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2 September 2015
Queen Anne’s County Cocaine Trafficker Sentenced to over Eight Years in PrisonRead the Press Release
Baltimore, Maryland – U.S. District Judge Ellen L. Hollander sentenced Baraka Zuberi Chauka, age 39, of Barclay, Maryland today to 100 months in prison, followed by three years of supervised release for conspiring to distribute, and possession with intent to distribute, cocaine.
The sentence 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); and Queen Anne’s County Sheriff R. Gary Hofmann III.
According to evidence presented at his trial, as part of a cocaine trafficking investigation by the Queen Anne’s County Narcotics Task Force, law enforcement learned in March 2014 that Chauka routinely supplied powder cocaine to co-defendant Adrian Reed, who cooked the powder into cocaine base to sell to customers. Chauka also sold powder cocaine and crack cocaine to his own customers.
Further investigation revealed that Chauka purchased powder cocaine from a supplier in the Philadelphia area. On April 21, 2014, Maryland State Police stopped Chauka on his way back from meeting with his supplier in Philadelphia, and he was found to be in possession of approximately 125 grams of powder cocaine. A subsequent search of Chauka’s residence revealed more cutting agents and a digital scale.
On April 30, 2014, shortly after he made bail from the state drug charges, law enforcement overheard calls between Chauka and Reed indicating that Chauka had immediately returned to drug distribution. As a result of these calls, law enforcement executed a second search warrant of Chauka’s residence, this time revealing more cutting agents, a digital scale, and two boxes of 9mm ammunition.
The investigation showed that Chauka trafficked approximately 232.5 grams of powder cocaine from March to April 2014.
Adrian Lamont Reed, age 39, of Chesterton, Maryland, previously pleaded guilty to his participation in the conspiracy and was sentenced to 70 months in prison.
United States Attorney Rod J. Rosenstein praised HSI Baltimore and Queen Anne’s County Sheriff’s Office for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorneys Jason D. Medinger and Christopher J. Romano, who prosecuted the case.
Pine Hill Man Pleads Guilty to Federal Marijuana Trafficking ChargeRead the Press Release
ALBUQUERQUE – Patrick Martinez, 28, of Pine Hill, N.M., pleaded guilty this morning in federal court in Albuquerque, N.M., to a marijuana trafficking charge.
Martinez was arrested on April 28, 2015, on a three-count indictment charging him with distributing marijuana. The indictment alleged that Martinez distributed marijuana on three separate occasions between May 2014 and July 2014, in Cibola County, N.M. Each of the three transactions took place on the Ramah Navajo Indian Reservation.
During his change of plea hearing, Martinez entered a guilty plea to Count 1 of the indictment and admitted selling marijuana to an undercover officer on May 2, 2014.
At sentencing, Martinez faces a statutory maximum penalty of five years in prison. His sentencing hearing has yet to be scheduled.
This case was investigated by the Ramah Navajo Tribal Police Department, the Albuquerque office of the BIA’s Office of Justice Services, and the Gallup office of the FBI. Assistant U.S. Attorney Elaine Y. Ramirez is prosecuting the case.
Pharmacist Sentenced to Three Years in Prison for Misbranding and Fraud Offenses Arising from Internet Pharmacy SchemeRead the Press Release
Preet Bharara, United States Attorney for the Southern District of New York, announced today that LENA LASHER, a licensed pharmacist, was sentenced in Manhattan federal court today to three years in prison for misbranding and fraud offenses arising from an Internet pharmacy scheme. LASHER was convicted on May 15, 2015, after a two-week trial before U.S. District Judge Naomi Reice Buchwald.
Manhattan U.S. Attorney Preet Bharara said: “Lena Lasher abused her position as a licensed pharmacist by dispensing prescription drugs to customers without valid prescriptions and customers who had never consulted with a physician. Prescription drugs, especially the pain medications that Lasher dispensed, can be addictive and dangerous, and this Office is committed to prosecuting those who illegally dispense prescription drugs.”
According to the Indictment, and Superseding Indictment, public filings, and evidence presented at trial:
From 2008 through late November 2012, LASHER, along with others, engaged in a scheme to dispense prescription drugs, including addictive pain medications, to customers who ordered them online, without meeting or consulting with a physician. Over the course of the scheme, LASHER, a licensed pharmacist who was the Pharmacist-In-Charge at Hellertown Pharmacy in Hellertown, Pennsylvania, and who supervised a second pharmacy, Palmer Pharmacy & Much More in Easton, Pennsylvania, dispensed and caused others to dispense hundreds of thousands of pain pills without valid prescriptions.
LASHER also directed employees at the two pharmacies she supervised to ship pills in vials with false or misleading labels. At LASHER’s direction, instructions on the labels for how often a customer should take certain drugs were often altered, and the descriptions on the labels regarding the quantity of pills in the pill vial were often inaccurate. She also directed employees to take pills that had been returned by customers or delivery services, remove the labels, and then to re-dispense the pills to other customers with new labels, without informing those new customers that they were receiving pills that had previously been dispensed to others. LASHER also instructed her employees to store pills without required information, such as a lot number or expiration date.
As part of her effort to conceal the nature of the Internet pharmacy business at both pharmacies, LASHER made false representations to multiple state boards of pharmacy and to an investigator with the Commonwealth of Pennsylvania. LASHER also instructed her employees to use code when talking about the Internet pharmacy scheme, telling them to refer to prescription drugs dispensed pursuant to prescriptions obtained over the Internet as “nursing home meds” and not to use the word “Internet” in describing the pharmacies’ business.
LASHER, 47, of High Bridge, New Jersey, was convicted after trial of one count of conspiracy to introduce misbranding prescription drugs into interstate commerce and to misbrand prescription drugs while held for sale, with intent to defraud or mislead; one count of introducing misbranding prescription drugs into interstate commerce, with intent to defraud or mislead; one count of conspiracy to commit mail fraud and wire fraud; one count of mail fraud; and one count of wire fraud. In addition to the prison term, LASHER was also sentenced to two years supervised release, and was ordered to pay $2.5 million in forfeiture.
United States Attorney Bharara praised the work of the Drug Enforcement Administration, the Food and Drug Administration, Office of Criminal Investigations, and the United States Postal Inspection Service, and expressed his appreciation for the assistance of the Commonwealth of Pennsylvania, Department of State, and the New Jersey Department of Law & Public Safety, Division of Law, Professional Boards Prosecution Section.
The case is being handled by the Office’s Narcotics Unit. Assistant U.S. Attorneys Daniel C. Richenthal and Kristy J. Greenberg are in charge of the prosecution.Pennsylvania Woman Sentenced for Possession and Sale of A Stolen FirearmRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051ROCHESTER, N.Y. -- U.S. Attorney William J. Hochul, Jr. announced today that Danelle Christine Wilson, 27, of Tioga, Pennsylvania, who was convicted of possession and sale of a stolen firearm, was sentenced to 21 months in prison by Chief U.S. District Judge Frank P. Geraci.
Assistant U.S. Attorney Charles E. Moynihan, who handled the case, stated that Wilson and co-defendant, Ciera Leann Bennett, were arrested after an investigation by the Pennsylvania State Police into the theft of a .38 caliber revolver from the owner, who lived in Tioga, Pennsylvania. On April 26, 2012, Wilson and Bennett transported the stolen .38 caliber revolver from Tioga, Pennsylvania, to Elmira, NY and sold it in order to buy drugs.
On December 31, 2012, the firearm was recovered in Ithaca, NY. Ballistic testing concluded that the firearm had been used in an officer-related shooting in October of
2012 which seriously injured an Ithaca police officer.Ciera Leann Bennett was also convicted and sentenced to 16 months in prison.
The sentencing is the culmination of an investigation by the Federal Bureau of Investigation and the Pennsylvania State Police.
Parsons Government Services Inc. Agrees to Pay $3.8 Million to Settle False Claims Act AllegationsRead the Press Release
Parsons Government Services Inc. has agreed to pay the United States $3.8 million to settle allegations that the company knowingly mischarged the U.S. Department of Energy (DOE) for ineligible or inflated short-term and long-term employee relocation costs in connection with its contract on the DOE Salt Waste Processing Facility Project (SWPF) at the DOE Savannah River Site in Aiken, South Carolina. Parsons is headquartered in Pasadena, California.
“Those who expect to do business with the government must do so fairly and honestly,” said Principal Deputy Assistant Attorney General Benjamin C. Mizer, head of the Justice Department’s Civil Division. “Today’s settlement demonstrates that the Department of Justice will pursue contractors that knowingly seek taxpayer funds to which they are not entitled.”
Since Sept. 1, 2002, Parsons has been the primary construction contractor on the DOE’s SWPF project at the Savannah River Site. Pursuant to the terms of the SWPF contract, Parsons was entitled to be reimbursed for the payments it made to eligible employees for moving, meals, lodging and transportation expenses incurred when the employees were relocated or transferred by Parsons to work on the SWPF project in Aiken. In order to be entitled to reimbursement by the DOE, however, Parsons was required to take steps to ensure that the employees met certain contractual requirements of eligibility, such as maintaining a permanent residence at the location from which they were transferred. The United States alleged that Parsons sought and obtained reimbursement for these relocation expenses under the SWPF contract even for employees it knew did not qualify for these payments under the terms of the contract.
“The District of South Carolina continues to devote significant resources to pursuing claims under the False Claims Act and this is yet another example of how this commitment is benefiting the taxpayers by recovering funds for the government,” said U.S. Attorney William N. Nettles of the District of South Carolina.
The settlement was the result of a coordinated effort by the Civil Division’s Commercial Litigation Branch, the U.S. Attorney’s Office of the District of South Carolina, the DOE Savannah River Operations Office and the DOE Office of Inspector General.
The claims resolved by the settlement are allegations only; there has been no determination of liability.
Owners of Worcester Payroll Company Plead Guilty to Tax Evasion and FraudRead the Press Release
BOSTON – The co-owners and former owner of a payroll company in Worcester pleaded guilty in U.S. District Court in Worcester to defrauding the Internal Revenue Service (IRS) and tax evasion. One of the co-owners also pleaded guilty to embezzling client and employee funds.
William McCullough, 72, of Westborough, Mass., pleaded guilty to two counts of conspiracy to defraud the IRS, four counts of false statements, four counts of tax evasion, and one count of wire fraud. Robert McCullough, 43, also of Westborough, the son of William McCullough, pleaded guilty to two counts of conspiracy to defraud the IRS and four counts of tax evasion. Gary Davis, 74, of Jupiter, Fla., pleaded guilty to one count of conspiracy to defraud the IRS, and three counts of tax evasion. On Aug. 31, 2015, William McCullough was charged in two Informations, and today, Robert McCullough and Davis were charged in one Information. U.S. District Court Judge Timothy S. Hillman scheduled sentencing for William McCullough on Dec. 1, 2015, for Gary Davis on Dec. 8, 2015, and for Robert McCullough on Jan. 14, 2016.
The McCulloughs are co-owners of Harpers Data Services, a payroll company in Worcester. William McCullough is also the treasurer and his son, Robert, is the president. Gary Davis was a former owner and president of Harpers until his retirement in 2010.
Beginning around 2006, William and Robert McCullough opened and operated two corporate bank accounts at Webster Five Cents Savings Bank. From 2007 to 2012, they funneled approximately $11 million of taxable income into these accounts. The McCulloughs kept these accounts off of the corporation’s books and concealed their existence from the corporate accountant. Thus, the income deposited into these accounts was not reported to the IRS on the corporation’s annual tax returns. As a result, the corporation failed to pay approximately $3.78 million in taxes.
Also during that time, William McCullough wrote checks totaling approximately $4.7 million from one of the Webster Five corporate accounts to himself, Robert McCullough, and Gary Davis. In addition, from 2007 to 2011, William McCullough wrote bonus and dividend checks from Harpers totaling approximately $2.7 million to himself, Robert McCullough, and Gary Davis. William McCullough ensured that none of this income appeared on the appropriate tax reporting forms, and as a result, the defendants failed to pay approximately $1.7 million in taxes from 2007 through 2011.
In a separate Information, William McCullough pleaded guilty to one count of wire fraud. From 2009 through 2011, Harpers maintained client trust accounts and a client tax account. These accounts contained client funds, which were to be used to pay employees’ paychecks and employees’ federal and state taxes. From 2009 through 2011, William McCullough took approximately $1 million from the client trust accounts and deposited it into a Harpers account. In 2010, he took $750,000 from the client tax account and deposited it into a Harpers account. At the time William McCullough took this money, the funds belonged solely to the clients of Harpers Data Services. McCullough’s fraud resulted in a theft of approximately $1.8 million dollars.
The charge of conspiracy to defraud provides a sentence of no greater than five years in prison, three years of supervised release, and a fine of $250,000 or twice the gross gain or loss, whichever is greater. The charge of false statements in a tax return provides a sentence of no greater than three years in prison, one year of supervised release, and a fine of $100,000. The charge of tax evasion provides a sentence of no greater than five years in prison, three years of supervised release, and a fine of $100,000. The charge of wire fraud provides a sentence of no greater than 20 years in prison, three years of supervised release, and a fine of $250,000 or twice the gross gain or loss, whichever is greater. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Carmen M. Ortiz; William P. Offord, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston; and Joseph R. Bonavolonta, Acting Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division, made the announcement today. The case is being prosecuted by Karin M. Bell, Chief of Ortiz’s Worcester Branch Office.
One Defendant Sentenced to 10 Years in Prison, Another Pleads Guilty in Heroin ConspiracyRead the Press Release
U.S. Attorney Kenneth A. Polite announced that MELVIN SMITH, age 30, of New Orleans, was sentenced today after previously pleading guilty to an Indictment charging him with conspiracy to distribute one kilogram or more of heroin. Additionally, co-defendant THEODORE GRIFFIN, age 61, of New Orleans, pled guilty today to the same charge.
