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2 October 2015
Guardian Hospice and Related Entities to Pay $3 Million to Resolve False Claims Act AllegationsRead the Press Release
ATLANTA – The United States Attorney’s Office for the Northern District of Georgia announced that Guardian Hospice of Georgia, LLC, Guardian Home Care Holdings, Inc., and AccentCare, Inc., (collectively Guardian) agreed to pay $3 million to resolve allegations that Guardian knowingly submitted false claims to the Medicare program for hospice patients who were not terminally ill. Guardian is a for-profit hospice that provides hospice services in the Atlanta, Georgia, area.
“Medicare payments to hospices are increasing every year,” said U.S. Attorney John Horn. “In order to preserve Medicare funds for services patients truly need, we will continue to pursue hospice providers who abuse the Medicare hospice benefit by billing Medicare for the care of patients who are not terminally ill.”
““The Medicare hospice benefit is intended to provide comfort and care to patients nearing the end of life,” said Principal Deputy Assistant Attorney General Benjamin C. Mizer, head of the Justice Department’s Civil Division. “We will continue to aggressively pursue companies that abuse the Medicare hospice benefit to improperly inflate their profits.”
J. Britt Johnson, Special Agent in Charge, FBI Atlanta Field Office, stated: “The FBI is proud of the role that it played in bringing forward today’s settlement in this matter. The FBI will continue to provide significant investigative resources toward combating Medicare fraud in order to not only protect the limited federal funds dedicated to that program but also to protect the end users that rely and depend on the services that it provides.”
“Hospice care is only medically appropriate – and reimbursed by Medicare – for terminally ill patients who are in the last months of their lives,” said Special Agent in Charge Derrick L. Jackson of the U.S. Department of Health and Human Services-Office of Inspector General. “We will continue to vigorously investigate health care companies that put their own profits above their duty to give appropriate medical care to their patients and bill Medicare only for legitimate health care services.”
The Medicare hospice benefit is available for patients who elect palliative treatment (medical care focused on providing patients with relief from pain, symptoms, or stress) for a terminal illness and who have a life expectancy of six months or less if their illness runs its normal course. Before billing Medicare, a hospice provider is obligated to comply with Medicare requirements and ensure that patients who are foregoing curative care are in need of end of life care.
The government alleges that Guardian submitted or caused the submission of false claims for hospice care for patients who Guardian knew were not terminally ill. These claims were submitted for services provided between December 1, 2009 and March 31, 2012. Specifically, the United States contends that Guardian’s business practices contributed to its submission of claims for patients who did not have a terminal prognosis of six months or less, including failing to properly train its staff and medical directors on the hospice eligibility criteria, setting aggressive targets to recruit and enroll patients, and failing to properly oversee the Atlanta hospice.
The settlement resolves allegations filed by Rose Betts and Jennifer Williams, former employees of Guardian, under the qui tam or whistleblower provisions of the False Claims Act, which authorize private parties to sue for false claims on behalf of the United States and share in the recovery. Ms. Betts and Ms. Williams will receive approximately $510,000. The lawsuit was filed in the Northern District of Georgia and is captioned U.S. ex rel. Betts v. Texas Home Health of America, L.P., No. 12-cv-0412.
This settlement illustrates the government’s emphasis on combating health care fraud and marks another achievement for the Health Care Fraud Prevention and Enforcement Action Team (HEAT) initiative, which was announced in May 2009 by the Attorney General and the Secretary of Health and Human Services. The partnership between the two departments has focused efforts to reduce and prevent Medicare and Medicaid financial fraud through enhanced cooperation. One of the most powerful tools in this effort is the False Claims Act. Since January 2009, the Justice Department has recovered a total of more than $25.14 billion through False Claims Act cases, with more than $16.1 billion of that amount recovered in cases involving fraud against federal health care programs.
The claims resolved by the settlement are allegations only, and there has been no determination of liability.
This case was investigated by the U.S. Attorney’s Office for the Northern District of Georgia, the U.S. Department of Justice Civil Division’s Commercial Litigation Branch, the Federal Bureau of Investigation, and the U.S. Department of Health & Human Services, Office of Inspector General.
The civil settlement was reached by Assistant United States Attorney Lena Amanti.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the home page for the U.S. Attorney’s Office for the Northern District of Georgia Atlanta Division is http://www.justice.gov/usao/gan/.
Gray Man Pleads Guilty to Making False Entries in Credit Union RecordsRead the Press Release
Contact: Donald E. Clark
Assistant United States Attorney
Tel: (207) 780-3257Portland, Maine: United States Attorney Thomas E. Delahanty II announced that WILLIAM J. MURPHY, 75, of Gray, Maine, pled guilty today in U.S. District Court to making false entries in credit union records.
According to court records, the defendant was the chief financial officer, a loan officer, the bookkeeper and an employee of the Portland Police Department Federal Credit Union ("PPDFCU"), a federal credit union whose deposits were federally insured. In that capacity, the defendant had access to PPDFCU bank accounts and was responsible for drafting and auditing the general ledger and preparing and submitting certified quarterly call reports to the National Credit Union Administration ("NCUA"). Between 2009 and 2013, the defendant filed false quarterly call reports in which he overstated the PPDFCU’s net worth to make it appear that PPDFCU was sufficiently capitalized, when in truth and in fact, as he well knew, the PPDFCU was not sufficiently capitalized. As a result, on December 1, 2014, the NCUA facilitated the acquisition of the PPDFCU by a much larger federal credit union.
Murphy faces up to 30 years in prison, five years of supervised release and a $1,000,000 fine. He will be sentenced after the completion of a presentence investigation report by the U.S. Probation Office.The investigation was conducted by the Federal Bureau of Investigation.
Grants Awarded to South Dakota Law EnforcementRead the Press Release
Acting United States Attorney Randolph J. Seiler announced that the Office of Community Oriented Policing Services (COPS) has funded three awards in the District of South Dakota. In FY 2015, approximately $107 million was awarded nationally through the COPS Hiring Program, including $662,005 for the District of South Dakota.
The list of FY 2015 grantees includes: City of Sioux Falls Police Department awarded $375,000 to fund 3 officers; City of Eagle Butte awarded $171,000 to fund 1 officer; and Sisseton Wahpeton Law Enforcement awarded $116,005 to fund 1 officer.
The COPS Hiring Program provides grants to state, local and tribal law enforcement agencies to hire or rehire community policing officers. The program provides salaries and benefits for officer and deputy hires for three years.
The COPS Office is a federal agency responsible for advancing community policing nationwide. Since 1995, COPS has invested over $14 billion to advance community policing, including grants awarded to more than 13,000 state, local, and tribal law enforcement agencies to fund the hiring and redeployment of approximately 127,000 officers, and provide a variety of knowledge resource products including publications, training, and technical assistance.
For the entire list of grantees and additional information about the 2015 COPS Hiring Program, visit the COPS website at www.cops.usdoj.gov.
Georgia Man Pleads Guilty to Bank LarcenyRead 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 Damian Linton, 35, of Atlanta, Georgia, pleaded guilty to bank larceny before U.S. Magistrate Judge H. Kenneth Schroeder. The charge carries a maximum penalty of one year in prison and a fine of $100,000.Assistant U.S. Attorney Maura K. O'Donnell, who is handling the case, stated that Linton operated a business that created fraudulent pay stubs and other fraudulent documents. Some of those documents were then submitted to various lenders in support of fraudulent loan applications, causing lenders to release funds, under fraudulent pretenses.
The plea is the culmination of an investigation by Special Agents of the FBI, under the direction of .
Sentencing for Linton is scheduled for January 7, 2016 before Judge Schroeder.Fort Dodge Felon in Possession of a Firearm to Federal PrisonRead the Press Release
A man who illegally possessed a firearm and ammunition was sentenced September 29, 2015, to nine years in federal prison.
Bruce Jeffers, 54, from Fort Dodge, Iowa, received the prison term after a July 7, 2014, guilty plea to one count of being a felon in possession of a firearm and one count of being a felon in possession of ammunition. Jeffers was previously convicted of voluntary manslaughter, arson of a home, and evading an officer with willful disregard.
On August 5, 2013, Fort Dodge, Iowa, police officers were dispatched to a domestic disturbance involving a firearm. Minutes later, Jeffers was located by Ft. Dodge Police Officers as he was pulling into the garage at his residence. Located in plain view on the front seat of Jeffers’ truck were live rounds of .380 caliber ammunition. The loaded black Kel Tec .380 pistol was located several feet from Jeffers’ driveway. During Jeffers’ arrest and booking, he attempted to conceal and discard additional .380 caliber rounds of ammunition in the booking area of the jail.
Jeffers was sentenced in Sioux City by United States District Court Judge Mark W. Bennett. Jeffers was sentenced to 108 months’ imprisonment. A special assessment of $200 was imposed. He must also serve a three-year term of supervised release after the prison term. There is no parole in the federal system. Jeffers is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Jamie Bowers and investigated by the Fort Dodge Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is 13-3033.
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Former Savannah ATF Task Force Officer Pleads Guilty to Stealing Government MoneyRead the Press Release
Savannah, Ga. – Former ATF Task Force Officer Daryle McCormick pleaded guilty to fraudulently claiming that he worked approximately 800 hours of overtime resulting in more than $19,500 in additional wages.
“McCormick’s lies about the overtime he worked cost the taxpayers almost $20,000,” said U.S. Attorney John Horn. “In committing this crime, McCormick violated both the law and the public’s trust.”
“Today’s guilty plea demonstrates that federally deputized task force officers will be held to the same standards as other federal law enforcement officers,” said Special Agent in Charge Robert Bourbon of the U.S. Department of Justice Office of the Inspector General’s Miami Field Office.
According to U.S. Attorney Horn, the charges, and other information presented in court: From approximately November 25, 1996, to May 7, 2015, Daryle McCormick served as a police officer with Savannah-Chatham Metropolitan Police Department headquartered in Savannah, Georgia. From that position, McCormick became a federally‑deputized Task Force Officer with the U.S. Department of Justice’s Bureau of Alcohol, Tobacco, Firearms, and Explosives (“ATF”). McCormick served as an ATF Task Force Officer from approximately September 6, 2005, to June 17, 2014.
As an ATF Task Force Officer, McCormick was eligible to receive overtime pay for working more than eight hours per day. To be paid, McCormick was required to submit an overtime pay request to the ATF, listing the dates worked, the number of hours worked, and the general subject matter of the work. When submitting requests to be paid for overtime hours purportedly worked, McCormick made the following certification: “I certify that the above time was duly earned. I understand that my misstatement concerning the aforementioned time may be cause for dismissal.” Ultimately, when approved, payments for McCormick’s fraudulently claimed overtime came from the U.S. Department of Justice.
From October 2010 to September 2013, McCormick engaged in a scheme to unlawfully commit overtime fraud by repeatedly submitting overtime payment requests to the ATF for hours that he never worked. For example, (1) McCormick claimed to work overtime on days when he had worked a full day with the ATF and had also worked up to an additional four hours at a second job for a local church; (2) McCormick claimed to have worked overtime conducting surveillance or undercover operations, even though no ATF operations occurred on those dates; and (3) McCormick claimed to have worked overtime conducting surveillance or undercover operations; however, McCormick never drafted reports summarizing the alleged ATF operations.
From approximately October 18, 2010, to September 28, 2013, McCormick falsely claimed to have worked almost 800 hours in overtime when in fact, he had not worked those overtime hours. Based on those false overtime requests, the Department of Justice paid McCormick more than $19,500 for overtime hours that McCormick never worked.
On August 31, 2015, Daryle McCormick, 47, of Pooler, Georgia, was charged via criminal information with theft of government money. He pleaded guilty to that charge. McCormick was terminated from the Savannah-Chatham Metropolitan Police Department in May, 2015.
This case is being investigated by the Federal Bureau of Investigation and the U.S. Department of Justice Office of the Inspector General.
Special Assistant U.S Attorney Jeffrey W. Davis is prosecuting the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Former Ohio Music Instructor Charged Federally with Child Pornography OffensesRead the Press Release
COLUMBUS, Ohio – A former school music instructor was charged late Thursday by criminal complaint with production of child pornography.
Brian Sze, 34, of Seattle, was arrested September 29 without incident at his residence. He is also facing related state charges in Ohio.
Carter M. Stewart, United States Attorney for the Southern District of Ohio, Marlon V. Miller, Special Agent in Charge, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI), Columbus Police Chief Kim Jacobs and members of the Franklin County Internet Crimes Against Children (ICAC) Task Force announced the charges.
According to court documents, the investigation began in July 2015 after a tip was called into ICAC which indicated Sze had illicit sexual contact with a minor and subsequently recorded the encounter.
Production of child pornography is a crime punishable by a range of 15 to 30 years in prison.
The Franklin County ICAC Task Force is a multi-agency effort dedicated to the fight against computer facilitated crimes against children. The following agencies are members:
Franklin County Sheriff’s Office Ohio ICAC Grove City Police Department Columbus Police Department Grandview Heights Police Department Westerville Police Department Hilliard Police Department Franklin County Prosecutor's Office Homeland Security InvestigationsThis case is being brought as part of Project Safe Childhood, a nationwide initiative by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorney's 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 as well as to identify and rescue victims.
U.S. Attorney Stewart commended the members of the ICAC Task Force for the cooperative investigation, and Assistant U.S. Attorney Heather Hill who is representing the United States in this case.
A criminal complaint merely contains allegations, and the defendant is presumed innocent unless proven guilty in a court of law.
Former Office Manager Charged with Theft of Health Center Residents Trust FundsRead the Press Release
HARRISBURG- The United States Attorney’s Office for the Middle District of Pennsylvania announced the indictment of Kristy Scott Jewett, age 35, of Carlisle, on charges of theft of public funds.
