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Monday 13 July 2015
Producer of Child Pornography ConvictedRead the Press Release
Miami-Dade resident convicted at trial of producing child pornography.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and Special Agent in Charge George Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, made the announcement.
Patrick Killen, Jr., 22, of Hialeah, was convicted of 15 of 16 charged counts following a jury trial before U.S. District Court Chief Judge K. Michael Moore. Killen was convicted of three counts of production of child pornography, in violation of Title 18, United States Code, Section 2251(a); two counts of distribution of child pornography, in violation of Title 18, United States Code, Section 2252(a)(2); four counts of receipt of child pornography, in violation of Title 18, United States Code, Section 2252(a)(2); four counts of possession of child pornography, in violation of Title 18, United States Code, Section 2252(a)(4)(B); and two counts of transmission of interstate threats, in violation of Title 18, United States Code, Section 875(d). Killen was acquitted of destruction of evidence, in violation of Title 18, United States Code, Section 1519.
Killen is scheduled to be sentenced by Chief Judge Moore on September 24, 2015. At sentencing, Killen faces a minimum mandatory term of 15 years’ imprisonment.
According to the court records and trial testimony, beginning at least as early as November of 2012, Killen created fraudulent social media accounts using assumed identities of teenage girls. Killen stole photographs of minor females from Facebook, Instagram and other sources that he used in support of his falsified accounts. Using the assumed female identities, Killen would search social media websites and engage teenage boys, generally between 11 and 14 years of age, in conversation using internet chat applications such as Kik, Skype, and Omegle. Over the course of these conversations, some of which lasted hours and others months, Killen falsely presented himself to be a teenage girl. Killen would beg, bribe, and cajole the unsuspecting boys to send him sexually explicit pictures of themselves. In response to Killen’s fraudulent representations, hundreds of teenage boys sent Killen sexually explicit photographs identified as child pornography. When many of these young boys expressed reticence in sending additional sexually explicit photographs, Killen would blackmail them by threatening to post the previously provided material on Instagram and other social media sites. Killen collected, catalogued, and traded the child pornography photographs and videos with other individuals around the world using peer-to-peer file sharing programs. Killen produced, possessed, distributed and received thousands of images and video of children engaged in sexually explicit conduct.
With this conviction, U.S. Attorney Ferrer noted “[T]he defendant used the internet to target children and to sexually exploit numerous vulnerable victims. Our Office will continue to join forces with the FBI to combat child pornography offenses. This particular type of criminal activity, now being commonly referred to as “sextortion,” represents an evolving and pernicious threat. Parents must understand this new danger, and make certain that their children are similarly aware. With just an internet connection or a smart phone, even the youngest of children are susceptible to this type of trickery and criminal exploitation.”
“Sextortion is a growing Internet crime by which online predators take advantage of children through terror and manipulation,” said Brenda L. Moxley, Assistant Special Agent in Charge, FBI Miami. “More information about sextortion and how to protect children from this vile crime can be found at FBI.gov.”
Mr. Ferrer commended the investigative efforts of the FBI and Norwood New Jersey Police Department. The case was prosecuted by Assistant U.S. Attorneys Robb Emery and Ben Widlanski.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, 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.
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
President Obama Grants CommutationsRead the Press Release
Today, President Barack Obama granted commutations of sentence to 46 individuals.
The President granted commutations of sentence to the following 46 individuals:
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Jerry Allen Bailey – Charlotte, NC
Offense: Conspiracy to violate narcotics laws (crack) (Western District of North Carolina)
Sentence: 360 months’ imprisonment; 10 years’ supervised release (Apr. 2, 1996)
Commutation Grant: Prison sentence commuted to expire on November 10, 2015.
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Shauna Barry-Scott – Youngstown, OH
Offense: Possession with intent to distribute cocaine base (Northern District of Ohio)
Sentence: 240 months’ imprisonment; 10 years’ supervised release (Oct. 18, 2005)
Commutation Grant: Prison sentence commuted to expire on November 10, 2015.
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Larry Darnell Belcher – Martinsville, VA
Offense: Possession with intent to distribute cocaine; possession with intent to distribute marijuana (Western District of Virginia)
Sentence: Life imprisonment; 10 years’ supervised release (Dec. 15, 1997)
Commutation Grant: Prison sentence commuted to expire on November 10, 2015.