U.S. District Judge Kurt D. Engelhardt sentenced SMITH to 120 months in prison, five years of supervised release following his prison term, and a $100 special assessment. Judge Engelhardt set GRIFFIN’s sentencing for December 9, 2015. The trial on the remaining defendant is currently scheduled for September 28, 2015.
According to court documents, the investigation of this trafficking organization included multiple court-authorized wiretaps by the Drug Enforcement Administration New Orleans Police Department High-Intensity Drug Trafficking Area group, including taps of cell phones used by dealers to communicate with suppliers, other co-conspirators, and customers. DEA worked together with agents of the Federal Bureau of Investigation to conduct numerous undercover purchases of heroin, surveillance operations, searches, witness debriefings, records analyses, and other investigative techniques to uncover and dismantle the heroin trafficking activities of the group.
The investigation showed that the defendants had been using GRIFFIN’s residence in New Orleans East as a base of operations to meet with heroin suppliers, maintain a heroin stash, and provide heroin to other dealers.
Numerous daily heroin customers also called the ‘dope’ phones used by these defendants every day to order heroin. Typically one of the dealers would answer these calls, ask the caller how much heroin he or she wanted to buy, and direct the caller to drive to a gas station or other commercial location in the New Orleans East neighborhood. Through subsequent calls and then visual contact between the customer and dealer, the dealer would direct the customer to rendezvous in a parking lot or on a side street near the commercial location to conduct the heroin sale.
According to the record, in July 2013, a court-authorized wiretap of the ‘dope’ phone used by defendant TERENCE TAYLOR intercepted a series of calls relating to the sale of heroin to a person who had recently been through treatment for heroin addiction, and who died later that day as a result of a heroin overdose. Intercepted calls helped to demonstrate that TAYLOR negotiated this particular sale of heroin and that defendant MALCOLM BOLDEN subsequently met with the decedent to complete the sale. Judge Engelhardt sentenced BOLDEN to 25 years in prison in June.
U.S. Attorney Polite praised the work of the DEA New Orleans Police Department High-Intensity Drug Trafficking Area group, the FBI, and the ATF, with the assistance of the St. Tammany Sheriff’s Office, the St. Bernard Sheriff’s Office, and the Louisiana State Police in investigating this matter. Assistant United States Attorneys Michael B. Redmann and Mark A. Miller are in charge of the prosecution.
Omaha Man Sentenced to 138 Months in Prison for Bank RobberiesRead the Press Release
United States Attorney Deborah R. Gilg announced that Phillip M. Weber, 39, of Omaha, Nebraska, was sentenced today by Senior United States District Court Judge Joseph F. Bataillon to 138 months in a federal penitentiary for having committed two bank robberies and for taking by force a car from an Omaha woman later used in one of the robberies.
Weber was indicted by a federal grand jury for robbing the Security National Bank on 71st Street and Redick Avenue in Omaha of approximately $4,500 in cash. He eluded escape after this May 22, 2014, bank robbery. On June 6, 2014, Weber carjacked a 2005 Mitsubishi Lancer from an Omaha woman from a Baker’s grocery store parking lot at 120th Street and Center Road in Omaha. That vehicle was identified four days later in Little Rock, Arkansas, as the getaway car for the robber of the Iberia Bank where Weber robbed the Little Rock bank of approximately $1,889. A federal investigation led law enforcement officers to Weber as the perpetrator of both bank robberies as well as the carjacking. Weber agreed to have the Arkansas case transferred to Nebraska for disposition.
Judge Bataillon sentenced Weber to 10 years each on both bank robberies as well as on the carjacking. Judge Bataillon also ordered Weber to serve an additional 18 months consecutive to the 10 years for a violation of supervised release from a previous federal conviction.
The Security National Bank robbery and the carjacking were both investigated by the Federal Bureau of Investigation and the Omaha Police Department. The Iberia Bank investigation was conducted by the Federal Bureau of Investigation and the Little Rock Arkansas Police Department.
Office on Violence Against Women Announces New Funding Opportunity for Sexual Assault Justice Initiative to Improve Sexual Assault ProsecutionsRead the Press Release
The Justice Department’s Office on Violence Against Women (OVW) today announced the release of a new $2.8 million funding opportunity as part of OVW’s Sexual Assault Justice Initiative (SAJI). Launched in April 2015, the SAJI is an opportunity to improve how the justice system in general, and prosecution in particular, handles sexual assault cases. This funding announcement will support approximately eight pilot sites to receive up to $400,000 to implement performance measures that reflect promising practices for prosecuting sexual assault and promote justice for victims.
“Very few victims report their assaults to law enforcement,” said Principal Deputy Director Bea Hanson of the Office on Violence Against Women. “But among victims who do report, the reality is that many will likely see their cases dropped during the investigation or prosecution stage. We know that sexual assault cases can be difficult to prosecute and we see the Sexual Assault Justice Initiative as an opportunity for prosecutors to learn about, and implement, effective practices for sexual assault prosecution. The goal is to look beyond convictions to see what prosecutors can do to hold offenders accountable and provide victims with the justice they deserve.”
The demonstration initiative is designed to strengthen the justice system’s response to sexual violence and enhance collaborations among sexual assault victim services providers, law enforcement agencies, and sexual assault medical forensic services providers. With funding from the Grants to Encourage Arrest Policies and Enforcement of Protection Orders Program, the Rural Sexual Assault, Domestic Violence, Dating Violence, and Stalking Grant Program and the Tribal Governments Grant Program, SAJI sites will be able to use the funds to strengthen services in their communities that support sexual assault victims.
Each pilot site will receive technical assistance from AEquitas: The Prosecutor’s Resource on Violence Against Women to implement the performance measures and enhance their approach to prosecuting sexual assault. Sites will also participate in the evaluation of the initiative.
Applications for the SAJI demonstration initiative are due on Oct. 13, 2015. The solicitation is available at www.justice.gov/ovw/open-solicitations and www.grants.gov. For information on the Office on Violence Against Women and its grant programs, visit www.justice.gov/ovw.
About the Office on Violence Against Women
Created in 1995, the Office on Violence Against Women provides federal leadership in developing the Nation’s capacity to reduce violence against women through the implementation of the Violence Against Women Act (VAWA) and subsequent legislation. OVW administers financial and technical assistance to communities across the country that are developing programs, policies and practices aimed at ending domestic violence, dating violence, sexual assault and stalking. To learn more, visit www.justice.gov/ovw.
Niagara Falls Man Sentenced on Drug ChargeRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, NY—U.S. Attorney William J Hochul Jr. announced today that Percy Hilson, Jr., 27, of Niagara Falls, NY, pleaded guilty before Chief U.S. District Judge Frank P. Geraci, Jr. to distribution of cocaine. The charge carries a maximum penalty of 20 years in prison.
Assistant U.S. Attorney Anthony M. Bruce, who is handling the case, stated that the defendant sold an ounce of cocaine to an unidentified individual on December 10, 2014 in Niagara Falls. Hilson was on Federal Supervised Release from a prior conviction at the time.
Today’s sentencing is the result of an investigation by the Niagara County Drug Task Force, under the direction of Sheriff James Voutour and the Drug Enforcement Administration, under the direction of Special Agent in Charge James J. Hunt, New York Field Division.
New Orleans Man Pleads Guilty to Possession of Child PornographyRead the Press Release
U.S. Attorney Kenneth A. Polite announced that DAVID MOREL, age 32, of New Orleans, pled guilty today for crimes involving the sexual exploitation of children.
According to court records, on June 25, 2015, MOREL was charged as a result of a child exploitation investigation conducted by the Louisiana Attorney General’s Office Cyber Crime Unit (“LAGO”) and the U.S. Department of Homeland Security-Homeland Security Investigations (“HSI”). HSI and LAGO agents executed a search warrant at MOREL’s residence after determining MOREL was downloading images depicting the sexual victimization of children. MOREL was arrested during the execution of the search warrant after confessing to downloading and possessing images and videos depicting child pornography. HSI computer forensic examiners conducted a search of MOREL’s seized computer equipment and located over 2,500 images and videos depicting the sexual victimization of children on MOREL’s electronic devices.
According to a Notice of Sentence Enhancement filed in federal court records, in 2010, MOREL was convicted in Orleans Parish Criminal Court of 536 counts of possession of pornography involving juveniles. He received a ten year suspended sentence and, instead, was placed on home incarceration for a period of five years.
MOREL faces a mandatory minimum penalty of ten years and a maximum penalty of twenty years, followed by up to a life term of supervised release, and a $250,000 fine. U.S. District Court Judge Martin L.C. Feldman set sentencing for December 9, 2015.
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."
U.S. Attorney Polite praised the work of the Louisiana Attorney General’s Office Cyber Crime Unit and the U.S. Department of Homeland Security-HSI in investigating this matter. The prosecution of this case is being handled by Project Safe Childhood Coordinator and Fraud Unit Chief, Assistant U.S. Attorney Brian M. Klebba.
New Haven Resident Pleads Guilty to Crack Distribution and Gun ConspiraciesRead the Press Release
Contact: Joel B. Casey
Assistant United States Attorney
Tel: (207) 945-0373Bangor, Maine: United States Attorney Thomas E. Delahanty II announced that Christian Turner, a/k/a “P”, 29, of Bangor pleaded guilty today in U.S. District Court to conspiracy to possess with the intent to distribute and to distribute 280 grams of a mixture or substance containing cocaine base, commonly referred to as “crack,” and conspiracy to violate the federal gun laws.
According to court records, between January 2010 and August 2013, the defendant sold crack in Penobscot County and elsewhere. He sold half-gram bags for $40 and gram bags for $80. Other members of the conspiracy also sold bags of crack for him. He transferred the proceeds of the sales to his source of supply in the New Haven, Connecticut area and got cash and crack in exchange. The crack was transported from Connecticut to the Bangor area by other conspirators.
During the same period of time, the defendant also conspired to violate the federal gun laws. He had others fraudulently obtain fourteen firearms through “straw purchases” at pawnshops in Bangor and Brewer and acquired seven more firearms through private transactions. He paid cash or drugs for the guns and sent them back to New Haven, Connecticut for distribution to others.
The defendant faces up to 20 years in prison and a $1,000,000 fine on the drug charge and up to five years in prison and a $250,000 fine on the gun charge. He will be sentenced after the completion of a presentence investigation report by the U.S. Probation Office. He is one of eleven defendants charged in the indictment.
The case was investigated by the Maine Drug Enforcement Agency; the Bureau of Alcohol, Tobacco, Firearms and Explosives (New Haven Office); and the New Haven Police Department.
NEC Tokin Corporation to Plead Guilty and Pay $13.8 Million for Fixing Price of Electrolytic CapacitorsRead the Press Release
NEC TOKIN Corp. will plead guilty and pay a $13.8 million criminal fine for conspiring with competitors between 2002 and 2013 to fix prices for electrolytic capacitors sold to customers in the United States and elsewhere.
Electrolytic capacitors store and regulate electrical current in electronic products, including computers, televisions, car engine and airbag systems, home appliances and office equipment.
“NEC Tokin and its co-conspirators fixed prices on capacitors, a component used in just about every product that has a battery or a plug,” said Assistant Attorney General Bill Baer. “In announcing our first guilty plea in this ongoing investigation, we are enforcing the principle that American consumers are entitled to competitive markets. We will vigorously investigate and prosecute illegal cartels regardless of where the defendants are located or the products they target.”
“For over a decade and through various financial crises, NEC Tokin has exploited American consumers and fixed the price of capacitors, which are critical to our modern way of electronic life,” said Special Agent in Charge David J. Johnson of the FBI’s San Francisco Division. “This investigation is ongoing and the FBI and DOJ Antitrust Division are dedicated to holding responsible all of the companies that illegally take advantage of customers.”
The one-count felony charge was filed today in the U.S. District Court of the Northern District of California in San Francisco. In addition to pleading guilty to that charge and paying a criminal fine, NEC Tokin, based in Tokyo, has agreed to cooperate in the department’s ongoing investigation. The plea agreement is subject to court approval.
The charge today results from an ongoing federal antitrust investigation into price fixing, bid rigging and other anticompetitive conduct in the capacitor industry conducted by the Antitrust Division’s San Francisco Office and the FBI’s San Francisco Field Office. Anyone with information on price fixing, bid rigging or other anticompetitive conduct related to the capacitors industry should contact the Antitrust Division’s Citizen Complaint Center at 1-888-647-3258, visit www.justice.gov/atr/contact/newcase.html or call the FBI tip line at 415-553-7400.
Monroe Township, New Jersey, Man Admits Embezzling $89,000 from North Brunswick Volunteer Fire DepartmentRead the Press Release
NEWARK, N.J. - The former treasurer of the North Brunswick Volunteer Fire Department No. 3 (“NBVFD”) today admitted embezzling at least $89,000, U.S. Attorney Paul J. Fishman announced.
Craig J. Snediker, 40, of Monroe Township, New Jersey, pleaded guilty before U.S. District Judge Freda L. Wolfson in Trenton federal court to an information charging him with one count of wire fraud.
According to documents filed in this case and statements made is court:
As NBVFD’s treasurer, Snediker had the authority to deposit and withdraw money from NBVFD’s bank account, which held public funds and private donations. Snediker admitted that from March 25, 2014 through May 19, 2015, he used ATM machines at banks in Middlesex County, New Jersey, to access the funds for his personal expenses. He later concealed his actions by misrepresenting the account balance to the Township of North Brunswick. Overall, Snediker admitted that he withdrew between $89,000 and $92,986 without NBVFD’s authorization.
The wire fraud charge to which Snediker pleaded guilty carries a maximum potential penalty of 20 years in prison and a $250,000 fine, or twice the gross gain or loss from the offense. Sentencing is scheduled for Dec. 15, 2015.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Richard M. Frankel, with the investigation leading to today’s plea.
The government is represented by Assistant U.S. Attorney José R. Almonte of the U.S. Attorney’s Office’s Special Prosecutions Division.
