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Tuesday 11 August 2015
Scranton Man Affiliated with "TF Mafia" Sentenced to 57 Months in Prison on Drug Conspiracy ChargeRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced that Vincent Fearon, age 33, of Scranton, Pennsylvania, was sentenced today in federal court in Scranton, by Senior United States District Edwin Kosik, to serve 57 months in prison on a charge of conspiracy to distribute crack cocaine. Fearon was ordered to serve an additional 3 years under court supervision upon his release from prison.
Fearon was charged after an investigation conducted by the Pennsylvania State Police, the Federal Bureau of Investigation, the Wilkes-Barre City Police Department, the New Jersey State Police and the Internal Revenue Service. The investigation commenced after a routine traffic stop in January 2012, conducted on Interstate 81 in Susquehanna County by the Pennsylvania State Police of a car driven by Paul Rivera of Brooklyn, New York. During the stop, troopers discovered a distribution quantity of cocaine in the trunk of the vehicle. Rivera and other occupants of the car were initially charged with drug offenses in state court.
Further investigation by multiple law enforcement agencies revealed that Rivera was affiliated with “TF Mafia,” a group engaged in criminal activity as well as the production of rap music videos. Ultimately, the investigation resulted in racketeering and other charges being brought in the Eastern District of New York against Rivera and Michael Garrett, also of Brooklyn.
Rivera and Garrett were convicted at trial in federal court in Brooklyn earlier this year and face mandatory minimum sentences of life in prison as a result of the jury’s finding they committed a murder in furtherance of their racketeering activity.
Vincent Fearon, Hassan Woods and others were charged in federal court in Scranton as a result of their involvement in drug trafficking with TF Mafia. Woods was previously sentenced by Judge Kosik to 10 years in prison.
United States Attorney Peter Smith used the occasion of Fearon’s sentencing today to present letters of commendation to 14 individuals from the Pennsylvania and New Jersey State Police, the FBI Scranton Task Force and FBI New York Office and local law enforcement who participated in the investigation.
The case was prosecuted in the Eastern District of New York by Assistant United States Attorneys Taryn Merkl, Alixandra Smith and Michael Robotti. The case was prosecuted in the Middle District of Pennsylvania by Assistant United States Attorney William S. Houser.
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Schenectady Man Sentenced for Distributing Child PornographyRead the Press Release
ALBANY, NEW YORK – Adam Rey Gonzalez, 28, of Schenectady, New York, was sentenced yesterday by the Honorable Thomas J. McAvoy to 220 months in federal prison followed by a lifetime term of supervised release, announced United States Attorney Richard S. Hartunian and Andrew W. Vale, Special Agent-in-Charge of the Albany Division of the Federal Bureau of Investigation. The sentence follows Gonzalez’s April 14, 2015 guilty plea to distribution of child pornography.
"The distribution of child pornography perpetuates the sexual exploitation of the children depicted in such images, re-victimizing them over and over again," said United States Attorney Richard S. Hartunian. "My office will continue to work diligently with the FBI and other law enforcement agencies to uncover and punish those who distribute such unspeakable images."
"Today’s sentencing reflects the commitment of the FBI to apprehend and bring to justice those who commit crimes against children," said Special Agent-in-Charge Andrew W. Vale. "Child pornography is not a victimless crime, and we are committed to protecting our children from sexual predators such as Mr. Gonzalez."
Gonzalez, who has two prior convictions for sexual offenses, including the sexual abuse of a minor, was a registered sex offender when federal agents identified him as a prolific online trader of child pornography known as "Redart-yob." Federal agents searched Gonzalez’s Schenectady home and located a hidden computer that contained a large collection of child pornography, primarily focused on the sexual abuse of young boys. At today’s sentencing hearing, Judge McAvoy described the materials Gonzalez traded as "horrific" and said that victims of child pornography "have their lives stolen from them." Gonzalez was ordered to pay $12,000 in restitution to a victim.
This case was investigated by the Federal Bureau of Investigation, Albany Division and was prosecuted by Assistant United States Attorneys Wayne A. Myers and Emily Farber, and Special Assistant United States Attorney Amanda Cox
Richmond Man Pleads Guilty to Series of RobberiesRead the Press Release
RICHMOND, Va. – Marcus D. Bennett, 31, of Henrico County, Virginia, pleaded guilty today to charges of robbery and brandishing a firearm in furtherance of that robbery.
According to court documents, on Jan. 9, 2015, Bennett entered a McDonald’s restaurant located in Henrico, Virginia, while armed with a revolver. Once inside, Bennett approached the shift manager, and while brandishing the firearm, ordered the manager to open the safe and hand over the money. After getting the money, Bennett went to the cashier who was working the drive through window, and demanded money from the register.
In entering his plea today before Magistrate Judge David J. Novak, Bennett admitted in the signed statement of facts that he had committed three additional armed robberies, to include a second McDonald’s restaurant in Henrico, and two subway restaurants, one in Henrico and the other in Richmond.
Bennett was arrested in May 2015 after an investigation was conducted by officers and detectives with the Henrico and Richmond Police Departments in conjunction with the FBI’s Central Virginia Violent Crime Task Force.
Bennett faces a sentence of up to 20 years in prison for the robbery, and a maximum of life in prison for brandishing the firearm when he is sentenced on Nov. 13, 2015. Bennett faces additional time in prison because he was on federal supervised release when he committed this series of robberies. 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; Adam S. Lee, Special Agent in Charge of the FBI’s Richmond Field Office; Douglas A. Middleton, Chief of Henrico County Police Division; and Ray J. Tarasovic, Chief of City of Richmond Police Department, made the announcement after the plea was accepted by Senior District Judge James R. Spencer.
This case was investigated by the FBI, members of the Henrico County Police Department, and members of the Richmond Police department. Assistant U.S. Attorney Angela Mastandrea-Miller is 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. 3:15-cr-134.
Raleigh Man Sentenced for Submitting Fraudulent Tax Refund ClaimsRead the Press Release
GREENVILLE – United States Attorney Thomas G. Walker announced that today in federal court Senior United States District Judge Malcolm J. Howard sentenced AKI D. STANLEY, 41, of Raleigh, to serve 45 months in prison, followed by a three-year term of supervised release. Pursuant to his plea agreement, STANLEY agreed to pay $378,834 in restitution to the Internal Revenue Service.
On February 10, 2015, STANLEY plead guilty to making and presenting a false tax refund claim to the IRS, in violation of 18 U.S.C. § 287. According to the charging instrument and other court filings, as well as today’s sentencing proceedings, STANLEY engaged in a scheme to prepare and file fraudulent federal tax returns in the names of others, including homeless individuals in Raleigh from whom STANLEY obtained personal identifying information. The returns that STANLEY unlawfully prepared and submitted to the Internal Revenue Service claimed false tax refunds totaling $487,359.
Investigation of this case was conducted by the Internal Revenue Service - Criminal Investigation. Assistant United States Attorney Adam F. Hulbig represented the United States.
Puerto Rican Woman Sentenced to 30 Months in Prison for Smuggling Cocaine into New JerseyRead the Press Release
NEWARK, N.J. – A woman from Puerto Rico was sentenced today to 30 months in prison for trying to smuggle 2.9 kilograms of cocaine through Newark Liberty International Airport, U.S. Attorney Paul J. Fishman announced.
Kenia Diaz, 24, previously pleaded guilty before U.S. District Judge Susan D. Wigenton to an indictment charging her with one count of possessing cocaine with intent to distribute. Judge Wigenton imposed the sentence today in Newark federal court.
According to documents filed in this case and statements made in court:
On May 22, 2013, Diaz arrived at Newark Liberty International Airport on a flight from Puerto Rico. During a routine inspection, a canine detected a controlled substance inside Diaz’s suitcase. After searching the suitcase, agents recovered approximately 2.9 kilograms of cocaine.
In addition to the prison term, Judge Wigenton ordered Diaz to serve three years of supervised release.
U.S. Attorney Fishman praised special agents of the DEA, Newark Division, under the direction of Special Agent in Charge Carl J. Kotowski with the investigation leading to today’s guilty plea.
The government is represented by Special Assistant U.S. Attorney Thomas S. Kearney of the U.S. Attorney’s Office General Crimes Unit in Newark.
Defense counsel: Kevin Carlucci Esq., Newark
Previously Convicted St. Mary’s County Sex Offender Pleads Guilty to Attempting to Induce a Minor to Have SexRead the Press Release
Greenbelt, Maryland – Nicholas Edward Seskar, Sr., age 41, of Lusby, Maryland, pleaded guilty today to attempting to induce a minor to engage in sex.
The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Andre Watson of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); St. Mary’s County Sheriff Tim Cameron; and St. Mary’s County State’s Attorney Richard Fritz.
In 2006, Seskar admitted to having sex with a 15 year old when he was 30 years old. He pleaded guilty in the Circuit Court for St. Mary’s County to one count of sex offense in the third degree and was sentenced.
According to his plea agreement, from March 23 to April 2, 2015, Seskar communicated on Facebook with an individual named “Tiffany” who he believed was 15 years old. “Tiffany” was in fact an undercover law enforcement officer with the St. Mary’s County Sheriff’s Office. Over time, his Facebook conversations became extremely graphic regarding the sexual acts he wanted to perform on “Tiffany.” Seskar told the undercover police officer that he wanted to meet to have sex, and that he had slept with a 15 year old when he was 30 years old.
On April 2, 2015, Seskar arrived at a pre-arranged meeting place and was arrested by officers with the St. Mary’s County Sheriff’s Office.
As part of his plea agreement, Seskar must register as a sex offender in the place where he resides, where he is an employee, and where he is a student, under the Sex Offender Registration and Notification Act (SORNA).
Seskar and the government have agreed that if the Court accepts the plea agreement, Seskar will be sentenced to 15 years in prison. U.S. District Judge Paul W. Grimm has scheduled sentencing for November 18, 2015 at 2:30 p.m.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc. For more information about internet safety education, please visit www.justice.gov/psc and click on the "resources" tab on the left of the page.
United States Attorney Rod J. Rosenstein commended the St. Mary’s County Sheriff’s Office, HSI Baltimore and St. Mary’s County State’s Attorney’s Office for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Kristi O’Malley and Special Assistant U.S. Attorney Jennifer Wine of the U.S. Department of Justice, who are prosecuting the case.
Pottawattamie County Resident Sentenced to 30 Months for Possessing Child PornographyRead the Press Release
COUNCIL BLUFFS, IA- On August 6, 2015, David Leon Breneman, a 49 year-old resident of Council Bluffs, Iowa, was sentenced by United States District Court Judge Stephanie M. Rose to 30 months in prison for possession of child pornography, announced United States Attorney Nicholas A. Klinefeldt. Judge Rose also ordered that Breneman serve 10 years of supervised release following the period of imprisonment. During the period of supervised release, Breneman will be monitored by the United States Probation Office for compliance with conditions of release set by the Court at the time of sentencing.
An investigation by law enforcement revealed that from May to December of 2012, Breneman had obtained images from the internet of prepubescent children engaged in sexually explicit conduct. Breneman pleaded guilty to the charge of possession of child pornography on April 2, 2015.
The investigation was conducted by the Cyber Crime Unit of the Iowa Division of Criminal Investigation, and the case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
Plainwell Man, Benjamin James Cance, Charged with Illegal Arms Exportation, Other CrimesRead the Press Release
Benjamin James Cance Indicted For Shipping Gun Components Overseas, Money Laundering, and Illegal Possession of a Machinegun
GRAND RAPIDS, MICHIGAN — U.S. Attorney Patrick Miles announced today the indictment of Benjamin James Cance. Cance, age 30, is charged with three crimes. The first alleges that he illegally shipped gun components that are on the Federal Munitions List overseas. The second charge alleges that he engaged in money laundering by using the profits from this business to purchase a house. Finally, Cance is charged with illegal possession of an unregistered machinegun. International arms shipment is punishable by imprisonment for up to 20 years; the maximum penalty for money laundering and possession of a machinegun is ten years in prison.
In pretrial filings with the court, the government disclosed that Cance’s illegal dealings with his overseas customers were allegedly conducted through illegal internet sites, referred to as the "darknet." He also allegedly utilized electronic currencies, such as Bitcoin, to get paid for his services in an effort to hide the nature of his activities.
The case is assigned to U.S. District Judge Robert Holmes Bell for disposition. On August 11, 2015, Cance appeared before Magistrate Judge Phillip J. Green to answer the charges and entered a plea of not guilty. He was placed on bond at that time. No trial date has yet been set.
The case was assigned to Timothy VerHey, Assistant U.S. Attorney, for prosecution. Investigation of the case is being conducted by the Department of Homeland Security, Immigration and Customs Enforcement, the Internal Revenue Service, the U.S. Postal Inspection Service, and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
The charges in an indictment are merely accusations, and a defendant is presumed innocent until and unless proven guilty in a court of law.
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Ohio man sentenced to 10 years for heroin, cocaine traffickingRead the Press Release
WHEELING, WEST VIRGINIA – LeDon Gaither, 38, of Cleveland, Ohio, was sentenced today to 121 months in prison for heroin and cocaine trafficking, United States Attorney William J. Ihlenfeld, II, announced.
Gaither participated in a drug trafficking operation in which heroin and cocaine were transported across state lines from Cleveland, Ohio into Northern West Virginia. The drugs were then distributed and sold in Ohio and Marshall Counties in West Virginia.