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John L. Houston Brower – Carthage, NC
Offense: Distributed cocaine base (“crack”) (Middle District of North Carolina)
Sentence: Life imprisonment; 10 years’ supervised release (June 22, 2002)
Commutation Grant: Prison sentence commuted to expire on November 10, 2015.
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Nathaniel Brown – Orange Park, FL
Offense: Conspiracy to distribute cocaine (more than five kilograms) and cocaine base (more than 50 grams); distribution of cocaine base (two counts) (Middle District of Florida)
Sentence: Life imprisonment; 10 years’ supervised release (Aug. 1, 2002)
Commutation Grant: Prison sentence commuted to expire on November 10, 2015.
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Norman O’Neal Brown – Hyattsville, MD
Offense: Distribute quantity of mixture or substance containing a detectable amount cocaine base (crack), aiding and abetting (five counts); possess with intent distribute quantity of mixture or substance containing detectable amount of cocaine base (crack), aiding and abetting (District of Maryland)
Sentence: Life imprisonment; 10 years’ supervised release (Jan. 15, 1993)
Commutation Grant: Prison sentence commuted to expire on November 10, 2015.
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Joseph Burgos – Chicago, IL
Offense: Distribution of cocaine; use of a communication facility in the commission of a felony (Northern District of Illinois)
Sentence: 360 months’ imprisonment; eight years’ supervised release; $200,000 fine (Sept. 2, 1993)
Commutation Grant: Prison sentence commuted to expire on November 10, 2015.
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Clarance Callies – San Antonio, TX
Offense: Conspiracy to distribute in excess of 50 grams of a mixture or substance containing a detectable amount of cocaine base (“crack cocaine”); possession with intent to distribute in excess of 50 grams of a mixture or substance containing a detectable amount of cocaine base (“crack cocaine”) (Western District of Texas)
Sentence: 240 months imprisonment; 8 years’ supervised release (Mar. 25, 2002)
Commutation Grant: Prison sentence commuted to expire on November 10, 2015.
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Anthony Leon Carroll – Tampa, FL
Offense: Possession with intent to distribute cocaine base (Middle District of Florida)
Sentence: 262 months’ imprisonment; 5 years’ supervised release (Sept. 3, 1999)
Commutation Grant: Prison sentence commuted to expire on November 10, 2015.
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Juan Diego Castro – Laredo, TX
Offense: Possession with intent to distribute a quantity in excess of five kilograms of cocaine (Southern District of Texas)
Sentence: 240 months’ imprisonment; 10 years’ supervised release (Feb. 1, 2002)
Commutation Grant: Prison sentence commuted to expire on November 10, 2015.
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Joe Louis Champion – Houston, TX
Offense: Conspiracy to possess with intent to distribute 376.9 grams of cocaine base (crack); aiding and abetting the possession with intent to distribute 376.9 grams of cocaine base (crack) (Southern District of Texas)
Sentence: Life imprisonment; 10 years’ supervised release; $4,000 fine (June 19, 1997)
Commutation Grant: Prison sentence commuted to expire on November 10, 2015, and the remaining balance of the fine remitted.
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Cedric Culpepper – Orlando, FL
Offense: Possession with intent to distribute cocaine base; possession with intent to distribute five grams or more of cocaine base (Middle District of Florida)
Sentence: 188 months’ imprisonment; 4 years’ supervised release (Nov. 15, 2004)
Commutation Grant: Prison sentence commuted to expire on November 10, 2015.
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Walter R. Dennie – Gary, IN
Offense: Conspiracy to distribute cocaine (two counts) (Middle District of Florida)
Sentence: 240 months’ imprisonment; 10 years’ supervised release (Apr. 25, 2002)
Commutation Grant: Prison sentence commuted to expire on November 10, 2015.
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Steven D. Donovan – Oak Creek, WI
Offense: Conspiracy to possess with intent to distribute cocaine; interstate travel to promote distribution of cocaine; possession with intent to distribute cocaine (Eastern District of Wisconsin)
Sentence: Life imprisonment; 10 years’ supervised release (Oct. 16, 1992)
Commutation Grant: Prison sentence commuted to expire on November 10, 2015.
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Romain Dukes – Chicago, IL
Offense: Conspiracy to distribute cocaine base, “crack”; distribution of cocaine base, “crack” (two counts) (Southern District of Iowa)
Sentence: Life imprisonment; 10 years’ supervised release (Oct. 1, 1997)
Commutation Grant: Prison sentence commuted to expire on November 10, 2015.