The Indictment alleges that, from 2008 to June 2014, Jewett was the Office Manager for Forest Park Health Center and Rehabilitation in Carlisle, Pennsylvania, a facility that receives in excess of $10,000 in federal benefits annually. In that capacity, Jewett had responsibility for financial accounts at Forest Park, including resident trust funds. The Indictment alleges that the funds held deposits of residents of the facility to be used for care-related and incidental expenses, and that Jewett, in each of four separate years, stole more than $5,000 of Resident Trust Fund money for her own benefit and use.
Jewett allegedly made false entries in the ledgers of the Resident Trust Fund account and falsified monthly account reconciliations provided to Forest Park managers to conceal the scheme.
The Indictment by a federal grand jury in Harrisburg was filed on September 23, 2015 and was sealed until today when Jewett was arrested, appeared in court before U.S. Magistrate Judge Susan E. Schwab, and was released on her own recognizance. The case has been assigned to U.S. District Judge William W. Caldwell.
The investigation was conducted by the Federal Bureau of Investigation. Prosecution has been assigned to Assistant U.S. Attorney Joseph J. Terz.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law on each count is 10 years of imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Former Midamar Operations Manager SentencedRead the Press Release
The former Operations Manager of Midamar Corporation (Midamar) of Cedar Rapids, Iowa, a worldwide distributor of Halal food products, was sentenced yesterday to serve a three year term of probation.
Philip G. Payne, 50, of Ryan, Iowa, received the sentence after having pleaded guilty on January 5, 2015, to one count of conspiracy to make and deliver false certificates and writings.
According to facts admitted by Payne in a plea agreement, between about April 2007 and December 2009, Midamar employees, knowingly and without authorization, removed USDA marks of inspection from meat products and replaced them with marks of inspection from a facility other than where the meat was slaughtered.This was done at the direction, and with the knowledge and approval, of Midamar’s owners and managers.These and other actions were taken with the intent to make the beef eligible for import into countries that would otherwise not have accepted the beef shipments.
Payne, also admitted as part of his plea agreement that, as demand for Halal beef supplied by Midamar grew, Midamar supplemented its sales of purported Halal beef with Kosher beef slaughtered by rabbis, without any participation or oversight by a Muslim slaughterman, contrary to representations made by Midamar and Islamic Services of America (ISA), an internationally recognized Halal certifier.
Midamar and ISA were founded by William B. Aossey, Jr., of Cedar Rapids, Iowa, and in recent years were owned and operated by his sons, Jalel Aossey and Yahya (Bill) Nasser Aossey. William B. Aossey, Jr., was convicted in July of this year by a federal jury on related charges. He is currently incarcerated while awaiting sentencing. Jalel and Yahya Aossey, as well as Midamar and ISA, have each pleaded guilty to related charges and are also awaiting sentencing.
The investigation of Midamar, ISA, Payne, and the Aosseys was initiated in early 2010 when the USDA was informed that misbranded meat shipped by Midamar had been discovered in a warehouse in Indonesia. A preliminary investigation by the USDA showed at least 22 shipments of misbranded meat had been sent to Malaysia and Indonesia between about 2007 and 2010. As part of a follow-up investigation, Payne informed investigators that Midamar and ISA had been involved in additional fraud related to the substitution of Kosher meat products to satisfy Halal beef orders. Further investigation of that scheme led to the indictment of the Aosseys, Midamar, and ISA.
In addition to the three year term of probation, Payne was ordered to pay a fine of $20,000. Payne is also currently serving an eighteen month term of supervision as part of an agreement to defer prosecution on two additional felony fraud counts contained in an Information filed against him in federal court earlier this year. Payne is required to perform 75 hours of community service as part of the deferred prosecution agreement. If Payne successfully completes the term of deferred prosecution, the two additional fraud counts will be dismissed.
The case was prosecuted by Assistant United States Attorneys Richard L. Murphy and Timothy Vavricek, and was investigated by the Department of Agriculture Office of Inspector General Office of Investigations, and by the Internal Revenue Service Criminal Investigations.
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is 14-CR-00143-LRR.
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Former Deputy Director of Prince George’s County Housing Authority and Her Husband Convicted in Scheme to Fraudulently Obtain Rental Subsidy PaymentsRead the Press Release
Greenbelt, Maryland - A federal jury has convicted Carla Carter, former deputy director of the Prince George’s County Housing Authority, and her husband, Raymond Carter, both age 54, of Mitchellville, Maryland, on charges related to a scheme to fraudulently receive approximately $112,000 in rental subsidy payments from the Housing Authority.
The conviction was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Cary A. Rubenstein of the U.S. Department of Housing and Urban Development (HUD) Office of Inspector General; and Special Agent in Charge Kevin Perkins of the Federal Bureau of Investigation.
According to the evidence presented at the eight-day trial, Carla Carter was deputy director of the Prince George’s County Housing Authority (Housing Authority) from July 2007 through February 2012. From June through October 2008, she also served as the acting director of the Prince George’s County Department of Housing and Community Development (DHCD), the parent agency of the Housing Authority. Carla and Raymond Carter owned properties in Prince George’s County that were registered in HUD’s Section 8 Housing Choice Voucher Program (HCV Program). The HCV Program is a federal program assisting low-income families, the elderly and the disabled to afford decent, safe and sanitary housing in the private rental market. The program is administered by the Housing Authority.
The evidence showed that from October 2007 through December 2012, the Carters conspired to defraud HUD and the Housing Authority to obtain rental subsidy payments for the properties they owned in Bowie and Capitol Heights. During most of this period, Carla Carter was an employee with the Housing Authority who formulated policy and influenced decisions with respect to Housing Authority programs. To disguise the scheme and their ownership of the properties, the Carters identified a co-conspirator as the owner and landlord of the properties, and submitted numerous false documents to the Housing Authority. In 2008 or 2009, Carla Carter asked an employee of the Housing Authority and the DHCD to change the listed owner of one of the properties in DHCD’s computer records from “Carla Carter” to “Raymond Carter,” and to change the listed landlord of that property from “Carla Carter” to the name of the co-conspirator. The Housing Authority made rental subsidy payments to the co-conspirator. According to trial testimony, all of the rental subsidies were funneled into three bank accounts controlled by the Carters.
According to the trial testimony, on May 5, 2008, and April 18, 2011, Carla Carter submitted a false financial disclosure statement to the Prince George’s County Board of Ethics that failed to disclose her ownership of the properties. The Housing Authority placed Carla Carter on administrative leave and she submitted her letter of resignation on March 29, 2012, effective April 6, 2012.
Carla and Raymond Carter each face a maximum sentence of 20 years in prison for conspiring to commit wire fraud, 13 counts of wire fraud, and conspiring to commit money laundering. U.S. District Judge George J. Hazel has scheduled sentencing for Carla and Raymond Carter on January 11, 2016, at 9:30 a.m. and 10:30 a.m., respectively. The Carters are released under the supervision of U.S. Pretrial Services.
United States Attorney Rod J. Rosenstein praised the HUD-OIG and FBI for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorneys Bryan E. Foreman and Nicolas Mitchell, who are prosecuting the case.
Final Defendant Sentenced in Operation Piney WoodsRead the Press Release
HOUSTON – The final person in a 14-defendant cocaine conspiracy has been ordered to federal prison for more than 24 years, announced U.S. Attorney Kenneth Magidson. Jeramy Jerome Gage, 34, of Huntsville, pleaded guilty March 28, 2014, to conspiracy to possess with the intent to distribute cocaine and marijuana.
Today, U.S. District Judge Melinda Harmon ordered he serve 292 months in federal prison which will be immediately followed by five years of supervised release. In handing down the sentence, the court noted his leadership role and that he obstructed justice among other factors for the significant sentence.
Gage was the last of 14 defendants to be sentenced in this drug trafficking organization. The remaining defendants previously received sentences ranging from 145 to 18 months in prison. Ramola K. Brown, of Huntsville, was convicted by a jury following a three-day trial, received 145 months in prison. The remaining defendants, all from the Huntsville and Houston areas, had previously pleaded guilty. Dennis Rogers Haynes received a sentence of 104 months, while Jeffrey Johnson, Arturo Valdez and Annie Mae Ball were sentenced to 87, 80 and 78 months, respectively. Lawrence Perry, Kenneth O’Bryant and Herratio Hans Hedspetch each were ordered to serve a 70-month-term of imprisonment. Gregory McFadden, Lloyd Glen O’Bryant, Mark Wayne Wheeler, Michael Andrew Williams were ordered to serve 60, 46, 43, and 18 months in prison, respectively, while Scotty Porter was ordered to serve 16 months in prison.
This convictions are the result of a two-year investigation dubbed Operation Piney Woods led by the Drug Enforcement Administration with the assistance of the Bureau of Alcohol, Tobacco, Firearms and Explosives; U.S. Marshals Service; police departments in Houston, Huntsville and Willis; sheriff’s offices in Walker, Montgomery and Harris Counties; Texas Department of Public Safety; Texas Department of Criminal Justice - Office of the Inspector General; and both the Madison and Walker County District Attorney’s Offices. Assistant United States Attorneys John Jocher and Shelley Hicks prosecuted the case.
Federal Jury Finds Man Guilty of Causing Arson Death of Branford Woman in 2006Read the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, Chief State’s Attorney Kevin T. Kane, Patricia M. Ferrick, Special Agent in Charge of the New Haven Division of the Federal Bureau of Investigation, and Branford Police Chief Kevin Halloran today announced that a federal jury in Hartford has found JOHN VAILETTE, also known as “John John” and “Snagglepuss,” 44, guilty of committing an arson in Branford in 2006 that caused the death Kathy Hardy. The trial before U.S. District Judge Robert N. Chatigny began on September 10 and the jury returned the verdict after approximately three days of deliberations.
Judge Chatigny scheduled sentencing for December 23, 2015, at which time VAILETTE faces a maximum term of imprisonment of life. VAILETTE has been in federal custody since 2007, and recently completed a 10-year sentence for distributing crack cocaine.
According to the evidence at trial, at approximately 8:45 a.m. on the morning of March 7, 2006, the Branford Emergency Communications Center received 911 calls reporting a fire at 27 Little Bay Lane in Branford, a single-family home rented by Kathy Hardy. After members of the Branford Fire Department arrived at the scene and extinguished the fire, firefighters located the body of Kathy Hardy, 39, on the second floor of the residence. Fire Department investigators ultimately determined that the fire was initiated by accelerants located in the first floor living room area and on the staircase leading to the second floor of the dwelling. An autopsy performed on Kathy Hardy concluded that the cause of death was smoke inhalation, and her death was classified as a homicide.
Approximately two days after the fire, investigators located a truck regularly used by VAILETTE, which had been hidden in New Haven for a period of time in the aftermath of the fire. The truck, which was found at the home of another close associate of VAILETTE’s, contained a silver serving platter, two watches and rosary beads that belonged to Kathy Hardy.
One trial witness testified that VAILETTE called her hours after the fire and asked her to deliver a change of clothes to his place of work. Other witnesses testified that, after the fire, VAILETTE made incriminating statements.
“John Vailette committed a heartless and cowardly crime – setting fire to a woman’s home,” said U.S. Attorney Daly. “That fire killed Kathy Hardy and took her from her three children, her parents, her siblings and many loved ones. This was a difficult case and I thank the jury for its thoughtful consideration of the evidence. I also want to thank the trial team, the prosecutors from our office and the Chief State’s Attorney’s Office, and the investigators from the FBI, the Branford Police and Fire Departments, and the Connecticut State Police for their tremendous work on this case. Many of these dedicated investigators worked tirelessly on this matter for years. Justice has been served.”
Chief State’s Attorney Kevin T. Kane commended the federal, state and local law enforcement agencies that collaborated on the investigation and subsequent prosecution. “This case is a perfect example of the benefits of teamwork and cooperation among federal, state, and municipal officials. Kathy Hardy’s family tirelessly advocated to fund the Cold Case Bureau in the Chief State’s Attorney’s Office. I hope that this verdict can bring some small measure of comfort as they continue to grieve for their loved one.”
“Today’s guilty verdict will hopefully provide some closure to Kathleen Hardy’s family,” said FBI Special Agent in Charge Ferrick. “Thanks to the dedication of the investigators in this case, specifically the Branford Police Department and the Connecticut State Police, as well as the Branford Fire Department and the FBI special agents, Mr. Vailette’s crime will not go unpunished.”
“I am pleased with the jury’s guilty verdict of John Vailette in the arson murder of Kathy Hardy,” stated Branford Police Chief Halloran. “This case was never put on the back shelf from the day of the incident. Without the support of the New Haven office of the FBI, U.S. Attorney’s Office, Connecticut Chief State’s Attorney’s Office, Branford Fire Department and other local, state and federal agencies involved in the investigation, we may not have had the same outcome. I hope this verdict provides some sense of closure to the family.”
This matter is being investigated by the Federal Bureau of Investigation, the Branford Police Department and the Office of the Chief State’s Attorney, with the assistance of the Connecticut State Police, Fire and Explosion Investigation Unit and the New Haven State’s Attorney’s Office. The case is being prosecuted by Assistant U.S. Attorney John H. Durham and Special Assistant U.S. Attorneys Michael A. Gailor and Kevin M. Shay.
Federal Corrections Officer Indicted for Making A False Statement to InvestigatorsRead the Press Release
Ocala, Florida – United States Attorney A. Lee Bentley, III announces the return of an indictment charging Rashan L. Gibson (28, Clermont) with making a false statement to federal investigators. If convicted, he faces a maximum penalty of five years in federal prison.