Defense counsel: Robert C. Scrivo Esq., Morristown
Millenium Capital Exchange CEO Sentenced to Federal Prison for Running Forex Ponzi SchemeRead the Press Release
ATLANTA - Stafford S. Maxwell, the former owner and Chief Executive Officer of Millennium Capital Exchange, Inc., was sentenced to three years, nine months years in prison for orchestrating a multi-million dollar foreign exchange market Ponzi scheme.
“With false promises of trading success, Maxwell defrauded investors across the country out of more than $2 million,” said U.S. Attorney John Horn. “To those tempted by investment schemes that seem too good to be true – be cautious – because promises of high rates of return are often red flags for fraud.”
“The FBI continues to see such investment based fraud cases that offer their investors high rates of returns with minimum or no risk. While many of the victim investors are still trying to recover financially, it is hoped that they find some solace in today’s sentencing of Mr. Maxwell to federal prison,” said J. Britt Johnson, Special Agent in Charge, FBI Atlanta Field Office.
According to U.S. Attorney Horn, the charges, and other information presented in court: In March 2007, Maxwell incorporated and owned Millennium Capital Exchange, Inc. (“Millennium”), which purported to be a foreign exchange market trading firm. The foreign exchange market (or forex market) is the global market in which participants buy, sell, exchange, and speculate on currencies. The forex trading market consists of banks, commercial companies, central banks, investment management firms, hedge funds, retail forex brokers, and individual investors. Forex trading involves the trading of currencies from different countries against each other. An example of a forex trade is buying Japanese yen while simultaneously selling United States dollars. Trading in foreign exchange markets frequently exceeds $5 trillion per day.
From about 2008 to January 2012, Maxwell solicited investments from individuals across the United States with promises of high fixed rates of return to be generated from successful foreign currency trading. In particular, to obtain money from investors, Maxwell falsely stated that: (a) he possessed excellent forex trading skills; (b) he had a long history of forex trading success; (c) investors would earn an annualized rate of return on their investments from approximately 48% to 72%; (d) he used “stops” and “floors” on currency trades to insure that the gains would be large, but that the losses would be small; (e) investors had realized significant gains based on his trading; and (f) he had reserve funds that enabled him to cover any trading losses.
In fact and in truth, Maxwell: (a) had little success executing forex trades; (b) lost almost all the money that he traded in forex markets; (c) was unable to pay investors the promised investment dividends; and (d) possessed no reserve fund to cover forex trading losses.
According to Millennium’s business model, Maxwell was supposed to use the invested funds to make forex trades through accounts at a financial firm in Geneva, Switzerland. Based on his false representations, investors wired Maxwell over $2 million, expecting that the funds would be traded in the Swiss accounts. After receiving money from investors, however, Maxwell diverted approximately half of the money for other illegal purposes. First, in an effort to perpetuate the scheme and make it appear that he was a successful forex trader, Maxwell used the money received from new investors (that was supposed to be traded on the forex market) to pay “dividends” to older investors. Second, Maxwell used the money received from investors to pay his own personal living expenses. In the end, Maxwell spent or lost almost every dollar invested with him.
On March 17, 2015, Stafford S. Maxwell, 46, of Mableton, Georgia, was indicted on 10 counts of conspiratorial and substantive wire fraud. Maxwell pleaded guilty to all the charges on June 29, 2015. Maxwell was sentenced to three years, nine months in prison and was ordered to pay approximately $1,434,628 in restitution to his victims.
This case was investigated by the Federal Bureau of Investigation.
Assistant U.S. Attorney Jeffrey W. Davis prosecuted the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao/gan/.
Miami Gardens Resident Sentenced in Stolen Identity Tax Refund Fraud Scheme Involving Identities from the Florida Department of Children and Families DatabaseRead the Press Release
A Miami Gardens resident was sentenced today to 30 months in prison, followed by three years of supervised release, and was ordered to pay restitution in the amount of $64,557 for his participation in a stolen identity tax refund fraud scheme involving personal identification information taken from the State of Florida Department of Children and Families database.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Kelly R. Jackson, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), and Neil Melofchik, Acting Special Agent in Charge, U.S. Secret Service (USSS), Miami Field Office, made the announcement.
Kyron Jonathan Nedd, 22, of Miami Gardens, previously pled guilty to one count of possession of fifteen or more unauthorized access devices, in violation of Title 18, United States Code, Section 1029(a)(3), and one count of aggravated identity theft, in violation of Title l8, United States Code, Section 1028A(a)(1).
According to court documents, between February 1, 2014 and July 18, 2014, fraudulent federal income tax returns for tax year 2013 were filed with the IRS from Nedd’s residence in Miami Gardens. The IRS refunded approximately $64,557 for those fraudulently filed tax returns.
Court documents state that on February 12, 2015, a federal search warrant was executed at Nedd’s residence, where agents discovered items containing personal identification information (PII) - names, dates of birth and social security numbers - of hundreds of individuals. Inside Nedd’s bedroom, law enforcement found a safe with numerous debit cards and computer-generated printouts from the State of Florida Department of Children and Families (DCF) database. IRS-CI agents have since determined that there were numerous instances in which the PII contained on the DCF printouts were used in fraudulent returns filed from Nedd’s residence.
According to court documents, federal law enforcement agents interviewed Nedd after serving the federal search warrant. Nedd admitted to law enforcement that he electronically filed the income tax returns from his house and that the returns were false and prepared without the taxpayers’ permission.
Mr. Ferrer commended the investigative efforts of IRS-CI and USSS. This case is being prosecuted by Assistant U.S. Attorney Daya Nathan.
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.
Mexican National Man Convicted in Alien Smuggling Case that Resulted in a DeathRead the Press Release
McALLEN, Texas – A 31-year-old man from Mexico has admitted he knowingly transported an illegal alien within the United States for private financial gain, announced U.S. Attorney Kenneth Magidson. As part of the plea, Victor Manuel Moreno-Ruiz, also admitted that during the course of the illegal conduct, a female illegal alien died.
During his plea today, Moreno admitted that on Aug. 4, 2014, he served as a foot guide responsible for smuggling a group of undocumented aliens into the United States. He instructed them how to walk along the side of the bridge and how to scale down from the bridge at the Pharr Port of Entry. In the process of crossing the bridge, a female illegal alien fell off the bridge and sustained severe injuries. As part of his plea, Moreno admitted that he left the injured woman behind and continued to smuggle the remaining members of the group.
The next day, law enforcement officers discovered the deceased body of the female victim. An autopsy revealed that she had died as a result of blunt force trauma due to a fall.
U.S. District Judge Micaela Alvarez accepted the plea and has set sentencing for Nov. 12, 2015. At that time, he faces up to life in federal prison and a possible $250,000 fine.
The charges were the result of an investigation conducted by Homeland Security Investigations with assistance by Border Patrol, Pharr Police Department and Hidalgo County Sheriff’s Office. Assistant U.S. Attorneys Kimberly Ann Leo and Alex Benavides are prosecuting the case.
Local Physician and Clinic Sentenced on Health Care Related ChargesRead the Press Release
St. Louis, MO – DR. MEL E. LUCAS and PATTERSON MEDICAL CLINIC, INC. were sentenced for receipt of misbranded drugs and false statement charges respectively. Both were sentenced to three years of probation.
In addition, Dr. Lucas and Patterson Medical Clinic entered into a civil settlement agreement with the United States to resolve allegations that they submitted false claims for payment to Medicare and TRICARE. Pursuant to that agreement, they have repaid the United States $185,799.
According to court documents, Patterson Medical Clinic Inc., owned by Dr. Mel E. Lucas, made false statements in patient files in connection with the delivery of health care services. Specifically, the clinic made entries on treatment forms so that the forms purported to represent that a physical exam had taken place on the date therein when no such exam had in fact taken place.
With respect to the misbranded drugs charge, according to court documents, from April 2009 to September 2011, Dr. Lucas repeatedly purchased Aclasta, a non-FDA approved drug used for the treatment of osteoporosis, online from two Canadian companies, Canada Health Solutions and Global Health Supplies. Dr. Lucas paid about $749 for each bottle of Aclasta, which was several hundred dollars less than the price of a bottle of Reclast, which is an FDA- approved drug also used to treat osteoporosis. The bottles of Aclasta had Italian and Turkish language on them, which was a clear indication that the drug was not intended for use in the United States.
Lucas, Chesterfield, MO, pled guilty in May to receipt in interstate commerce of misbranded prescription drugs. Patterson Medical Clinic, Inc., pled guilty in May to false statements related to health services. Both appeared today for sentencing before United States District Judge Henry Autrey. Co-defendant Robyn Levy also pled guilty in May to receipt in interstate commerce of misbranded prescription drugs. She is scheduled to appear for sentencing later this month.
This case was investigated by the Department of Health and Human Services-Office of Inspector General and the FBI. Assistant United States Attorneys Reginald Harris and Suzanne Moore handled the case for the U.S. Attorney’s Office.
Local Physician and 18 Others Charged in Federal Prescription Drug Distribution IndictmentRead the Press Release
LITTLE ROCK—Christopher R. Thyer, United States Attorney for the Eastern District of Arkansas, and Joseph Shepard, Assistant Special Agent in Charge of the Little Rock District Office of the Drug Enforcement Administration (DEA), announced Wednesday the return of a federal Indictment charging a Little Rock physician and 18 others as part of a continuing DEA national initiative to target illegal pharmaceutical drug activity.
The Indictment, returned by a federal grand jury on Wednesday, charges Dr. Richard Johns, 49, of Little Rock, and 18 others in a conspiracy to distribute oxycodone. The conspiracy operated in Lonoke, White, and Pulaski Counties. Dr. Johns was charged in Lonoke County on May 18, 2015 with similar offenses.
On May 18, 2015, the Lonoke County Sheriff’s Office took Dr. Johns into custody charging him with 187 counts of Fraudulent Practices, a class C state felony. This investigation first began November 2014 when detectives responded to an overdose death of an individual in Cabot. The Sheriff’s Office solicited the assistance of the DEA, and the agencies began a joint investigation into the doctor and the suspected criminal enterprise headed by Dr. Johns. The investigation determined that 187 fraudulent prescriptions had been filled and distributed since July 2014 within the illicit market in Lonoke County alone. The prescriptions totaled approximately 16,830 oxycodone pills with a street value of $505,000.
During the course of the ongoing investigation, DEA determined that Dr. Johns was part of a distribution network spanning other counties in which he would write oxycodone prescriptions in individuals’ names, selling them for $500 each. Co-conspirators would bring names and dates of birth to Dr. Johns with the intent of buying a prescription for oxycodone. Dr. Johns would issue the prescription without examining the individual, and in many cases, without ever having met the individual. Prescriptions were filled at local pharmacies, and the oxycodone tablets sold in the community for $30 each. Several co-conspirators acknowledged purchasing such fraudulent prescriptions from Dr. Johns since 2011.
"As alleged in the indictment, the doctor writing these fraudulent prescriptions is no different than a common, street-level drug dealer on the street, and should be treated as such," Thyer said. "As a society we have granted certain health care professionals the right to prescribe and use highly addictive drugs to treat their patients. When that right is abused, we will aggressively pursue those health care professionals as the criminals that they are. I am pleased that this doctor and his network have been stopped, and this office will continue to target the doctors, pharmacists, and other health-care providers who illegally allow these dangerous and highly addictive drugs to end up on our streets."
In January 2014, as part of a national effort, the DEA New Orleans Field Division, which includes the DEA Little Rock office, launched an aggressive campaign that targeted the largest sources of illegally diverted pharmaceuticals in Arkansas, Louisiana, Mississippi, and Alabama. This effort, dubbed Operation Pilluted, involved the extensive investigation of rogue practitioners, pharmacists, and other DEA Registrants, as well as the aggressive pursuit of more traditional criminal organizations involved in the distribution of pharmaceuticals. Under the auspices of Operation Pilluted, concerted efforts were initiated to heighten community awareness concerning the perils of prescription drug diversion and the strategic implementation/strengthening of associated diverted pharmaceutical laws.
In May 2015, DEA, as part of Operation Pilluted, announced the return of two Indictments charging 46 defendants, including physicians, pharmacists, and nurses, with the illicit distribution of pharmaceuticals in the Central Arkansas area. In total, Operation Pilluted in the Eastern District of Arkansas has led to six federal Indictments charging 113 defendants, including five doctors.
"Prescription drug abuse is an extremely serious problem, not just in Arkansas, but nationwide," Shepard said. "DEA and our law enforcement partners will continue to investigate professionals in the medical field who operate as drug peddlers. Those persons who disregard their ethical and legal obligations while dispensing pharmaceuticals will be forced to bear the consequences of their actions."
The case against Dr. Johns was investigated by the DEA—Little Rock Diversion Squad, along with the Federal Bureau of Investigation, Arkansas State Police, Central Arkansas Drug Task Force, Lonoke County Sheriff’s Office, White County Sheriff’s Office, and Little Rock Tactical Diversion Squad composed of officers from the Conway Police Department, Beebe Police Department, Little Rock Police Department, Pine Bluff Police Department, Jefferson County Sheriff’s Office, and the Benton Police. Also involved in the investigation were the United States Marshals Service, Little Rock Police Department, and the Saline County Sheriff’s Office.
An indictment contains only allegations. A defendant is presumed innocent unless and until proven guilty.