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Tony Lynn Hollis – Knoxville, TN
Offense: Possession with intent to distribute 26.5 grams of cocaine base (Eastern District of Tennessee)
Sentence: 262 months’ imprisonment; eight years’ supervised release (June 8, 2001)
Commutation Grant: Prison sentence commuted to expire on November 10, 2015.
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Alex William Jackson – Mineral, VA
Offense: Conspiracy to distribute cocaine base (Western District of Virginia)
Sentence: 262 months’ imprisonment; 60 months’ supervised release (Dec. 22, 1999); amended to 240 months’ imprisonment (June 25, 2008)
Commutation Grant: Prison sentence commuted to expire on November 10, 2015.
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Jackie Johnson – Townsend, DE
Offense: Possession with the intent to distribute more than 50 grams of a cocaine base (District of Delaware)
Sentence: 240 months’ imprisonment; 10 years’ supervised release (Jan. 30, 2007)
Commutation Grant: Prison sentence commuted to expire on November 10, 2015.
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Jerome Wayne Johnson – Fort White, FL
Offense: 1. Cultivation of marijuana plants (Middle District of Florida)
2. Conspiracy to manufacture, distribute, and possess with intent to distribute more than 1,000 marijuana plants (Northern District of Florida)
Sentence: 1. 60 months’ imprisonment, 5 years’ supervised release (June 25, 2003)
2. 20 years’ imprisonment, concurrent to sentence imposed above, 10 years’ supervised release (May 27, 2004)
Commutation Grant: Prison sentence commuted to expire on November 10, 2015.
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Willie C. Johnson – Steele, MO
Offense: The defendant did knowingly conspire to distribute and possess with the intent to distribute cocaine base; the defendant did knowingly distribute cocaine base; the defendant did knowingly possess with the intent to distribute cocaine base (Eastern District of Missouri)
Sentence: 360 months’ imprisonment; five years’ supervised release (Feb. 18, 2005); amended to 168 months’ imprisonment (Feb. 12, 2015)
Commutation Grant: Prison sentence commuted to expire on November 10, 2015.
- Mark Anthony Jones – Boynton Beach, FL
Offense: Distribution of cocaine base (Northern District of Florida)
Sentence: Life imprisonment; 10 years’ supervised release (July 28, 1999)
Commutation Grant: Prison sentence commuted to expire on November 10, 2015.
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Roy Larry Lee – St. Petersburg, FL
Offense: Conspiracy to possess with intent to distribute cocaine base (enhanced penalty); distribution of 50 grams or more of cocaine base (two counts) (Middle District of Florida)
Sentence: Life imprisonment; 10 years’ supervised release (May 3, 1990)
Commutation Grant: Prison sentence commuted to expire on November 10, 2015.
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Kenneth Lorenzo Lewis – Charlottesville, VA
Offense: Conspiracy to distribute cocaine base (Western District of Virginia)
Sentence: 262 months’ imprisonment; five years’ supervised release (Nov. 17, 2000)
Commutation Grant: Prison sentence commuted to expire on November 10, 2015.
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Douglas M. Lindsay, II – Newberry, SC
Offense: Conspiracy to possess with intent to distribute and distribution of cocaine and cocaine base (District of South Carolina)
Sentence: Life imprisonment; five years’ supervised release (Dec. 20, 1996); amended to 293 months’ imprisonment (Mar. 4, 2015)
Commutation Grant: Prison sentence commuted to expire on November 10, 2015.
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Kevin Matthews – James Island, SC
Offense: Conspiracy to distribute and possess with intent to distribute cocaine base (District of South Carolina)
Sentence: 232 months’ imprisonment; 10 years’ supervised release (Feb. 11, 2004)
Commutation Grant: Prison sentence commuted to expire on November 10, 2015.
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Marlon McNealy – St. Petersburg, FL
Offense: Conspiracy to commit racketeering (two counts); conspiracy to distribute cocaine base; knowingly and intentionally distributing 50 grams or more of cocaine base (three counts) (Middle District of Florida)
Sentence: Life imprisonment; 10 years’ supervised release (Aug. 18, 1993)
Commutation Grant: Prison sentence commuted to expire on November 10, 2015.