Gaither pled guilty in May 2015 to one count of “Conspiracy to Possess with Intent to Distribute and to Distribute Schedule I and Schedule II Controlled Substances.”
Another participant in the drug trafficking operation, Charles Kraft, 33, of Wheeling, was sentenced today to four months in prison. He pled guilty in March 2015 to one count of “Aiding and Abetting the Distribution of Heroin.”
Assistant U.S. Attorney Randy Bernard prosecuted the case on behalf of the government. The Ohio Valley Drug and Violent Crime Task Force and the Marshall County Drug and Violent Crime Task Force, both HIDTA-funded initiatives, investigated.
Senior U.S. District Judge Frederick P. Stamp presided.
North Jersey Pharmacist Admits Stealing Controlled Substances from Hospital PharmaciesRead the Press Release
NEWARK, N.J. – A pharmacist working at two New Jersey hospitals today admitted abusing his position to tamper with and steal hundreds of vials of medication, U.S. Attorney Paul J. Fishman announced.
John Kakowski, 29, of Jersey City, New Jersey, pleaded guilty before U.S. District Judge Esther Salas in Newark federal court to a two-count information charging him with tampering with consumer products and obtaining controlled substances by misrepresentation, fraud, forgery, deception or subterfuge.
According to the documents filed and statements made in court:
Kakowski admitted that, between 2013 and 2014, he tampered with and stole medications from one hospital by taking vials of Morphine Sulfate, Dilaudid and Fentanyl from the Pyxis machine, an automated medication dispensing system that he could access as a pharmacist. During that time, he also stole Morphine Sulfate from a second hospital by removing the vials from a cabinet that he had access to as a pharmacist. In addition, Kakawoski admitted using a needle to extract medication from the vials for his own use and then refilling them with saline solution.
The charge of tampering with a consumer product carries a maximum penalty of up to 10 years in prison and a $250,000 fine, or twice the gross gain or loss from the offense. The charge of obtaining controlled substances by fraud carries a maximum penalty of up to four years in prison and a $250,000 fine, or twice the gross gain or loss from the offense. No sentencing date has been set at this time.
U.S. Attorney Fishman credited special agents of the FDA’s Office of Criminal Investigations, under the direction of Special Agent in Charge Antoinette V. Henry, and the Hudson County Prosecutor’s Office, under the direction of Prosecutor Esther Suarez, with the investigation leading to today’s plea.
The government is represented by Assistant U.S. Attorney Danielle M. Corcione of the U.S. Attorney’s Health Care and Government Fraud Unit.
U.S. Attorney Paul J. Fishman reorganized the health care fraud practice at the New Jersey U.S. Attorney’s Office shortly after taking office, including creating a stand-alone Health Care and Government Fraud Unit to handle both criminal and civil investigations and prosecutions of health care fraud offenses. Since 2010, the office has recovered more than $635 million in health care fraud and government fraud settlements, judgments, fines, restitution and forfeiture under the False Claims Act, the Food, Drug and Cosmetic Act and other statutes.
Defense counsel: Mark Musella Esq.
Download Kakowski John Information
North Carolina Seafood Processor and Distributor Sentenced for Mislabeling ShrimpRead the Press Release
North Carolina-based seafood processor and wholesale distributor Alphin Brothers Inc., was sentenced today in federal court for falsely labeling imported shrimp, the Justice Department announced.
Pursuant to plea agreement entered on Feb. 10, 2015, Alphin Brothers Inc., pleaded guilty to one felony count of making or submitting false records in violation of the Lacey Act. Court documents state that an Alphin Brothers employee, who purchased and sold shrimp on the company’s behalf, directed Alphin Brothers employees and employees of another seafood processing facility to falsely label approximately 25,000 pounds of farm-raised imported shrimp as wild-caught product of the United States. The falsely labeled shrimp was later sold by Alphin Brothers in interstate commerce to customers in Louisiana.
Consistent with the plea agreement, the court sentenced Alphin Brothers Inc., to pay a criminal fine of $100,000 and to forfeit approximately 21,450 pounds of shrimp. The company also will serve three years of probation, including a special condition requiring the company to implement a training program to educate its employees on federal labeling requirements, as they relate to business activities at the company.
Federal regulations require seafood retailers to provide customers with notice of the country of origin and the method of production, wild-caught or farm-raised, of shrimp and other shellfish. These regulations are known by the acronym COOL, which stands for “country of origin labeling.” The COOL regulations allow country of origin and method of production information to be provided in any format, as long as it is placed in a conspicuous location such that it will likely be read and understood by a customer under normal circumstances. Many shrimp processors and wholesale distributors, including Alphin Brothers Inc., print country of origin and/or method of production information directly on packaging, such as boxes, intended for retail sale.
Under the COOL regulations, shrimp may be labeled as “product of the United States” only if they were harvested and processed in the United States or by a United States-flagged vessel and have not undergone any substantial transformation outside the United States. Packing, repacking, thawing, freezing, cleaning, peeling, deveining, grading, cooking, or soaking shrimp in sodium tripolyphosphate solution does not constitute a substantial transformation under the COOL regulations.
The Lacey Act is a federal law making it illegal to make or submit any false record, account, or label for, or any false identification of, any fish or wildlife that has been or is intended to be imported, transported, purchased or received from any foreign country, or transported in interstate or foreign commerce. The maximum penalties for a felony violation of the Lacey Act include up to five years of imprisonment and $250,000 in fines for individual defendants and up to $500,000 in fines for corporate defendants.
The case was investigated by the National Oceanic and Atmospheric Administration Office of Law Enforcement, with assistance from the Louisiana Department of Wildlife and Fisheries. The case was prosecuted by the Justice Department’s Environmental Crimes Section and the U.S. Attorney’s Office for the Eastern District of North Carolina.
North Carolina Seafood Processor and Distributor Sentenced for Mislabeling ShrimpRead the Press Release
WASHINGTON—North Carolina-based seafood processor and wholesale distributor Alphin Brothers Inc., was sentenced today in federal court for falsely labeling imported shrimp, the Justice Department announced.
Pursuant to plea agreement entered on February 10, 2015, Alphin Brothers Inc., pleaded guilty to one felony count of making or submitting false records in violation of the Lacey Act. Court documents state that an Alphin Brothers employee, who purchased and sold shrimp on the company’s behalf, directed Alphin Brothers employees and employees of another seafood processing facility to falsely label approximately 25,000 pounds of farm-raised imported shrimp as wild-caught product of the United States. The falsely labeled shrimp was later sold by Alphin Brothers in interstate commerce to customers in Louisiana.
Consistent with the plea agreement, the court sentenced Alphin Brothers Inc., to pay a criminal fine of $100,000 and to forfeit approximately 21,450 pounds of shrimp. The company also will serve three years of probation, including a special condition requiring the company to implement a training program to educate its employees on federal labeling requirements, as they relate to business activities at the company..
Federal regulations require seafood retailers to provide customers with notice of the country of origin and the method of production (wild-caught or farm-raised) of shrimp and other shellfish. These regulations are known by the acronym COOL, which stands for “country of origin labeling.” The COOL regulations allow country of origin and method of production information to be provided in any format, as long as it is placed in a conspicuous location such that it will likely be read and understood by a customer under normal circumstances. Many shrimp processors and wholesale distributors, including Alphin Brothers Inc., print country of origin and/or method of production information directly on packaging, such as boxes, intended for retail sale.
Under the COOL regulations, shrimp may be labeled as “product of the United States” only if they were harvested and processed in the United States or by a United States-flagged vessel and have not undergone any substantial transformation outside the United States. Packing, repacking, thawing, freezing, cleaning, peeling, deveining, grading, cooking, or soaking shrimp in sodium tripolyphosphate solution does not constitute a substantial transformation under the COOL regulations.
The Lacey Act is a federal law making it illegal to make or submit any false record, account, or label for, or any false identification of, any fish or wildlife that has been or is intended to be imported, transported, purchased or received from any foreign country, or transported in interstate or foreign commerce. The maximum penalties for a felony violation of the Lacey Act include up to five years of imprisonment and $250,000 in fines for individual defendants and up to $500,000 in fines for corporate defendants.
The case was investigated by the National Oceanic and Atmospheric Administration Office of Law Enforcement, with assistance from the Louisiana Department of Wildlife and Fisheries. The case was prosecuted by the Justice Department’s Environmental Crimes Section and the U.S. Attorney’s Office for the Eastern District of North Carolina.
North Adams Woman Sentenced for Social Security FraudRead the Press Release
BOSTON – Nancy Killackey, 57, of North Adams, Mass., was sentenced yesterday by U.S. District Court Judge Mark G. Mastroianni to 18 months of probation and ordered to pay restitution of $72,635 to the Social Security Administration (SSA).
From Jan. 1, 2002 through Oct. 1, 2013, Killackey received $72,635 in fraudulently obtained Social Security disability benefits. Killackey was not entitled to receive these benefits because she was married to a man who earned substantial wages, which was information that she intentionally concealed in order to continue receiving the benefits. Specifically, on July 21, 2011, Killackey told federal agents that the man was her personal care attendant and not her spouse. When the agents asked Killackey why the man would have told the SSA that they were married, she described him as “a big, fat liar” and “an idiot off his medication.” When asked about their wedding date, Killackey said that this was the day the man had a heart attack, not the day of their wedding.
United States Attorney Carmen M. Ortiz and Scott Antolik, Special Agent in Charge of the Social Security Administration, Office of Inspector General, Office of Investigations, made the announcement today. The case was prosecuted by Assistant U.S. Attorney Steven H. Breslow of Ortiz’s Springfield Branch Office.
Nine People Charged in Largest Known Computer Hacking and Securities Fraud SchemeRead the Press Release
More Than 150,000 Press Releases Stolen from Three Major Newswire Companies, Used to Generate Approximately $30 Million in Illegal Trading Profits
NEWARK, N.J. – Nine people were charged in two indictments unsealed today in Brooklyn, New York, and Newark federal court with an international scheme to hack into three business newswires and steal yet-to-be published press releases containing non-public financial information that was then used to make trades that allegedly generated approximately $30 million in illegal profits.
U.S. Attorney Paul J. Fishman, District of New Jersey, and Acting U.S. Attorney Kelly T. Currie, Eastern District of New York, announced the indictments today, along with U.S. Secretary of Homeland Security Jeh Johnson; U.S. Secret Service Director Joseph P. Clancy; FBI Assistant Director-in-Charge Diego Rodriguez, New York Field Office; and U.S. Securities Exchange Commission (SEC) Chair Mary Jo White. The SEC also unsealed a civil complaint today charging the nine indicted defendants and several other individuals and entities.
The indictments unsealed today charge the defendants with hacking into the newswires and stealing confidential information about companies traded on the NASDAQ and NYSE in what is the largest scheme of its kind ever prosecuted. The defendants allegedly stole approximately 150,000 confidential press releases from the servers of the newswire companies. They then traded ahead of more than 800 stolen press releases before their public release, generating millions of dollars in illegal profits.
“The defendants were a well-organized group that allegedly robbed the newswire companies and their clients and cheated the securities markets and the investing public by engaging in an unprecedented hacking and trading scheme,” U.S. Attorney Fishman said. “The defendants launched a series of sophisticated and relentless cyber attacks against three major newswire companies, stole highly confidential information and used to enrich themselves at the expense of public companies and their shareholders.”
“As alleged, the defendants and their co-conspirators formed an alliance of hackers and securities industry professionals to systematically steal valuable inside information and profit by trading ahead of authorized disclosures to the investing public,” stated Acting United States Attorney Currie. “Today’s sweeping indictments are the result of a cutting edge investigation by law enforcement to combat twenty-first century criminal schemes.”
“Today’s announcement is a testament to the countless hours of hard work and dedication by law enforcement and other personnel across government, including the Secret Service investigative team. In today’s day and age, criminals are using computers instead of guns to steal money and threaten the safety and security of our cyber networks,” Secretary Johnson said. “In matters of cybersecurity, the Department of Homeland Security has a major law enforcement role, and our work to counter cyber threats is a critical priority for the Secret Service because of the substantial threat it poses to this nation’s financial infrastructure.”
The 23-count District of New Jersey indictment charges five defendants – Ivan Turchynov, 27; Oleksandr Ieremenko, 24; and Pavel Dubovoy, 32; all of Ukraine, and Arkadiy Dubovoy, 51, and Igor Dubovoy, 28, of Alpharetta, Georgia – with wire fraud conspiracy, securities fraud conspiracy, wire fraud, securities fraud, and money laundering conspiracy. Turchynov and Ieremenko are additionally charged with computer fraud conspiracy, computer fraud, and aggravated identity theft.
The Eastern District of New York indictment charges four defendants: Vitaly Korchevsky, 50, of Glen Mills, Pennsylvania; Vladislav Khalupsky, 45, of Brooklyn, New York; and Odessa, Ukraine; Leonid Momotok, 47, of Suwanee, Georgia; and Alexander Garkusha, 47, of Cummings and Alpharetta, Georgia, with wire fraud conspiracy, securities fraud conspiracy, securities fraud, and money laundering conspiracy.
Earlier today, the government seized 17 bank and brokerage accounts containing more than $6.5 million of alleged criminal proceeds. The government also took steps to restrain 12 properties, a shopping center located in Pennsylvania, an apartment building located in Georgia, and a houseboat, all worth more than $5.5 million.