According to court documents, in January 2015, federal investigators were contacted by an inmate at the Coleman Federal Correctional Institution in Sumter County who claimed that Gibson, a federal corrections officer, had smuggled cigarettes into the facility in exchange for a $500 bribe. In May 2015, investigators monitored an audio and video-recorded meeting between Gibson and the inmate. During that meeting, Gibson and the inmate discussed the previous transaction, as well as a future $5,000 payment for other contraband that Gibson would smuggle into the prison. The inmate also provided Gibson with the name of a contact who could deliver the payment to him.
On August 6, 2015, investigators confronted Gibson about the smuggling operation. During the meeting, Gibson denied smuggling contraband into the prison. He also claimed that he had not met with the inmate, had not discussed a bribery payment, and had never received the name of a person who would pay him money on the inmate’s behalf.
An indictment is merely a formal charge that a defendant has violated one or more federal criminal laws, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by the Department of Justice Office of the Inspector General and the Federal Bureau of Investigation. It is being prosecuted by Assistant United States Attorney Robert E. Bodnar, Jr.
East Hill Man Sentenced for Distributing Child PornographyRead the Press Release
PENSACOLA, FLORIDA –Kandel Markie Whiting, 35, of Pensacola, was sentenced to 90 months in prison today for receipt and distribution of child pornography. Following his incarceration, he will serve 10 years on supervised release, and he must also register as a sex offender. The sentence was announced by Christopher P. Canova, Acting United States Attorney for the Northern District of Florida.
During his guilty plea on May 28, 2015, Whiting admitted that, between October 2014 and January 2015, he used the social media applications Twitter and Kik to share images of minors engaged in sex acts. In January 2015, Whiting’s Twitter account was reported to law enforcement for containing images of child pornography. When agents executed a federal search warrant at Whiting’s residence and seized his cellular telephone, they quickly located the illicit material within his social media applications. Whiting then admitted to sharing child pornography online using Twitter and Kik. Additionally, a forensic review of Whiting’s digital media revealed numerous child pornographic images and videos.
The case was investigated by the United States Immigration and Customs Enforcement (ICE) Homeland Security Investigations (HSI), Pensacola Police Department, and the other agencies that are part of the North Florida Internet Crimes Against Children Task Force, whose joint investigation led to the charges in this case. The case was prosecuted by Assistant United States Attorney David L. Goldberg.
The United States Attorney's Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. The office strives to protect and serve the citizens of the Northern District of Florida through the ethical, vigorous, and impartial enforcement of the laws of the United States, to defend the national security, to improve the safety and quality of life in our communities through the protection of civil rights, and to protect the public funds and financial assets of the United States. To access public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
For more information, contact: Amy Alexander, Public Information Officer
(850) 216-3854, [email protected]Dubuque Man Sentenced to 10 Years for Possessing Child PornographyRead the Press Release
A man who possessed child pornography was sentenced yesterday to 10 years in federal prison.
Joshua Leute, age 28, from Dubuque, Iowa, received the sentence after a July 13, 2015 guilty plea to one count of possession of child pornography. In a plea agreement, Leute admitted that he downloaded child pornography and possessed it on two computers.
Leute was sentenced in Cedar Rapids by United States District Court Chief Judge Linda R. Reade. Leute was sentenced to 120 months’ imprisonment. A special assessment of $100 was imposed, and he must also serve an eight-year term of supervised release. He must comply with all sex offender registration and public notification requirements.
This case was prosecuted by Assistant United States Attorney Mark Tremmel and was investigated by the Clinton County Sheriff’s Office, the Davenport Police Department, the Dubuque Police Department, and the Dubuque County Sheriff’s Office.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab “resources.”
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is CR 15-1012.
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Department of Justice Files Statement of Interest in Kentucky School Handcuffing CaseRead the Press Release
The Department of Justice today filed a statement of interest in S.R. & L.G. v. Kenton County, et al, in federal court in the Eastern District of Kentucky. The plaintiffs in the case are two elementary school children – named in the complaint as eight-year-old third grader S.R. and nine-year-old fourth grader L.G. – who allege that a school resource officer (SRO) violated their rights under the Fourth and 14th Amendment and Title II of the Americans with Disabilities Act (ADA) when the SRO handcuffed them in school, behind their backs, above their elbows, and at their biceps, after the children exhibited conduct arising out of their disabilities.
The purpose of the statement of interest, which does not take a position on the merits of the case, is to provide the court with a framework to assess the plaintiffs’ claim. The department’s statement of interest explains the requirements to protect the rights of children, particularly children with disabilities, in their interactions with SROs. SROs can partner with schools to help maintain a safe and positive school environment—when their role is clearly defined and they are trained to perform it properly. However, if SROs do not observe appropriate limits on their role and responsibility, the Justice Department writes, they risk “criminaliz[ing] school-related misbehavior and risk lasting and severe consequences for children, particularly children with disabilities.”
In its statement of interest, the Justice Department emphasizes that school resource officers should not handle routine disciplinary incidents that school officials should properly address. The brief also describes the particularized facts and circumstances the court should consider in evaluating whether the SRO’s conduct in this case was objectively reasonable under the Fourth Amendment. Finally, the department confirms that the ADA applies to SROs’ interactions with children with disabilities and that this statute requires SROs to make reasonable modifications in their procedures when necessary, and requires law enforcement agencies to change policies that discriminate against children with disabilities.
S.R. and L.G. v. Kenton County, et al. was filed in August 2015. The Department of Justice filed its statement of interest under a federal law that gives the Attorney General the authority to attend to the interests of the United States in any case pending in a federal court.
Delaware Bank Teller Pleads Guilty to $150,000 EmbezzlementRead the Press Release
WILMINGTON, Del. – Amanda Carey, age 28, of New Castle, Del., pleaded guilty today to embezzling over $150,000 from a PNC Bank location in Greenville, Del., announced Charles M. Oberly, III, United States Attorney for the District of Delaware. Carey, who will be sentenced on February 3, 2016, by the Honorable Richard G. Andrews, United States District Judge for the District of Delaware, faces a maximum sentence of 30 years imprisonment, a $1,000,000 fine, and 5 years of supervised release following her prison sentence.
According to statements made at the plea hearing today and documents filed in court, Carey embezzled approximately $150,000 from PNC Bank over the course several months this year. She was employed as a teller supervisor at the bank, beginning in January 2015. On June 19, 2015, Carey did not report to work as scheduled. An audit of the bank’s vaults was conducted, and the bank learned that over $150,000 of cash was missing. An arrest warrant was issued for Carey on July 10, 2015, and she was arrested in Emporia, Virginia on July 28, 2015.
This case is being investigated by the Federal Bureau of Investigation and prosecuted by Assistant United States Attorneys Lauren Paxton and Elizabeth L. Van Pelt, with the cooperation and assistance of PNC Bank Investigative Services Group.
DEA's Tenth Pill Take Back Event Yields Fruitful Results in South CarolinaRead the Press Release
Contact Person: Chuvalo Truesdell (404) 893-7124
COLUMBIA, SC. – South Carolinians participating in the United States Drug Enforcement Administration’s (DEA’s) tenth National Prescription Drug Take-Back Day Initiative (NTBI) held on Saturday, September 26, 2015, turned in 5,320 pounds of unwanted or expired medications for safe and proper disposal at sites set up throughout the state. This amount exceeded the previous statewide total during the last event, which yielded 4,776 pounds.
“Daniel R. Salter, the Special Agent in Charge (SAC) of the DEA Atlanta Field Division commented, “DEA’s tenth Prescription Drug Take-Back campaign was a huge success both locally and nationally. While South Carolinians turned in 5,320 pounds of unwanted or expired medications, nationally, more than 720,365 pounds of expired and unwanted prescription medications were collected in more than 5,000 sites that were available across the United States. The local amount collected was the third highest total collected out of the ten previous Take-Back events. I would like to thank the multitude of partners (both law enforcement and non-law enforcement) who worked tirelessly to make this event another great success.”
The NTBI addresses a crucial public safety and public health issue. According to the 2014 National Survey on Drug Use and Health, 6.5 million Americans abused controlled prescription drugs. That same study showed that a majority of abused prescription drugs are obtained from family and friends, including from the home medicine cabinet. The DEA’s NTBI events are also a significant piece of the White House Office of National Drug Control Policy’s prescription drug abuse prevention strategy.
SAC Salter encourages parents, along with their children, to educate themselves about the dangers of legal and illegal drugs by visiting DEA’s interactive websites at www.justhinktwice.com, www.GetSmartAboutDrugs.com and www.dea.gov.
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D.C. Man Pleads Guilty to 180 mph Car ChaseRead the Press Release
ALEXANDRIA, Va. – Omar T. Butler, 30, of Washington, D.C., pleaded guilty today to charges relating to a 28 mile car chase in June 2015, in which he reached speeds of 180 mph on roads in Virginia, Washington, D.C., and Maryland.
Butler pleaded guilty without a written plea agreement or agreed statement of facts. The government’s fact proffer noted that at approximately 12:35 a.m. on June 10, 2015, Butler led U.S. Park Police officers on a 28-mile pursuit during which Butler nearly hit and killed two officers. U.S. Park Police had attempted to stop his vehicle for speeding on the George Washington Memorial Parkway in the area of Spout Run, however, Butler ignored the emergency lights and sirens and fled through Virginia, D.C., and Maryland, reaching a top speed of approximately 180 mph with several dozen federal and state law enforcement officers in pursuit. Butler was ultimately arrested at a gas station in Bryans Road, Maryland, after pulling over to refuel his vehicle.
Butler was indicted by a federal grand jury on Aug. 6, 2015. He faces a maximum penalty of five years in prison when sentenced on Jan. 22, 2016. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; and Robert D. MacLean, Chief of the U.S. Park Police, made the announcement after the plea was accepted by U.S. District Judge Liam O’Grady. Special Assistant U.S. Attorney Timothy Belsan and Assistant United States Attorney Gene Rossi are prosecuting the case.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:15-cr-229.
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Convicted Felon Sentenced to 10 Years in Prison for Selling GunsRead the Press Release
Jacksonville, Florida – U.S. District Judge Brian J. Davis has sentenced Alphonso Parker (36, Jacksonville) to 10 years in federal prison for being a convicted felon in possession of multiple firearms. He pleaded guilty on May 28, 2015.
According to court documents, between June and July 2014, Parker sold nine firearms to a confidential informant. At the time, Parker had prior felony convictions for battery, burglary, and aggravated fleeing or attempting to elude a police officer, and therefore was prohibited from possessing firearms or ammunition under federal law.
This case was investigated by the Jacksonville Sheriff’s Office and the Bureau of Alcohol, Tobacco, Firearms and Explosives. It was prosecuted by Assistant United States Attorney Frank Talbot.
This is another case prosecuted as 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, are 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 on reducing violent crime in communities.
Columbus Lobbyist Agrees to Plead Guilty to ExtortionRead the Press Release
COLUMBUS, Ohio – An Ohio lobbyist has agreed to plead guilty to extortion in connection with conduit contributions, announced Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Carter M. Stewart of the Southern District of Ohio and Special Agent in Charge Angela L. Byers of the FBI’s Cincinnati Field Office.
John P. Raphael, 60, of Columbus, has agreed to plead guilty to a one-count information charging him with interference with commerce by threats. A plea hearing will be scheduled.
According to the information, Raphael was a consultant and lobbyist based in Columbus, Ohio, who was hired and paid by companies that sought to do business with municipalities and counties in Ohio. From March 2005 to February 2013, a red light camera enforcement company hired and paid Raphael to seek and obtain lucrative contracts to provide red light photo enforcement systems in the City of Columbus.
During the time the red light camera enforcement company was seeking to retain contracts in Columbus, Raphael repeatedly pressured and induced the company to make campaign contributions to the campaigns of various elected officials. He communicated to the company that it would lose its contracts and suffer an economic loss if it did not make the payments. Thus, Raphael obtained and attempted to obtain the funds by the wrongful use of fear of economic harm.
The former chief executive officer of the red light camera vendor, Karen L. Finley, previously pleaded guilty to conspiracy to commit federal programs bribery and honest services wire and mail fraud.
Interference with commerce by threats is a crime punishable by up to 20 years in prison and a fine of $250,000 or a fine of twice the pecuniary gain or loss.
The case was investigated by the FBI’s Cincinnati Field Office, Columbus Resident Agency, with the assistance of IRS-Criminal Investigations and the Ohio Bureau of Criminal Investigation. The case is being prosecuted by Trial Attorney Edward P. Sullivan of the Criminal Division’s Public Integrity Section and Assistant U.S. Attorney J. Michael Marous of the Southern District of Ohio.
This information only contains a charge against John Raphael and should not be construed as a reflection on the guilt or innocence of any other individual.
Canadian Man Charged in Scheme to Launder Money for Drug Rings, including the Sinaloa Cartel, Arrives in L.A. to Face ChargesRead the Press Release
LOS ANGELES – The leader of an international money laundering organization is scheduled to be arraigned this afternoon on federal charges that allege he moved millions of dollars in drug money for organizations that included the Sinaloa Cartel.
Gurkaran Singh Isshpunani was arrested on September 14 in Buffalo, New York as he attempted to enter the United States from Canada. A federal magistrate ordered Isshpunani held without bond and directed that he be transported to Los Angeles, where he arrived last night.
Isshpunani is the lead defendant in a grand jury indictment that charges 22 defendants with money laundering and operating unlicensed money remitting businesses violations. The illegal scheme allegedly spanned the world and involved operatives in Canada, India, the United States and Mexico who laundered drug trafficking proceeds generated from multi-kilogram and multi-pound sales of narcotics in Canada and the United States for and on behalf of the Sinaloa Cartel and their affiliated drug trafficking organizations. The laundered money is alleged to have either been transported to the Sinaloa Cartel as profits or reinvested in additional narcotics to be sold and distributed in the United States and Canada.