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Brian Nickles – New Orleans, LA
Offense: Distribution of more than 50 grams of cocaine base (two counts) (Eastern District of Louisiana)
Sentence: 240 months’ imprisonment; 10 years’ supervised release (Apr. 28, 2004)
Commutation Grant: Prison sentence commuted to expire on November 10, 2015.
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Jermaine Lee Osborne – Roanoke, VA
Offense: Conspiracy to possess with intent to distribute at least 50 grams of cocaine base (Western District of Virginia)
Sentence: 240 months’ imprisonment; 10 years’ supervised release (May 2, 2006)
Commutation Grant: Prison sentence commuted to expire on November 10, 2015.
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Marcus H. Richards – Miami, FL
Offense: Conspiracy to distribute and to possess with intent to distribute more than five kilograms of cocaine and more than 50 grams of cocaine base (Northern District of Florida)
Sentence: 240 months’ imprisonment; 10 years’ supervised release (June 13, 2005)
Commutation Grant: Prison sentence commuted to expire on November 10, 2015.
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Patrick Roberts – Detroit, MI
Offense: Conspiracy to possess with intent to distribute and to distribute controlled substances (Eastern District of Michigan)
Sentence: Life imprisonment; 10 years’ supervised release (July 8, 1999)
Commutation Grant: Prison sentence commuted to expire on November 10, 2015.
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Bryant Keith Shelton – Kissimmee, FL
Offense: Distribution of cocaine base (Middle District of Florida)
Sentence: 188 months’ imprisonment; five years’ supervised release (Apr. 1, 2003)
Commutation Grant: Prison sentence commuted to expire on November 10, 2015.
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Ezekiel Simpson – St. Louis, MO
Offense: Possession with intent to distribute cocaine base (Eastern District of Missouri)
Sentence: 240 months’ imprisonment; 10 years’ supervised release (Feb. 3, 2005)
Commutation Grant: Prison sentence commuted to expire on November 10, 2015.
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Katrina Stuckey Smith – Montrose, GA
Offense: Conspiracy to possess with intent to distribute cocaine and cocaine base (Middle District of Georgia)
Sentence: 292 months’ imprisonment; 10 years’ supervised release (July 20, 2000); amended to 240 months’ imprisonment (Apr. 2, 2008).
Commutation Grant: Prison sentence commuted to expire on November 10, 2015.
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James Marion Stockton – Martinsville, VA
Offense: Possession with intent to distribute more than five grams of cocaine base; possession of a firearm during and in relation to a drug trafficking offense; possession of a firearm by a convicted felon; possession with intent to distribute cocaine base (Western District of Virginia)
Sentence: 420 months’ imprisonment; eight years’ supervised release (May 27, 2003)
Commutation Grant: Prison sentence commuted to expire November 10, 2015.
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Bart Stover – Ashland, OH
Offense: Conspiracy to possess with the intent to distribute marijuana and cocaine; use of a communication facility to facilitate the commission of drug trafficking offense, aiding and abetting (Northern District of Ohio)
Sentence: 240 months’ imprisonment; 10 years’ supervised release (Apr. 12, 2005)
Commutation Grant: Prison sentence commuted to expire on November 10, 2015.
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Robert Earl Thomas, Jr. – Houston, TX
Offense: Possession with intent to distribute a controlled substance (Eastern District of Texas)
Sentence: 262 months’ imprisonment; five years’ supervised release (June 29, 1999)
Commutation Grant: Prison sentence commuted to expire on November 10, 2015.
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Bruce Todd – Atlanta, GA
Offense: Distribution of at least 50 grams of crack cocaine (Northern District of Georgia)
Sentence: 262 months’ imprisonment; five years’ supervised release (Mar. 3, 2003)
Commutation Grant: Prison sentence commuted to expire on November 10, 2015.
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Jeffery Jerome Toler – Pensacola, FL
Offense: Conspiracy to possess with intent to distribute cocaine and cocaine base (Northern District of Florida)
Sentence: Life imprisonment; 10 years’ supervised release (June 13, 1996)
Commutation Grant: Prison sentence commuted to expire on November 10, 2015.
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Donald Vanderhorst – Charleston, SC
Offense: Conspiracy to possess with intent to distribute and distribution of five kilograms or more of cocaine and 50 grams or more of cocaine base (District of South
Carolina)
Sentence: 240 months’ imprisonment; 10 years’ supervised release (Mar. 15, 2006)
Commutation Grant: Prison sentence commuted to expire on November 10, 2015.
