kelley adds Money Laundering and Additional Tax ChargesRead the Press Release
A U.S. Grand Jury in Seattle has returned a superseding seventeen-count indictment against TROY X. KELLEY, 50, of Tacoma for his scheme to keep stolen money and hide it from both the IRS and those due a refund related to their purchase of a home or refinance of a home mortgage, announced U.S. Attorney Annette L. Hayes. KELLEY was indicted in April. The superseding indictment adds money laundering and tax evasion charges for conduct between 2011 and 2015, including conduct after KELLEY was elected Washington State Auditor. KELLEY will be scheduled for arraignment on the superseding indictment next week in U.S. District Court in Tacoma.
“The superseding indictment alleges that Mr. Kelley’s scheme continued even after his election to statewide office,” said U.S. Attorney Annette L. Hayes. “As set out in the new charges, he is alleged to have laundered money as recently as February of this year.”
According to the counts in the original indictment, between 2003 and 2008, KELLEY operated a business that was paid by real estate title companies to track documents related to real estate sales and refinancings. KELLEY had agreements with those companies for the fees he could charge in connection with the document-tracking work. While the title companies withheld $100-$150 on each loan to pay the fee, the bulk of the money was to be returned to the borrower with KELLEY’s company being paid approximately $15- $20 per transaction. In most cases, KELLEY kept the entire amount withheld on each loan resulting in more than $2 million in stolen money. When the amount withheld by title companies became the subject of civil litigation, KELLEY obstructed the litigation, repeatedly lying in a declaration and in depositions while under oath. The original indictment also charges KELLEY with making false statements to Internal Revenue Service agents who questioned him about his scheme in April 2013, and with corruptly interfering with Internal Revenue law and filing false income tax returns in 2008.
The superseding indictment adds five counts of money laundering for KELLEY’s scheme to transfer and use the stolen funds for his own benefit. The money laundering counts are for conduct in 2011, 2012, 2013, 2014, and 2015. The superseding indictment also adds three additional tax evasion counts alleging KELLEY filed false tax returns for 2011, 2012 and 2013.
One count from the original indictment has been dropped in the superseding indictment. KELLEY is no longer charged with Attempted Obstruction of Civil Lawsuit due to changes in case law.
The charges contained in the superseding indictment are only allegations. A person is presumed innocent unless and until he or she is proven guilty beyond a reasonable doubt in a court of law.
Possession and concealment of stolen property is punishable by up to ten years in prison. Money Laundering is punishable by up to twenty years in prison. False declarations and false statements are punishable by up to 5 years in prison. The remaining charges are punishable by up to three years in prison.
The case was investigated by the Internal Revenue Service Criminal Investigation (IRS-CI) and the FBI.
The case is being prosecuted by Assistant United States Attorneys Arlen Storm, Kathryn Frierson and Andrew Friedman.
kelley_superseding_indictment.pdf (2.6 MB)