The indictment accuses Isshpunani of being the leader of an international “hawala” ring that transferred narcotics proceeds for the Sinaloa drug cartel and other drug trafficking organizations. Isshpunani, 34, who is believed to reside in the Canadian province of Ontario, will be arraigned this afternoon on a three-count indictment that charges him and 21 other defendants with conspiracy to launder money, conspiracy to operate an unlicensed money transmitting business (a hawala), and a substantive count of operating an unlicensed money transmitting business.
Previously in this case, 14 other defendants have been arrested and arraigned. The indictment charges seven defendants who are currently fugitives.
The indictment specifically alleges that the hawala network transferred more than $4.5 million in narcotics proceeds and was involved in the trafficking of 29 kilograms of cocaine and approximately 90 pounds of methamphetamine.
However, during the course of a four-year federal wiretap investigation by the Drug Enforcement Administration’s LA Strike Force and IRS - Criminal Investigation, authorities seized a total of $15,467,293 in bulk United States currency, 321 kilograms of cocaine, 98 pounds of methamphetamine, 11 kilograms of MDMA (“ecstasy”) and nine kilograms of heroin.
Isshpunani and the others are charged in a 36-page indictment that outlines the workings of a “hawala,” which is an alternative form or method of money remittance which operates outside of traditional banking or financial systems. Through hawala transactions, only the value of the money is transferred, not the money itself. The hawala system transfers money via a network of brokers known as “hawaladars.” According to the indictment, Isshpunani is a hawaladar who is a part of a network of Indian men who move money based on a trust system.
The indictment explains that, in its most basic form, a hawala needs at least two brokers who are typically located in separate countries (but can be located in different cities within one country). The transfer of monetary value occurs between the brokers based solely upon the trust that exists between the brokers. Thus, there are no promissory instruments or any legally binding features of the hawala system. The necessary trust and long-established connections between brokers are typically based on familial, ethnic, religious, regional and/or cultural grounds. Often, a given hawala network consists of many brokers operating in multiple countries around the world in which all brokers are in contact with each other and money movements can occur in a variety of directions from one country to another.
“Drug traffickers in Canada would generate drug proceeds from multi-kilogram and multi-pound sales and distributions of drugs provided by Mexican cartels, including the Sinaloa Cartel,” the indictment alleges. The Canadian-based drug traffickers coordinated money transfers to their counterparts in Mexico by instructing Isshpunani and other alleged hawaladars in Canada to deliver specified amounts of money to couriers in the U.S. who were working on behalf of the cartels. The Canadian-based hawaladars, once in possession of the drug traffickers’ bulk Canadian currency, would contact U.S.-based hawaladars and authorize the release of the equivalent amounts of U.S. currency to the couriers operating in the Los Angeles area. A number of co-defendants named in the indictment served as U.S.-based couriers, picking up and subsequently delivering bulk U.S. currency in the Los Angeles area in exchange for narcotics that were to be transported back to Canada for sales and distribution.
The indictment in this case was returned under seal by a federal grand jury in Los Angeles in November 2014. Authorities began arresting defendants several months ago. In addition to Isshpunani, 14 defendants have been taken into custody and have been arraigned in Los Angeles.
Those previously arrested, and who have pleaded not guilty, are:
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Miguel Melendrez Gastelum, 35, of Coachella, California, who surrendered to federal authorities on September 16;
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Shannon Aubut, 30, a resident of the province of Ontario, who was arrested on August 14 at the Camplain, New York Port of Entry;
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Paul Alan Jacobs, 42, of Venice, California, who surrendered to authorities on August 13;
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Jose De Jesus Montenegro, 49, of Coachella, who was arrested at the Tecate, California Port of Entry;
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Breidi Alberto Espinoza, 28, of Corona, California, who was arrested on July 10 at the Otay Mesa Port of Entry;
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Alberto Diaz, 28, of San Diego, who was arrested on July 4 at the San Ysidro Port of Entry;
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Christopher Fagon, 37, a resident of the province of Ontario, who was arrested on June 28 at Los Angeles International Airport;
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Jose Luis Barraza, 47, of Coachella, who was arrested on June 27 at Calexico Port of Entry;
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Bradley John Martin, 54, of Carlsbad, California, who was arrested on June 12 at San Ysidro Port of Entry;
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Ramesh Singh, 46, of Alhambra, California, who surrendered to authorities on June 2;
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Sanjeev Wadhwa, 36, an Indian national, who was arrested on May 30 at LAX;
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Sucha Singh, 51, of Arleta, California, who was arrested at his residence on May 30;
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Harinder Singh, 30, of Monrovia, California, who was arrested on May 30; and
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Harmeet Singh, 54, of Chino Hills, California, who was arrested at his residence on May 30.
A trial date for the defendants who have been arraigned in Los Angeles has been scheduled for May 24, 2016.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed to be innocent until and unless proven guilty in court.
The money laundering conspiracy charge carries a statutory maximum sentence of 20 years in federal prison. Each of the two counts related to the alleged unlicensed money transmitting business carries a maximum sentence of five years.
The seven fugitives named in the indictment are:
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Sanjeev Bhola, of India;
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Balwat Bhola, of India;
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Bakshish Sidhu, of India;
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Jason Robert Carey, 37, a resident of the province of Ontario;
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Jesus Manuel Perez Rios, 33, of Coachella, who authorities believe fled to Mexico;
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Tina Pham, 25, of Montreal; and
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a Canadian man known only as “Buddy.”
The investigation in this case is being conducted by the Drug Enforcement Administration and IRS – Criminal Investigation. These agencies received assistance and support from the Santa Ana Police Department, the Beverly Hills Police Department and the Pomona Police Department.
Isshpunani was apprehended last month by U.S. Customs and Border Patrol while attempting to enter the United States from Canada at the Buffalo, New York Port of Entry.
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California Trucking Executive and Alleged Computer Hacker Arrested for Extorting $40,000 from Chicago-Area Software CompanyRead the Press Release
CHICAGO — The president of a southern California trucking company plotted with a Serbian man to extort $40,000 from a Chicago-area software company by hacking into the company’s computer system and threatening to disclose the data, federal authorities announced today.
STEFAN STOJANOVIC, 20, of Zemun, Serbia, hacked into the company’s servers in May and threatened to expose sensitive information, including employee usernames and passwords, unless the company paid him $40,000, according to a criminal complaint and affidavit filed in U.S. District Court in Chicago. Per instructions from Stojanovic, an employee of the company deposited the funds into a bank account in California, the complaint states.
A check for $25,000 – made payable to “cash” – was subsequently drawn on the California account and deposited into a bank account controlled by Love Freightways, a transportation logistics company in Anaheim, Calif., according to the complaint. The signatory for the Love Freightways account is its president, NEMANJA LOVRE, 32, of Seal Beach, Calif.
Lovre was arrested in California Wednesday morning. The complaint, which was unsealed following the arrest, charges him with intentionally extorting money by threat to cause damage to a protected computer. He is scheduled to appear for a bond hearing today at 2:00 p.m. PDT in U.S. District Court in Santa Ana, Calif. The U.S. Attorney’s Office for the Northern District of Illinois will seek to remove Lovre to Chicago for prosecution.
Serbian officials arrested Stojanovic early Wednesday morning local time in Serbia. He is expected to face charges in Serbia and be prosecuted in that country.
The Chicago-area software company is identified in the complaint only as “Company A.” The employee who paid the money is identified only as “Individual A.”
According to the affidavit, Stojanovic first contacted the company via email and stated that he worked for Love Freightways, which recently had become a customer of Company A. Stojanovic said in the email that he had hacked into Company A’s servers and obtained the personal identifying information of its employees. He also provided a sample of the stolen data. Individual A ultimately agreed to pay Stojanovic $40,000 in an attempt to protect the hacked data from being released, the complaint states.
Stojanovic instructed Individual A to have a cashier’s check deposited in the bank account in California, the complaint states. On May 21, the $40,000 was received in the California account. In early June, a $25,000 check was drawn on the account and made payable to “cash,” according to the complaint. It was deposited into the Love Freightways account controlled by Lovre, the affidavit states.
The arrest and charge against Lovre were announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois; and John A. Brown, Acting Special Agent-in-Charge of the Chicago Office of the Federal Bureau of Investigation.
The charge against Lovre carries a maximum sentence of 10 years in prison. If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory United States Sentencing Guidelines.
The public is reminded that a complaint is not evidence of guilt. The defendant is presumed innocent and is entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
The government is represented by Assistant U.S. Attorney Peter Salib of the U.S. Attorney’s Office for the Northern District of Illinois.
Complaint
California Man Charged with Heroin TraffickingRead the Press Release
JEFFERSON CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a California man was charged in federal court today with possessing heroin with the intent to distribute, after state troopers found approximately seven pounds of heroin hidden in his vehicle during a traffic stop.
Jose F. Guzman-Pompa, 28, of California, was charged in a criminal complaint filed in the U.S. District Court in Jefferson City, Mo.
According to an affidavit filed in support of the federal criminal complaint, a state trooper stopped a 2014 Nissan Sentra (in which Guzman-Pompa was a passenger) on Interstate 70 in Callaway County (at the 140.6 mile marker) for a traffic violation at about 9:13 a.m. on Sept. 3, 2015. Guzman-Pompa told the trooper that the vehicle was owned by his girlfriend; Guzman-Pompa was listed on the insurance as a co-owner.
The trooper, after interviewing the driver and Guzman-Pompa, believed they were involved in criminal behavior. Another trooper utilized his canine, Rocky, to conduct a free air sniff of the Sentra. Rocky positively alerted to the Sentra for the presence of controlled substances.
A trooper searched the vehicle, the affidavit says, and found a package hidden under the seat cover of the driver’s seat. The package contained approximately seven pounds, or 3.171 kilograms, of heroin.
Dickinson cautioned that the charge contained in this indictment is simply an accusation, and not evidence of guilt. Evidence supporting the charge must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Supervisory Assistant U.S. Attorney Michael S. Oliver. It was investigated by the Drug Enforcement Administration and the Missouri State Highway Patrol.
Buffalo Man Sentenced on Drug ChargesRead 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 Charles Humphrey, 47, of Buffalo, NY, who was convicted of conspiracy to distribute over 500 grams of cocaine, was sentenced to 30 months in prison by U.S. District Judge Richard J. Arcara.Assistant U.S. Attorney Thomas S. Duszkiewicz, who handled the case, stated that the defendant, along with four co-defendants, distributed multiple quantities of cocaine between 2009 and January 2010. In addition, Humphrey sold a quantity of cocaine to a confidential source on January 13, 2010.
The defendant was arrested along with Eric J. Humphrey, John E. Humphrey, Jr., James Humphrey, Jr. and Anthony Taylor. All five defendants have been convicted and sentenced.
Items seized during the execution of search warrants executed at the time of their arrests included quantities of cocaine, crack cocaine, marijuana, supplies used in the packaging of cocaine and crack cocaine, $153,000 in cash, ammunition and three vehicles.
The investigation resulted in the liquor license revocation of “The Good Life,” a Bailey Avenue sports bar owned by Eric Humphrey.
The sentencing is the culmination of an investigation by the Drug Enforcement Administration, under the direction of Special Agent-in-Charge James J. Hunt, New York Field Division, the Buffalo Police Department, under the direction of Commissioner Daniel Derenda, and the Erie County District Attorney’s Office, under the direction of District Attorney Frank A. Sedita. Additional assistance was provided by the Amherst Police Department and the Federal Bureau of Investigation Safe Streets Task Force.
Bank Employee Sentenced to 18 Months in Prison for Stealing More Than $100K from Customer AccountsRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that ALEXANDER ALVAREZ, 33, of East Lyme, was sentenced today by U.S. District Judge Michael P. Shea in Hartford to 18 months of imprisonment, followed by four years of supervised release, for stealing more $100,000 from customers of the bank where he was employed.
According to court documents and statements made in court, from January 2012 to February 2013, ALVAREZ was employed as a Financial Service Representative for a bank in Newington. While employed at the bank, ALVAREZ identified accounts that had little banking activity. He then caused the mailing address for the accounts he targeted to be changed from the owner’s address to a fraudulent address so that transactions in the accounts would not be immediately discovered by the account owner. ALVAREZ then created fraudulent transfer slips causing the funds to be transferred to another account that he believed was dormant, or to an account that he directly controlled, or to be issued in a bank check. Once the funds were transferred from the owner’s account, ALVAREZ withdrew the funds from the bank in cash or via an ATM card, or transferred them to his personal banking account.
ALVAREZ stole $100,806.85 from one bank customer and $11,137.01 from a second bank customer. He was ordered to pay full restitution, plus interest, to the bank.
On April 21, 2015, ALVAREZ pleaded guilty to one count of bank fraud.
This matter was investigated by the Connecticut Financial Crimes Task Force, the Stratford Police Department and the Greenwich Police Department. The case was prosecuted by Assistant U.S. Attorney Ray Miller.
Associate of Treasure Hunter Sentenced for Criminal ContemptRead the Press Release
COLUMBUS, Ohio – Alison L. Antekeier, 48, formerly of Columbus, Ohio, was sentenced in U.S. District Court today to five months in jail for criminal contempt, specifically disobedience or resistance of the court, stemming from a civil lawsuit.
Carter M. Stewart, United States Attorney for the Southern District of Ohio, and Peter C. Tobin, United States Marshal for the Southern District of Ohio, announced the plea entered into today before U.S. District Judge Algenon L. Marbley.