Five of the nine defendants named above were arrested this morning: Arkadiy Dubovoy, Igor Dubovoy, Momotok, and Garkusha were all arrested at their homes in Georgia, and are scheduled to appear this afternoon before U.S. Magistrate Judge Alan J. Baverman in federal court in Atlanta, Georgia. Korchevsky was arrested at his home in Glenn Mills, Pennsylvania, and is scheduled to appear this afternoon before U.S. Magistrate Judge Linda K. Caracappa in federal court in Philadelphia, Pennsylvania. Turchynov, Ieremenko, Pavel Dubovoy, and Khalupsky remain in Ukraine, and international arrest warrants were issued today for their arrests.
According to the indictments:
Between February 2010 and August 2015, Turchynov and Ieremenko, computer hackers based in Ukraine, gained unauthorized access into the computer networks of Marketwired L.P., PR Newswire Association LLC (PRN), and Business Wire. They used a series of sophisticated cyber attacks to gain access to the computer networks. The hackers moved through the computer networks and stole press releases about upcoming announcements by public companies concerning earnings, gross margins, revenues, and other confidential and material financial information.
At one point, one of the hackers sent an online chat message in Russian to another individual stating, “I’m hacking prnewswire.com.” In another online chat, Ieremenko told Turchynov that he had compromised the log-in credentials of 15 Business Wire employees.
The hackers shared the stolen press releases with traders Arkadiy Dubovoy, Korchevsky, Momotok, Igor Dubovoy, Pavel Dubovoy, Khalupsky, Garkusha, and others, using overseas computer servers that they controlled. In a series of emails, the hackers even shared “instructions” on how to access and use an overseas server where they shared the stolen releases with the traders, and the access credentials and instructions were distributed amongst the traders. In an email sent by one of the traders, the instructions for accessing the overseas server suggested that users conceal their Internet Protocol address when accessing the server as a precaution to avoid detection. The traders created “shopping lists” or “wish lists” for the hackers listing desired upcoming press releases from Marketwired and PRN for publicly traded companies. Trading data obtained over the course of the investigation showed that, after one of the shopping lists or wish lists was sent, the traders and others traded ahead of several of the press releases listed on it.
The traders generally traded ahead of the public distribution of the stolen releases, and their activities shadowed the hackers’ capabilities to exfiltrate stolen press releases. In order to execute their trades before the releases were made public, the traders sometimes had to execute trades in extremely short windows of time between when the hackers illegally accessed and shared information and when the press releases were disseminated to the public by the newswires, usually shortly after the close of the markets. Frequently, all of this activity occurred on the same day. Thus, the trading data often showed a flurry of trading activity around a stolen press release just prior to its public release. The defendants illegal trading resulted in gains of more than $30 million, of which Korchevsky accounted for more than $17 million and Arkadiy Dubovoy accounted for more than $11 million.
The traders traded on stolen press releases containing material nonpublic information about publicly traded companies that included, among hundreds of others: Align Technology Inc.; Caterpillar Inc.; Hewlett Packard; Home Depot; Panera Bread Co.; and Verisign Inc.
The traders paid the hackers for access to the overseas servers based, in part, on a percentage of the money the traders made from their illegal trading activities. The hackers and traders used foreign shell companies to share in the illegal trading profits.
“This is the story of a traditional securities fraud scheme with a twist—one that employed a contemporary approach to a conventional crime. In this case the defendants allegedly traded on nonpublic information, ultimately benefitting from more than $30 million in illegal profits over the course of three years,” Assistant Director-in-Charge Rodriguez said. “But just as criminals continue to develop relationships with one another in order to advance their objectives, the law enforcement community has developed a collaborative approach to fighting these types of crimes.”
“Cyber cases such as this are a vital part of the Secret Service's integrated mission,” Joseph P. Clancy, Director of the U.S. Secret Service, said. “This is yet another example of the successful investigative work being done in coordination with our partners in the global law enforcement community.”
The wire fraud conspiracy and substantive wire fraud counts with which all defendants are charged carry a maximum potential penalty of 20 years in prison and a $250,000 fine, or twice the gain or loss from the offense. The securities fraud conspiracy count with which all defendants are charged carries a maximum potential penalty of five years in prison and a $250,000 fine, or twice the gain or loss from the offense. The substantive securities fraud counts with which all defendants are charged carry a maximum potential penalty of 20 years in prison and a $5 million fine, or twice the gain or loss from the offense. The money laundering conspiracy count with which all defendants are charged carries a maximum potential penalty of 20 years in prison and a $500,000 fine, or twice the value of the funds involved in the illegal transfers. The computer fraud counts with which the alleged hackers are charged carry a maximum potential penalty of five years’ imprisonment and a $250,000 fine, or twice the gain or loss from the offense. The aggravated identity theft counts with which the hackers are charged carry a mandatory consecutive term of imprisonment of 24 months.
U.S. Attorney Fishman and Acting U.S. Attorney Currie credited special agents of the U.S. States Secret Service, Criminal Investigations, under the direction of Director Clancy, and the Newark Field Office under the direction of Special Agent in Charge Carl Agnelli; and special agents of the FBI, New York Field Office, under the direction of Assistant Director Diego Rodriguez, for the investigation leading to today’s arrests and indictments. They thanked the U.S. Securities and Exchange Commission, for its significant cooperation and assistance in the investigation and the newswires, which cooperated with law enforcement over the course of the investigation.
In the District of New Jersey, the government is represented by Assistant U.S. Attorneys Andrew S. Pak, Daniel V. Shapiro, and David M. Eskew of the Economic Crimes Unit, Computer Hacking & Intellectual Property Section, Assistant U.S. Attorney Svetlana M. Eisenberg of the Office’s Civil Division, and Special Assistant U.S. Attorney Sarah Devlin of the Asset Forfeiture and Money Laundering Unit.
In the Eastern District of New York, the government’s case is being prosecuted by the Business and Securities Fraud Section and the National Security and Cybercrime Section. Assistant U.S. Attorneys Christopher A. Ott, Christopher L. Nasson, and Richard M. Tucker are in charge of the prosecution. Assistant U.S. Attorneys Brian D. Morris and Tanisha Payne of the Office’s Civil Division are responsible for the forfeiture of assets.
The charges and allegations contained in the indictments are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
The charges were brought in connection with the President’s Financial Fraud Enforcement Task Force. The task force was established to wage an aggressive, coordinated, and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. Attorneys’ Offices, and state and local partners, it is the broadest coalition of law enforcement, investigatory, and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state, and local authorities; addressing discrimination in the lending and financial markets; and conducting outreach to the public, victims, financial institutions, and other organizations. Since fiscal year 2009, the Justice Department has filed over 18,000 financial fraud cases against more than 25,000 defendants. For more information on the task force, please visit www.StopFraud.gov.
Nine People Charged in Largest Known Computer Hacking and Securities Fraud SchemeRead the Press Release
NEWARK, N.J. – Nine people were charged in two indictments unsealed today in Brooklyn, New York, and Newark federal court with an international scheme to hack into three business newswires and steal yet-to-be published press releases containing non-public financial information that was then used to make trades that allegedly generated approximately $30 million in illegal profits.
U.S. Attorney Paul J. Fishman, District of New Jersey, and Acting U.S. Attorney Kelly T. Currie, Eastern District of New York, announced the indictments today, along with U.S. Secretary of Homeland Security Jeh Johnson; U.S. Secret Service Director Joseph P. Clancy; FBI Assistant Director-in-Charge Diego Rodriguez, New York Field Office; and U.S. Securities Exchange Commission (SEC) Chair Mary Jo White. The SEC also unsealed a civil complaint today charging the nine indicted defendants and several other individuals and entities.
The indictments unsealed today charge the defendants with hacking into the newswires and stealing confidential information about companies traded on the NASDAQ and NYSE in what is the largest scheme of its kind ever prosecuted. The defendants allegedly stole approximately 150,000 confidential press releases from the servers of the newswire companies. They then traded ahead of more than 800 stolen press releases before their public release, generating millions of dollars in illegal profits.
“The defendants were a well-organized group that allegedly robbed the newswire companies and their clients and cheated the securities markets and the investing public by engaging in an unprecedented hacking and trading scheme,” U.S. Attorney Fishman said. “The defendants launched a series of sophisticated and relentless cyber attacks against three major newswire companies, stole highly confidential information and used to enrich themselves at the expense of public companies and their shareholders.”
“As alleged, the defendants and their co-conspirators formed an alliance of hackers and securities industry professionals to systematically steal valuable inside information and profit by trading ahead of authorized disclosures to the investing public,” stated Acting United States Attorney Currie. “Today’s sweeping indictments are the result of a cutting edge investigation by law enforcement to combat twenty-first century criminal schemes.”
“Today’s announcement is a testament to the countless hours of hard work and dedication by law enforcement and other personnel across government, including the Secret Service investigative team. In today’s day and age, criminals are using computers instead of guns to steal money and threaten the safety and security of our cyber networks,” Secretary Johnson said. “In matters of cybersecurity, the Department of Homeland Security has a major law enforcement role, and our work to counter cyber threats is a critical priority for the Secret Service because of the substantial threat it poses to this nation’s financial infrastructure.”
The 23-count District of New Jersey indictment charges five defendants – Ivan Turchynov, 27; Oleksandr Ieremenko, 24; and Pavel Dubovoy, 32; all of Ukraine, and Arkadiy Dubovoy, 51, and Igor Dubovoy, 28, of Alpharetta, Georgia – with wire fraud conspiracy, securities fraud conspiracy, wire fraud, securities fraud, and money laundering conspiracy. Turchynov and Ieremenko are additionally charged with computer fraud conspiracy, computer fraud, and aggravated identity theft.
The Eastern District of New York indictment charges four defendants: Vitaly Korchevsky, 50, of Glen Mills, Pennsylvania; Vladislav Khalupsky, 45, of Brooklyn, New York; and Odessa, Ukraine; Leonid Momotok, 47, of Suwanee, Georgia; and Alexander Garkusha, 47, of Cummings and Alpharetta, Georgia, with wire fraud conspiracy, securities fraud conspiracy, securities fraud, and money laundering conspiracy.
Earlier today, the government seized 17 bank and brokerage accounts containing more than $6.5 million of alleged criminal proceeds. The government also took steps to restrain 12 properties, a shopping center located in Pennsylvania, an apartment building located in Georgia, and a houseboat, all worth more than $5.5 million.
Five of the nine defendants named above were arrested this morning: Arkadiy Dubovoy, Igor Dubovoy, Momotok, and Garkusha were all arrested at their homes in Georgia, and are scheduled to appear this afternoon before U.S. Magistrate Judge Alan J. Baverman in federal court in Atlanta, Georgia. Korchevsky was arrested at his home in Glenn Mills, Pennsylvania, and is scheduled to appear this afternoon before U.S. Magistrate Judge Linda K. Caracappa in federal court in Philadelphia, Pennsylvania. Turchynov, Ieremenko, Pavel Dubovoy, and Khalupsky remain in Ukraine, and international arrest warrants were issued today for their arrests.
According to the indictments:
Between February 2010 and August 2015, Turchynov and Ieremenko, computer hackers based in Ukraine, gained unauthorized access into the computer networks of Marketwired L.P., PR Newswire Association LLC (PRN), and Business Wire. They used a series of sophisticated cyber attacks to gain access to the computer networks. The hackers moved through the computer networks and stole press releases about upcoming announcements by public companies concerning earnings, gross margins, revenues, and other confidential and material financial information.
At one point, one of the hackers sent an online chat message in Russian to another individual stating, “I’m hacking prnewswire.com.” In another online chat, Ieremenko told Turchynov that he had compromised the log-in credentials of 15 Business Wire employees.
The hackers shared the stolen press releases with traders Arkadiy Dubovoy, Korchevsky, Momotok, Igor Dubovoy, Pavel Dubovoy, Khalupsky, Garkusha, and others, using overseas computer servers that they controlled. In a series of emails, the hackers even shared “instructions” on how to access and use an overseas server where they shared the stolen releases with the traders, and the access credentials and instructions were distributed amongst the traders. In an email sent by one of the traders, the instructions for accessing the overseas server suggested that users conceal their Internet Protocol address when accessing the server as a precaution to avoid detection. The traders created “shopping lists” or “wish lists” for the hackers listing desired upcoming press releases from Marketwired and PRN for publicly traded companies. Trading data obtained over the course of the investigation showed that, after one of the shopping lists or wish lists was sent, the traders and others traded ahead of several of the press releases listed on it.
The traders generally traded ahead of the public distribution of the stolen releases, and their activities shadowed the hackers’ capabilities to exfiltrate stolen press releases. In order to execute their trades before the releases were made public, the traders sometimes had to execute trades in extremely short windows of time between when the hackers illegally accessed and shared information and when the press releases were disseminated to the public by the newswires, usually shortly after the close of the markets. Frequently, all of this activity occurred on the same day. Thus, the trading data often showed a flurry of trading activity around a stolen press release just prior to its public release. The defendants illegal trading resulted in gains of more than $30 million, of which Korchevsky accounted for more than $17 million and Arkadiy Dubovoy accounted for more than $11 million.
The traders traded on stolen press releases containing material nonpublic information about publicly traded companies that included, among hundreds of others: Align Technology Inc.; Caterpillar Inc.; Hewlett Packard; Home Depot; Panera Bread Co.; and Verisign Inc.
The traders paid the hackers for access to the overseas servers based, in part, on a percentage of the money the traders made from their illegal trading activities. The hackers and traders used foreign shell companies to share in the illegal trading profits.