Defendants, United States v. Richard Duane Johns, et al.:
Conspiracy to Distribute Schedule II controlled substances
RICHARD DUANE JOHNS, 49, Little Rock
DAVID LARUE SCROGGINS, 56, Cabot
MARISSA DONANN SCROGGINS, 29, Cabot
CHRISTOPHER DAVID SCROGGINS, 36, Cabot
DONNA MICHELLE CEARNS, 28 Cabot
VANESSA E. BYRD, 29, Ward
RANDY JAMES BYRD, 28, Ward
JAMES JASON WASHAM, 38, Scott
JERRI D. WASHAM, 33, Scott
CHRISTINE MARIE ZEMAN, 46, Lonoke
MEGAN BROOKE MCCONNELL, 25, Judsonia
GREGORY CHASE MCCONNELL, 24, Judsonia
ARON SCOT COCHRAN, 26, Searcy
SCOTTY WAYNE FERREN, JR., 25, Searcy
JASON RAY BEAUDRY, 29, Searcy
DUSTIN R. BULLOCK, 27, Searcy
CHARLES LESTER MASON, 69, Searcy
JOSHUA DAVID RINGER, 29, Searcy
JAMES VERNON SPIKER, JR., 28, Judsonia
STATUTORY SENTENCES
Conspiracy to Possess with Intent to Distribute Oxycodone, a Schedule II controlled substance, is punishable by not more than 20 years’ incarceration in the Bureau of Prisons with a possible fine of up to $1,000,000, and not less than 3 years supervised release.
Possession with Intent to Distribute and Distribution of Oxycodone, a Schedule II controlled substance, is punishable by not more than 20 years’ incarceration in the Bureau of Prisons with a possible fine of up to $1,000,000, and not less than 3 years supervised release.
Lexington, Kentucky, Woman and Clarksville, Tennessee, Man Charged with Sex Trafficking of A Louisville, Kentucky, MinorRead the Press Release
LOUISVILLE, Ky. – A Lexington, Kentucky, woman and Clarksville, Tennessee man were charged by a federal grand jury today with a single count of sex trafficking a 15-year-old female, announced United States Attorney John E. Kuhn, Jr.
Crystal L. Bradshaw, a/k/a Crystal Thurman, age 41, and Ralph W. Goodwin, age 65, face no less than 10 years in prison and no more than a life sentence, a $250,000 fine, and no less than five years and up to a lifetime of supervised release.
Goodwin was initially charged in a separate, sealed criminal complaint on August 23, 2015. The case was unsealed during the initial appearance and detention hearing before U.S. Magistrate Judge Dave Whalin on Monday, August 31, 2015.
According to the affidavit attached to the criminal complaint, on August 7, 2015, a 15-year-old female was approached by Crystal Bradshaw, in a Louisville park. Bradshaw took the minor female to a Marriott Hotel in Louisville to engage in sexual contact with Ralph Goodwin, in exchange for a monetary payment. According to the affidavit, Bradshaw received a payment of $700 from Goodwin, but the minor was not paid. Further, after two days, Goodwin drove the minor to his home in Clarksville, Tennessee. Eventually, the minor contacted a friend on Goodwin’s computer. The friend contacted the minor’s mother, which resulted in the Montgomery County, TN Sheriff’s Office discovering the minor at Goodwin’s Clarksville home.
Goodwin is scheduled for arraignment on September 29, 2015 at 9:30am in Louisville.
This case is being prosecuted by Assistant United States Attorney Amanda Gregory and is being investigated by the Federal Bureau of Investigation (FBI).
The indictment of a person by a Grand Jury is an accusation only and that person is presumed innocent until and unless proven guilty.
Laredo Resident Sentenced in Alien Smuggling caseRead the Press Release
LAREDO, Texas – A 34-year-old Laredoan has been ordered to federal prison following his conviction of alien smuggling, announced U.S. Attorney Kenneth Magidson. Jose Alfredo Lopez pleaded guilty Oct. 6, 2014.
Today, Senior U.S. District Judge George P. Kazen sentenced Lopez to 50 months, to be followed by three years of supervised release.
In June 2014, Lopez picked up three Honduran nationals who had just crossed the Rio Grande River into the United States and offered to help them. Lopez, who already has an extensive criminal history including a prior conviction for alien smuggling, then took the aliens to his apartment where he demanded money before letting them go. When the money was not immediately forthcoming, Lopez told one of the aliens that she had to pay with either money or her body and attempted to sexually assault her several times.
At the sentencing, Lopez admitted he had harbored illegal aliens for profit, but denied the attempted sexual assault. The alien who had been the target of the attempted sexual assault testified about the incidents, with specific details about the various threats he had made towards the aliens.
The case was investigated by Homeland Security Investigations and prosecuted by Assistant U.S. Attorney Sonah Lee.
Lackawanna Man Indicted on Gun ChargeRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y.-U.S. Attorney William J. Hochul Jr. announced today that a federal grand jury has returned an indictment charging Justin Vazquez, 29, of Lackawanna, NY, with being a felon in possession of a firearm. The charge carries a maximum penalty of 10 years in prison and a $250,000 fine.
Assistant U.S. Attorney Edward H. White, who is handling the case, stated that according to the indictment, on January 29, 2015, Buffalo Police officers responded to a domestic incident call at 209 Madison in Buffalo, NY. Vazquez was at the residence of his mother and was threatening to shoot her and two others, including a child, with a loaded firearm in his possession.
Officers apprehended Vazquez in the kitchen. The mother told police that Vazquez’s gun was located in the back bedroom. A search recovered a loaded Smith & Wesson AR-15 rifle. The defendant was previously convicted on a state charge of Aggravated Criminal Contempt and therefore is not allowed to legally possess a firearm.
The defendant will be arraigned on September 3, 2015 before the U.S. Magistrate Judge H. Kenneth Schroeder, Jr.
The indictment is the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms & Explosives, under the direction of Delano A. Reid, Special Agent in Charge.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
Lackawanna Man Indicted on Drug ChargesRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y.-U.S. Attorney William J. Hochul Jr. announced today that a federal grand jury has returned a three-count indictment charging Jerry Rolon-Alvarez, 36, of Lackawanna, NY, with possession of cocaine and heroin with intent to distribute and maintaining a drug involved premises. The charges carry a maximum penalty of 20 years in prison and a $1,000,000 fine.
Assistant U.S. Attorney Edward H. White, who is handling the case, stated that according to the indictment and a previously filed complaint, in November 2014, a confidential source made a controlled purchase of heroin from Rolon-Alvarez. Prior to the controlled purchase, the defendant was observed departing 47 Colton Avenue in Lackawanna, and immediately after the controlled purchase, Rolon-Alvarez was observed returning to the Colton Avenue residence.
On November 29, 2014, members of the Lackawanna and Buffalo Police Departments executed a search warrant at 47 Colton Avenue and found Rolon-Alvarez on a bed in the living room. During the search of a cabinet in the kitchen, officers found a large plastic bag containing suspected cocaine, and two plastic wraps containing suspected heroin. There was also a digital scale with heroin residue and a box containing green glassine envelopes located in Rolon-Alvarez’s jacket. Additionally, $2,280 in U.S. currency was seized from the defendant’s pocket. Rolon-Alvarez was arrested by the Lackawanna Police Department.
The defendant will be arraigned on September 3, 2015 before U.S. Magistrate Judge H. Kenneth Schroeder.The indictment is the result of an investigation by the Federal Bureau of Investigation, the Buffalo Police Department, under the direction of Commissioner Daniel Derenda, and the Lackawanna Police Department, under the direction of Chief James L. Michel.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
Justice Department Announces $8.5 Million in Grants to Reduce Sexual Assault, Domestic Violence, Dating Violence and Stalking on College CampusesRead the Press Release
The Justice Department's Office on Violence Against Women (OVW) today announced 27 awards totaling $8.5 million to enhance victim services and develop programs to prevent, investigate and respond to sexual assault, domestic violence, dating violence and stalking on campus. The awards are made with funds from the Grants to Reduce Sexual Assault, Domestic Violence, Dating Violence, and Stalking on Campus Program (campus program).
The campus program supports institutions of higher education in developing comprehensive coordinated campus and community-based approaches to prevent and respond to sexual assault, domestic violence, dating violence and stalking. Recipients are required to conduct mandatory prevention and education programming for all incoming students and to train campus law enforcement and all members of campus disciplinary boards to respond effectively to sexual assault, domestic violence, dating violence and stalking. Campuses can use funds to develop and adopt policies and protocols that prioritize victim safety and hold offenders accountable.
“We know that victims who receive comprehensive advocacy and services are more likely to achieve their goals of safety, autonomy and healing,” said Principal Deputy Director Bea Hanson of the Office on Violence Against Women. “Coordination between on-and-off campus victim services organizations and the local criminal justice system is critical to providing holistic support and services that victims need and ensuring that perpetrators are held accountable.”
For more information about the Campus Program, visit www.justice.gov/ovw/responding-campus-sexual-assault.
The Fiscal Year 2015 grant recipients are:
Humboldt State University, Arcata, California; Shasta-Tehama-Trinity Joint Community College, Redding, California; Asnuntuck Community College, Enfield, Conn Florida Agricultural and Mechanical University, Tallahassee, Florida; Daytona State College, Daytona Beach, Florida.; Valencia College, Orlando, Florida.; Indian Hills Community College, Ottumwa, Iowa; Saint Joseph’s College, Rensselaer, Indiana; Washburn University of Topeka, Topeka, Kansas; Salam State University, Salem, Massachusetts; Bates College, Lewiston, Maine; Avila University, Kansas City, Missouri; Mississippi Valley State University, Itta Bena, Mississippi; Salish Kootenai College, Pablo, Montana; Mars Hill University, Mars Hill, North Carolina; University of North Carolina at Chapel Hill, Chapel Hill, North Carolina; Passaic County Community College, Paterson, New Jersey; The College of New Jersey, Ewing, New Jersey.; University of Nevada at Reno, Reno, Neveda; Juniata College, Huntingdon, Pennsylvania.; Cabrini College, Radnor, Pennsylvania.; Messiah College, Mechanicsburg, Pennsylvania.; University of Puerto Rico at Carolina, Carolina, Puerto Rico; Augustana College (recently renamed Augustana University), Sioux Falls, South Dakota; University of Tennessee, Knoxville, Tennessee; University of Texas at El Paso, El Paso, Texas; Edmonds Community College, Lynnwood, Washington.
About the Office on Violence Against Women
Created in 1995, the Office on Violence Against Women provides federal leadership in developing the Nation’s capacity to reduce violence against women through the implementation of the Violence Against Women Act (VAWA) and subsequent legislation. OVW administers financial and technical assistance to communities across the country that are developing programs, policies and practices aimed at ending domestic violence, dating violence, sexual assault and stalking. To learn more, visit www.justice.gov/ovw.
Indictment Charges Chicago New Birth Christian Center Pastor and Others with Defrauding Summer Food ProgramRead the Press Release
Springfield, Ill. – The grand jury today returned an indictment that charges the founding pastor of the New Birth Christian Center, Chicago, and four associates with embezzling approximately $450,000, more than one-half of the funding received to operate the 2010 Summer Food Service Program. Those charged are: Robbie Wilkerson, 47, founding pastor; his wife, Tasha, 42, both of Oak Park, Ill., Anthony Hall, 53, a NBCC pastor, of Downers Grove, Ill., and Richard Shumate, 50, program operations manager for the 2010 program, and his wife Evelyn Shumate, 47, who worked as an assistant for the program, of Romeoville, Ill.
The defendants are charged with defrauding the program that provides nutritious meals to low-income children during the summer months when schools are not in session. In Illinois, the State Board of Education (ISBE) administers funding for the Summer Food Service Program which is provided by the Food and Nutrition Service, an agency of the U.S. Department of Agriculture.
According to the indictment, the New Birth Christian Center was one of the largest recipients of Summer Program funds in Illinois. In 2010, Robbie Wilkerson, on behalf of NBCC, submitted a total operational budget of $446,440 to the ISBE representing that NBCC would administer the summer program at 34 sites in the Chicago area. The defendants allegedly submitted approximately $714,000 in false and fraudulent claims to ISBE, more than $250,000 above the budgeted amount. Claims submitted represented that approximately 267,000 meals were served to low-income children, when in fact, fewer than 100,000 meals were actually served, and as much as $450,000 was used for the defendants’ personal use.
The indictment alleges that Robbie and Tasha Wilkerson embezzled more than $100,000, including more than $60,000 in direct payments to himself and his wife, at the same time his wife was paid as an employee of Youth Outreach Services, Chicago, as a prevention coordinator. In addition, more than $10,000 was given to relatives; $20,000 in cash and other withdrawals from NBCC’s bank account; $46,000 to purchase real estate in Chicago; and, $37,109 to purchase a residence in Memphis Tenn., for Robbie Wilkerson’s parents.
Hall allegedly embezzled approximately $50,000 for his and his spouse’s use. Richard and Evelyn Shumate allegedly embezzled $98,000 for personal use, including approximately $28,695 to purchase a 2011 Hyundai Sonata.
U.S. Department of Agriculture, Office of Inspector General, Special Agent-in-Charge Anthony V. Mohatt said, “The Summer Food Service Program was created to ensure that low-income children continue to receive nutritious meals when school is not in session. Those who are involved in fraud and abuse of SFSP and other USDA programs will be aggressively pursued by our office. The USDA Office of Inspector General will continue to dedicate resources in order to protect the integrity of the SFSP and other USDA programs and to pursue prosecution of those who commit fraud.”
Assistant U.S. Attorney Timothy A. Bass is prosecuting the case on behalf of the U.S. Attorney’s Office for the Central District of Illinois. The charges are the result of investigation by the U.S. Department of Agriculture, Office of Inspector General. The Illinois State Board of Education also assisted in the investigation.
Specifically, the defendants are charged as follows: Robbie Wilkerson: wire fraud (two counts), theft of government funds (one count), money laundering (one count); Tasha Wilkerson: wire fraud (two counts), theft of government funds (one count); Anthony Hall: wire fraud (two counts), theft of government funds (one count); Richard and Evelyn Shumate: wire fraud (two counts), theft of government funds (one count.)
The U.S. Clerk of the Court will schedule dates for arraignment for the defendants in federal court in Springfield.