Antekeier and treasure-hunter Thomas “Tommy” G. Thompson, 63, also formerly of Columbus, Ohio, pleaded guilty to criminal contempt in April.
According to court documents, Thompson disobeyed and resisted a lawful order of U.S. District Chief Judge Sargus, who ordered Thompson to personally appear at an August 13, 2012 hearing related to a civil case involving the defendant. Specifically, Thompson had been ordered to appear at a hearing to provide an accounting of certain funds and the location of 500 re-strike commemorative gold coins as part of a lawsuit over the treasure that Thompson found from the SS Central America shipwreck. A bench warrant for Thompson’s arrest was issued the same day.
Antekeier was also ordered to appear in U.S. District Court as a witness in the civil lawsuit. She was to appear in court to give testimony related to the civil case on November 7, 2012; a bench warrant for her arrest was issued when she failed to appear.
In March 2013, an arrest warrant based on a criminal complaint alleging criminal contempt was authorized against Thompson.
U.S. Marshals found and arrested Thompson and Antekeier on January 27, 2015 in Boca Raton, Florida. Thompson and Antekeier had been living in a Hilton hotel room under fake names and paying with cash.
As part of their plea, the couple has agreed to forfeit the more than $425,000 in cash that was seized at the time of their arrest.
Thompson is scheduled to be sentenced at 9:30am on October 29.
U.S. Attorney Stewart commended the investigation by the U.S. Marshals Service, as well as Assistant United States Attorney Doug Squires, who is representing the United States in this case.
Alaska Resident Pleads Guilty in California to Drug Dealing Money LaunderingRead the Press Release
Anchorage, Alaska - U.S. Attorney Karen L. Loeffler announced that DuWayne LeDoux, 55, of Kodiak, Alaska, pleaded guilty yesterday, October 1, 2015, in U.S. District Court, Sacramento, California, to possession with intent to distribute methamphetamine and conspiracy to structure cash deposits.
According to court documents, LeDoux enlisted Sacramento resident Jennifer MacDougal to obtain and ship methamphetamine and crack cocaine to LeDoux at various addresses in Kodiak and under various names, so that LeDoux could sell the drugs. LeDoux paid for the drugs by depositing cash into a Wells Fargo account held by MacDougal in amounts designed to avoid bank reporting requirements.
Co-defendant MacDougal pleaded guilty in November 2012 and is currently serving a five-year sentence.
LeDoux is scheduled to be sentenced by United States District Judge Troy L. Nunley on January 7, 2016. LeDoux faces a maximum statutory penalty of 40 years in prison and a $5 million fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
This case is the product of an investigation by the Drug Enforcement Administration and the Internal Revenue Service’s Financial Crimes Task Force, Sacramento, California offices.
Ms. Loeffler thanks the investigative and prosecution team from Eastern California for helping decrease the flow of narcotics to rural Alaska. This case was prosecuted by the U.S. Attorney’s Office for the Eastern District of California.
Alabama Woman Pleads Guilty for Involvement in Stolen Identity Tax Refund Fraud RingRead the Press Release
A Phenix City, Alabama, resident pleaded guilty for her role in a stolen identity tax refund fraud (SIRF) conspiracy, Acting Assistant Attorney General Caroline D. Ciraolo of the Justice Department’s Tax Division and U.S. Attorney George L. Beck Jr. of the Middle District of Alabama announced today.
According to court documents, between Jan. 1, 2013, and Dec. 31, 2013, Benita Short conspired with others to defraud the United States by filing false federal income tax returns using stolen identities. Short obtained personal identifiable information, including names, social security numbers, addresses and dates of birth, without the individuals’ authorization. A co-conspirator obtained the stolen personal identifiable information from an individual who had access to Alabama state databases and gave it to Short. This co-conspirator also obtained Electronic Filing Identification Numbers (EFINs) in the names of several tax preparation businesses and provided the EFINs to Short. Short then used the stolen identities and EFINs to electronically file 326 fraudulent tax returns, causing a tax loss of $456,853. Short also caused fraudulent income tax refund checks to be cashed at several businesses in Alabama and Georgia.
Short additionally pleaded guilty to one count of aggravated identity theft. She faces a statutory maximum sentence of 10 years in prison and three years of supervised release for the conspiracy charge and a statutory mandatory sentence of two years in prison and one year of supervised release for the aggravated identity theft charge. Short must serve the two-year sentence for aggravated identity theft in addition to whatever sentence the court imposes for the conspiracy charge. Both charges carry a statutory maximum fine of $250,000.
Acting Assistant Attorney General Ciraolo and U.S. Attorney Beck commended special agents of Internal Revenue Service-Criminal Investigation, who investigated the case, and Trial Attorneys Michael C. Boteler and Michael P. Hatzimichalis of the Tax Division and Assistant U.S. Attorney Jonathan Ross of the Middle District of Alabama, who are prosecuting the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
1 October 2015
Yulee Man Sentenced to More Than Thirteen Years for Distributing Child PornographyRead the Press Release
Jacksonville, Florida – United States District Judge Timothy J. Corrigan has sentenced Nicholas Mitko Clark (22, Yulee) to 13 years and 4 months in federal prison, followed by a lifetime of supervised release, for transporting child pornography. The Court also ordered him to forfeit the laptop computer and cellphone that he had used to commit the offense. Clark pleaded guilty on January 13, 2015.
According to court documents, in April 2013, Clark used an instant messaging service to chat with an individual in Canada, with whom he exchanged child pornography. During the chat, Clark requested that the individual send him child pornography and advised that he likes children between the ages of and 8 and 13. After receiving an image depicting a young child, Clark responded that he already had that file and requested another one. Clark and the individual proceeded to exchange additional files of child pornography. Through their investigation, law enforcement agents obtained Clark’s cellphone and recovered several additional images of child pornography.
At the time of his arrest, Clark was employed as an afterschool counselor by a youth development organization in Northeast Florida, and worked with children through various churches. He also advertised his babysitting and child transportation services on the Internet.
“This case is especially egregious, as this pedophile actively sought to work with children, in places they should feel safe and secure,” said Susan L. McCormick, special agent in charge of HSI Tampa. “HSI special agents, and our law enforcement partners like the Nassau County Sheriff’s Office, will continue to work diligently to protect our children from predators.”
This case was investigated by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, the Nassau County Sheriff’s Office, and the Florida Department of Law Enforcement. It was prosecuted by Assistant United States Attorney Kelly S. Karase.
It is another case 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, 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.
Women Head to Prison for Stealing and Using Patient Information to Create Fraudulent Bank AccountsRead the Press Release
HOUSTON – With the sentencing of Leatrice Reynaud, 45, three Houston women have now been held accountable for their crimes of conspiracy to commit bank fraud and bank fraud, announced U.S. Attorney Kenneth Magidson. Reynaud previously pleaded guilty as did Houston cousins, Tonya Beverly, 39, and Demetria Jones, 41.
Today, U.S. District Judge Gray Miller ordered Reynaud to serve a sentence of 57 months in federal prison to be immediately followed by three years of supervised release. Beverly was sentenced last month to a term of 63 months in prison, while Jones, who was a minor participant, received 12 months and one day in custody. The three conspirators were further ordered to pay more than $100,000 in restitution to USAA Federal Savings Bank - the ultimate financial victim of the crime. As part of their plea agreements, the conspirators have agreed to forfeiture of $106,383.51 in unlawful proceeds to the United States.
Beverly, Reynaud and Jones admitted they conspired together to create and access false and fraudulent USAA Federal Savings Bank accounts using stolen personal identification information, including names, dates of birth and Social Security numbers. Beverly admitted she stole the personal information from the patient files of health care providers with whom she had been employed.
In less than two years, the conspirators created 33 false and fraudulent USAA accounts and transferred approximately $205,719 into those accounts from the real bank accounts of at least 35 individuals. Several of the victims were elderly, including one who was born in 1922 and another who was born in 1929 as well as another victim who was caring for her terminally ill husband when the crime occurred.
Today, the prosecutor read a portion of a victim statement to the court that described the mental anguish and stress caused by the conspirators’ actions. The amount of loss for each victim varied - $23,800 was taken out of the account of the victim born in 1922, while $24,000 was taken from another victim.
At least 16 different banks were affected by the defendants’ actions. As part of the fraud scheme, the conspirators used homes that were listed for sale or vacant as the recipient addresses for debit cards mailed by USAA for the false and fraudulent accounts. Jones received one of the false and fraudulent debit cards at her home address. The USAA debit cards in the victims’ real names were used to withdraw cash from ATM machines, including machines located in Hawaii, Los Angeles, Atlanta and Texas and to make purchases, including plane tickets to Los Angeles, California, for the defendants and the children of one of the defendants. The conspirators also used phones registered in the name of another victim of identity theft to access the fraudulent USAA accounts and perform account functions.
The women were permitted to remain on bond and voluntarily surrender to a U.S. Bureau of Prisons facility to be determined in the near future.
The investigation leading in this case was conducted by the U.S. Secret Service. Assistant U.S. Attorney Julie Redlinger prosecuted the case.
Woman Sentenced to Prison for Assisting an Escape from JusticeRead the Press Release
FARGO – Acting U.S. Attorney Christopher C. Myers announced that on September 30, 2015, Rachel Marie Chepulis, 27, Devils Lake, ND, was sentenced before U.S. District Judge Ralph R. Erickson to serve 40 months in prison for obstruction of justice and assisting an escape from custody. Judge Erickson also sentenced Chepulis to three years of supervised release and ordered her to pay a $100 special assessment to the Crime Victims Fund for each charge.
On June 23, 2015, Chepulis pleaded guilty to two counts of a five-count Indictment. On March 13, 2015, Chepulis – a correctional officer at the Lake Region Law Enforcement Center (“LRLEC”) in Devils Lake – assisted inmate Wesley E. Brown (III) escape from the facility. Brown had been incarcerated at LRLEC pending sentencing in federal court for charges of being a felon in possession of a firearm and escape for a 2013 escape from Heart of America Correctional and Treatment Center in Rugby, ND.
The investigation revealed that Chepulis and Brown had planned the escape in advance. Chepulis advised Brown on how to evade security measures at LRLEC to escape from the facility, served as a lookout while Brown escaped, and picked Brown up near the LRLEC to ensure a speedy departure from the region. Chepulis and Brown evaded law enforcement for nearly three weeks before they were apprehended in Coos Bay, Oregon.
The case was investigated by the United States Marshals Service. Assistant United States Attorneys Megan A. Healy and David D. Hagler prosecuted the case.Woman Sentenced for Using Counterfeit Traveler’s ChecksRead the Press Release
Montgomery, Alabama -Cathy Ann Francesca Badal (23) of Brooklyn, New York was sentenced to 15 months’ imprisonment on Monday, September 28, 2015 by United States District Judge Callie V.S. Granade. Badal’s sentence was for possessing and passing counterfeit traveler’s checks, in violation of federal law.
On December 27, 2014, deputies of the Henry County, Alabama Sheriff’s Office arrested Badal. They found, in her purse, approximately 140 counterfeit traveler’s checks, each one purportedly worth $100. They also found a fraudulent driver’s license bearing Badal’s picture and the name and address of an Illinois resident who did not know Badal.
Further investigation revealed that, before being arrested in Henry County, Badal had traveled all over the country passing counterfeit traveler’s checks and using a fraudulent driver’s license to do so. Stores from Maine to Florida reported being victimized by Badal. As a result, Judge Granade ordered that Badal pay a total restitution amount of $53,800 to 47 different businesses.
“This case demonstrates that identity theft is a problem that is national in scope,” stated U.S. Attorney Beck. “We in the Middle District of Alabama consider it a great success when we are able to bring to justice a person like Badal who had, before coming to Alabama, preyed upon businesses and individuals all over the country and all for her own personal gain,” Beck stated.
This case was jointly investigated by the Henry County Sheriff’s Office and the United States Secret Service. Assistant United States Attorney Jonathan S. Ross prosecuted the case.
West Sacramento Woman Pleads Guilty to Wire Fraud for Filing False Workers’ Compensation Claim for Former NFL PlayerRead the Press Release
SACRAMENTO, Calif. — Kimberly Jones, 50, of West Sacramento, pleaded guilty today to wire fraud and agreed to submit to a restitution order of at least $1.5 million, United States Attorney Benjamin B. Wagner announced.
According to court documents, from September 2001 through August 2011, Jones was employed as a Senior Claims Representative, or claims adjuster, at Gallagher Bassett Services Inc. in its Sacramento office. Gallagher Bassett was a third-party administrator that managed, among other things, workers’ compensation claims in California on behalf of Pennsylvania Manufacturers’ Association Insurance Group (PMA). Co-defendant Marcus Buckley, 42, of Weatherford, Texas, played professional football in the National Football League between 1993 and 2000 for seven seasons with the New York Giants. During this time period, the Giants had workers’ compensation insurance coverage through PMA.
In 2006, Buckley filed a worker’s compensation claim against the Giants for cumulative stress injuries sustained while playing football, in part, in California. In November 2010, the claim was settled for $300,000.
After his claims had been settled, however, between late 2010 and June 2011, Buckley prepared and filed numerous additional requests for reimbursement under his closed claim. He prepared fictitious invoices and statements from medical providers for medical services purportedly provided to him and fictitious credit collection notices from collection agencies purportedly seeking payment from Buckley for past due medical bills. Buckley sent the fictitious invoices, statements, and credit collection letters to Jones who had Gallagher Bassett checks made payable to Buckley. In total, Buckley received more than $1,588,000 to which he was not entitled.
This case is the product of an investigation by the Federal Bureau of Investigation. Assistant United States Attorney Michael M. Beckwith is prosecuting the case.