“This is the story of a traditional securities fraud scheme with a twist—one that employed a contemporary approach to a conventional crime. In this case the defendants allegedly traded on nonpublic information, ultimately benefitting from more than $30 million in illegal profits over the course of three years,” Assistant Director-in-Charge Rodriguez said. “But just as criminals continue to develop relationships with one another in order to advance their objectives, the law enforcement community has developed a collaborative approach to fighting these types of crimes.”
“Cyber cases such as this are a vital part of the Secret Service's integrated mission,” Joseph P. Clancy, Director of the U.S. Secret Service, said. “This is yet another example of the successful investigative work being done in coordination with our partners in the global law enforcement community.”
The wire fraud conspiracy and substantive wire fraud counts with which all defendants are charged carry a maximum potential penalty of 20 years in prison and a $250,000 fine, or twice the gain or loss from the offense. The securities fraud conspiracy count with which all defendants are charged carries a maximum potential penalty of five years in prison and a $250,000 fine, or twice the gain or loss from the offense. The substantive securities fraud counts with which all defendants are charged carry a maximum potential penalty of 20 years in prison and a $5 million fine, or twice the gain or loss from the offense. The money laundering conspiracy count with which all defendants are charged carries a maximum potential penalty of 20 years in prison and a $500,000 fine, or twice the value of the funds involved in the illegal transfers. The computer fraud counts with which the alleged hackers are charged carry a maximum potential penalty of five years’ imprisonment and a $250,000 fine, or twice the gain or loss from the offense. The aggravated identity theft counts with which the hackers are charged carry a mandatory consecutive term of imprisonment of 24 months.
U.S. Attorney Fishman and Acting U.S. Attorney Currie credited special agents of the U.S. States Secret Service, Criminal Investigations, under the direction of Director Clancy, and the Newark Field Office under the direction of Special Agent in Charge Carl Agnelli; and special agents of the FBI, New York Field Office, under the direction of Assistant Director Diego Rodriguez, for the investigation leading to today’s arrests and indictments. They thanked the U.S. Securities and Exchange Commission, for its significant cooperation and assistance in the investigation and the newswires, which cooperated with law enforcement over the course of the investigation.
In the District of New Jersey, the government is represented by Assistant U.S. Attorneys Andrew S. Pak, Daniel V. Shapiro, and David M. Eskew of the Economic Crimes Unit, Computer Hacking & Intellectual Property Section, Assistant U.S. Attorney Svetlana M. Eisenberg of the Office’s Civil Division, and Special Assistant U.S. Attorney Sarah Devlin of the Asset Forfeiture and Money Laundering Unit.
In the Eastern District of New York, the government’s case is being prosecuted by the Business and Securities Fraud Section and the National Security and Cybercrime Section. Assistant U.S. Attorneys Christopher A. Ott, Christopher L. Nasson, and Richard M. Tucker are in charge of the prosecution. Assistant U.S. Attorneys Brian D. Morris and Tanisha Payne of the Office’s Civil Division are responsible for the forfeiture of assets.
The charges and allegations contained in the indictments are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
The charges were brought in connection with the President’s Financial Fraud Enforcement Task Force. The task force was established to wage an aggressive, coordinated, and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. Attorneys’ Offices, and state and local partners, it is the broadest coalition of law enforcement, investigatory, and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state, and local authorities; addressing discrimination in the lending and financial markets; and conducting outreach to the public, victims, financial institutions, and other organizations. Since fiscal year 2009, the Justice Department has filed over 18,000 financial fraud cases against more than 25,000 defendants. For more information on the task force, please visit www.StopFraud.gov.
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New York Doctor Charged with Taking Bribes in Test-Referral Scheme with New Jersey Clinical LabRead the Press Release
First Doctor Indicted in Case – 38 Defendants Have Pleaded Guilty
NEWARK, N.J. – A doctor with practices in Nassau County, New York, was charged today with accepting bribes in exchange for test referrals as part of a long-running and elaborate scheme operated by Biodiagnostic Laboratory Services LLC (BLS), of Parsippany, New Jersey, its president and numerous associates, U.S. Attorney Paul J. Fishman announced.
Bret Ostrager, 50, of Woodbury, New York, was indicted by a federal grand jury and charged with one count of conspiring to violate the Anti-Kickback Statute and the Federal Travel Act, three substantive violations of the Anti-Kickback Statute, and four substantive violations of the Federal Travel Act. Ostrager is scheduled to be arraigned before Judge Stanley Chesler on Aug. 19, 2015.
Ostrager is the first defendant to be indicted in connection with the BLS bribery scheme. To date, 38 people – 26 of them doctors – have pleaded guilty in connection with the bribery scheme, which its organizers have admitted involved millions of dollars in bribes and resulted in more than $100 million in payments to BLS from Medicare and various private insurance companies. It is believed to be the largest number of medical professionals ever prosecuted in a bribery case. (See chart below.) The investigation has to date recovered more than $11.5 million through forfeiture.
According to the indictment:
Between February 2011 and April 2013, Ostrager received monthly cash bribes of approximately $3,300 from BLS employees and associates. He periodically solicited and received from the BLS employees and associates tickets and meals that cost thousands of dollars. These additional bribes in response to specific requests from Ostrager included tickets to a New York Mets baseball game, a New York Knicks basketball game, a Katy Perry concert, a Justin Bieber concert, and the Broadway show “Newsies.” In exchange, Ostrager referred patient blood samples to BLS. Ostrager’s referrals generated approximately $909,000 in lab business for BLS.
If convicted, Ostrager faces a maximum potential penalty of five years in prison on each of the counts on which he is charged. Each count also carries a maximum $250,000 fine, or twice the gross gain or loss from the offense.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Richard M. Frankel; the U.S. Department of Health and Human Services, Office of Inspector General, under the direction of Special Agent in Charge Scott J. Lampert; IRS–Criminal Investigation, under the direction of Special Agent in Charge Jonathan D. Larsen; and inspectors of the U.S. Postal Inspection Service, under the direction of Inspector in Charge Maria L. Kelokates, with the ongoing investigation.
The government is represented by Assistant U.S. Attorneys Joseph N. Minish and Danielle Alfonzo Walsman, Senior Litigation Counsel Andrew Leven, and Jacob T. Elberg, Chief of the U.S. Attorney’s Office Health Care and Government Fraud Unit in Newark, as well as Assistant U.S. Attorney Barbara Ward, Acting Chief of the office’s Asset Forfeiture and Money Laundering Unit.
U.S. Attorney Paul J. Fishman reorganized the health care fraud practice at the New Jersey U.S. Attorney’s Office shortly after taking office, including creating a stand-alone Health Care and Government Fraud Unit to handle both criminal and civil investigations and prosecutions of health care fraud offenses. Since 2010, the office has recovered more than $635 million in health care fraud and government fraud settlements, judgments, fines, restitution and forfeiture under the False Claims Act, the Food, Drug and Cosmetic Act and other statutes.
Defense counsel: Marc Agnifilo Esq., New York
Defendant
Role
Sentence/ Sentencing Date
David Nicoll
BLS owner
TBD
Scott Nicoll
BLS employee
TBD
Craig Nordman
BLS employee
TBD
Luke Chicco
BLS employee
TBD
Cliff Antell
BLS employee
TBD
Kevin Kerekes
BLS employee
TBD
Doug Hurley
BLS employee
TBD
Peter Breihof
BLS employee
TBD
William Dailey
BLS employee
TBD
Len Rubinstein
BLS employee
37 months
Dave McCann
BLS employee
TBD
Michael Zarelli
BLS employee
8/20/15
Frank Santangelo
Doctor
63 months
Gary Safier
Doctor
TBD
Angelo Calabrese
Doctor
37 months
Dennis Aponte
Doctor
24 months
Dana Fortunato
Doctor
14 months
Claudio Dicovsky
Doctor
12 months’ probation
Paul Ostergaard
Doctor
12 months’ probation
Gary Leeds
Doctor
20 months
Richard Goldberg
Doctor
20 months
Demitrios Gabriel
Doctor
37 months
Surender Gorukanti
Doctor
TBD
Wayne Lajewski
Doctor
14 months
Michelle Martinho
Doctor
TBD
John Vitali
Doctor
10 months’ home conf.
Peter Deplas
Doctor
TBD
Douglas Beinstock
Doctor
37 months
Anthony DeLuca
Doctor
12 months & 1 day
Franz Goyzueta
Doctor
37 months
Eugene DeSimone
Doctor
37 months
Anthony Delpiano
Doctor
21 months
Ralph Messo
Doctor
TBD
Leon Marchetta
Physic. Assist.
9/16/15
Brett Halper
Doctor
8/20/15
Monroe store owner sentenced to 46 months in prison for SNAP/WIC benefits fraudRead the Press Release
MONROE, La. – United States Attorney Stephanie A. Finley announced that a Monroe grocery store owner was sentenced Monday to 46 months in prison for a conspiracy to provide cash and ineligible items to SNAP and WIC recipients in exchange for their benefits.
Allen Woods, 60, of Monroe, was sentenced by U.S. District Judge Robert G. James on one count of criminal conspiracy and one count of theft of government property. He was also sentenced to three years of supervised release and ordered to pay $5,048,305.60 restitution. According to evidence presented at the April 2, 2015 guilty plea, Woods operated two businesses illegally at the same location on Old Sterlington Road in Monroe from December 2010 until March 2014. After his other business, Big Al’s grocery store located on Sherrouse Street in Monroe, was permanently disqualified from the Supplemental Nutrition Assistance Program (SNAP) in March of 2010, he opened Honey’s Grocery Store with another Monroe resident in 2010. The store was approved to participate in the SNAP program in December of 2010. As the owner of Honey’s, Woods and others permitted SNAP and WIC recipients to exchange their benefits for cash and other ineligible items.
After Honey’s closed its operations in August 2012, Woods and Marshall Brown opened Brown’s Grocery Store in the same location in September of 2012. Brown’s name was used to qualify the business as a SNAP retailer. Woods, Brown and others allowed SNAP benefits to be used to purchase ineligible items such as alcohol and tobacco from September 2012 until March 2014. Woods, Brown and others also exchanged cash for SNAP benefits and fraudulently acquired at least $5 million from illegally trafficking SNAP and WIC benefits while operating Honey’s and Brown’s grocery stores.
“The U.S. Attorney’s Office and the USDA are actively working on behalf of American taxpayers to protect the federal investment in the SNAP programs to make sure the program is targeted towards those families who need it most,” Finley stated. “We will aggressively act to control SNAP fraud by using purchase data to identify suspicious transaction patterns, conducting undercover investigations, collaborating with other investigative agencies and prosecuting offenders.”
Brown was sentenced on July 7, 2015 to 30 months in prison and three years of supervised release on the conspiracy count. He was also ordered to pay $876,501.40 in restitution.
The U.S. Department of Agriculture, Office of Inspector General, conducted the investigation. Assistant U.S. Attorney Earl M. Campbell prosecuted the case.
Mississippi Couple Charged with Conspiracy and Attempt to Provide Material Support to ISILRead the Press Release
WASHINGTON – A Starkville, Mississippi, couple was arrested over the weekend for allegedly conspiring and attempting to provide material support to the Islamic State of Iraq and the Levant (ISIL), a designated foreign terrorist organization.
The announcement was made by Assistant Attorney General for National Security John P. Carlin, U.S. Attorney Felicia C. Adams of the Northern District of Mississippi and Special Agent in Charge Donald Alway of the FBI’s Jackson Division.
Jaelyn Delshaun Young, 20, and Muhammad Oda Dakhlalla, 22, were charged by criminal complaint with conspiring and attempting to provide material support to ISIL. They appeared this morning for preliminary and detention hearings before U.S. Magistrate Judge S. Allan Alexander of the Northern District of Mississippi. Young and Dakhlalla were denied bond and remanded to the custody of the U.S. Marshal Service.
According to the criminal complaint filed in this case:
This investigation began in May 2015, when the defendant expressed a desire to travel to Syria in support of ISIL, and made several supportive statements about the designated foreign terrorist organization. Both defendants subsequently expressed their readiness to travel overseas to join ISIL.
The defendants procured passports and made arrangements to fly to Istanbul via Amsterdam. On or about Aug. 8, 2015, Young and Dakhlalla travelled to the Golden Triangle Regional Airport in Columbus, Mississippi, for their international flight. The defendants were arrested and, according to the complaint, were interviewed and both confessed to attempting to travel to Turkey to join ISIL in Syria.
The charge in the complaint carries a maximum of potential penalty of 20 years in prison and a fine of $250,000.
The case is being investigated by the FBI Jackson’s Joint Terrorism Task Force. The case is being prosecuted by Assistant U.S. Attorneys Clayton Joyner and Robert Norman of the Northern District of Mississippi and Trial Attorney Rebecca Magnone of the National Security Division’s Counterterrorism Section.
The charge and allegations contained in the complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
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Mississippi Couple Charged with Conspiracy and Attempt to Provide Material Support to ISILRead the Press Release
A Starkville, Mississippi, couple was arrested over the weekend for allegedly conspiring and attempting to provide material support to the Islamic State of Iraq and the Levant (ISIL), a designated foreign terrorist organization.
The announcement was made by Assistant Attorney General for National Security John P. Carlin, U.S. Attorney Felicia C. Adams of the Northern District of Mississippi and Special Agent in Charge Donald Alway of the FBI’s Jackson Division.