If convicted, the statutory penalty for the offense of wire fraud is up to 20 years in prison and fines of up to $250,000. For theft of government funds, the statutory penalty is up to 10 years in prison and fines of up to $250,000. The penalty for money laundering is up to 10 years in prison and fines of $250,000 or twice the value of money laundered.
The indictment seeks forfeiture of any property derived from proceeds of the violations and a money judgment in the amount of at least $400,000, the amount of the net proceeds allegedly obtained as a result of the offenses.
Members of the public are reminded that an indictment is merely an accusation; each defendant is presumed innocent unless proven guilty.
Honduran National Sentenced for Illegal ReentryRead the Press Release
U.S. Attorney Kenneth A. Polite announced that OSCAR EDUARDO PENA-TABORA, age 39, a citizen of Honduras, was sentenced today after previously pleading guilty to a one-count Bill of Information for illegal reentry of a removed alien.
U.S. District Judge Martin L.C. Feldman sentenced PENA-TABORA to time served (5 months) imprisonment followed by 1 year of supervised release, and a $100 special assessment. PENA-TABORA will be surrendered to the custody of the U.S. Immigration & Customs Enforcement for removal proceedings.
According to court documents, on or about March 8, 2015, PENA-TABORA was found in the United States after having been officially deported and removed on or about August 2, 2002.
U.S. Attorney Polite praised the work of the United States Department of Homeland Security, Immigration and Customs Enforcement in investigating this matter. Assistant United States Attorney Irene González was in charge of the prosecution.
Four Defendants Charged in White Plains Federal Court in Connection with Heist of over $1 Million Worth of Computers Bound for Public High School StudentsRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, Diego Rodriguez, the Assistant Director-in-Charge of the New York Field Division of the Federal Bureau of Investigation (“FBI”), and Daniel McMahon, the Chief of the Yorktown Police Department, today announced the unsealing of a Complaint charging four defendants with participating in a scheme to steal, transport, and sell a shipment of approximately 1,200 computers, valued at over $1 million, that were bound for two public high schools in New Jersey. All four defendants were arrested this morning and will be presented in White Plains federal court today before U.S. Magistrate Judge Lisa Margaret Smith.
As alleged in the Complaint[1] unsealed today in White Plains federal court:
On or about January 15, 2014, ANTON SALJANIN, a driver for a shipping company, drove a truck from Yorktown Heights, New York, to a technology company located in Massachusetts to pick up a shipment of approximately 1,200 Apple MacBook Air computers. ANTON SALJANIN brought his brother, GJON SALJANIN, with him. The computers were being shipped to two public high schools located in New Jersey, and were valued at over $1 million.
The next morning, ANTON SALJANIN reported to the Yorktown Police Department that the truck had been stolen from a parking lot located in Yorktown Heights. Later that day, ANTON SALJANIN reported to Yorktown Police that he had been driving around looking for the truck when he happened to spot it from the highway in a parking lot in Danbury, Connecticut. The truck would not have been visible in the Danbury parking lot to a driver passing by on the highway. Furthermore, historical cell site data for ANTON SALJANIN’s cellphone contradicts his claims about the route he took to look for the truck.
Yorktown Police detectives examined the truck and found that a window had been broken. The detectives found broken glass on the scene in the Danbury parking lot but found no broken glass on the scene in the Yorktown Heights parking lot, suggesting that the window had been broken at the Danbury parking lot rather than at the Yorktown Heights parking lot.
During interviews with the Yorktown Police, ANTON SALJANIN and GJON SALJANIN claimed that on the night of January 15, 2014, they drove directly from a convenience store outside of Yorktown Heights to the Yorktown Heights parking lot. Security camera footage from various locations in Yorktown Heights shows that a truck matching the description of the truck driven by the SALJANIN brothers departed from their claimed route, and instead traveled in the direction of the residence of UJKA VULAJ, a long-time friend of ANTON SALJANIN. The video surveillance footage also shows that the duration of the detour corresponds to the approximate length of time it would have taken to drive to VULAJ’s residence, unload the computers from the truck, and return to the route to the Yorktown Heights parking lot.
From in or about January 2014 through at least in or about April 2014, VULAJ and a co-worker, CARLOS CACERES, sold at least dozens of Apple MacBook Air computers. They sold the computers, which had a retail value of approximately $1,000, for far below the market price. VULAJ and CACERES charged $500 to $800 in cash for each computer, and handed over each computer in plain brown cardboard packaging.
Count One of the Complaint charges all four defendants, ANTON SALJANIN, a/k/a “Tony,” GJON SALJANIN, UJKA VULAJ, a/k/a “Tito,” and CARLOS CACERES, with conspiring to commit theft from an interstate shipment, interstate transportation of stolen property, and receipt, possession, and sale of stolen property. Count Two of the Complaint charges ANTON SALJANIN, GJON SALJANIN, and VULAJ with stealing property with a value of at least $1,000 from an interstate shipment, and aiding and abetting such theft. Count Three of the Complaint charges ANTON SALJANIN, GJON SALJANIN, and VULAJ with transporting in interstate commerce stolen property with a value of at least $5,000, and aiding and abetting such transport. Count Four of the Complaint charges VULAJ and CACERES with receiving, possessing, and selling stolen property with a value of at least $5,000, and aiding and abetting such receipt, possession, and sale.
Charts containing the charges against the defendants and the maximum penalties they face, as well as the defendants’ ages and residences, are attached. The statutory maximum penalties are prescribed by Congress and are provided here for informational purposes only, as any sentencings of the defendants would be determined by the judge.
Mr. Bharara praised the outstanding investigative work of the FBI, the Yorktown Police Department, the Westchester County Police Department, and the New York City Police Department. Mr. Bharara also thanked the Bronx County District Attorney’s Office for its ongoing assistance in the case.
This case is being handled by the Office’s White Plains Division. Assistant United States Attorneys Won Shin, Benjamin Allee, and Scott Hartman are in charge of the prosecutions.
The charges contained in the Complaint are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
COUNT
CHARGE
DEFENDANTS
MAXIMUM PENALTIES
1
Conspiracy
18 U.S.C. § 371
ANTON SALJANIN, a/k/a “Tony,”
GJON SALJANIN, UJKA VULAJ, a/k/a “Tito,” and
CARLOS CACERESFive years in prison
2
Theft from an interstate shipment
18 U.S.C. § 659
ANTON SALJANIN, a/k/a “Tony,”
GJON SALJANIN, and
UJKA VULAJ, a/k/a “Tito”10 years in prison
3
Interstate transportation of stolen property
18 U.S.C. § 2314
ANTON SALJANIN, a/k/a “Tony,”
GJON SALJANIN, and
UJKA VULAJ, a/k/a “Tito”10 years in prison
4
Receipt, possession, and sale of stolen property
18 U.S.C. § 2315
UJKA VULAJ, a/k/a “Tito,” and
CARLOS CACERES10 years in prison
DEFENDANT
AGE
RESIDENCE
ANTON SALJANIN, a/k/a “Tony”
43
Yorktown Heights, NY
GJON SALJANIN
40
Yorktown Heights, NY
UJKA VULAJ, a/k/a “Tito”
54
Yorktown Heights, NY
CARLOS CACERES
37
Bronx, NY
[1] As the introductory phrase signifies, the entirety of the text of the Complaint and the description of the Complaint set forth below constitute only allegations, and every fact described should be treated as an allegation.
Former Scranton Businessman Convicted for Failing to Surrender and on Firearm ChargesRead the Press Release
WILKES-BARRE - The United States Attorney’s Office for the Middle District of Pennsylvania announced that a federal jury in Wilkes-Barre found Joseph P. Donahue, age 60, guilty of knowingly failing to surrender for service of a federal sentence pursuant to a court order, being a felon in possession of a firearm, being a fugitive from justice in possession of a firearm, and possession of a stolen firearm after a seven-day trial. The case was tried before United States District Court Judge E. Richard Caputo. Sentencing is scheduled for December 7, 2015.
According to United States Attorney Peter Smith, Donahue was previously convicted in March 2010 of sixteen felony counts including bank fraud, money laundering, false statements and credit card fraud after a two week trial. On December 2, 2010, United States District Court Judge James M. Munley sentenced Donahue to 121 months’ incarceration and ordered Donahue to surrender himself to begin serving that sentence on January 4, 2011. Donahue failed to report to a previously designated federal facility and a warrant for his arrest was issued. He was apprehended on January 20, 2011 by United States Marshals in Los Cruces, New Mexico while operating under an assumed identity. He possessed a firearm at the time of his arrest.
Donahue testified at trial. Donahue’s defense, in part, was that he failed to surrender to begin serving his sentence because he feared that he was being unfairly prosecuted by the government and he denied any knowledge concerning the firearm. The jury received the case Tuesday afternoon, September 1, 2015 and returned a verdict of guilty on all counts after deliberating approximately 3 hours.
The evidence at the 2010 trial proved that Donahue enlisted and recruited shareholders, investors and partners in various businesses that the defendant owned and controlled, offering them, in exchange for their paying a share of the operating expenses, a share in the profits of the particular business. With the knowledge of his partners, Donahue obtained credit cards from various financial institutions, putting the credit cards in the names of the investors, for the purpose of paying for the operating expenses of a particular corporation that the defendant owned and controlled.
Unbeknownst to the investors, however, Donahue obtained additional credit cards and loans from financial institutions in their names by obtaining on-line credit card applications and by forging their names on the applications, identifying corporations unknown to the partners. Donahue then use these fraudulently-acquired credit cards to incur expenses to which the investors had not consented and for which they would be liable. By forging the investors= names to loan applications, Donahue also committed bank fraud and money laundering.
Donahue was also previously convicted after a 1989 federal trial of conspiracy and failure to comply with monetary instrument reporting requirements. That trial involved evidence that Donahue conspired with drug trafficker Frederick “Rik” Luytjes to smuggle millions of dollars out of the United States while avoiding monetary reporting requirements and tax consequences for Luytjes. United States District Court Judge Richard P. Conaboy sentenced Donahue to a two year term of imprisonment for those crimes.
The investigation was a collaborative effort between the United States Marshals Service and the Federal Bureau of Investigation. The case was prosecuted by Assistant United States Attorneys Todd K. Hinkley and Michelle L. Olshefski.
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Former Fresno Bank Manager and Her Boyfriend Arrested, Charged with Bank FraudRead the Press Release
FRESNO, Calif. — Former bank manager Sylvia Ochoa, 33, and Shanne Leavell, 23, both of Orange Cove, were arrested today for an embezzlement scheme that defrauded the Bank of America of over $600,000, United States Attorney Benjamin B. Wagner announced.
A federal grand jury returned a six-count indictment on August 27, 2015, against them, charging Ochoa with conspiracy to commit bank fraud, bank fraud, and embezzlement by a bank manager, and charging Leavell with conspiracy to commit bank fraud and bank fraud.
According to court documents, Ochoa was the branch manager at Bank of America on East Tulare Street in Fresno. Between March 2013 and October 2013, Ochoa and Leavell conspired to defraud the bank. Contrary to the bank requirements, Ochoa prevented other bank employees from counting the cash in the vault. She entered the vault after hours and removed cash to spend on personal expenses. Ochoa also made fraudulent credits and transfers into accounts over which she controlled at Bank of America, including two accounts she opened in the name of her boyfriend, Leavell. Ochoa and Leavell then withdrew and spent the money Ochoa stole from the vault and fraudulently deposited into Leavell’s accounts on personal expenses and items, including the purchase of a truck, gambling at casinos, and buying expensive hand bags. In total, Ochoa and Leavell defrauded and embezzled from Bank of America over $600,000.
This case is the product of an investigation by the Federal Bureau of Investigation and the Fresno Police Department. Assistant United States Attorney Mia A. Giacomazzi is prosecuting the case.
If convicted, Ochoa and Leavell face a maximum statutory penalty of 30 years in prison and a $1 million fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.
Former Federal Official Sentenced to 21 Months in Prison for Self-Dealing Federal Grants to New Jersey UniversitiesRead the Press Release
TRENTON, N.J. – The former assistant division administrator of the Federal Highway Administration (FHWA), New Jersey Division, was sentenced today to 21 months in prison for using a straw company to fraudulently obtain grant funds, U.S. Attorney Paul J. Fishman announced.
Lawrence F. Cullari Jr., 43, of Tinton Falls, New Jersey, previously pleaded guilty before U.S. District Judge Peter G. Sheridan to an information charging him with one count of mail fraud. Judge Sheridan imposed the sentence today in Trenton federal court.
According to documents filed in this case and statements made in court:
Cullari was the assistant division administrator at the FHWA’s New Jersey Division from 2010 through July 2013 and was able to influence the allocation of U.S. Department of Transportation funding. He also operated a private consulting and engineering company called Dencore Consulting, which was owned by his ex-wife. His former father-in-law owned and operated “Company 1,” an engineering company located in Middletown, New Jersey, that provided mechanical, plumbing and electrical designs for commercial and residential projects.
Cullari admitted that in 2006, he and his father-in-law agreed to use Company 1 as a straw contractor to get FHWA-funded work for Dencore Consulting from Rutgers University’s Center for Advanced Infrastructure and Transportation (Rutgers CAIT) and the N.J. Institute of Technology (NJIT). From May 2006 through June 2013, Cullari prepared bids and work proposals for Company 1 to sign and submit to Rutgers CAIT and NJIT. When Rutgers CAIT or NJIT awarded the projects to Company 1, Cullari arranged for the completion of engineering reports and invoices that fraudulently stated that Company 1 completed the work. After Rutgers CAIT or NJIT paid Company 1, its owner kept a small portion of the payment and wrote a check to Dencore Consulting for the remaining balance.
In addition to the prison term, Judge Sheridan sentenced Cullari to three years of supervised release and fined him $20,000.
U.S. Attorney Fishman credited special agents of the U.S. Department of Transportation, Office of the Inspector General, under the direction of Regional Special Agent in Charge Douglas Shoemaker, and the N.J. Department of Transportation, Office of the Inspector General, for the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorney Scott B. McBride, Deputy Chief of the U.S. Attorney’s Office’s Economic Crimes Unit.