Jones is scheduled to be sentenced on January 7, 2016, by United States District Judge Troy L. Nunley. Jones faces a maximum sentence of 20 years in prison, a fine of $250,000 or twice the gross gain or loss in the case, and a three-year term of supervised release. The actual sentence will be determined at the discretion of the court after consideration of any applicable statutory sentencing factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Charges against Buckley are pending. The charges are only allegations; he is presumed innocent until and unless proven guilty beyond a reasonable doubt.
West L.A. Pharmacy Owners Arrested on Drug Trafficking and Money Laundering Charges for Diverting Prescription Drugs to Black MarketRead the Press Release
LOS ANGELES – Two brothers were arrested today on federal drug trafficking and money laundering charges that allege they used a bogus pharmacy to obtain and distribute large quantities of prescription narcotics, including OxyContin, to black-market customers.
The two Brentwood men are charged in a 40-count indictment that alleges the operators of Global Compounding Pharmacy in West Los Angeles also illegally imported large quantities of anabolic steroids.
The two men arrested this morning are Berry Kabov, 44, and his brother, Dalibor Kabov (also known as “Dabo”), 32. The indictment that charges the Kabovs, which was unsealed this morning, also names Global Compounding, LLC, as a defendant.
Berry and Dalibor Kabov are expected to be arraigned on the indictment this afternoon in United States District Court in Los Angeles.
A search warrant also unsealed today details how the Kabov brothers used Los Angeles as a base to sell bulk shipments of prescription drugs – including oxycodone, which is commonly sold under the brand name OxyContin – to black market customers across the country. Investigators seized parcels containing thousands of hidden oxycodone pills that the Kabov brothers attempted to ship to customers in and around Columbus, Ohio, according to the search warrant affidavit, which states that the customers in turn made cash deposits into Kabov-controlled bank accounts or simply shipped bulk cash to the brothers in Southern California. During recorded calls with an informant that are described in the affidavit, Berry Kabov coordinated the shipments and explained that he could sell oxycodone in New York for as much as $50 per pill.
The court documents unsealed today allege that the Kabov brothers operated Global Compounding as a bogus pharmacy to facilitate the acquisition of prescription drugs from the wholesale market. DEA administrative records show that, between June 2012 and January 2014, the Kabov brothers purchased massive quantities of drugs, including nearly 100,000 in oxycodone pills, as well as tens of thousands of pills of hydrocodone (commonly sold under the brand name Vicodin) and hydromorphone (commonly sold under the brand name Dilaudid) .
DEA administrative records show that Global Compounding was the top purchaser of oxycodone among all pharmacies in the Los Angeles area in 2014, and that it ordered three times more oxycodone than the second-largest purchaser. Surveillance of Global Compounding has shown that few, if any, people who appear to be customers ever go the pharmacy.
The affidavit also described an inspection at Global Compounding by the California Board of Pharmacy in January 2014 that led investigators to conclude “that Global Compounding is not a legitimate pharmacy and in fact is a façade for a drug trafficking operation.” In coming to this conclusion, the state investigators noted a lack of over-the-counter drug products ordinarily carried by legitimate pharmacies and records indicating that many of the prescriptions purportedly being filled by the pharmacy were for patients outside of the Los Angeles area, according to the affidavit.
The indictment also alleges that the brothers engaged in money laundering and the structuring of cash transactions to avoid federal reporting requirements. The search warrant identifies more than $1.5 million in structured cash deposits into multiple bank accounts controlled by the Kabov brothers. The affidavit details extravagant expenditures, including private jets from the Los Angeles area to Las Vegas and other luxury items.
In addition to the charges related to oxycodone, the indictment alleges that the brothers illegally imported anabolic steroids purchased from a wholesale drug distributor located in Hubei, China. The indictment details how the brothers used the pharmacy to illegally order bulk quantities of testosterone, oxandrolone and nandrolone.
If convicted of the charges in the indictment, Berry Kabov and Dalibor Kabov each would face a statutory maximum sentence of 430 years in federal prison.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed to be innocent until and unless proven guilty in court.
The investigation into the Kabov brothers and Global Compounding is being conducted by the Drug Enforcement Administration, the United States Postal Inspection Service, the Los Angeles Police Department and the California Board of Pharmacy.
Weslaco Man Convicted in Cocaine-Trafficking ConspiracyRead the Press Release
CORPUS CHRISTI, Texas – A federal jury sitting in Corpus Christi has convicted a 40-year-old resident of Weslaco on one count of conspiracy to commit cocaine-trafficking and one count of possession with intent to distribute cocaine, announced U.S. Attorney Kenneth Magidson. The jury returned its verdicts against Marcos Garcia just a short time ago after less than two hours of deliberation following a three-day trial which included 18 government witnesses.
During the trial, the government presented testimony that Garcia was a commercial truck driver. On the evening of Sept. 4, 2014, Garcia picked up a load of produce in Donna and was scheduled to deliver it to Houston the next day. Garcia’s tractor trailer arrived at the Border Patrol Checkpoint near Falfurrias just after midnight on Sept. 5, 2014, but Garcia was not driving. He had solicited his brother-in-law and a 22-year-old female to drive the vehicle through the checkpoint, while Garcia passed through the checkpoint in another vehicle a few minutes prior.
Authorities arrested the two people in the tractor trailer after the discovery of 15 illegal aliens hidden in the trailer with the produce. Subsequently, 37 kilograms of cocaine was also found hidden in a false compartment underneath the trailer’s floor. The cocaine was found after the trailer had been seized by Border Patrol and stored at an impound lot.
The evidence at trial established that Garcia was going to resume driving his tractor trailer after his brother-in-law and the female successfully passed through the checkpoint. Garcia’s plan was to deliver the illegal aliens and the cocaine himself. For some time, Garcia believed that law enforcement would not discover the cocaine and filed paperwork with Border Patrol in an attempt to retrieve his trailer and the cocaine. However, law enforcement found the cocaine before Garcia could do so.
U.S. District Judge Nelva Gonzales Ramos presided over the trial and has set sentencing for Jan. 14, 2016. At that time, he faces a mandatory minimum of 10 years and up to life imprisonment as well as a possible $10 million fine.
In addition, Garcia was arrested at the Falfurrias checkpoint driving another tractor trailer hauling produce on Oct. 31, 2014. Along with the produce were 24 illegal aliens hiding in the vehicle that Garcia was driving. He previously pleaded guilty to that offense and faces up to 10 years imprisonment and a maximum $250,000 fine.
The charges are the result of an investigation conducted by Homeland Security Investigations with the assistance of Border Patrol. Assistant U.S. Attorney Chad W. Cowan is prosecuting the case.
Warrensburg Man Charged with Crossing State Line for Illicit Sex with a MinorRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Warrensburg, Mo., man has been charged in federal court with crossing state lines to engage in illicit sexual activity with a minor in Kansas.
Thomas Johnson, 22, of Warrensburg, was charged in a criminal complaint filed in the U.S. District Court in Kansas City, Mo., on Wednesday, Sept. 30, 2015. Johnson, who was arrested today, remains in federal custody pending a detention hearing.
According to an affidavit filed in support of the federal criminal complaint, the investigation began in the Eastern District of Virginia when law enforcement agents were monitoring a child pornography Web site where Johnson had an account. Johnson allegedly logged onto the Web site and accessed images of child pornography.
Law enforcement officers executed a search warrant at Johnson’s residence on Sept. 25, 2015 and interviewed Johnson. Johnson’s cell phone was examined, the affidavit says, and was found to have several explicit photos of possible minor females, including a 13-year-old minor in Olathe, Kan. Johnson told law enforcement officers that he drove to Olathe to meet with the minor victim on two occasions in May 2015. This was confirmed in an interview with the minor victim, according to the affidavit, who also reported illicit sexual contact between herself and Johnson.
Johnson was taken into custody by the Johnson County, Kan., Sheriff’s Department for an outstanding warrant on Sept. 25, 2015. Johnson later bonded out and the following day, the affidavit says, the minor victim’s mother reported that Johnson was attempting to communicate with the minor victim via social media.
Dickinson cautioned that the charge contained in this complaint is simply an accusation, and not evidence of guilt. Evidence supporting the charge must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorney Catherine A. Connelly. It was investigated by the FBI.
Vallejo Kidnapping Suspect Indicted in Federal CourtRead the Press Release
SACRAMENTO, Calif. — A federal grand jury returned an indictment today against Matthew D. Muller, 38, of South Lake Tahoe, charging him with one count of kidnapping, United States Attorney Benjamin B. Wagner announced.
According to court documents, it is alleged that in the early morning hours of March 23, 2015, Muller broke into a residence in Vallejo, restrained the male occupant and kidnapped the female occupant. It is further alleged that he demanded a $15,000 ransom, held her for two days, and ultimately released her in Huntington Beach. Muller was identified as a suspect in the Vallejo kidnapping following an investigation and his arrest on residential home-invasion burglary charges that occurred in Alameda County on June 5, 2015.
“The bizarre circumstances of the events in Vallejo in March complicated the investigation of this matter,” said U.S. Attorney Wagner. “But the Vallejo Police Department, the FBI, and our law enforcement allies in Alameda County have done excellent work in recent months to bring this investigation to a conclusion.”
This case is the product of an investigation by the Federal Bureau of Investigation, the Alameda County Sheriff’s Office, the Alameda County District Attorney’s Office, the Dublin Police Services and the Vallejo Police Department. Assistant United States Attorney Matthew D. Segal and Heiko P. Coppola are prosecuting the case.
Muller is currently being held in the Sacramento County Jail. He is scheduled to be arraigned on Monday, October 5, 2015, before United States Magistrate Judge Kendall J. Newman at 2:00 p.m.
If convicted, Muller faces a maximum statutory penalty of life in prison and a $250,000 fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
U.S. Departments of Justice and Labor and Washington State Department of Labor and Industries Reach Agreement to Improve Access for Limited English Proficient WorkersRead the Press Release
The U.S. Departments of Justice and Labor have reached an agreement with the Washington State Department of Labor and Industries (L&I) to resolve civil rights complaints filed by limited English proficient (LEP) workers who alleged that they were subject to national origin discrimination in the state’s workers’ compensation program. These workers alleged that they were denied access to interpreters and to vital information in their primary languages. The agreement calls for significant improvements in language assistance services for LEP workers.
“This agreement symbolizes how federal and state government can work together to improve access to government services for limited English proficient communities.” said Principal Deputy Assistant Attorney General Vanita Gupta, head of the U.S. Department of Justice’s Civil Rights Division. “The Department of Justice will continue its efforts to ensure these communities have equal access to government services.”
“Navigating a system of government benefits can be daunting for anyone,” said U.S. Attorney Annette L. Hayes of the Western District of Washington. “This is particularly so for members of our community who are applying for workers compensation benefits and whose primary language is not English. The changes to Washington’s Labor and Industries practices set forth in this settlement agreement will ensure all workers’ rights are protected regardless of their country of origin.”
“I commend L&I for its commitment to work with the Civil Rights Center and the Department of Justice to remove language barriers for limited English proficient workers.” said Director Naomi M. Barry-Pérez of the U.S. Department of Labor’s Civil Rights Center.
The Departments of Justice and Labor worked with L&I to develop a memorandum of agreement (MOA) that memorializes L&I’s commitment to develop and implement a language access program that ensures LEP individuals are provided meaningful access to L&I programs, activities, and information. The MOA and new L&I Language Access Policy include the following commitments:
- All L&I staff will ensure LEP individuals receive language assistance services at no charge.
- L&I will develop a Language Access Plan, that sets forth the management actions needed to implement the Language Access Policy and ensure compliance with federal civil rights laws, including the tasks to be undertaken, assignment of responsibility, deadlines, processes, resources, quality controls, and periodic updates.
- L&I will translate claim and application forms, complaint and consent forms, letters and notices, and electronic materials into non-English languages.
- L&I will add advisory members to the Language Access Steering Committee to represent the interests of LEP workers and the Washington employer community.
- L&I will submit detailed monitoring reports that document its implementation of the MOA.
The investigation was jointly conducted by the Federal Coordination and Compliance Section (FCS) in the Department of Justice’s Civil Rights Division, the U.S. Attorney’s Office for the Western District of Washington and the U.S. Department of Labor’s Civil Rights Center (CRC). Title VI of the Civil Rights Act of 1964, Section 188 of the Workforce Investment Act of 1998, the Victims of Crime Act, and their corresponding implementing regulations all prohibit national origin discrimination and require recipients of federal financial assistance to provide LEP individuals meaningful access to programs and activities through no-cost language assistance services.
FCS has worked with a number of state courts, law enforcement agencies, correctional agencies and other government entities to ensure Title VI compliance and access to language assistance services for LEP individuals. Please click here for further information about FCS. For additional LEP-related resources, go to LEP.gov, the Federal Interagency Website on LEP.
CRC enforces nondiscrimination laws that apply to recipients of financial assistance from the U.S. Department of Labor and, in some circumstances, from other federal departments and agencies. For more information about CRC, call 202-693-6500 (voice) or 800-877-8339 (relay) or visit CRC’s website.
U.S. Departments of Justice and Labor and Washington State Department of Labor Industries Reach Agreement to Improve Access for Limited English Proficient WorkersRead the Press Release
The U.S. Departments of Justice and Labor have reached an agreement with the Washington State Department of Labor and Industries (L&I) to resolve civil rights complaints filed by limited English proficient (LEP) workers who alleged that they were subject to national origin discrimination in the state’s workers’ compensation program. These workers alleged that they were denied access to interpreters and to vital information in their primary languages. The agreement calls for significant improvements in language assistance services for LEP workers.