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James Nathan Walton – Thibodeaux, LA
Offense: Possession with intent to distribute cocaine base (Western District of Louisiana)
Sentence: 240 months’ imprisonment; 10 years’ supervised release (Sept. 16, 2004)
Commutation Grant: Prison sentence commuted to expire on November 10, 2015.
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Telisha Rachette Watkins – Charlotte, NC
Offense: Conspiracy to possess with intent to distribute cocaine and cocaine base (Western District of North Carolina)
Sentence: 240 months’ imprisonment; eight years’ supervised release (Oct. 25, 2007)
Commutation Grant: Prison sentence commuted to expire on November 10, 2015.
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Dunning Wells – Fort Myers, FL
Offense: Unlawful possession of a firearm; distribution of a quantity of cocaine; possession of a firearm during and in relation to a drug trafficking crime (Middle District of Florida)
Sentence: 502 months’ imprisonment; six years’ supervised release (Feb. 20, 1992)
Commutation Grant: Prison sentence commuted to expire on November 10, 2015.
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Kimberly A. Westmoreland – Columbus, OH
Offense: Conspiracy to distribute in excess of 50 grams of cocaine base; carrying a firearm in relation to a drug trafficking crime (Southern District of Ohio)
Sentence: 180 months’ imprisonment; five years’ supervised release (Jan. 21, 2004)
Commutation Grant: Prison sentence commuted to expire on November 10, 2015.
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James Rufus Woods – Leasburg, NC
Offense: Possess with intent to distribute cocaine base (“crack”) (Middle District of North Carolina)
Sentence: Life imprisonment; 10 years’ supervised release (Nov. 23, 1998)
Commutation Grant: Prison sentence commuted to expire on November 10, 2015.
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John M. Wyatt – Las Cruces, NM
Offense: Possession with intent to distribute marihuana (Southern District of Illinois)
Sentence: 262 months’ imprisonment; eight years’ supervised release; $500 fine (Aug. 30, 2004)
Commutation Grant: Prison sentence commuted to expire on November 10, 2015.
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Robert Joe Young – Joppa, AL
Offense: Conspiracy to possess with the intent to distribute a mixture and substance containing methamphetamine; possession with the intent to distribute a mixture and substance containing methamphetamine; use of a firearm during and in furtherance of a drug trafficking crime; possession with the intent to distribute a mixture and substance containing cocaine; carrying a firearm during and in relation to a drug trafficking crime; endeavoring to influence and impede the administration of justice (Northern District of Alabama)
Sentence: 240 months’ imprisonment; 5 years’ supervised release (Dec. 16, 2002)
Commutation Grant: Prison sentence commuted to expire on November 10, 2015.
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Orlando Man Sentenced to More Than 5 Years in Federal Prison for Investment FraudRead the Press Release
Orlando, Florida – U.S. District Judge Paul G. Byron has sentenced Dante S. Giovannetti (50, Orlando) to five years and three months in federal prison for wire fraud. He was also ordered to pay $663,975.61 in restitution. Giovannetti pleaded guilty on April 14, 2015.
According to court documents, Giovannetti solicited four individuals to provide him with approximately $700,000 that Giovannetti claimed would be pooled, placed into a trading account, and used to trade in E-mini S&P 500 futures contracts. To induce his investors, Giovannetti represented that he had experience in earning profits from trading S&P futures, and provided investors with statements that showed large trading profits that Giovannetti claimed to have earned. Contrary to his representations, Giovannetti did not invest the monies in S&P futures, but instead used significant portions of the investors' funds for his personal benefit. To conceal his fraud, he provided his victims with false trading statements that had been doctored to show tens of millions of dollars in fictitious profits from trading S&P 500 futures contracts and more than $53 million in cash on deposit as of July 31, 2014.
After Giovannetti failed to return their money, his investors complained to the National Futures Association, which commenced an emergency examination of one of Giovannetti’s companies on October 14, 2014. On October 30, 2014, the U.S. Commodity Futures Trading Commission (CFTC) filed a civil action against Giovannetti and several of his entities in federal court, in Orlando. A statutory restraining order was entered against Giovannetti and his entities freezing their assets, granting expedited discovery, and prohibiting the destruction of documents. Giovannetti failed to comply with the orders of the Court, was held in contempt, and a warrant was issued for his arrest in the CFTC civil case in November 2014. On November 21, 2014, Giovannetti was charged in a sealed criminal complaint in the Middle District of Florida (MDFL).