Defense counsel: Bradley L. Henry Esq., New York
Former East Hartford Resident Charged with Robbing More Than $20K from USPS Employee in HartfordRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, and Shelly A. Binkowski, Inspector in Charge for the Boston Division of the United States Postal Inspection Service, today announced that a federal grand jury in Hartford returned an indictment yesterday charging DION EDWARD THOMPSON, 37, formerly of East Hartford, with committing an assault and robbery of a U.S. Postal Service employee in Hartford in September 2014.
On September 9, 2014, two masked men, one of whom brandished what appeared to be a firearm, robbed a U.S. Postal Service employee of U.S. Postal Service funds at the Barry Square Post Office, located at 645 Maple Avenue in Hartford. The robbery occurred as the employee was loading the Post Office’s daily proceeds into a postal vehicle, which was parked at the loading dock. Approximately $21,817 in cash, checks and money orders was stolen during the robbery.
The indictment charges THOMPSON with one count of robbery of a postal employee and one count of theft of government property. Each charge carries a maximum term of imprisonment of 10 years.
U.S. Attorney Daly stressed that an indictment is only a charge and is not evidence of guilt. Charges are only allegations, and the defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt.
This matter has been assigned to U.S. District Judge Robert N. Chatigny in Hartford.
THOMPSON is incarcerated in Colorado on unrelated charges. His arraignment in the District of Connecticut is not yet scheduled.
This ongoing investigation is being conducted by the U.S. Postal Inspection Service with the assistance of the Hartford Police Department and the Colorado Springs Police Department. The case is being prosecuted by Assistant U.S. Attorneys Deborah R. Slater and Douglas P. Morabito.
Former Bradenton Housing Authority Executive Director Sentenced to Prison for Theft of Federal FundsRead the Press Release
Tampa, Florida – U.S. District Judge Susan C. Bucklew today sentenced Wenston DeSue (44, Bradenton) to 12 months and 1 day in federal prison for theft of federal funds. As part of his sentence, the Court entered a forfeiture money judgment in the amount of $276,300.03, the proceeds of DeSue’s theft, and also ordered him to pay the same amount in restitution to the U.S. Department of Housing and Urban Development (“HUD”).
DeSue pleaded guilty on May 28, 2015.
According to court documents, from January 1, 2006, until September 19, 2013, DeSue was employed as the Executive Director of the Bradenton Housing Authority (“BHA”), a local housing authority that receives federal funds from HUD.
An investigation by the HUD - Office of Inspector General and the Federal Bureau of Investigation revealed that between September 2010 and September 2013, DeSue was significantly absent from the BHA on a routine basis, engaged in non-BHA activities during work hours, and failed to take annual or sick leave for those absences. Despite being absent from the BHA much of the time, he accepted his regular salary. In total, DeSue stole and knowingly converted to his own use $276,300.03 from the BHA in salary, bonuses, and cash-outs of unused leave.
In addition, DeSue spent personal time with BHA Project Director, Stephany West, with whom he was romantically involved. On numerous occasions, the two spent personal time together during the workday when they should have been working or on some form of leave. West previously pleaded guilty to theft of federal funds and has a sentencing hearing set for September 9, 2015. In total, West stole and knowingly converted to her own use $104,550.75 from the BHA in salary, bonuses, and cash-outs of unused leave.
This case was investigated by the Office of Inspector General for the U.S. Department of Housing and Urban Development, the Federal Bureau of Investigation, the Florida Department of Law Enforcement, and the Bradenton Police Department. It was prosecuted by Assistant United States Attorneys Jennifer L. Peresie and Simon A. Gaugush.
Federal Jury Convicts Windermere Man of Stealing over $2 Million from A Former NBA Basketball PlayerRead the Press Release
Orlando, Florida – United States Attorney A. Lee Bentley, III announces that a federal jury today found John A. White (40, Windermere) guilty of 11 counts of wire fraud and 4 counts of filing a false tax-related document. He faces a maximum penalty of 20 years in federal prison for each wire fraud count and up to 3 years’ imprisonment for each false document charge. White’s sentencing hearing is scheduled for November 19, 2015. He was indicted on April 9, 2015.
According to the evidence presented at trial, from 2006 through 2012, White was employed as the personal assistant to NBA basketball player Gilbert J. Arenas, who has since retired from professional basketball. During calendar years 2008 through 2011, White stole approximately $2,188,170 from Arenas by making unauthorized online banking money transfers from one of Arenas’s bank accounts into three different bank accounts that White controlled. White spent these funds on his own personal expenses, including mortgage payments for his home in Windermere, and the purchase of a Ferrari and a Range Rover. White also filed false joint income tax returns with the Internal Revenue Service for each of these years. In these tax returns, he and his wife never reported more than $60,000 in gross income, when in fact their joint income was significantly greater due to the money White stole from Arenas.
This case was investigated by the Internal Revenue Service - Criminal Investigation, with assistance from the United States Secret Service. It is being prosecuted by Assistant United States Attorney Andrew C. Searle.
Federal Grand Jury Indicts Amarillo Man on Felony Tax OffensesRead the Press Release
AMARILLO, Texas — A federal grand jury returned an indictment last week charging Randy L. Edwards with three counts of making and subscribing a false return, statement, or other document, announced U.S. Attorney John Parker of the Northern District of Texas.
Today, Edwards made his initial appearance in federal court in Amarillo before U.S. Magistrate Judge Clinton E. Averitte.
The indictment alleges that Edwards, a resident of Amarillo, did willfully make, subscribe, and file tax year 2007, 2008 and 2009 Individual Income Tax Returns that failed to report his true income for each tax year.
In the return for tax year 2007, Edwards stated that tax year 2007 gross receipts income, specifically Schedule C, Line 1, was $702,104, when he well knew, that he failed to report all of his business gross receipts for that year totaling approximately $801,155.
In the return for tax year 2008, Edwards stated that tax year 2008 gross receipts income, specifically Schedule C, Line 1, was $835,604, when he well knew, that he failed to report all of his business gross receipts for that year totaling approximately $1,208,878.
In the return for tax year 2009, Edwards stated that tax year 2009 gross receipts income, specifically Schedule C, Line 1, was $728,861, when he well knew, that he failed to report all of his business gross receipts for that tax year totaling approximately $1,135,859.
A federal indictment is an accusation by a federal grand jury, and a defendant is entitled to the presumption of innocence unless proven guilty. Upon conviction, however, the maximum statutory penalty for each count is three years in federal prison and a $250,000 fine.
Internal Revenue Service Criminal Investigation is conducting the investigation. Assistant U.S. Attorney Tim Hammer is prosecuting the case.
# # #
Federal Corrections Officer Arrested for Making False Statements to InvestigatorsRead the Press Release
Ocala, Florida – United States Attorney A. Lee Bentley, III announces the arrest of Rashan L. Gibson (28, Clermont) on a criminal complaint charging him with four counts of making false statements to federal investigators. He faces up to five years in federal prison for each offense. Gibson was released on a $25,000 bond pending resolution of the matter.
According to court documents, federal investigators were contacted by an inmate at the Coleman Federal Correctional Complex in Sumter County who claimed that Gibson, a federal corrections officer, had smuggled cigarettes into the facility in exchange for a $500 bribe. Investigators subsequently monitored an audio and video-recorded meeting between Gibson and the inmate in May 2015. During that meeting, Gibson and the inmate discussed the previous transaction, as well as a future $5,000 payment for other contraband that Gibson would smuggle into the prison. The inmate also provided Gibson with the name of a contact who could deliver the payment to him.
On August 6, 2015, investigators confronted Gibson about the smuggling operation. During the meeting, Gibson denied smuggling contraband into the prison. He also claimed that that he had never met with the inmate, had never discussed a bribery payment, and had never received the name of a person who would pay him money on the inmate’s behalf. Based upon the evidence obtained during the investigation, all of these statements were false.
A criminal complaint is merely an allegation that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
This case is being investigated by the Department of Justice - Office of the Inspector General, and the Federal Bureau of Investigation. It is being prosecuted by Assistant United States Attorney Robert E. Bodnar, Jr.
Eight Indicted in Fraud Case that Alleges $50 Million in Bogus Claims for Student Substance Abuse CounselingRead the Press Release
LOS ANGELES – Eight people have been indicted for allegedly participating in a scheme that submitted more than $50 million in fraudulent bills to a California state program for alcohol and drug treatment services for high school and middle school students that, in many instances, were not provided or were provided to students who did not have substance abuse problems.
Six of the defendants who worked at the Long Beach-based Atlantic Health Services (formerly known as Atlantic Recovery Services, or ARS) were arrested this morning by federal authorities.
The indictment, which charges the defendants with health care fraud and aggravated identity theft, alleges that ARS received more than $46 million from California’s Drug Medi-Cal program after ARS submitted false and fraudulent claims for group and individual substance abuse counseling services.
“The defendants named in the indictment are accused of exploiting a program that was set up to help a particularly vulnerable population – young people who are confronting drug and alcohol abuse,” said United States Attorney Eileen M. Decker. “According to the indictment, ARS and its employees engaged in a long-running fraud scheme to steal tens of millions of dollars from a program with limited resources that was designed to help underprivileged youth in recovery. In the process, the defendants and ARS branded many innocent young people as substance abusers and addicts in order to boost enrollment numbers and billings.”
The defendants named in the indictment are:
- Lori Renee Miller, 54, of Lakewood, the program manager at ARS who supervised substance abuse recovery managers and counselors;
- Nguyet Galaz, 41, of Montclair, who oversaw services provided at approximately 11 schools in Los Angeles County;
- Angela Frances Micklo, 56, of Palmdale, who managed counselors at approximately nine schools in Los Angeles County, including several in the Antelope Valley;
- Maribel Navarro, 48, of Pico Rivera, who managed counselors at approximately 10 schools in Los Angeles County;
- Carrenda Jeffery, 64, of the Mid-City District of Los Angeles, who managed counselors at approximately three schools;
- LaLonnie Egans, 57, of Bellflower, who managed counselors at three schools;
- Tina Lynn St. Julian, 51, of Compton, who worked as a counselor at two schools; and
- Shyrie Womack, 33, Egans’ daughter, also of Bellflower, who worked as a counselor at three schools.
Galaz and Micklo are expected to self-surrender in the coming weeks. The six other defendants were taken into custody without incident this morning and are scheduled to be arraigned on the indictment this afternoon in United States District Court.
Today’s arrests are the result of a 40-count indictment that was returned by a federal grand jury on August 26 and unsealed this morning.
The eight defendants are all former employees of ARS, which received contracts to provide substance abuse treatment services through the Drug Medi-Cal program to students in schools in Los Angeles County. The schools included various sites operated by Soledad Enrichment Action, and public schools in Montebello, Bell Gardens, Lakewood, and the Antelope Valley.
ARS allegedly submitted bogus claims for payment to the Drug Medi-Cal program for a decade, according to the indictment. ARS shut down in April 2013, when California suspended payments to the company.
According to the indictment, the claims submitted to the Drug Medi-Cal program were false and fraudulent for a number of reasons, including:
- ARS billed for services provided to students who did not have substance abuse disorders or addictions and therefore did not qualify to receive Drug Medi-Cal services;
- ARS billed for counseling sessions that were not conducted at all;
- ARS billed for counseling services that were not conducted in accordance with Drug Medi-Cal regulations regarding length, number of students, content and setting;
- ARS personnel falsified documents, including treatment plans, group counseling sign-in sheets, progress notes and update logs (which listed the dates and times of counseling sessions); and
- ARS personnel forged student signatures on documents.
“For counselors and supervisors to risk stigmatizing students as substance abusers, as alleged in this case, just to enrich themselves at taxpayer expense is outrageous,” said Special Agent in Charge Christian Schrank, U.S. Department of Health and Human Services, Office of the Inspector General. “This decade-long conspiracy to defraud Medi-Cal while disregarding the true health care needs of children will not be tolerated.”
Previously, 11 other defendants pleaded guilty to health care fraud charges stemming from the ARS scheme. Those defendants are former ARS managers Cathy Fernandez, 53, of Downey; Erin Hoover, 37, of Long Beach; Elizabeth Black, 51, of Long Beach; Helsa Casillas, 44, of El Sereno; and Sandra Lopez, 41, of Huntington Park; and former ARS counselors Tamara Diaz, 45 of East Los Angeles; Margarita Lopez, 40, of Paramount; Irma Talavera, 27, of Paramount; Laura Vasquez, 52, of Pico Rivera; Cindy Leticia Ortiz, 29, of Norwalk; and Arthur Dominguez, 63, of Glendale.
Another defendant – Dr. Leland Whitson, 75, of Redondo Beach, the former Medical/Clinical Director of ARS – previously pleaded guilty to making a false statement affecting a health care program.
The dozen defendants who have already pleaded guilty are pending sentencing by United States District Judge Philip S. Gutierrez.
Each of the eight defendants named in the indictment unsealed today potentially faces decades in federal prison if convicted. For example, if convicted, Miller faces a statutory maximum sentence of 324 years in federal prison.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed innocent until and unless proven guilty in court.
The cases against the 20 defendants are the result of an investigation by the U.S. Department of Health and Human Services, Office of Inspector General; the California Department of Justice, Bureau of Medi-Cal Fraud and Elder Abuse; and IRS - Criminal Investigation.
Eight Indicted in Fraud Case That Alleges $50 Million in Bogus Claims for Student Substance Abuse CounselingRead the Press Release
Six Linked to Long Beach Treatment Program Taken into Custody Today
Eight people have been indicted for allegedly participating in a scheme that submitted more than $50 million in fraudulent bills to a California state program for alcohol and drug treatment services for high school and middle school students that, in many instances, were not provided or were provided to students who did not have substance abuse problems.