“This agreement symbolizes how federal and state government can work together to improve access to government services for limited English proficient communities.” said Principal Deputy Assistant Attorney General Vanita Gupta, head of the U.S. Department of Justice’s Civil Rights Division. “The Department of Justice will continue its efforts to ensure these communities have equal access to government services.”
“Navigating a system of government benefits can be daunting for anyone,” said U.S. Attorney Annette L. Hayes of the Western District of Washington. “This is particularly so for members of our community who are applying for workers compensation benefits and whose primary language is not English. The changes to Washington’s Labor and Industries practices set forth in this settlement agreement will ensure all workers’ rights are protected regardless of their country of origin.”
“I commend L&I for its commitment to work with the Civil Rights Center and the Department of Justice to remove language barriers for limited English proficient workers.” said Director Naomi M. Barry-Pérez of the U.S. Department of Labor’s Civil Rights Center.
The Departments of Justice and Labor worked with L&I to develop a memorandum of agreement (MOA) that memorializes L&I’s commitment to develop and implement a language access program that ensures LEP individuals are provided meaningful access to L&I programs, activities, and information. The MOA and new L&I Language Access Policy include the following commitments:
- All L&I staff will ensure LEP individuals receive language assistance services at no charge.
- L&I will develop a Language Access Plan, that sets forth the management actions needed to implement the Language Access Policy and ensure compliance with federal civil rights laws, including the tasks to be undertaken, assignment of responsibility, deadlines, processes, resources, quality controls, and periodic updates.
- L&I will translate claim and application forms, complaint and consent forms, letters and notices, and electronic materials into non-English languages.
- L&I will add advisory members to the Language Access Steering Committee to represent the interests of LEP workers and the Washington employer community.
- L&I will submit detailed monitoring reports that document its implementation of the MOA.
The investigation was jointly conducted by the Federal Coordination and Compliance Section (FCS) in the Department of Justice’s Civil Rights Division, the U.S. Attorney’s Office for the Western District of Washington and the U.S. Department of Labor’s Civil Rights Center (CRC). Title VI of the Civil Rights Act of 1964, Section 188 of the Workforce Investment Act of 1998, the Victims of Crime Act, and their corresponding implementing regulations all prohibit national origin discrimination and require recipients of federal financial assistance to provide LEP individuals meaningful access to programs and activities through no-cost language assistance services.
FCS has worked with a number of state courts, law enforcement agencies, correctional agencies and other government entities to ensure Title VI compliance and access to language assistance services for LEP individuals. Please click here for further information about FCS. For additional LEP-related resources, go to LEP.gov, the Federal Interagency Website on LEP.
CRC enforces nondiscrimination laws that apply to recipients of financial assistance from the U.S. Department of Labor and, in some circumstances, from other federal departments and agencies. For more information about CRC, call 202-693-6500 (voice) or 800-877-8339 (relay) or visit CRC’s website.
U.S. Attorney Paul J. Fishman Announces $932,805 Grant Award to Help Prisoner Reentry Programs in New JerseyRead the Press Release
NEWARK, N.J. – U.S. Attorney Paul J. Fishman, in conjunction with the U.S. Department of Justice’s Bureau of Justice Assistance (BJA), today announced a $932,805 grant to the N.J. State Parole Board to help reduce the recidivism of individuals reentering their communities after incarceration.
The funds were awarded as part of the Second Chance Act (SCA) Two-Phase Adult Reentry Demonstration Program, which is designed to help jurisdictions develop and implement collaborative strategies to reduce recidivism for medium to high risk parolees. The $932,805 will support a reentry program for 100 parolees from pre to post-release, with an emphasis on improved housing and supportive services.
In April 2008 the SCA was passed with bipartisan support and was backed by a broad spectrum of leaders in law enforcement, corrections, courts, behavioral health and other areas. The Second Chance Act represents a federal investment in strategies to reduce recidivism and increase public safety, as well as to reduce corrections costs for state and local governments. Since 2009, more than 600 Second Chance Act grant awards have been made to government agencies and nonprofit organizations from 49 states for reentry programs serving adults and juveniles. The Second Chance Act’s grant programs are funded and administered by the U.S. Department of Justice’s Office of Justice Programs.
For additional information about SCA programs, visit https://www.bja.gov/.
U.S. Attorney Ortiz Hosts Roundtable to Commemorate 25th Anniversary of the Americans with Disabilities ActRead the Press Release
BOSTON – U.S. Attorney Carmen M. Ortiz hosted a roundtable discussion yesterday with local disability rights activists to commemorate the 25th anniversary of the Americans with Disabilities Act (ADA).
“The ADA remains one of the most important tools we have to advance the cause of civil rights in the United States and to eradicate discrimination for people with disabilities,” said U.S. Attorney Carmen M. Ortiz. “My office is committed to ADA compliance -- through cooperative efforts and enforcement actions -- to ensure equal access in schools, employment, in places of public accommodation, and in the programs and services offered by state and local governments.”
To commemorate this important anniversary, U.S. Attorney Ortiz invited a dozen local disability rights advocates, including the National Alliance on Mental Illness, the Boston Center for Independent Living, the Institute for Human Centered Design, Greater Boston Legal Services, and several state and local offices on disability, to participate in a discussion about the most pressing ADA issues facing citizens of the Commonwealth today. This includes equal access for adults and children with mental health issues, physical disabilities, and vision and hearing impairments.
The ADA was signed into law on July 26, 1990, by President George H.W. Bush. It is one of America’s most comprehensive pieces of civil rights legislation that prohibits discrimination and guarantees that people with disabilities have the same opportunities as everyone else to participate in the mainstream of American life -- to enjoy employment opportunities, to purchase goods and services, and to participate in state and local government programs and services. Modeled after the Civil Rights Act of 1964, which prohibits discrimination on the basis of race, color, religion, sex, or national origin, the ADA is an “equal opportunity” law for people with disabilities.
The U.S. Attorney’s Office wishes to thank the U.S. Department of Health and Human Services, Office for Civil Rights for co-hosting the roundtable discussion.
Two Men Plead Guilty to Murder and Attempted Murder Involving in 7th Street Case; Third Defendant Pleads Guilty to Rico ConspiracyRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y.-U.S. Attorney William J. Hochul Jr. announced today that Kasiem Williams, 26, of Buffalo, NY, pleaded guilty to RICO Conspiracy, before U.S. District Judge Richard J. Arcara. The charge carries a maximum penalty of life in prison and a $250,000 fine. In addition, Leslie Cunningham, 44, of Rochester, NY, pleaded guilty to Attempted Murder in Aid of Racketeering, also before Judge Arcara. That charge carries a maximum penalty of 10 years in prison and a $250,000 fine.
Assistant U.S. Attorney Joseph M. Tripi, who is handling the case, stated that Kasiem Williams participated in several acts of violence during the course of his involvement in the racketeering conspiracy. Specifically, the defendant participated in the following gang-related shootings:
• On July 10, 2009, Williams shot at a rival 10th Street Gang member during an attempted murder. In the aftermath of the attempted murder, Williams shot himself in the foot.
• On August 11, 2009, Williams spotted rival 10th Street Gang members on the corner of Auburn and West Avenue in Buffalo and notified his fellow gang members to shoot at the 10th Street Gang members. As a result, Eric Morrow was shot and killed.
• On November 5, 2009, Williams and a fellow gang member shot and attempted to murder a victim on 7th Street in Buffalo because they believed the victim was associated with the 10th Street Gang.
• On May 24, 2010, Williams and a fellow gang member shot a maintenance worker during the course of attempting to shoot and kill a rival gang member.
• On June 5, 2010, Williams shot and killed Virgil Page at 41 19th Street in Buffalo, a drug rival of Leslie Cunningham. As a result, Cunningham agreed to murder 10th Street Gang rivals for members of the 7th Street Gang as a part of a “favor for a favor” deal.
• On June 13, 2010, Cunningham went to the vicinity of 224 Virginia Street in Buffalo. Armed with the same .380 caliber semi-automatic handgun used by Kasiem Williams to kill Virgil Page, Cunningham shot a 10th Street Gang associate who was inside a store, and fired several shots at a 10th Street Gang member who was seated inside a sport utility vehicle parked outside the store.
Kasiem Williams also conspired to distribute marijuana, cocaine, and heroin as a part of his involvement in the gang.
In addition, Sammy Ortiz, 28, of Buffalo, pleaded guilty to RICO Conspiracy, also before Judge Arcara. The charge carries a maximum penalty of 20 years in prison and $250,000 fine. As a part of his participation in the 7th Street Gang, Ortiz sold cocaine and permitted other members of the gang to store firearms at his residence.
A total of 18 defendants have been charged in this case, to date 12 have been convicted.
Today’s pleas are the culmination of an investigation on the part of Special Agents of the FBI Safe Streets Task Force, the New York State Police, under the direction of Major Michael Cerretto, the Buffalo Police Department under the direction of Commissioner Daniel Derenda and the Bureau of Alcohol, Tobacco, Firearms, and Explosives, under the direction of Special Agent in Charge Delano A. Reid, New York Field Division.Kasiem Williams will be sentenced on January 15, 2016, at 1:30 p.m.; Leslie Cunningham on February 3, 2016, at 12:30 p.m.; and Sammy Ortiz on February 4, 2016 at 12:30 p.m., all before Judge Arcara.
Two Men Found Guilty of First-Degree Murder of a U.S. Border Patrol AgentRead the Press Release
Today, a federal jury in Tucson, Arizona, found Ivan Soto-Barraza, 37, and Jesus Leonel Sanchez-Meza, 27, guilty of first-degree murder and other offenses for the murder of United States Border Patrol Agent Brian Terry, announced U.S. Attorney Laura E. Duffy for the Southern District of California.
According to evidence presented at trial, during the evening of Dec. 14, 2010, Soto-Barraza, Sanchez-Meza and three other men were in the United States for the purpose of robbing drug traffickers of their contraband. While Agent Terry and three other Border Patrol Agents were engaged in the performance of their official duties, members of the defendants’ group exchanged gun fire with the agents and one of the shots fired by a member of the defendants’ group killed Agent Terry.
The jury found both Soto-Barraza and Sanchez-Meza guilty of first-degree murder, second degree murder, conspiracy to interfere with commerce by robbery, attempted interference with commerce by robbery, using and carrying a firearm during a crime of violence and assault on Agent Terry and three additional federal officers – Border Patrol Agents William Castano, Gabriel Fragoza, and Timothy Keller. The court scheduled the defendants’ sentencing hearing for Dec. 9, 2015. Both defendants face a mandatory sentence of life on the first degree murder charge (count 1).
“With these convictions, we have taken another important step towards securing justice for Agent Brian Terry,” said Attorney General Loretta E. Lynch. “Today’s verdict is the result of years of tireless effort from dozens of dedicated law enforcement officers, prosecutors, and investigators committed to ensuring that the murder of their friend and colleague does not go unpunished. The Department of Justice will continue to relentlessly pursue the remaining individuals responsible for Agent Terry’s loss, and to uphold the values of courage, duty, and honor that he embodied with his life and service.”
“Agent Terry gave his life protecting our country. Today’s verdict cannot undo that tragedy and loss, but brings another measure of justice to Agent Terry’s family and the United States,” said U.S. Attorney Duffy. “I commend the prosecution team, the Federal Bureau of Investigation, the United States Border Patrol and all other law enforcement partners who have assisted in the investigation and prosecution.”
Two other men, Manuel Osorio-Arellanes and Rosario Rafael Burboa-Alvarez, previously pleaded guilty to first-degree murder for their roles in Agent Terry’s death. Yet another two men, Jesus Rosario Favela-Astorga and Heraclio Osorio-Arellanes, remain fugitives.
At trial, the United States was represented by attorneys from the Southern District of California, Special Attorneys Todd W. Robinson and David Leshner. The U.S. Attorney’s Office for the District of Arizona is recused. The case was investigated by the Federal Bureau of Investigation.
Two Harrison County men convicted of heroin traffickingRead the Press Release
CLARKSBURG, WEST VIRGINIA – Two individuals were convicted of heroin trafficking today in federal court, United States Attorney William J. Ihlenfeld, II, announced.
Jeremiah Robert Dodrill, 34, of Spelter, West Virginia, sold heroin in October 2014 near Spelter Park, a playground located in Harrison County, West Virginia. He pled guilty today to one count of “Distribution of Heroin within 1,000 feet of a Protected Location.” He faces between one and forty years in prison and a fine of up to $2,000,000.
Adam Thomas Mitchell, 29, of Clarksburg, sold heroin in Harrison County, West Virginia in April 2015. He pled guilty today to one count of “Distribution of Heroin – Aiding and Abetting.” He faces up to 20 years in prison and a fine of up to $1,000,000.
Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendants.
Assistant U.S. Attorneys Zelda Wesley and Stephen Warner along with former Assistant U.S. Attorney Shawn Morgan prosecuted Mitchell and Assistant U.S. Attorney Zelda Wesley prosecuted Dodrill on behalf of the government. The Greater Harrison County Drug and Violent Crime Task Force, a HIDTA-funded initiative, investigated each defendant.
U.S. District Judge Irene M. Keeley presided.
Two California Men Sentenced for Meth ConspiracyRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that two California men have been sentenced in federal court for their roles in a conspiracy to distribute large amounts of methamphetamine in southwest Missouri.
Jaime Gonzalez-Alvarado, 33, a citizen of Mexico residing in South Baja, Calif., and Camilo Acosta, 22, of Imperial Beach, Calif., were sentenced by U.S. District Judge M. Douglas Harpool on Wednesday, Sept. 30, 2015. Gonzalez-Alvarado was sentenced to 15 years in federal prison without parole. Acosta was sentenced to 11 years in federal prison without parole.