Jaelyn Delshaun Young, 20, and Muhammad Oda Dakhlalla, 22, were charged by criminal complaint with conspiring and attempting to provide material support to ISIL. They appeared this morning for preliminary and detention hearings before U.S. Magistrate Judge S. Allan Alexander of the Northern District of Mississippi. Young and Dakhlalla were denied bond and remanded to the custody of the U.S. Marshal Service.
According to the criminal complaint filed in this case:
This investigation began in May 2015, when the defendant expressed a desire to travel to Syria in support of ISIL, and made several supportive statements about the designated foreign terrorist organization. Both defendants subsequently expressed their readiness to travel overseas to join ISIL.
The defendants procured passports and made arrangements to fly to Istanbul via Amsterdam. On or about Aug. 8, 2015, Young and Dakhlalla travelled to the Golden Triangle Regional Airport in Columbus, Mississippi, for their international flight. The defendants were arrested and, according to the complaint, were interviewed and both confessed to attempting to travel to Turkey to join ISIL in Syria.
The charge in the complaint carries a maximum of potential penalty of 20 years in prison and a fine of $250,000.
The case is being investigated by the FBI Jackson’s Joint Terrorism Task Force. The case is being prosecuted by Assistant U.S. Attorneys Clayton Joyner and Robert Norman of the Northern District of Mississippi and Trial Attorney Rebecca Magnone of the National Security Division’s Counterterrorism Section.
The charge and allegations contained in the complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Young and Dakhkalla Complaint
Martinsburg man convicted of heroin traffickingRead the Press Release
MARTINSBURG, WEST VIRGINIA – Timothy William Cook, 30, of Martinsburg, was convicted of heroin trafficking, United States Attorney William J. Ihlenfeld, II, announced.
Cook was discovered in May 2014 in possession of heroin in Berkeley County, West Virginia. He pled guilty to one count of “Possession with Intent to Distribute Heroin.” 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 defendant.
Assistant U.S. Attorney Paul Camilletti prosecuted the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms and Explosives and the Berkeley County Sheriff’s Office investigated.
Chief U.S. District Judge Gina M. Groh presided.
Martinsburg man convicted of heroin traffickingRead the Press Release
MARTINSBURG, WEST VIRGINIA – William Thomas Stine, 39, of Martinsburg, was convicted of heroin trafficking, United States Attorney William J. Ihlenfeld, II, announced.
Stine was one of 41 individuals charged in May 2015 in a 163-count federal heroin trafficking indictment. He was discovered in possession of heroin in February 2015.
Stine pled guilty to one count of “Aiding and Abetting Possession with Intent to Distribute Heroin.” 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 defendant.
Assistant U.S. Attorneys Anna Krasinski and Paul Camilletti prosecuted the cases on behalf of the government. The Eastern Panhandle Drug and Violent Crimes Task Force, a HIDTA-funded initiative, investigated.
U.S. Magistrate Judge Robert W. Trumble presided.
Los Ranchos Woman Pleads Guilty to March 2015 Robbery of New Mexico Bank & Trust BranchRead the Press Release
ALBUQUERQUE—Denise Romero, 27, of Los Ranchos, N.M., pleaded guilty today to robbing the New Mexico Bank & Trust branch located on 4th Street NW in Albuquerque, N.M., in March 2015. The guilty plea was entered without the benefit of a plea agreement.
Romero was arrested on March 20, 2015, on a criminal complaint alleging that she robbed the New Mexico Bank & Trust branch on March 16, 2015. According to the complaint, Romero approached the bank teller with a note to the teller suggesting that Romero had a gun. The complaint further alleges that Romero used the money from the bank robbery to bail her boyfriend out of jail.
Romero was indicted on April 14, 2015, and charged with bank robbery of the New Mexico Bank & Trust branch in Bernalillo County, N.M.
At sentencing, Romero faces a maximum penalty of 20 years in prison followed by up to three years of supervised release. She remains detained pending a sentencing hearing which has yet to be scheduled.
This case was investigated by the Albuquerque office of the FBI and the Albuquerque Police Department and is being prosecuted by Assistant U.S. Attorney Rumaldo R. Armijo.
Kentucky Man Pleads Guilty to Traveling 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 Kentucky man pleaded guilty in federal court today to traveling to Missouri for illicit sex with a 15-year-old girl and to attempting to entice a second child victim for sex.
Marvin D. Herren, 53, of Owensboro, Ken., pleaded guilty before U.S. Chief District Judge Greg Kays to traveling with the intent to engage in illicit sex with a minor and to attempting to use the Internet to entice a minor to engage in illegal sexual activity.
By pleading guilty today, Herren admitted that he traveled from Kentucky to Missouri in March 2014 to meet a 15-year-old girl (identified in court documents as “Jane Doe”) to engage in illicit sexual conduct.
Herren initially contacted the child victim through social media on March 1, 2014. After a few days of communicating through social media, Herren began asking her questions of a sexual nature and they exchanged nude photos of themselves. On March 6, 2014, Herren sent an instant message to inform her that he was coming to see her in order to engage in illicit sex. Herren met Jane Doe and her friend at a restaurant near her high school. He drove them back to the high school, at which time her friend left them. Herren parked near the high school and he and Jane Doe engaged in illicit sexual activity in the back seat of his car. Herren returned to Kentucky; although he did not see Jane Doe again, he continued for a short time to contact her by instant messaging.
Investigators searched Herren’s computer and discovered a search query for runaway laws in Missouri, statutes of limitations on statutory rape in Missouri, a pregnancy calculator and a document containing the ages of consent by state.
In May 2014, during the investigation of the allegations by Jane Doe, an FBI special agent assumed an undercover identity on Facebook of a female named “Jenny Breeze.” Although Herren was aware of the federal investigation related to Jane Doe, he began communicating with the undercover agent. The two began a Facebook conversation in which “Jenny” told Herren she was in the eighth grade the year prior and also gave her e-mail address. The two began chatting via e-mail frequently. On Jan. 8, 2015, Herren asked “Jenny” how old she was and she stated that she would turn 15 years old on Feb. 13, 2015. This was the first of several conversations with “Jenny” which were explicitly sexual in nature. On Jan. 12, 2015, Herren e-mailed a nude photo of himself.
Herren made arrangements to meet “Jenny” at a Kansas City, Mo., restaurant. When he arrived at approximately midnight on Jan. 23, 2015, he was placed under arrest.
Under the terms of today’s plea agreement, Herren is subject to a minimum sentence of 10 years in federal prison without parole, up to a sentence of 25 years in federal prison without parole, plus a fine up to $250,000 and an order of restitution. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney David Luna. It was investigated by the St. Joseph, Mo., Police Department and the FBI.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Justice Department Joins Harrison County, Mississippi, in Seeking Termination of Consent Decree and Ending Federal Oversight of the Harrison County Adult Detention CenterRead the Press Release
The Justice Department’s Civil Rights Division announced today that it is joining Harrison County, Mississippi, to seek dismissal of a longstanding consent decree designed to improve conditions in the Harrison County Adult Detention Center. If the U.S. District Court grants the parties’ joint motion, it will end federal compliance monitoring and return oversight of the facility back to the county.
“Harrison County officials have worked to improve conditions in the Harrison County Adult Detention Center,” said Principal Deputy Assistant Attorney General Vanita Gupta, head of the Civil Rights Division. “Security, medical, and mental health staffing have all been substantially increased, staff members are better trained, and internal quality assurance mechanisms are now in place. We have therefore joined the county in seeking final dismissal of the settlement in this case, and we commend the county for making these necessary, widespread reforms.”
“The county’s actions have given the Department of Justice reason to expect that it will continue to be diligent in maintaining compliance with the Constitution,” said U.S. Attorney Gregory K. Davis of the Southern District of Mississippi. “The actions today demonstrate how cooperation with the department on civil rights matters can improve safety for prisoners, staff, and the community.”
The department’s decision follows nearly 20 years of enforcing a 1995 consent judgment, including through on-site inspections, document reviews and stakeholder interviews by department experts and staff.
This case was brought under the Civil Rights of Institutionalized Persons Act (CRIPA), which authorizes the department to seek a remedy for a pattern or practice of conduct that violates the constitutional rights of persons confined in a jail, prison or other correctional facility.
For more information on the Civil Rights Division, please visit www.justice.gov/crt.
Jury Convicts Roseville Man of 5 Counts of Wire Fraud in Mortgage Fraud SchemeRead the Press Release
SACRAMENTO, Calif. — After a six–day trial, a federal jury found Erik Hermann Green, 33, of Roseville, guilty today of five counts of wire fraud in a mortgage fraud scheme, United States Attorney Benjamin B. Wagner announced. The trial was held before United States District Judge Troy L. Nunley.
According to evidence presented at trial, Green was part of a large-scale mortgage fraud scheme to defraud the New Century Mortgage Company by submitting false documentation about employment, income and assets, including fraudulent loan applications and other altered bank documents. Around November of 2006, when Green submitted his fraudulent loan applications to obtain a loan for $820,000, he was a licensed real estate sales person and managed approximately 15 loan officers. As part of the scheme, Green received a check for $100,000 that was funneled through a shell company at the close of escrow. Green used the funds for personal expenses.
This case is the product of an investigation by the Internal Revenue Service – Criminal Investigation and the Alameda County District Attorney’s Office. Assistant United States Attorney Michael D. Anderson and Special Assistant United States Attorney Josh F. Sigal are prosecuting the case.
On September 19, 2013, co-defendant Stephen Pirt pleaded guilty to wire fraud and is awaiting sentencing on September 24, 2015. Green is scheduled to be sentenced by Judge Nunley on November 19, 2015. Green faces a maximum statutory penalty of 20 years in prison and a $250,000 fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Jefferson County Man Guilty in Carjacking DeathRead the Press Release
BEAUMONT, Texas – A 25-year-old Beaumont, Texas man has pleaded guilty to federal violations in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.
Jonathan Demond Patton pleaded guilty today before U.S. Magistrate Judge Keith F. Giblin to carjacking resulting in death.
According to information presented in court, early on the morning of June 23, 2013, Patton and River Shynette Gobert entered a self-service laundry on Florida Avenue in Beaumont intending to rob the sole occupant. When the victim refused to hand over his car keys, Gobert shot him in the leg at Patton’s direction. Patton and Gobert fled the laundry in their vehicle without the victim’s keys. They drove by an apartment complex on Woodrow Avenue where they encountered Daryl Dwayne Fontenot asleep in his vehicle. A struggle ensued when Patton and Gobert attempted to steal the vehicle and Fontenot was shot twice in the chest killing him. Patton and Gobert fled in their vehicle after they were unable to locate Fontenot’s keys. A short time later, law enforcement officers stopped Patton and Gobert because their vehicle matched the vehicle reported in the self-service laundry shooting. Patton and Gobert fled the vehicle but left the weapon used to shoot the two men behind. Patton and Gobert were arrested and each gave statements indicating the other was responsible for the shootings. On Sep. 23, 2013, a Jefferson County grand jury indicted Patton and Gobert for the self-service laundry shooting. Gobert pleaded guilty and was sentenced to seven years in state prison. Patton pleaded guilty and was sentenced to 10 years in state prison. On Mar. 5, 2015, a federal grand jury indicted Patton and Gobert charging them for the carjacking murder of Fontenot.
Patton faces up to life in federal prison at sentencing. A sentencing date has not been set.
This case is being prosecuted as part of the Project Safe Neighborhoods Initiative. Project Safe Neighborhoods is aimed at reducing gun and gang violence, deterring illegal possession of guns, ammunition and body armor, and improving the safety of residents in the Eastern District of Texas. Participants in the initiative include community members and organizations as well as federal, state and local law enforcement agencies.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Beaumont Police Department and prosecuted by Assistant U.S. Attorney John B. Ross.
Jamaican Man Guilty of False Statements in Obtaining US PassportRead the Press Release
CONCORD, NEW HAMPSHIRE – Sheldon Robinson, of Jamaica, pled guilty today to a one-count indictment alleging false statements in applying for a U.S. passport announced Acting U.S. Attorney Donald Feith.
Robinson is a citizen of Jamaica who was deported in 1997 under the name Patrick Alveranga. Robinson applied for a tourist visa under the Alveranga name in 1999 but the application was denied. In 2000, he applied for a worker visa under the name Sheldon Robinson. The application was granted with an expiration date of December 15, 2000. Robinson overstayed his visa and applied for immigration status, which was denied. During the immigration status proceedings, it was discovered that Robinson was the same person deported under the Alveranga name in 1997. He was granted a voluntary departure and was ordered to depart on or before October 9, 2009. Robinson failed to depart and instead applied for a United States passport in June 4, 2011 under a false identity. He was indicted by a grand jury on March 11, 2015, after agents of the U.S. State Department’s Diplomatic Security Service uncovered the passport fraud.
Robinson pled guilty to willfully and knowingly making false statements to the State Department in a passport application in order to fraudulently obtain a United States passport. Robinson’s sentencing hearing was set by U.S. District Court Judge Landya McCafferty for November 23, 2015 at 10:00 A.M. He faces a statutory penalty of up to five years in prison, but his advisory guideline range under the United States Sentencing Guidelines will recommend a sentence of six to twelve months
Robinson will be deported after serving his sentence.
The case was investigated by the State Department’s Diplomatic Security Service. Assistant U.S. Attorney Alfred Rubega is prosecuting this case.
Industry Man Pleads Guilty to Unlawfully Receiving Social Security BenefitsRead the Press Release
PITTSBURGH - A Beaver County resident pleaded guilty in federal court to a charge of theft of government property, United States Attorney David J. Hickton announced today.