After his scheme was uncovered, Giovannetti fled to Canada. On January 15, 2015, he was deported back to the United States. The following day, Giovannetti made his initial appearance on the criminal complaint in federal court, in Seattle, Washington. He was detained and returned to the MDFL by the United States Marshals Service.
This case was investigated by the Federal Bureau of Investigation and the State of Florida’s Office of Financial Regulation, with assistance from the United States Marshals Service and the U.S. Commodity Futures Trading Commission. It was prosecuted by Assistant United States Attorney Roger B. Handberg.
North Alabama OCDETF Earns National Recognition for Group Fighting Heroin SupplyRead the Press Release
BIRMINGHAM -- The Organized Crime Drug Enforcement Task Force for the federal Northern District of Alabama earned national recognition for the focused effort it launched in 2012 to stem the flow of heroin into Birmingham by prosecuting some of the largest heroin distributors in the city, on down to street-level dealers, announced U.S. Attorney Joyce White Vance.
OCDETF Regional Director Michael F. Smith today presented a 2014 National OCDETF Award to an interagency Heroin Initiative Group of investigators and prosecutors working with Assistant U.S. Attorneys Gregory R. Dimler and L. James Weil. Dimler leads the OCDETF section in the U.S. Attorney's Office. The bi-annual awards recognize outstanding investigations from the OCDETF Regions, as well as individuals who best exemplify the mission and spirit of the OCDETF Program, said national Organized Crime Drug Enforcement Task Forces Director Bruce Ohr.
"The initiative launched in 2012 was a major strike at the supply of heroin into Birmingham, which significantly interrupted the flow of the drug into our community and shut down some major suppliers," Vance said. "Of course, there are always new sources, new traffickers and new street dealers, so the fight continues," she said. "We have an ongoing commitment to working with federal, state and local law enforcement partners to interdict the heroin supply, while working with our community-based initiative and partners in the medical community to prevent and treat addiction," she said. "I am grateful we have groups like this, committed to protecting the community."
During today’s award presentation, Ohr thanked the interagency Heroin Initiative Group for developing a unified approach to address the heroin epidemic threatening the Birmingham area. “Your contributions and achievements have bolstered the OCDETF Program’s efforts to fight heroin and positively impact our communities,” he said.
The OCDETF Program is a partnership between federal, state and local law enforcement agencies. The principal mission of the OCDETF Program is to identify, disrupt, and dismantle the most serious drug-trafficking organizations primarily responsible for the nation’s illegal drug supply.
Participants in the 2012-2013 Heroin Initiative Group that received the award, along with Dimler and Weil, are: Hattie French and Jude Washington, Jefferson County Sheriff's Office; Gregory S. Gauger and M. Wayne Gerhardt, FBI; Jason Green, Pelham Police Department; M. Ezra Heath, Internal Revenue Service, Criminal Investigation; Scott Holmes, Tuscaloosa County District Attorney’s Office; Alan Miller, Shelby County District Attorney’s Office; John Walker, Birmingham Police Department, and Patrick Wilson and Troy Wilson, Drug Enforcement Administration.
A spike in heroin overdose deaths in the Greater Birmingham Metro Area spurred the group's formation. The U.S. Attorney called law enforcement together in July 2012 to develop a unified approach to reduce the spread of the deadly drug. Heroin deaths had almost doubled in Jefferson County from 2011 to 2012, climbing from 30 to 58. The number of heroin deaths also soared, from 15 to 82, between 2008 and 2012 in Jefferson, Shelby and Tuscaloosa counties. The rise in heroin deaths leveled off for a year after the law enforcement push, but took off again in 2014, with 137 in Jefferson County alone.
The 2012 initiative saw federal, state and local law enforcement combine to share intelligence and work within the framework of two OCDETF investigations to disrupt the supply of heroin and dismantle the organizations distributing it. While the investigations were under way, the U.S. attorney and law enforcement leaders began a media outreach to educate the community about the growing presence and deadly nature of heroin.
On the supply side, the OCDETF investigation called, "King of the Hill,” focused on the heroin trafficking activities of Billy “Champ” Williams Jr., and his associates. The work dismantled Williams' organization and included the seizure of two kilograms of nearly pure heroin and a kilogram and a half of cocaine. Williams and 10 members of his organization were convicted of drug trafficking or money laundering and the government seized more than $500,000 in cash, jewelry, furs and luxury vehicles. Williams was sentenced to 22 years in prison.