On May 13, 2015, Gonzalez-Alvarado pleaded guilty to participating in a conspiracy to distribute methamphetamine in Barry County, Mo., from March 1, 2012, to Oct. 11, 2013. He also pleaded guilty to possessing methamphetamine with the intent to distribute.
Gonzalez-Alvarado admitted that he directed the delivery and then the distribution of methamphetamine, which was being delivered from California to the residence of co-defendant Julio Vincente Mendoza, 33, a Mexican citizen who is a resident alien residing in Monett, Mo. This methamphetamine was then distributed by Gonzalez-Alvarado and others in the Monett area and throughout southwest Missouri.
On Oct. 11, 2013, law enforcement officers in Oklahoma seized one of these shipments of methamphetamine that was enroute to Mendoza’s residence in Monett. Officers seized 15 tape-wrapped bundles of methamphetamine weighing 14.61 kilograms.
On the same day, Missouri law enforcement officers conducted a controlled delivery of a portion of the methamphetamine to Mendoza’s residence, where they arrested Gonzalez-Alvarado and the other co-conspirators. Officers executed a search warrant and seized $57,660 found in a locked safe, $3,000 found in a downstairs bedroom, a Smith and Wesson 10mm semi-automatic handgun with 50 rounds of ammunition, packaging material consistent with the packaging of methamphetamine, approximately 3.5 grams of methamphetamine, a glass pipe commonly used to ingest methamphetamine and a drug ledger notebook which contained names, numbers, and currency amounts.
Mendoza and co-defendants Ernie Soto, 22, and Armando Arizpe, 24, both of Los Angeles, Calif., pleaded guilty to their roles in the drug-trafficking conspiracy. Mendoza, Soto and Arizpe were each sentenced to three years in federal prison without parole.
This case was prosecuted by Assistant U.S. Attorneys Randall D. Eggert and Nhan Nguyen. It was investigated by the Drug Enforcement Administration; the Missouri State Highway Patrol; the Canadian County, Okla., Sheriff’s Department; the Barry County, Mo., Sheriff’s Department; and the Barry County, Mo., Prosecuting Attorney’s Office.
Twenty-Five Individuals Charged in Southeastern Massachusetts Heroin RingRead the Press Release
BOSTON – Twenty-five individuals were indicted on federal drug trafficking charges in connection with a southeastern Massachusetts heroin trafficking ring. Arrests were made this morning in Fall River, Lawrence, Taunton, Marshfield, New Bedford, Berkley and Providence.
This indictment follows four other recent federal indictments charging 17 individuals in connection with a Taunton heroin distribution network. All five indictments are part of an ongoing federal effort to stem the tide of heroin and fentanyl in southeastern Massachusetts.
In a related development, Attorney General Loretta Lynch will be addressing Massachusetts doctors and public health officials at a forum on Friday in Waltham on how the misuse of prescription opioids is driving demand for narcotics such as heroin and fentanyl.
The following people were charged in an indictment unsealed today with conspiracy to distribute controlled substances, including heroin and fentanyl: Dedwin Cruz-Rivera, 39, and Christian Sostre, 21, both of Fall River; Eric Matos, 37, and Miguelina Mejia Ruiz, 41, both of Lawrence; Manuel Romero-Gonsalez, 37, Luz Gonzalez, 33, Francis Gonsalez-Romero, 39, and Maria Elena Ocasio, 55, all of Providence, R.I.; Julio C. Ocasio, 24, Xavier Ramos, 25, Maria Rodriguez, 38, William M. Rodriguez, 22, Lindsay Ann Belisle, 29, Jose O. Perez, 28, Kelly Patterson, 36, Jorge Vega, 40, Jose A. Rodriguez, 40, Oniel Rivera, 28, Christopher Perez, 36, Kelly Jean Gagnon, 39, Joseph W. Parsons, 23, and Philip Malaguti, 31, all of Taunton; Cory S. Nickerson, 31, of New Bedford; Steven M. Enos, 28, of Berkley; and John A. Gray, Jr., 40, of Marshfield.
The investigation revealed that Dedwin Cruz-Rivera was obtaining heroin and fentanyl from multiple wholesale suppliers, including Eric Matos and Manuel Romero-Gonsalez, and was distributing the drugs to Taunton-based dealers, including Maria Rodriguez, her son William Rodriguez, Oniel Rivera, and Xavier Ramos. Doris Mejia Ruiz delivered fentanyl to Cruz-Rivera at the direction of Matos.
The investigation also revealed that Romero-Gonsalez worked with his associate, Luz Gonzalez, and his brother, Francis Gonsalez-Romero, to distribute narcotics. Agents repeatedly observed William Rodriguez selling heroin to customers in and around Taunton, including Jose Perez, Kelly Patterson, Jorge Vega, Jose Rodriguez, Christopher Perez, Kelly Jean Gagnon, Joseph Parsons, Philip Malaguti, and John Gray, Jr. Lyndsay Belisle helped William Rodriguez distribute the drugs.
The investigation led to seizures of heroin and fentanyl. Fentanyl is an extremely potent synthetic opioid, which, by weight, is 30-40 times deadlier than heroin.
The indictment was the result of a 15-month investigation that included court-authorized wiretaps and the execution of six search warrants. The investigation was launched as part of the federal response to the heroin epidemic plaguing Massachusetts, and Taunton in particular, which has seen a steep increase in heroin overdose deaths since 2013.
The charge in today’s case provides for a sentence of no greater than 20 years in prison, a minimum of three year and up to a lifetime of supervised release, and a fine of $1 million. Cruz-Rivera faces a mandatory minimum 10 years and up to a lifetime in prison, a minimum of five years and up to a lifetime of supervised release, and a fine of up to $10 million. Gray faces a mandatory minimum sentence of five years and no greater than 40 years in prison, a minimum of four years and up to a lifetime of supervised release, and a fine of up to $5 million.
United States Attorney Carmen M. Ortiz; Michael J. Ferguson, Special Agent in Charge of the Drug Enforcement Administration, New England Field Division; and Taunton Police Chief Edward J. Walsh, made the announcement today. The investigation was a joint effort by the DEA’s Cape Cod Task Force; the Massachusetts State Police; the Bristol County Sherriff’s Department; the Barnstable, Fall River, Haverhill, Marshfield, Attleboro, Fairhaven, New Bedford, Bridgewater, Norwood, Lawrence, Plymouth, Berkley, Raynham and Providence Police Departments; the Rhode Island State Police; the Bristol, Essex and Plymouth County District Attorney’s Offices; and the United States Attorney’s Office for the District of Rhode Island. The case is being prosecuted by Assistant U.S. Attorneys Katherine Ferguson and Ann Taylor of Ortiz’s Narcotics and Money Laundering Unit.
The details contained in the indictment are allegations. The defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Town of Hill Man Sentenced for Tax EvasionRead the Press Release
CONCORD, N.H. – Ronald Martin, 65, of Hill, New Hampshire, was sentenced today by the United States District Court for the District of New Hampshire to 12 months in prison and 3 years of supervised release for tax evasion reports Acting United States Attorney Donald Feith.
Martin formerly owned and operated Martin Construction in Northfield, New Hampshire, and employed three to eight employees at various times. In 2008, 2009 and 2010, Martin’s business earned about $1.2 million in gross receipts, but Martin did not file any federal income tax returns for Martin Construction or for himself during those years and did not pay any federal income tax for either. Martin took steps to conceal the business revenue by directing payments and invoices for selling scrap metal to be made in the name of a third party. He also only deposited a small fraction of the income earned from Martin Construction into the business’ bank account. Instead, Martin diverted a significant portion of the business income for personal expenditures. He also did not file any federal employment tax returns or pay over to the Internal Revenue Service (IRS) any federal employment taxes for any of his employees.
A federal grand jury indicted Martin on three counts of tax evasion in July 2014 and, on June 23, 2015, he pleaded guilty to those charges.
This case was investigated by special agents of the IRS – Criminal Investigation and the Environmental Protection Agency Criminal Investigation Division. It was prosecuted by Assistant United States Attorney Mark S. Zuckerman and Senior Litigation Counsel Corey J. Smith of the Department of Justice’s Tax Division.
Tiffany Thomas Sentenced to Five Years ImprisonmentRead the Press Release
SOUTH BEND – United States Attorney for the Northern District of Indiana, David Capp, announced that Tiffany Thomas, 29, of South Bend, Indiana, was sentenced today for health care billing fraud and aggravated identity theft.
Thomas was sentenced to 61 months imprisonment and two years supervised release.
According to documents in the case, in 2014 and 2015, Thomas obtained prescriptions and medications including alprazolam, hydrocodone, promethazine and others fraudulently and then caused fraudulent billings and claims for reimbursement through Indiana Medicaid and other health care benefit programs. As part of the fraud scheme, the defendant caused fraudulent and phony prescriptions for medications to be called in and otherwise presented to pharmacies by persons pretending to be licensed doctors or the staff or licensed doctors. As part of the scheme, Thomas also fraudulently used the means of identification of others persons. Finally, Thomas also throughout the scheme sold and distributed the medications, including controlled substances that she obtained fraudulently.
This case was the result of an investigation by the Bureau of Alcohol, Tobacco Firearms and Explosives and the State of Indiana Attorney General’s Medicaid Fraud Control Unit. The case was prosecuted by the Assistant United States Attorney Donald J. Schmid.
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Three More Men Sentenced to Lengthy Prison Terms for Participation in Armed PCP Drug Distribution RingRead the Press Release
WASHINGTON – Three men have been sentenced to lengthy prison terms for their roles in an armed narcotics organization that trafficked phencyclidine (PCP) in Southeast Washington. The defendants were arrested in 2013 after a local resident walked into the Seventh District Police station and reported that the armed defendants had forcibly taken over his apartment in the Woodberry Village Apartment complex to distribute PCP.
The sentences were announced today by Acting U.S. Attorney Vincent H. Cohen, Jr. and Cathy L. Lanier, Chief of the Metropolitan Police Department (MPD).
Marquette Boston, 28, of Washington, D.C., was found guilty of possession with intent to distribute PCP in March 2015 following a nine-week jury trial in the U.S. District Court of the District of Columbia. Ira Adona, 24, of Fort Washington, Md., pled guilty in April 2014 to conspiracy to distribute and possess with intent to distribute PCP and attempted assault with a deadly or dangerous weapon in a related case in D.C. Superior Court. Breal Hicks, 25, also pled guilty in April 2014 to conspiracy to distribute and possess with intent to distribute PCP.
The Honorable Richard J. Leon sentenced Boston on Sept. 4, 2015, to eight years in prison, to be followed by five years of supervised release. He sentenced Adona on Sept. 29, 2015, to a total of 11 ½ years in prison, to be followed by eight years of supervised release. Finally, he sentenced Hicks on Sept. 30, 2015, to a total of seven years in prison, to be followed by five years of supervised release. Adona was sentenced on the related charge by D.C. Superior Court Judge Patricia A. Broderick on Jan. 30, 2015.
On Sept. 1, 2015, co-defendants Dawayne Brown, 21, and Keith Matthews, 24, were sentenced to 14 years and nine years of incarceration, respectively. One other co-defendant, Conovia Eddie, has entered a guilty plea and is still awaiting sentencing.
The defendants were indicted in 2013 following an investigation by the Metropolitan Police Department of violent distributors of PCP in the Woodberry Village area of Southeast Washington. The investigation revealed that from May 2012 through April 2013, the defendants and fellow 23rd Street crew members (also known as “Little Mexico”) worked together to distribute PCP in the Woodberry Village area by taking over apartments from the residents and selling narcotics from the safety of these apartments. The crew members were often armed with firearms, and they sold large amounts of PCP in the local area. The crew members also regularly exposed young children to narcotics and firearms.
The investigation revealed that in January 2013, crew members violently took over the apartment of a resident at gunpoint to facilitate PCP sales, and that defendant Brown used an 11-year-old child to facilitate his drug distribution. Crew members thereafter took control and used the resident’s apartment against his will, and they stored numerous firearms and bottles of PCP in his apartment. Despite being intimidated and in fear, the resident reported the defendants’ crimes by walking into the Seventh District Station to report that the defendants had taken over his apartment and that they were in possession of a large quantity of PCP and a number of firearms. Police immediately responded to the resident’s apartment and found Brown inside the apartment with three loaded firearms, including an Uzi-style firearm with 19 rounds of ammunition, and multiple bottles of PCP.
In a subsequent search warrants conducted in March and April 2013, MPD uncovered numerous other apartments being used by crew members to distribute narcotics and they seized multiple bottles of PCP, more than eight firearms, body armor, and over $3,500 in cash. In one search warrant, Adona and Hicks were found inside an apartment with three loaded firearms and various narcotics, including multiple bottles of PCP. In another warrant, Boston was found inside an apartment with a loaded gun, military-grade body armor, and multiple bottles of PCP. Since the first arrest of the 23rd Street members in January, 2013, more than a dozen 23rd Street drug traffickers, many of whom are known to be violent, have been identified, arrested and charged with narcotics, firearms and/or related criminal conduct.
In announcing the sentences, Acting U.S. Attorney Cohen and Chief Lanier commended the work of the agents, officers and investigators from the Seventh Police District who investigated the case. They also cited the efforts of those who worked on the case from the U.S. Attorney’s Office for the District of Columbia, including Paralegal Specialists Crystal Barclay, Tony Griffith, and Daphne (Teresa) Nelson; the Litigation Support Unit; Tanya Via, Debra Cannon, and Wanda Queen of the Victim/Witness Assistance Unit, Criminal Investigators Durand Odom and Nelson Rhone, and former intern Daniella Sterns. Finally, they acknowledged the work of Assistant U.S. Attorneys Tejpal S. Chawla and George Eliopoulos, and Kathryn Rakoczy, who prosecuted the cases.