David Tindell, 53, of Industry, Pa., pleaded guilty to one count before United States District Judge Nora Barry Fischer.
In connection with the guilty plea, the court was advised that from in or around January 2005, to in or around March 2014, Tindell unlawfully received property of the United States, that is, Supplemental Security Income (SSI) benefits in the amount of approximately $70,654.80.
Judge Fischer scheduled sentencing for Dec. 4, 2015 at 9:00 a.m. The law provides for a total sentence of 10 years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Pending sentencing, the court continued Tindell on bond.
Assistant United States Attorney Margaret E. Picking is prosecuting this case on behalf of the government.
The Social Security Administration-Office of Inspector General conducted the investigation that led to the prosecution of Tindell.
Haywood Co. Man Sentenced to Prison on Theft ChargesRead the Press Release
ASHEVILLE, N.C. – Keith Alan Franklin, 27, of Waynesville, N.C. was sentenced today to 27 months in prison on theft charges, announced Jill Westmoreland Rose, Acting U.S. Attorney for the Western District of North Carolina. U.S. District Judge Martin Reidinger also ordered Franklin to serve three years of supervised release and to pay $475,000 as restitution to Harrah’s Cherokee Casino (Harrah’s).
Acting U.S. Attorney Rose is joined by Matthew Quinn, Assistant Special Agent in Charge of the United States Secret Service, Charlotte Field Division and Chief Ben Reid of the Cherokee Indian Police Department in making today’s announcement.
According to court records and today’s sentencing hearing, from October 2013 to April 2014, Franklin embezzled money from Harrah’s, a gaming establishment operated by and for and licensed by the Eastern Band of Cherokee Indians. Court records show that at the time of the offense Franklin was employed at Harrah’s and had direct access to the casino’s funds. According to court records, Franklin routinely stole money while working at Harrah’s by exploiting a flaw in the casino’s security system. Court records indicate that Franklin stole more than $400,000 from the casino in this manner and used the money to buy numerous cars and to support his personal lifestyle. Franklin was fired in April 2014 after Harrah’s discover the theft and pleaded guilty in October 2014 to one count of theft by an employee of gaming establishments on Indian lands.
Franklin is currently in federal custody and will be transferred to the Federal Bureau of Prisons upon designation of a federal facility. All federal sentences are served without the possibility of parole.
The U.S. Secret service handled the investigation assisted by the Cherokee Police Department. Assistant U.S. Attorney Don Gast prosecuted the case.
Grand Jury Returns Indictment in Human Trafficking CaseRead the Press Release
Contact Person: Beth Drake (803) 929-3000
Columbia, South Carolina ----- United States Attorney Bill Nettles stated today that a Federal Grand Jury in Greenville, South Carolina, returned a multi-count Indictment alleging
- conspiracy to traffic in children by force for the purposes of prostitution in violation of Title 18, United States Code, Section 1594(c),
- substantive counts charging each coconspirator with trafficking in children in violation of Title 18, United States Code, Section 1591, and
- the transportation of minors in interstate commerce with the intent to engage in sexual activity, in violation of Title 18, United States Code, Section 2423.
The following individuals were charged in the indictment: Brandon L. Littlejohn, age 26, D’Shawn C. Pitts, age 19, Dylan L. Patterson, age 19, Michael G. Riddle, age 20, Michael D. Whitaker, age 25, John A. Gossett, III, age, 22, and Bryson L. Stewart, age 23, all of Spartanburg, South Carolina.
The indictment alleges that the defendants recruited minor victims and young women to work for them, and then instructed and supervised the minor victims and young women on how to solicit and charge for commercial sex acts. The indictment also states that the conspirators “would and did physically beat or threaten to physically beat the minor victims and young women to scare and control them.”
U.S. Attorney Nettles said, “Because human trafficking takes a great personal and psychological toll on the victims and society as a whole, this office and our federal and state partners are committed to devoting the resources required so that all allegations of human trafficking in South Carolina are investigated.”
“The defendants stand accused of exploiting under aged girls through a sex trafficking scheme across multiple states," said Special Agent in Charge Nick S. Annan, head of ICE Homeland Security Investigations in Atlanta. "Thanks to some excellent police work by the Spartanburg County Sheriff's Office and my special agents, we have rescued a number of victims and the perpetrators will be brought before the court to face justice."
The maximum penalty the Defendants could face is life imprisonment, and/or a fine of $250,000, and five years of supervised release. The case was investigated by agents of the Department of Homeland Security, Office of Investigations, and the Spartanburg County Sheriff’s Office. The case is assigned to Assistant United States Attorney Bill Watkins of the Greenville office for prosecution.
The United States Attorney stated that all charges in this Indictment are merely accusations, and that all defendants are presumed innocent until and unless proven guilty.
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Georgia Woman Admits Stealing Unemployment Benefits Through Fictitious Employer SchemeRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that VICKY SUE COHRAN, 53, of Villa Rica, Georgia, waived her right to indictment and pleaded guilty today in New Haven federal court to stealing numerous identities while operating a “fictitious employer scheme” that defrauded state unemployment insurance programs of approximately $125,000.
According to court documents and statements made in court, state unemployment insurance programs use employee wages as reported by employers to determine an employee’s benefit amount when the employee files a valid claim for benefits. COHRAN and others utilized several state unemployment insurance program websites to register businesses that had no actual employees, business operations or normal business expenses. COHRAN and her co-conspirators then created and submitted fictitious wage reports that used names and identifying information of individuals without their knowledge. COHRAN and others then posed as fictitious employees to file claims for unemployment benefits.
Through this scheme, COHRAN and her co-conspirators used the names and identifying information of approximately 27 individuals to steal a total of approximately $125,000 from the unemployment insurance programs of Connecticut, Massachusetts, Washington, Minnesota, Pennsylvania, Rhode Island and New Jersey.
The scheme was uncovered shortly after COHRAN registered a fictitious business with the Connecticut Department of Labor in September 2014. In November 2014, three purported employees of the fictitious business filed claims for unemployment benefits with the Connecticut Department of Labor.
COHRAN pleaded guilty to one count of conspiracy to commit wire fraud, which carries a maximum term of imprisonment of 20 years, one count of aggravated identity theft, which carries a mandatory consecutive term of imprisonment of two years, and misuse of a social security number, which carries a maximum term of imprisonment of five years. She is scheduled to be sentenced by U.S. District Judge Alvin W. Thompson on November 3, 2015, in Hartford.
This ongoing investigation is being conducted by the Social Security Administration – Office of Inspector General, U.S. Department of Labor – Office of Inspector General, U.S. Postal Inspection Service, Office of the Chief State’s Attorney, Connecticut Department of Labor, Winter Park (Fla.) Police Department, Pinellas County (Fla.) Sheriff’s Department, Villa Rica (Ga.) Police Department, Temple (Ga.) Police Department and Carroll County (Ga.) Sheriff’s Department.
The case is being prosecuted by Assistant U.S. Attorney Douglas P. Morabito.
Gang Leader Sentenced to 40 Years in Prison for Violent Racketeering-Related Crimes and Shooting at Federal AgentsRead the Press Release
A leader of the Phantom Outlaw Motorcycle Club, who was also a member of the Vice Lords street gang, was sentenced to 40 years in prison today for violent racketeering-related crimes and shooting at federal agents.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Barbara L. McQuade of the Eastern District of Michigan, Special Agent in Charge Robin Shoemaker of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and Special Agent in Charge Paul M. Abbate of the FBI’s Detroit Division made the announcement.
Marvin Nicholson, 46, of Detroit, was convicted on March 16, 2015, after a multi-week trial before U.S. District Judge Paul D. Borman of the Eastern District of Michigan, of engaging in a RICO conspiracy, conspiracy to commit murder in aid of racketeering, assault with a dangerous weapon in aid of racketeering, conspiracy to assault with a dangerous weapon in aid of racketeering, assault on federal officers, using and carrying firearms during and in relation to a crime of violence and being a felon in possession of firearms.
At trial, the evidence showed that the Phantom Outlaw Motorcycle Club, which is headquartered in northwest Detroit, and its members were involved in a range of criminal activity, including conspiracy to commit murder, shootings, robbery, extortion and the possession and sale of stolen vehicles and motorcycles. The evidence also demonstrated that the leadership of the Phantoms was heavily involved in the Vice Lords street gang, which is a well-known street gang originating in Chicago.
According to the evidence presented at trial, Nicholson was the National Enforcer of the Phantoms and a member of the Vice Lords street gang. Further, the evidence showed that Nicholson played a significant role in planning armed assaults on rivals, imposing discipline on the Phantoms and carrying out the orders of Antonio Johnson, aka Mister Tony, MT and Big Bro, who was the National President of the Phantoms and the “Three-Star General” over the Vice Lords street gang in Michigan. The charges of which Nicholson was convicted primarily stemmed from the Phantoms’ attacks or planned attacks on their rivals and enemies, including a murder plot.
Finally, the trial evidence demonstrated that, on Oct. 4, 2013, while the ATF attempted to execute a search warrant at his residence in Detroit, Nicholson shot at ATF agents as they attempted to enter his residence. A wall prevented the bullets from hitting the agents.
Another 12 defendants have been convicted of a variety of racketeering and weapons offenses in this case. Additional sentencing hearings will be held before U.S. District Judge Paul D. Borman of the Eastern District of Michigan.
These convictions are the result of the Detroit One Initiative, a collaborative effort between law enforcement and the community to reduce homicide and other violent crime in Detroit, and through the lead efforts of the Comprehensive Violence Reduction Partnership Task Force, which consists of representatives of the ATF, Detroit Police Department, Michigan State Police, Michigan Department of Corrections and the FBI.
This case is being prosecuted by Trial Attorney Joseph Wheatley of the Criminal Division’s Organized Crime and Gang Section and Assistant U.S. Attorneys Christopher Graveline and Louis Gabel of the Eastern District of Michigan.
Framingham Man Charged with Child Pornography OffensesRead the Press Release
BOSTON – A Framingham man was arrested today and charged with receipt and possession of child pornography.
Richard Allain, 54, of Framingham, was charged today in U.S. District Court in Boston with one count of receipt of child pornography and one count of possession of child pornography. Allain was detained pending a detention hearing scheduled for Friday, Aug. 14, 2015, before U.S. District Court Magistrate Judge Marianne B. Bowler.
According to court documents, in June 2015, the Framingham Police Department received a report that Allain showed a minor videos of child pornography on two separate occasions when the minor and his parent were visiting Allain’s home. The minor stated during an interview with police that, on both occasions, Allain invited him to go down into the basement to play computer games, but instead, Allain showed the minor images and videos containing child pornography for two hours. On both occasions, Allain masturbated and asked the minor to perform oral sex, which he refused. Allain threated the minor, saying “Don’t tell anybody about this or I’ll [expletive] kill you.”
During the execution of a state search warrant at Allain’s residence, several items of computer media were seized, including seven USB thumb drives that Allain kept in a plastic bag, and which contained images and videos of child pornography. Following his arrest today, Allain admitted to law enforcement officers that he possessed hundreds of images of child pornography, and that he showed videos of child pornography to the minor.
The charge of receipt of child pornography provides for a mandatory minimum term of five years and no greater than twenty years in prison. The charge of possession of child pornography provides for no greater than twenty years in prison. Both statutes provide for a mandatory minimum of five years and up to a lifetime of supervised release and a fine of $250,000. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Carmen M. Ortiz and Vincent B. Lisi, Special Agent in Charge of the Federal Bureau of Investigation in Boston, made the announcement today. The case was investigated by the FBI’s Child Exploitation Task Force, the Boston Police Department Child Abuse Unit, the Massachusetts State Police Special Investigations Unit, the Framingham Police Department, and the Middlesex County District Attorney’s Office Child Abuse Unit. The case is being prosecuted by Assistant U.S. Attorney Eve A. Piemonte of Ortiz’s Major Crimes Unit.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ offices and CEOS, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
The details contained in the complaint are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Former President of the Broward Teachers Union Indicted for Mail FraudRead the Press Release
A former president of Broward Teachers Union was charged with committing mail fraud.
Wifredo A. Ferrer, U.S. Attorney for the Southern District of Florida, and Rafiq Ahmad, Special Agent in Charge, Department of Labor, Office of Inspector General (DOL-OIG), Office of Labor Racketeering and Fraud Investigations, made the announcement.
Patrick Santeramo, 67, of the Southern District of Florida, was indicted on two counts of mail fraud, in violation of Title 18, United States Code, Section 1341.
According to allegations contained in the court record, Santeramo was the president of the Broward Teacher’s Union (BTU) from 2001 to 2011, and previously had served as vice president of the BTU. The BTU and the School Board of Broward County had negotiated a collective bargaining agreement in which the School Board of Broward County agreed to provide an annual payment of $80,000 to the BTU for the BTU’s Accountability Program, which was administered by the BTU.
The collective bargaining agreement allegedly required that all of the money provided by the School Board of Broward County for the Accountability Program was to be used to further the program’s goals “in such areas as training, release time for teachers working on accountability projects, guest speakers, etc.” The collective bargaining agreement also required the BTU to keep a written record of expenditures charged to the Accountability Program, and to make this information available to the School Board of Broward County.
Court documents further allege that each year, Santeramo would send a letter to the School Board of Broward County to explain how the money dedicated to the Accountability Program had been used during the previous school year. Subsequently, he also would send a letter to the School Board of Broward County requesting the next payment of $80,000 for the Accountability Program for the upcoming school year. In response to Santeramo’s letters explaining the use of the Accountability Program funds, the School Board of Broward County would mail a check for $80,000 to the BTU.