In a second OCDETF operation, called "Blue Magic," the DEA, and multiple local and state agencies, simultaneously targeted lower-level heroin dealers and their sources of supply. The office wanted drug dealers and the community to know that federal authorities are serious in tackling the heroin problem at the street level and up the supply chain.
Of the 49 defendants indicted on federal charges in Blue Magic, 40 pleaded guilty and one was convicted at trial. One of those defendants pleaded guilty to distributing heroin that caused a death and was sentenced to the mandatory minimum of 20 years in prison. The remaining sentences ranged from probation for the first-time offenders to 12 ½ years for the dealers who qualified as career offenders under Federal Sentencing Guidelines. As part of the initiative, more than 30 individuals were charged in state courts with trafficking small amounts of heroin.
Nine Excelsior Springs Residents Among 26 Indicted for $4.4 Million Drug-Trafficking ConspiraciesRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that nine Excelsior Springs residents are among 26 persons indicted for their roles in related drug-trafficking conspiracies that distributed more than 100 kilograms of methamphetamine and three pounds of heroin over the past five years.
Steven Lee Schreier, Jr., 30, Marion Eugene Brammer, 51, Darrin Gene Berry, 50, Rodney Earl King, 49, Jackie R. Love, Jr., 58, Anthony Ray Stevenson,44, Paula Rae Scott, 46, William Dean Campbell, 34, and Jason Lee Kirtley, 42, all of Excelsior Springs, Mo.; Sabrena Lynn Morgan, 38, Elgin Eugene Dothage, 39, and Ryan A. Battagler, 36, all of Kearney, Mo.; Joshua Keith Bowers, 31, and Taylor Lee Syas, 23, both of Polo, Mo.; Jason Daniel Davis, 41, of Liberty, Mo.; Brian Michael Bowers, 32, of Richmond, Mo.; Ronald Louis Roberts, 52, of Lathrop, Mo.; Jay Harrison Lee Carder, 29, and Gary Dewayne Brown, 35, both of Cowgill, Mo.; Franklin Charles Carter, 26, of Grandview, Mo.; Jose Luis Ruiz-Salazar, 36, Gabriel Ruiz-Salazar, 32, Gregory C. Bullock, 46, Bryan D. Carroll, 27, and Caleb Dean Hayes, 34, all of Kansas City, Mo., and Brittany James Brehm, 37, of Bland, Mo., were charged in an eight-count superseding indictment that was returned under seal by a federal grand jury in Kansas City, Mo., on Tuesday, July 7, 2015.
The superseding indictment, which replaces two indictments returned on July 29, 2014, and Feb. 11, 2015, includes additional defendants and additional charges. Schreier, Morgan, Dothage, Joshua Bowers, Roberts and Carter were charged in those earlier indictments.
The superseding indictment was unsealed and made public today upon the arrest and initial court appearances of several defendants. Ten defendants arrested today were Brammer, Berry, King, Love, Stevenson, Scott, Campbell, Syas, Brown and Gabriel Ruiz-Salazar. Dothage, Joshua Bowers, Roberts, Carter and Jose Luis Ruiz-Salazar were already in custody.
The superseding indictment alleges that all of the defendants (except Bullock and Brehm) participated in a conspiracy to distribute 500 grams or more of methamphetamine from Jan. 1, 2010, to July 7, 2015. Bullock and Brehm are charged in a separate conspiracy to distribute 500 grams or more of methamphetamine from Jan. 1, 2010, to July 7, 2015.
The superseding indictment alleges that Joshua Bowers and his brother, Brian Bowers, Syas, Brown and Carder participated in a conspiracy to distribute one kilogram or more of heroin from Jan. 1, 2010, to July 7, 2015.
In addition to the drug-trafficking conspiracies, Joshua and Brian Bowers and Syas are charged together in one count of possessing methamphetamine with the intent to distribute and one count of possessing heroin with the intent to distribute.
Joshua and Brian Bowers, Syas, Morgan and Dothage are also charged together in one count of possessing firearms during an in relation to a drug-trafficking crime. They allegedly were in possession of a loaded Springfield Armory .40-caliber semi-automatic handgun, a New England 12-gauge shotgun, a pink pump-action shotgun, a loaded 9mm Hi Point pistol, a loaded Smith & Wesson .22-caliber pistol, and various unrecovered firearms identified by numerous drug customers and co-conspirators as being in their possession during the conspiracy period.