Six of the defendants who worked at the Long Beach-based Atlantic Health Services, formerly known as Atlantic Recovery Services (ARS), were arrested this morning by federal authorities.
The indictment, which charges the defendants with health care fraud and aggravated identity theft, alleges that ARS received more than $46 million from California’s Drug Medi-Cal program after ARS submitted false and fraudulent claims for group and individual substance abuse counseling services.
“The defendants named in the indictment are accused of exploiting a program that was set up to help a particularly vulnerable population – young people who are confronting drug and alcohol abuse,” said U.S. Attorney Eileen M. Decker for the Central District of California. “According to the indictment, ARS and its employees engaged in a long-running fraud scheme to steal tens of millions of dollars from a program with limited resources that was designed to help underprivileged youth in recovery. In the process, the defendants and ARS branded many innocent young people as substance abusers and addicts in order to boost enrollment numbers and billings.”
The defendants named in the indictment are:
- Lori Renee Miller, 54, of Lakewood, California, the program manager at ARS who supervised substance abuse recovery managers and counselors;
- Nguyet Galaz, 41, of Montclair, California, who oversaw services provided at approximately 11 schools in Los Angeles County;
- Angela Frances Micklo, 56, of Palmdale, California, who managed counselors at approximately nine schools in Los Angeles County, including several in the Antelope Valley;
- Maribel Navarro, 48, of Pico Rivera, California, who managed counselors at approximately ten schools in Los Angeles County;
- Carrenda Jeffery, 64, of the Mid-City District of Los Angeles, who managed counselors at approximately three schools;
- LaLonnie Egans, 57, of Bellflower, California, who managed counselors at three schools;
- Tina Lynn St. Julian, 51, of Compton, California, who worked as a counselor at two schools; and
- Shyrie Womack, 33, Egans’ daughter, also of Bellflower, who worked as a counselor at three schools.
Galaz and Micklo are expected to self-surrender in the coming weeks. The six other defendants were taken into custody without incident this morning and are scheduled to be arraigned on the indictment this afternoon in U.S. District Court.
Today’s arrests are the result of a 40-count indictment that was returned by a federal grand jury on August 26 and unsealed this morning.
The eight defendants are all former employees of ARS, which received contracts to provide substance abuse treatment services through the Drug Medi-Cal program to students in schools in Los Angeles County. The schools included various sites operated by Soledad Enrichment Action and public schools in Montebello, California, Bell Gardens, Californina, Lakewood, and the Antelope Valley.
ARS allegedly submitted bogus claims for payment to the Drug Medi-Cal program for a decade, according to the indictment. ARS shut down in April 2013, when California suspended payments to the company.
According to the indictment, the claims submitted to the Drug Medi-Cal program were false and fraudulent for a number of reasons, including:
- ARS billed for services provided to students who did not have substance abuse disorders or addictions and therefore did not qualify to receive Drug Medi-Cal services;
- ARS billed for counseling sessions that were not conducted at all;
- ARS billed for counseling services that were not conducted in accordance with Drug Medi-Cal regulations regarding length, number of students, content and setting;
- ARS personnel falsified documents, including treatment plans, group counseling sign-in sheets, progress notes and update logs (which listed the dates and times of counseling sessions); and
- ARS personnel forged student signatures on documents.
“For counselors and supervisors to risk stigmatizing students as substance abusers, as alleged in this case, just to enrich themselves at taxpayer expense is outrageous,” said Special Agent in Charge Christian Schrank for the Office of the Inspector General of the Department of Health and Human Services. “This decade-long conspiracy to defraud Medi-Cal while disregarding the true health care needs of children will not be tolerated.”
Previously, 11 other defendants pleaded guilty to health care fraud charges stemming from the ARS scheme. Those defendants are former ARS managers Cathy Fernandez, 53, of Downey, California; Erin Hoover, 37, of Long Beach, California; Elizabeth Black, 51, of Long Beach; Helsa Casillas, 44, of El Sereno, California; and Sandra Lopez, 41, of Huntington Park, California; and former ARS counselors Tamara Diaz, 45 of East Los Angeles, California; Margarita Lopez, 40, of Paramount, California; Irma Talavera, 27, of Paramount; Laura Vasquez, 52, of Pico Rivera; Cindy Leticia Ortiz, 29, of Norwalk, California; and Arthur Dominguez, 63, of Glendale, California.
Another defendant, Dr. Leland Whitson, 75, of Redondo Beach, California, the former Medical/Clinical Director of ARS, previously pleaded guilty to making a false statement affecting a health care program.
The dozen defendants who have already pleaded guilty are pending sentencing by U.S. District Judge Philip S. Gutierrez.
Each of the eight defendants named in the indictment unsealed today potentially faces decades in federal prison if convicted. For example, if convicted, Miller faces a statutory maximum sentence of 324 years in federal prison.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed innocent until and unless proven guilty in court.
The cases against the 20 defendants are the result of an investigation by the Office of Inspector General of the Department of Health and Human Services; the California Department of Justice, Bureau of Medi-Cal Fraud and Elder Abuse; and IRS - Criminal Investigation.
- Lori Renee Miller, 54, of Lakewood, California, the program manager at ARS who supervised substance abuse recovery managers and counselors;
Decatur Physician Charged with Illegal Distribution of HydrocodoneRead the Press Release
Springfield, Ill. – Jim Lewis, U.S. Attorney for the Central District of Illinois, announced that a federal grand jury in Springfield returned an indictment today that charges Sukhwinder Multani, 41, of the 3700 block of N. Ashley Court, Decatur, Ill., with illegal distribution of hydrocodone.
The indictment alleges that on three occasions, between April 2014 and August 2014, Multani prescribed hydrocodone, which was then a Schedule III controlled substance, outside the course of professional medical practice and for no legitimate medical purpose. At the time of the alleged offenses, Multani was an authorized Drug Enforcement Administration registrant, engaged in private practice as Universal Walk-In Urgent Care, located at 3767 E. US Route 36, Decatur, Ill.
The classification for hydrocodone has since been changed by the DEA to Schedule II.
According to public documents filed by the Illinois Department of Financial and Professional Regulation, Division of Professional Regulation, in September 2014, Multani’s licenses were ordered suspended.
If convicted, the statutory maximum penalty for each count of distribution of a controlled substance is 10 years in prison, and a fine of up to $500,000.
The case is being prosecuted by Assistant U.S. Attorney Elly M. Peirson. The charges are the result of an investigation by the Drug Enforcement Administration.
The U.S. Clerk of the Court will issue a summons and date for Multani to appear for arraignment.
Members of the public are reminded that an indictment is merely an accusation; the defendant is presumed innocent unless proven guilty.
Decatur Man Charged with Child Pornography OffensesRead the Press Release
Springfield, Ill. – Jim Lewis, U.S. Attorney for the Central District of Illinois, announced today that a federal grand jury in Springfield has returned an indictment charging Niles C. Wray, 34, of the 1600 block of North Foster Avenue, Decatur, Ill., with distribution and possession of child pornography and access of a website with intent to view child pornography.
The indictment alleges that in December 2014, Wray distributed and possessed images of minors engaged in sexually explicit conduct. The indictment further alleges that in February 2015 Wray accessed a website with intent to view child pornography, including visual depictions of minors engaging in sexually explicit conduct. The indictment also seeks forfeiture of computers and related materials allegedly used to commit or promote the offenses.
If convicted, the statutory penalty for the count of distribution of child pornography is a mandatory minimum of five years in prison to 20 years in prison and a term of supervised release of up to life following any term of imprisonment. For the possession of child pornography charge, the penalty is a maximum of 20 years in prison, and for the access with intent to view child pornography charges, the penalty also is a maximum of 20 years in prison.
Wray was arrested on Aug. 20, 2015, and charged by criminal complaint with access with intent to view child pornography. During a court appearance on Aug. 25, 2015, before U.S. Magistrate Judge Eric I. Long, in Urbana, Wray was ordered released on bond.
The case is being prosecuted by Assistant U.S. Attorney Katherine Boyle. The charges are the result of an investigation by the Federal Bureau of Investigation.
Members of the public are reminded that an indictment is merely an accusation; each defendant is presumed innocent unless proven guilty.
The case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys= Offices and the Criminal Division=s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Courier for the Jenifer Drug Trafficking Organization Sentenced to 12 Years in PrisonRead the Press Release
Baltimore, Maryland – On September 1, 2015, U.S. District Judge Richard D. Bennett sentenced Brooke Renee Lunn, a/k/a “Brooke Thomas,” and “Brooke Renee,” age 48, of Baltimore, Maryland, to 12 years in prison followed by five years of supervised release for conspiracy to distribute and possession with intent to distribute five kilograms or more of cocaine, in connection with his participation in the Jenifer drug trafficking organization (Jenifer DTO).
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Assistant Special Agent in Charge Don A. Hibbert of the Drug Enforcement Administration, Baltimore District Office; Special Agent in Charge Thomas Jankowski of the Internal Revenue Service - Criminal Investigation, Washington, D.C. Field Office; Interim Commissioner Kevin Davis of the Baltimore Police Department; and Chief James W. Johnson of the Baltimore County Police Department.
“This drug organization is a prime example of the complexities that DEA faces with today’s drug traffickers” stated Assistant Special Agent in Charge Don A. Hibbert. “DEA deals with professional couriers, whose only job is to transport drugs and money without being detected by law enforcement. This was accomplished in this case by sophisticated electronic traps, or hidden compartments, in the courier vehicles which resulted in more than 750 kilograms of cocaine being shipped from Houston for distribution in Baltimore. The destruction of this organization is a testament to the hard work and tenacity of the Special Agents and investigators that lived and breathed this case for 18 months.”
According to court documents and information provided at her plea and sentencing hearings, from September 2012 to October 2014, Lunn was the courier for the Jenifer DTO operating courier vehicles between Baltimore and Houston, Texas. The Jenifer DTO obtained its cocaine from suppliers in or around Houston, and transported money hidden in secret compartments in “courier vehicles” from Baltimore to Houston. The cocaine was then transported from Houston to Baltimore in the secret compartments in the courier vehicles. On September 27, 2012, Lunn was operating a courier vehicle near Houston when the vehicle was stopped by the Texas State Police. John Moore was a passenger in the vehicle. Lunn consented to a search of the vehicle and law enforcement recovered approximately 30 kilograms of cocaine that were located in hidden compartments in the vehicle. Both Lunn and Moore were arrested and charged by Texas authorities. After being released on bond, Lunn and Moore returned to Maryland. Subsequently, on October 20, 2012, Moore suffered a fatal gunshot wound to the back of the head. Law enforcement agents believe that Moore’s homicide was the direct result of the cocaine seizure.
After Lunn and Moore’s arrest in Texas in September 2012, the Jenifer DTO began using car-carriers to transport its courier vehicles loaded with cocaine. In July 2013, a Jenifer DTO courier vehicle, loaded on a car-carrier, was intercepted in Arkansas. Law enforcement recovered approximately 23 kilograms of cocaine hidden in a secret compartment in the courier vehicle. After that seizure, the Jenifer DTO returned to its previous method of using Lunn to drive the courier vehicles between Baltimore and Houston transporting cash and/or cocaine.
Between August 2013 and October 2014, Lunn made approximately 30 trips to Houston, Texas, on behalf of the Jenifer DTO, to deliver money and return to Baltimore with kilogram-quantity loads of cocaine, concealed in secret compartments in the Jenifer DTO’s courier vehicles. All of the cocaine deliveries were made by Lunn for the Jenifer DTO while she was awaiting trial for the 30-kilogram seizure of cocaine in Texas.
During the early morning hours on October 9, 2014, Lunn arrived in Baltimore after departing Houston, Texas, operating one of the Jenifer DTO’s courier vehicles containing hidden compartments. Later that day, law enforcement agents executed a search and seizure warrant on the courier vehicle operated by Lunn, and approximately 27 kilograms of cocaine were seized from inside of the hidden compartments contained within the courier vehicle.
Lunn admitted that she was a member and co-conspirator of the Jenifer DTO, which was responsible for trafficking no less than 750 kilograms of cocaine from Houston to Baltimore from August 2013 to October 2014.
Co-conspirators Thomas Simmons, age 48 of Hampton, Virginia, William Hegie, age 54, Kermit Clark, age 44, and Elroy Johnson, age 49, all of Baltimore, previously pleaded guilty to their participation in the conspiracy and were each sentenced to 10 years in prison.
United States Attorney Rod J. Rosenstein praised the DEA, IRS Criminal Investigation and Baltimore City and County Police Departments for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorney John W. Sippel, Jr., who prosecuted the case, and expressed his appreciation to the United States Attorney’s Offices for the Southern District of Texas and the Southern District of New York for their assistance in this Organized Crime Drug Enforcement Task Force case.
Centralia Woman Sentenced on Drug CaseRead the Press Release
Stephen R. Wigginton, United States Attorney for the Southern District of Illinois, announced today that Jennifer Ann Keller, 34, of Centralia, Illinois, was sentenced on September 1, 2015, to 70 months in federal prison, to be followed by 4 years of supervised release, a $300 fine and a $300 special assessment. Sentencing followed a guilty plea in May 2014 to charges relating to the production and distribution of methamphetamine. Specifically, Keller was sentenced for Conspiracy to Manufacture and Distribute Methamphetamine from October 2013 through May 2014 in St. Clair, Clinton, and Marion Counties (Count 1); Manufacture of Methamphetamine from February 21, 2014, through February 26, 2014, in St. Clair County (Count 2); and Possession of a Listed Chemical (Pseudoephedrine) Knowing It Would Be Used to Manufacture Methamphetamine on March 6, 2014, in Clinton County (Count 5). Four co-defendants have pleaded guilty to charges arising out of the same indictment. Two have previously been sentenced and two are awaiting sentencing.
Information leading to the charges against Keller was obtained in an investigation conducted by the FBI, the Marion County Sheriff’s Office, and the Clinton County Sheriff’s Department, assisted by the Illinois State Police Methamphetamine Response Team. The case is being handled by Assistant United States Attorney Kit Morrissey.