It is alleged that after the BTU received the $80,000 payment from the School Board of Broward County, Santeramo authorized payments from the Accountability Program account for himself and at least one other employee of the BTU to which they were not entitled. Santeramo omitted reference to these payments in his letters to the School Board of Broward County. Consequently, Santeramo allegedly misappropriated, and caused to be misappropriated, in excess of $35,000 between January 2006 and June 2011.
Mr. Ferrer commended the investigative efforts of the DOL-OIG. The case is being prosecuted by Assistant U.S. Attorney Harry C. Wallace, Jr.
A copy of this press release may be found on the website of the United States Attorney’s Office for the Southern District of Florida at www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Former Postal Supervisor Heads to Federal Prison for TheftRead the Press Release
HOUSTON – A former supervisor with the U.S. Postal Service (USPS) has been ordered to federal prison following his conviction of theft of money from the government, announced U.S. Attorney Kenneth Magidson. A Houston federal jury found Brandon Antwan Junior, 32, of Houston, guilty of stealing from the USPS following a three-day trial and less than two hours of deliberation on May 15, 2015.
Today, U.S. District Judge David Hittner, who presided over the trial, handed Junior a 27-month sentence to be immediately followed by three years of supervised release. He was further ordered to pay $31,795 in restitution.
Junior was a floor supervisor at the USPS - Southmore Station. During trial, the jury heard that he held that position when more than $76,000 in postal receipts went missing from February through July 2013.
The investigation into Junior began after the manager of the Southmore Station reported to USPS officials that two substantial deposits had gone missing. The process of making deposits involves one employee filling out deposit slips which must be verified by the supervisor. They are then sealed in official registry bags. The supervisor then gives the bags to a delivery driver who then takes them to a registry clerk at the Houston General Post Office (GPO).
The jury heard from a registry clerk who reported she had received on at least one occasion a registry sack that had a hole in in it near the top.A delivery driver also testified about taking bags that appeared to have been cut open to the GPO from the Southmore Station. The driver also reported that he had seen Junior alone near the delivery truck on more than one occasion. He further offered testimony about receiving a registry bag with a loose seal from the Southmore Station. He had showed it to Junior, who claimed that nothing was missing and resealed the bag. However, the next day, a missing item was reported from that bag at the GPO.
The jury saw video of Junior opening that sack and removing a blue envelope, believed to contain $17,501 in postal receipts.
The jury also saw video of Junior on another occasion in which he appeared to remove an item from another registry sack and place it in a cabinet under his desk. $14,293 had been removed. On that day, USPS officials then followed him as he departed work and soon initiated their emergency lights in an attempt to conduct a traffic stop. Junior first appeared to stop, but soon sped away exceeding speeds of 100 miles an hour. He was later ordered to return to work where he was shown the video footage. He claimed he was just checking the mail.
Junior was taken into custody following the return of the guilty verdict where he will remain pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
USPS – Office of Inspector General investigated. Assistant U.S. Attorneys Richard D. Hanes and Celia Moyer are prosecuting the case.Former Loan Officer Sentenced to Three Years in Prison for His Role in $2 Million Mortgage Fraud SchemeRead the Press Release
NEWARK N.J. – A Middlesex County, New Jersey, man was sentenced today to 36 months in prison for his role in a large-scale mortgage fraud scheme that caused millions of dollars in losses, U.S. Attorney Paul J. Fishman announced.
Delio Coutinho, 73, of Woodbridge, New Jersey previously pleaded guilty before U.S. District Judge Susan D. Wigenton to an information charging him with conspiracy to commit wire fraud. Judge Wigenton imposed the sentence today in Newark federal court.
According to documents filed in this case and statements made in court:
From March 2008 through June 2012, Coutinho, a loan officer at a northern New Jersey mortgage brokerage company, and others conspired to release liens on encumbered properties via fraudulently arranged short sale transactions. This allowed Coutinho and other conspirators to profit from new fraudulent mortgage loans obtained on the properties from other mortgage lenders. To complete the short sale transactions, Coutinho and others submitted materially false closing and other documents to mortgage lenders. They submitted fraudulent mortgage loan applications to lenders to obtain new loans on multiple properties in Elizabeth, New Jersey. In all, Coutinho and others obtained approximately $2 million in illegal mortgage proceeds.
In addition to the prison terms, Judge Wigenton ordered Coutinho to serve three years of supervised release and pay more than $1.3 million in restitution.
U .S. Attorney Fishman credited law enforcement agents of the FBI Newark Mortgage Fraud Task Force, under the direction of Special Agent in Charge Richard M. Frankel; postal inspectors of the U.S. Postal Inspection Service, under the direction of Inspector in Charge Maria L. Kelokates; special agents of the U.S. Department of Housing and Urban Development, Office of Inspector General, under the direction of Special Agent in Charge Christina Scaringi; special agents of the Federal Housing Finance Agency, Office of Inspector General, under the direction of Special Agent in Charge Steven Perez; special agents of the Office of the Special Inspector General for the Troubled Asset Relief Program (SIGTARP), under the direction of Special Inspector General Christy Romero; special agents of IRS–Criminal Investigation, under the direction of Special Agent in Charge Jonathan D. Larsen; and the Hudson County Prosecutor’s Office, under the direction of Prosecutor Esther Suarez, for their roles in the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorney Andrew Kogan of the U.S. Attorney’s Office Economic Crimes Unit in Newark, as well as Barbara Ward, Acting Chief of the office’s Asset Forfeiture and Money Laundering Unit.
This case was brought in coordination with President Barack Obama’s Financial Fraud Enforcement Task Force. The task force was established to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. Attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed nearly 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,900 mortgage fraud defendants. For more information on the task force, please visit www.stopfraud.gov
Defense counsel: Michael A. Robbins Esq., West Orange, New Jersey
Former KC Woman Sentenced for $454,000 Tax SchemeRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a former Kansas City, Mo., woman was sentenced in federal court today for making false statements in order to receive more than $454,000 in income tax refunds.
Chiquita Tyler, also known as Chiquita Robinson, 34, of Wylie, Texas, formerly of Kansas City, was sentenced by U.S. Chief District Judge Greg Kays to seven years in federal prison without parole. The court also ordered Tyler to pay $343,889 in restitution.
On Oct. 29, 2014, Tyler pleaded guilty to making a false claim to a federal agency and to identity theft. Tyler admitted that she defrauded the federal government by preparing false income tax returns using false or stolen identity information in a scheme to receive $454,363 in refunds.
Between February 2010 and February 2011, Tyler prepared and filed false income tax returns using false and stolen Social Security numbers for approximately 70 individuals. Tyler, who told numerous individuals that she was a tax preparer to obtain their personal information, prepared and electronically filed false income tax returns through Turbo Tax. She created false wages, false education expenses, false addresses and false occupations for the false income taxes she prepared. Some tax returns contained false dependents. Tyler directed refunds from the false returns be deposited on a prepaid debit card mailed to Tyler at her home address and other locations in Kansas City, Mo.
The total amount Tyler claimed through the preparation of false returns and use of prepaid debit cards was $454,363. The actual loss for amounts fraudulently received by Tyler was $343,889 because some of the fraudulent claims were discovered by the Internal Revenue Service prior to payment.
According to court documents, Tyler has been charged and convicted numerous times, including convictions for assault, false ID, forgery, stealing, passing a bad check and larceny. She was on probation for one of two assault charges when she was convicted of forgery. Tyler currently has active bench warrants from Barton County, Mo., and Kansas City, Mo.
This case was prosecuted by Assistant U.S. Attorney Jane Pansing Brown. It was investigated by IRS-Criminal Investigation.
Florida Man Sentenced to 17 Years in Prison for Stolen ID Theft Scheme, Obstruction of JusticeRead the Press Release
RICHMOND, Va. – Eddie Blanchard, 37, of Miami, Florida, was sentenced today to 204 months in prison, followed by three years of supervised release for his role in a stolen identity tax refund fraud scheme. Blanchard was also ordered to pay $568,625.07 in restitution.
Blanchard was found guilty by a federal jury on May 6, 2015. According to evidence presented at trial and other hearings, Blanchard participated in a Miami-based stolen identity refund fraud scheme. He and three confederates, Ramoth Jean, Junior Jean Merilia, and Jimmy Lord Calixte traveled repeatedly to Richmond in the early part of 2012 and used stolen personal identifying information to file hundreds of fraudulent tax returns, utilizing online tax preparation programs. Blanchard and his accomplices claimed significant refunds on those fraudulent returns, and requested that those refunds be placed on pre-paid debit cards, which were later mailed to Richmond addresses selected by the conspirators.
The scheme began to unravel when a Henrico County police officer encountered Jean removing a box containing stolen personal identifying information from a storage unit rented by the co-conspirators. Following Jean’s subsequent arrest on June 20, 2013, Blanchard convinced him to mislead federal investigators about the identity of his actual co-conspirators, going so far as to facilitate the creation of a fictional accomplice. Jean ultimately refused to testify before a federal grand jury about this matter.
On January 9, 2014, Jean was sentenced to 114 months in prison for his role in the fraud scheme. He was subsequently sentenced to an additional eight months in prison on a separate contempt charge for his refusal to testify before the grand jury. On June 19, 2015, Merilia was sentenced to a total of 133 months in prison for his role in the fraud scheme and the subsequent obstruction of justice. Calixte is currently a fugitive.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Thomas Jankowski, Special Agent in Charge, Washington D.C. Field Office, IRS-Criminal Investigation (IRS-CI); and David G. Bowers, Acting Inspector in Charge of the Washington Division of the U.S. Postal Inspection Service (USPIS), made the announcement after sentencing by U.S. District Judge Henry E. Hudson.
This case was investigated by IRS-CI and USPIS, with assistance from the Henrico County Police Department as part of the Metro-Richmond Identity Theft Task Force. Other member agencies of the Task Force include: Bureau of Diplomatic Security, U.S. Department of State, and Chesterfield County Police Department. Prosecutions for the Task Force are handled by the United States Attorney’s Office and the Office of the Attorney General for the Commonwealth of Virginia. Assistant U.S. Attorneys Michael C. Moore and Thomas A. Garnett 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 Nos. 3:13cr136, 3:14cr73, 3:14cr139, and 3:15cr39.
Five Men Charged in Heroin and Cocaine Trafficking RingRead the Press Release
BOSTON – Five men were charged in U.S. District Court in Worcester on Friday, Aug. 7, 2015, with heroin and cocaine trafficking throughout Worcester County.
Jose Lugo, 53, of Providence, R.I.; Hugo Santana-Dones, 41, and Felix Melendez, 39, of Leominster; Osvaldo Vasquez, 47, of Worcester; and Elvis Genao, 26, of Fitchburg, were charged in a complaint with conspiring to distribute in excess of 100 grams of heroin and cocaine and distribution in excess of 100 grams of heroin. Vasquez, Santana-Dones, Lugo, and Melendez, were also charged with using a telecommunication facility in furtherance of a narcotics trafficking offense. At a hearing today, Genao, Melendez and Santana-Dones were ordered detained pending trial. A detention hearing for Vasquez and Lugo is scheduled for Aug.19, 2015, at 2:00 p.m.
According to court documents, between August 2014 and August 2015, the defendants conspired to distribute heroin and cocaine throughout Worcester County. It is further alleged that controlled purchases in excess of 100 grams of heroin from each of the defendants were recorded during the course of the conspiracy.
The charges of conspiring to distribute in excess of 100 grams of heroin and cocaine, and distributing more than 100 grams of heroin, provide for a mandatory minimum sentence of five years and no more than forty years in jail, a minimum of four years and up to a lifetime of supervised release, and a fine of up to $5 million. The charge of using a telecommunications facility in furtherance of a violent felony provides for no greater than four years in prison, one year of supervised release, and a fine of $250,000. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Carmen M. Ortiz; Michael J. Ferguson, Special Agent in Charge of the Drug Enforcement Administration, Boston Field Division; Vincent B. Lisi, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Colonel Richard D. McKeon, Superintendent of the Massachusetts State Police; and Worcester Police Chief Gary J. Gemme, made the announcement. The case is being prosecuted by Assistant U.S. Attorney Mark Grady of Ortiz’s Worcester Branch Office.
The details contained charging documents are allegations. The defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Federal Grand Jury Returns IndictmentsRead the Press Release
Contact Person: Beth Drake (803) 929-3000
United States Attorney Bill Nettles stated today that a Federal Grand Jury in Greenville, South Carolina, returned Indictment(s) against the following:
Anderson Man Indicted
Darrell I. Hardy, age 68, of Anderson, South Carolina, was charged in a 1-count indictment with False Impersonation of an Officer or Employee of the United States, a violation of Title 18, United States Code, Section 912. The maximum penalty Hardy could receive is three (3) years imprisonment and a maximum fine of $250,000. The case was investigated by agents of the Treasury Inspector General for Tax Administration and is assigned to Assistant United States Attorney William J. Watkins, Jr., of the Greenville office for prosecution.The United States Attorney stated that all charges in these Indictments are merely accusations and that all defendants are presumed innocent until and unless proven guilty.
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Federal Grand Jury IndictmentsRead the Press Release
Contact Person: Beth Drake (803) 929-3000
Columbia, South Carolina----United States Attorney Bill Nettles stated today that a Federal Grand Jury in Charleston, South Carolina, returned Indictment(s) against the following:
ICE Immigration Enforcement Agent Charged with False Scheme, False Statements, and Obstruction of ICE Proceedings
Clinzy Oliver, Jr., age 38, of Columbia, an Immigration and Customs Enforcement (ICE), Immigration Enforcement Agent, was charged in a 3-count indictment with false scheme, false statements, and obstruction of ICE proceedings, in violation of Title 18, United States Code, Sections 1001(a)(1), 1001(a)(2), and 1505. The maximum penalty Oliver could receive on each count is 5 years imprisonment and a fine of $250,000. The case was investigated by agents of the United States Immigration and Customs Enforcement, Office of Professional Responsibility, and is assigned to Assistant United States Attorney Dean H. Secor of the Charleston office for prosecution.Mr. Nettles stated that the charges in this Indictment are merely accusations and that the defendant is presumed innocent until and unless proven guilty.
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Fairfield Man Indicted on Child Pornography ChargesRead the Press Release
Zachary R. Wheeler, 21, of Fairfield, IL, was indicted on August 4, 2015, on Child pornography charges in a five count Indictment returned by a Federal Grand Jury sitting in Benton, Illinois, Stephen R. Wigginton, United States Attorney for the Southern District of Illinois, announced today.
All five counts charge Wheeler with the production of child pornography involving a minor girl under the age of 18. The dates on which Wheeler is charged with production of child pornography, which occurred in 2014, are May 31, June 12, June 13, June 16, and June 17.
With respect to each Count, if convicted, Wheeler faces a minimum sentence of fifteen years, up to a maximum of thirty years in federal prison, a fine of up to $250,000, and a term of supervised release of at least five years.
An Indictment is a formal charge against a defendant. Under the law, a defendant is presumed to be innocent of a charge until proved guilty beyond a reasonable doubt to the satisfaction of a jury.
The investigation in this case was conducted by the Franklin County Sheriff’s Office. The Franklin County State’s Attorney’s Office assisted in the investigation of this case.
The case is being handled by Assistant United States Attorney George Norwood.
Ex-HPD Officer Arrested in Connection with Armored Car RobberyRead the Press Release
HOUSTON - A former police officer has been charged with extortion under color of official right as well as making false statements to federal agents in relation to an armored car robbery that occurred in Houston in 2013, announced U.S. Attorney Kenneth Magidson.
Joel Quezada, 33, of Houston, has been charged in a three-count indictment alleging he accepted money to monitor police radios during the robbery. He is also charged with making false statements and concealing materials facts from federal agents.
The sealed indictment, returned Aug. 5, 2015, was unsealed last night upon his arrest. He is expected to make his initial appearance before U.S. Magistrate Judge Frances Stacy at 2:00 p.m. today.
The indictment alleges that while employed as a full-time patrol officer with the Houston Police Department (HPD), Quezada accepted money to monitor his police radio during the course of a Loomis armored car robbery on Dec. 6, 2013. Upon questioning be law enforcement, he then allegedly lied about his involvement to federal agents.
Quezada no longer works at HPD.
If convicted, he faces up to 20 years in federal prison as well as a possible $10,000 maximum fine for the extortion charge, while making false statements and concealing material facts both carry a possible five-years prison term and fines up to $250,000.
The investigation leading to the charges was conducted by the FBI and HPD - Internal Affairs Division. Assistant U.S. Attorneys Andrew Leuchtmann and Carolyn Ferko are prosecuting the case.
An indictment is a formal accusation of criminal conduct, not evidence. A defendant is presumed innocent unless convicted through due process of law.
Douglas County, Nebraska, Resident Sentenced to 84 Months inPrison for Being a Felon in Possession of a FirearmRead the Press Release
COUNCIL BLUFFS, IA- On August 6, 2015, Jesse Craig Wilkinson, a 33 year-old resident of Omaha, Nebraska, was sentenced by United States District Court Judge Robert W. Pratt to 84 months in prison, for being a convicted felon in possession of a firearm, announced United States Attorney Nicholas A. Klinefeldt. Judge Pratt also ordered Wilkinson to serve two years of supervised release following the period of imprisonment.
The investigation by law enforcement began with a report of suspicious activity occurring in Pottawattamie County, Iowa. Wilkinson initially fled police officers, and when apprehended, was found to be in possession of a loaded .40 caliber handgun. Wilkinson was prohibited from possessing a firearm after he was convicted in 2003 in the District of Nebraska on charges of conspiracy to possess with intent to distribute methamphetamine and being a felon in possession of a firearm. Wilkinson pleaded guilty on April 2, 2015, to the current charge of being a felon in possession of a firearm.
The investigation was conducted by the Council Bluffs, Iowa, Police Department and the Bureau of Alcohol, Tobacco, Firearms, and Explosives. This case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
Connecticut Man Is Sentenced to 100 Months in Prison for Engaging in Million Dollar Fraud Involving More Than 30 Businesses in Eight States Along the Eastern SeaboardRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced that SHANE FUSCO was sentenced today by United States District Judge Cathy Seibel to 100 months in prison on bank fraud charges.
FUSCO previously plead guilty to one count of conspiracy to commit bank fraud and one count of bank fraud.
Manhattan U.S. Attorney Preet Bharara said: “In scheme to steal upwards of a million dollars, Shane Fusco brazenly defrauded dozens of small businesses up and down the Eastern seaboard by using fraudulent bank and personal checks. We thank the FBI, the Secret Service, the Orange County Sherriff’s Office, the Connecticut State Police and our colleagues at the U.S. Attorney’s Office in Connecticut for the work in this case.”
According to the Information previously filed in White Plains federal court and public information: For almost two years, FUSCO fraudulently created bank and personal checks in a scheme to obtain vehicle parts and jewelry, among other items, from 34 business and one individual. FUSCO was eventually caught using a fake check in an attempt to buy tires while driving a stolen truck that was hitched to a stolen trailer.
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Mr. Bharara praised the outstanding efforts of the United States Attorney’s Office for the District of Connecticut, the FBI, the United States Secret Service Connecticut Financial Crimes Task Force, the Orange County Sherriff’s Office and the Connecticut State Police.
This case is being handled by the Office’s White Plains Division. Assistant U.S. Attorneys John P. Collins, Jr., is in charge of the prosecution.
Colombian national sentenced to 36 months in prison for illegally re-entering the United StatesRead the Press Release
LAFAYETTE, La. – United States Attorney Stephanie A. Finley announced that a Colombian national was sentenced Monday to 36 months in prison for re-entering the country after having been previously deported.
Luis Mesa-Quinones, 39, of Colombia, was sentenced by U.S. District Judge Richard T. Haik on one count of illegal re-entry after being deported. According to evidence presented at the March 25, 2015 guilty plea, the defendant was arrested on April 7, 2014 in Iberia Parish for driving while intoxicated, failure to yield, driving without a license and vehicular negligent injury. After further investigation, he was found to have been previously deported in May of 1998 after being arrested in Harris County Texas for delivering between 4 and 200 grams of cocaine.
United States Immigrations and Customs Enforcement and the Iberia Parish Sheriff’s Office conducted the investigation. Assistant U.S. Attorney Robert F. Moore prosecuted the case.
Clearwater Man Convicted of Threatening A Court Security Officer with A Baseball BatRead the Press Release
Orlando, FL – United States Attorney A. Lee Bentley, III announces that a federal jury today found Jay Paul Porton (67, Clearwater) guilty of assault on a federal officer. He faces a maximum penalty of one year in federal prison. The sentencing hearing is scheduled for October 29, 2015. Porton was indicted on April 15, 2015.
According to evidence presented at trial, Porton, a pro se plaintiff in a civil case, was a regular visitor to the Sam M. Gibbons United States Courthouse in Tampa. On March 19, 2015, the presiding judge ruled against Porton in his civil case. On the morning of April 1, 2015, Porton approached the courthouse carrying a small baseball bat. A Court Security Officer (CSO) confronted Porton at the main entrance of the courthouse and ordered him to put the bat down. As the CSO approached, Porton said, “batter up,” tapped the bat on the ground, and assumed a batting stance. When then CSO was approximately 7-10 feet away, Porton swung the T-ball bat in the CSO’s direction. The CSO then put his hand on his gun, and Porton put the bat down. Other officers came to assist and placed Porton under arrest.
This case was investigated by the United States Marshals Service. It is being prosecuted by Assistant United States Attorneys Vincent S. Chiu and Tiffany L. Cummins.
Chicopee Man Sentenced for Illegally Possessing Firearm and AmmunitionRead the Press Release
BOSTON –William Lengieza, 36, of Chicopee, was sentenced on Friday, Aug. 7, 2015 by U.S. District Court Judge Mark G. Mastroianni to 14 months in prison and three years of supervised release. Lengieza previously pleaded guilty to illegally possessing a firearm and ammunition
On May 31, 2011, Lengieza used a Smith & Wesson, Model MP40, .40 caliber pistol at the Smith & Wesson Shooting Sports Center in Springfield, Mass. Lengieza was permitted on the firing range after falsely certifying that he had never been convicted of a crime punishable by more than one year in jail, when in fact he had been convicted of numerous such crimes. On June 13, 2011, federal agents executed a consent search of Lengieza’s apartment and seized 168 rounds of .40 caliber ammunition, nights sights for a Smith & Wesson MP pistol, two holsters, a gun cleaning kit, and gun cleaning patches.
U.S. Attorney Carmen M. Ortiz and Daniel J. Kumor, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms, and Explosives, Boston Field Division, made the announcement today. Assistance was provided by the Massachusetts State Police and the Chicopee Police Department. The case was prosecuted by Assistant U.S. Attorney Steven H. Breslow of Ortiz's Springfield Branch Office.
Chesapeake Man Indicted for 8 Armed Robberies Involving 15 VictimsRead the Press Release
NORFOLK, Va. – Raymond Wyche, 47, of Chesapeake, Virginia, was indicted by a federal grand jury on Aug. 5, 2015, on robbery and firearms charges related to a series of robberies in Virginia Beach and Chesapeake in 2014. Specifically, Wyche faces eight counts of interference with commerce by means of robbery and two counts of using a firearm during a crime of violence.
According to the indictment, the government alleges Wyche committed the following armed robberies:
- 7-Eleven at 6673 Indian River Road in Virginia Beach on Feb. 11, 2014;
- Wilco-Hess gas station at 6048 Indian River Road in Virginia Beach on March 19, 2014;
- 7-Eleven at 201 S. Witchduck Road in Virginia Beach on March 25, 2014;
- Exxon gas station at 841 S. Military Highway in Virginia Beach on April 25, 2014;
- BP gas station at 4900 Princess Anne Road in Virginia Beach on June 6, 2014;
- Exxon gas station at 1102 S. Military Highway in Chesapeake on June 25, 2014;
- 7-Eleven at 5444 Virginia Beach Boulevard in Virginia Beach on June 29, 2014;
- Gulf gas station at 6029 Indian River Road in Virginia Beach on July 16, 2014.
Wyche faces a mandatory minimum penalty of 32 years in prison, and a maximum penalty of life in prison, if convicted. 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; Mark R. Herring, Attorney General of Virginia; and Charles E. Smith, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives’ (ATF) Washington Field Division, made the announcement after Wyche was apprehended by federal agents.
This case was investigated by ATF’s Washington Field Division with assistance from the Chesapeake and Virginia Beach Police Departments. Assistant U.S. Attorney William D. Muhr and Virginia Assistant Attorney General and Special Assistant U.S. Attorney John F. Butler are prosecuting the case.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:15-cr-97.
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.
Charlotte Man Sentenced to More Than 12 Years on Child Pornography ChargesRead the Press Release
CHARLOTTE, N.C. – Chief U.S. District Judge Frank D. Whitney sentenced today Justin Vang, 28, of Charlotte, to 151 months in prison on child pornography charges, announced Jill Westmoreland Rose, Acting U.S. Attorney for the Western District of North Carolina. Vang was also ordered to serve a lifetime of supervised release and to register as a sex offender.
John A. Strong, Special Agent in Charge of the Federal Bureau of Investigation (FBI), Charlotte Division joins Acting U.S. Attorney Rose in making today’s announcement.
According to court records, between March and May 2013, Vang did knowingly receive visual depictions of minors engaging in sexually explicit conduct. A forensic examination of Vang’s seized computer revealed that the defendant possessed 20 videos depicting the sexual abuse of children, including children under the age of 12.
In handing down Vang’s sentence, Judge Whitney described the videos as “heinous.” Judge Whitney also acknowledged the pain and suffering of the victims, stating “The victims of child pornography are not just victimized one time, they are victimized hundreds and thousands of times.” Judge Whitney added that the circumstances of the offense are reprehensible.
Vang pleaded guilty in March 2015 to one count of receiving child pornography. He is currently in federal custody and will be transferred to the custody of the Federal Bureau of Prisons upon designation of a federal facility.
All federal sentences are served without the possibility of parole.
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In a separate case, on Monday, August 10, 2015, U.S. District Judge Max O. Cogburn Jr. sentenced Byron Boswell Hess, IV, 48, of Charlotte, to 60 months in prison, a life time of supervised release and was ordered to register as a sex offender. According to filed documents, in or about February 2014, Hess did knowingly possess and access with intent to view images depicting child pornography that involved prepubescent minors. Hess pleaded guilty in March 2015 to one count of possession of child pornography and has been in federal custody since January 2015.
Both cases were investigated by the FBI. Assistant U.S. Attorney Cortney E. Randall handled the prosecution of both cases.
The cases were brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.