California Man Admits Shipping One Kilogram of Cocaine to New Jersey Drug Trafficking OrganizationRead the Press Release
TRENTON, N.J. – A California man today admitted shipping large quantities of cocaine from California to a drug trafficking organization that operated in Ocean and Monmouth Counties and elsewhere in New Jersey, U.S. Attorney Paul J. Fishman announced.
Marlon Ramos, 31, of Redlands, California, pleaded guilty before U.S. District Judge Peter G. Sheridan in Trenton federal court to an information charging him with one count of conspiracy to distribute heroin and cocaine.
In March 2014, 21 other alleged members of the drug trafficking organization to which Ramos supplied narcotics were charged by criminal complaint with conspiring to distribute heroin. The complaint referred to the drug trafficking organization as the “Britt-Young DTO,” after its leaders, Robert Britt, a/k/a “True,” and Rufus Young, a/k/a “Equan,” a/k/a “E-Money,” a/k/a “Kintock.” Of those 21 individuals, 18 have pleaded guilty.
According to documents filed in this case and statements made in court:
Between November 2013 and March 2014, Ramos conspired with others, including Thomas Shannon, a/k/a “Cuzzo,” 36, of Jersey City, New Jersey, one of the Britt-Young DTO’s primary heroin suppliers, to ship large quantities of heroin and cocaine from California to New Jersey. Afterwards, New Jersey conspirators re-packaged the narcotics for distribution to others, including members of the Britt-Young DTO, and deposited cash into bank accounts provided by the California suppliers. Ramos admitted today that he used a bank account in his own name to receive payments. He also admitted shipping at least one kilogram of cocaine as part of the conspiracy.
The conspiracy charge to which Ramos pleaded guilty carries a maximum potential penalty of 40 years in prison and a $5 million fine. Sentencing is scheduled for Dec. 17, 2015.
On June 5, 2015, Shannon was charged by indictment with narcotics distribution, illegal possession and use of firearms, and transacting in criminal proceeds. The charges against him are merely accusations and he is considered innocent unless and until proven guilty.
U.S. Attorney Fishman credited special agents of the FBI, Red Bank Resident Agency, under the direction of Special Agent in Charge Richard M. Frankel, with the investigation leading to today’s plea.
The government is represented by Assistant U.S. Attorney Nicholas Grippo of the U.S. Attorney’s Office Criminal Division in Newark.
Defense Counsel: David Bahuriak Esq., Philadelphia
Cahokia Man Sentenced to Prison for Being A Felon in Possession of A FirearmRead the Press Release
A Cahokia man, Jeremy L. Harris, 25, of Cahokia, Illinois, convicted of being a felon in possession of a firearm in violation of federal law, was sentenced to 46 months in federal prison, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today. Harris was also sentenced to 3 years supervised release to follow imprisonment, a $300 fine and a $100 special assessment. Harris pleaded guilty to the charge on May 15, 2015. Harris has been in custody since his arrest on December 24, 2014. According to court documents, a federal search warrant was obtained for Harris’s cellular telephone. The search revealed an image of Harris holding a rifle while carrying two pistols in his waistband. The image was taken in an East St. Louis residence between April 2014 and June 9, 2014. On June 9, 2014, the rifle was seized by law enforcement during the execution of a federal search warrant at the East St. Louis residence.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives. The case was handled by Assistant United States Attorney Kit Morrissey.
Buffalo Man Sentenced on Drug ChargesRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y. ‐‐ U.S. Attorney William J. Hochul, Jr., announced today that Angel Gonzalez, 39, of Buffalo, NY, who was convicted of conspiracy to possess with intent to distribute and to distribute 500 grams or more of cocaine, was sentenced to time served (29 months) by Senior U.S. District Judge William M. Skretny.
Assistant U.S. Attorney George C. Burgasser, who handled the case, stated that between 2006 and December 2010, the defendant conspired with two co‐defendants to possess and distribute cocaine in Buffalo. The defendants stored cocaine and the proceeds of drug sales at Gonzalez’s residence on Auburn Avenue in Buffalo. The defendant was paid for allowing the money and drugs to be stored at his residence.
The defendant was arrested in December 2012 along with Renwick Samuel, Mica Donadelle, Kevin Liburd, and James Phillips. All defendants have been convicted.
The sentencing is the culmination of an investigation on the part of the Federal Bureau of Investigation's Safe Streets Task Force which includes representatives of the Amherst Police Department; the Buffalo Police Department; U.S. Border Patrol, the Bureau of Alcohol, Tobacco, Firearms, and Explosives; the Cheektowaga Police Department; the Erie County Sheriff’s Department; the Hamburg Police Department; the Lancaster Police Department; the Niagara Frontier Transportation Authority Police; the New York State Department of Correctional Services; the New York State Police; and U.S. Immigration and Customs Enforcement, Homeland Security Investigations.
Bridgeport Man Pleads Guilty to Possession of a Firearm by a Convicted FelonRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that JESUS QUESADA, 24, of Bridgeport, pleaded guilty yesterday in Hartford federal court to one count of unlawful possession of a firearm by a convicted felon.
According to court documents and statements made in court, on April 10, 2015, law enforcement executed a search warrant at an apartment on Glendale Avenue in Bridgeport and seized a .40 caliber semi-automatic handgun that was found on top of the refrigerator. The gun contained a magazine that was loaded with eight rounds of ammunition. QUESADA, a previously convicted felon, subsequently admitted that he was holding the gun for his “uncle,” who was not a blood relative.
It is a violation of federal law for a person previously convicted of a felony offense to possess a firearm or ammunition that has moved in interstate or foreign commerce.
QUESADA is scheduled to be sentenced by U.S. District Judge Robert N. Chatigny on November 6, 2015, at which time he faces a maximum term of imprisonment of 10 years.
This matter is being investigated by the Bridgeport High Intensity Drug Trafficking Area Task Force composed of members of the Drug Enforcement Administration, the Milford Police Department, the Stratford Police Department, the Stamford Police Department, the Norwalk Police Department, and the Connecticut State Police. The case is being prosecuted by Assistant U.S. Attorney Jennifer Laraia.
Branchland man pleads guilty to trafficking drugs from Florida to West VirginiaRead the Press Release
Charleston, W.Va. – United States Attorney Booth Goodwin announced that William Harrison Meade, 47, of Branchland, West Virginia, plead guilty in federal court in Charleston today to conspiring to distribute oxycodone. During his plea hearing, Meade admitted that from January of 2010 through January 11, 2011, he conspired with individuals in Florida and Lincoln County, West Virginia, to distribute oxycodone, also known as “Roxycodone.” Meade also admitted that he laundered the proceeds of the drug sales through a bank account controlled by his associate in West Virginia for withdrawal in Florida in an effort to conceal the source of the cash, the source of the pills, and the location of the drug proceeds.
Meade admitted that beginning in January of 2010 and continuing until January of 2011, Lester Taylor acquired oxycodone pills in Florida and used various methods, including shipment via common carrier and personal trips to West Virginia to deliver the oxycodone pills to Lincoln County for distribution by Meade. After Meade sold the oxycodone pills, he deposited the drug proceeds into bank accounts in Barboursville and Huntington. Following the deposits in West Virginia, Taylor or others acting on his behalf withdrew the money in Florida.
From May 17, 2010 through January 8, 2011, Taylor sent 15 priority overnight packages containing oxycodone pills to Meade at his home in Branchland. Law enforcement intercepted the last package on January 8, 2011, which contained 1000 30 mg oxycodone pills.
From October 13, 2010 through December 3, 2010, Meade deposited $149,500.00 in drug proceeds into Taylor’s Fifth Third Bank account at the Huntington, West Virginia branch.
Meade faces up to 20 years imprisonment when he is sentenced on January 20, 2016.
Lester Taylor previously entered a guilty plea to conspiracy to distribute oxycodone and conspiracy to money launder and faces up to 40 years imprisonment when he is sentenced on October 19, 2015.
The West Virginia State Police, the IRS-CID, and the Metropolitan Drug Enforcement Network Team were in charge of the investigation. Assistant United States Attorney Monica D. Coleman is handling the prosecution.
These cases were prosecuted as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs and heroin. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal pill trafficking, eliminating open air drug markets, and curtailing the spread of opiate painkillers and heroin in communities across the Southern District.
Blaine Man Pleads Guilty to Transporting Child PornographyRead the Press Release
Contact: Chris Ruge
Assistant United States Attorney
Tel: (207) 945-0373Bangor, Maine: United States Attorney Thomas E. Delahanty II announced that Robert Kinney, Jr., 41, of Blaine, Maine, pled guilty today in U.S. District Court to transporting child pornography.
According to court records, on about August 20 and 21, 2014, Kinney emailed at least nine videos and 15 images of child pornography as he traded with others over the internet. The defendant’s trade in child pornography supported, and was supported by, his personal collection of images and videos depicting the sexual exploitation of young children.
Kinney faces between five and 20 years in prison, a $250,000 fine and between five years and a lifetime of supervised release. He will be sentenced after the completion of a presentence investigation report by the U.S. Probation Office.
The investigation was conducted by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations and the Maine State Police.
Belleville Resident Guilty of Unlawful Possession of A FirearmRead the Press Release
Stephen R. Wigginton, United States Attorney for the Southern District of Illinois, announced today that on September 2, 2015, Jared L. Seats, 25, Belleville, IL, pled guilty to an Indictment charging him with the Unlawful Possession of a Firearm by a Previously Convicted Felon. Seats faces a term of imprisonment of not more than ten years, a fine up to $250,000, or both, and a term of supervised release of not more than three years. Seats also agreed to the forfeiture of the firearm he illegally possessed. Seats’ sentencing is scheduled for November 13, 2015, in East St. Louis, Illinois. Seats has been detained since his bond was revoked on August 24, 2015.
The charge arose when two individuals saw Seats with a firearm at his residence on January 31, 2015, and contacted the Belleville Police Department. During a search of the Seats’ residence that same day, officers recovered a Ruger, 22 caliber rifle from the residence, which Seats admitted that he possessed. Seats has a 2011 conviction for Unlawful Possession with Intent to Deliver Cannabis in St. Clair County, Illinois, and is thus prohibited from possessing a firearm by federal law.
The case was investigated by the Belleville Police Department and the Federal Bureau of Investigation. The case is assigned to Assistant United States Attorney Angela Scott.
Barberton man guilty of lying on immigration forms regarding murder of Croatian coupleRead the Press Release
An Ohio man pleaded guilty to lying on his immigration documents by failing to disclose his role in the ethnically motivated murder of a Croatian couple during the war in the former Yugoslavia, said Steven M. Dettelbach, U.S. Attorney for the Northern District of Ohio, and Marlon Miller, Special Agent in Charge of HSI Detroit, which covers Michigan and Ohio.
Slobodan Mutic, 52, of Barberton, pleaded guilty to one count of knowingly and willingly possessing a U.S. Immigration and Naturalization Form I-94, knowing it to be forged, counterfeited, altered, falsely made or to be have been procured by means of a false claim or statement.
"This nation is a haven for refugees, not human rights criminals,” Dettelbach said. “This defendant lied his way into this nation and he will be punished. And we also hope that he is held to account for any of his actions once he is returned to his home country to face justice."
"The investigation, prosecution, and ultimate removal of individuals like Mutic are paramount to the mission of Homeland Security Investigations and to the safety our communities,” Miller said. “Individuals like Mutic should realize that the United States is not a safe haven for people who have committed horrendous war crimes back in their home countries.”
Mutic possessed a Form I-94 in 2012 that he fraudulently procured. Mutic, on or about August 2001,falsely claimed “no” when filling out immigration forms that asked if he had ever “been arrested, cited, charged, indicted, fined or imprisoned for breaking any law or ordinance…” and again when asked if he had “ever engaged in any genocide, otherwise ordered, incited, assisted or otherwise participated in the killing of any person because of race, religion, nationality ethnic origin or political opinion,” according to court documents.
Those answers were false. Mutic was arrested, detained for a month and questioned by local law enforcement about the murder of Stjepan and Paula Cindric. The answers also contradicted statements he made during a January 8, 1992 interview that were memorialized in an affidavit that Mutic signed, according to court documents.
In that affidavit, Mutic admitted to his participation in the murder of the Cindric family along with accomplice Dragan Perencevic. Mutic and Perencevic targeted the Cindrics because of their ethnicity, according to court documents.
Mutic is scheduled to be sentenced January 6, 2016. He will be subject to stipulated removal from the U.S. to Croatia upon completion of his sentence.
This case is being prosecuted by Assistant U.S. Attorneys Karrie Howard and Matthew J. Cronin following an investigation by Homeland Security Investigations.
Bangor Resident Pleads Guilty to Crack Distribution ConspiracyRead the Press Release
Contact: Joel B. Casey
Assistant United States Attorney
Tel: (207) 945-0373Bangor, Maine: United States Attorney Thomas E. Delahanty II announced that David Chaisson, 23, of Bangor pleaded guilty today in U.S. District Court to conspiracy to possess with the intent to distribute and to distribute 280 grams of a mixture or substance containing cocaine base, commonly referred to as “crack.”
According to court records, between January 2010 and August 2013, the defendant sold crack in Penobscot County and elsewhere. He sold half-gram bags for $50 and gram bags for $100. He transferred the proceeds of the sales to his source of supply in the New Haven, Connecticut area and got cash and crack in exchange. The crack was transported from Connecticut to the Bangor area by other conspirators.
The defendant faces up to twenty years in prison and a $1,000,000 fine. He will be sentenced after the completion of a presentence investigation report by the U.S. Probation Office. He is one of eleven defendants charged in the indictment.
The case was investigated by the Maine Drug Enforcement Agency and the Bureau of Alcohol, Tobacco, Firearms and Explosives (New Haven Office).