Joshua and Brian Bowers and Dothage are also charged together in one count of being felons in possession of firearms and ammunition.
Joshua Bowers, Syas, Morgan and Dothage are also charged together in one count of maintaining their residences in Kearney and Polo for the purpose of distributing and using methamphetamine and heroin.
The federal indictment also contains a forfeiture allegation, which would require all of the defendants, jointly and severally, to forfeit to the government any property derived from the proceeds of the alleged offenses, including a money judgment of $4,359,600. This money judgment is based on a conservative street price of $1,200 per ounce of methamphetamine and the total conspiracy distribution of at least 100 kilograms of methamphetamine, as well as a conservative street price of $2,500 per ounce of heroin and an overall conspiracy distribution of approximately three pounds of heroin.
Dickinson cautioned that the charges contained in this indictment are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorney Bruce Rhoades. It was investigated by the Clay County Drug Task Force, the Missouri State Highway Patrol, the Caldwell County, Mo., Sheriff’s Department, the Buchanan County Drug Strike Force and the Drug Enforcement Administration.
New York Woman Charged in Real Estate Investment SchemeRead the Press Release
NEWARK, N.J. – A New York woman was charged today with running a real estate investment scheme that defrauded victims of hundreds of thousands of dollars, U.S. Attorney Paul J. Fishman announced.
Alisa Adler, 54, of New York, is charged by complaint with one count of wire fraud. Adler made her initial appearance this afternoon before U.S. Magistrate Judge Steven C. Mannion in Newark federal court. She was released on unsecured $100,000 bond.
According to the criminal complaint:
From January 2009 through December 2011, Adler took loans and investments from multiple victims and told them that their money would be used to purchase and develop real estate projects through her company, ASG Real Estate Services Group Inc. To induce potential victim investors to give her money, Adler provided them with promotional materials and other documents, and told them that their money would be repaid within a certain amount of time.
Instead, Adler allegedly perpetrated a Ponzi scheme in which she used new investor money to fund principal and interest payments to existing investors and to pay for her own personal expenses. For instance, in May 2010, after soliciting a victim to invest $500,000 to fund a real estate acquisition in or around of Kerkonkson, New York, Adler instead used most of the money to pay other investors and to pay her household bills, transportation costs, meals and entertainment.
The wire fraud count carries a maximum potential penalty of 20 years in prison and a $250,000 fine, or twice the amount of the loss caused by the offense.
U.S. Attorney Fishman credited special agents with the FBI, under the direction of Special Agent in Charge Richard M. Frankel in Newark, with the investigation leading to the charge.
The government is represented by Special Assistant U.S. Attorney Andrew R. Tyler of the U.S. Attorney’s Office Criminal Division in Newark.
The charge and allegations contained in the complaint are merely accusations, and the defendant is considered innocent unless and until proven guilty.
Defense counsel: Jacob Laufer Esq., New York
Naples Man Pleads Guilty to $7 Million Investment SchemeRead the Press Release
Fort Myers, Florida – United States Attorney A. Lee Bentley, III announces that Dorian Garcia (30, Naples) today pleaded guilty to wire fraud for operating an investment scheme involving nearly 100 victims who invested more than $7 million. Garcia faces a maximum penalty of 20 years in federal prison, and he will be required to pay restitution in the amount of $3,108,734.52, representing losses to victims as a result of his scheme. A sentencing date has not yet been set.
According to the plea agreement, between February 2009 and April 2015, Garcia solicited and received at least $7,348,620 from approximately 96 victims located throughout the United States. Of that amount, he has repaid approximately $3,990,285 to his victims. Garcia, through a number of companies that he controlled, including DG Wealth Management, persuaded individuals to invest with him. He induced these investors based on misrepresentations that he would invest their funds in a pool and would guarantee their initial investment, as well as a specific rate of return over a defined period of time. In support of his representations that these investments were secured, Garcia provided investors with fake bank statements that reflected large balances. The true account balances were a fraction of the amounts claimed, and were insufficient to support the guarantees that he had promised.
Garcia invested only a small portion of the funds he received. After investors gave him money, he would send them false trading statements that reflected false earned trading profits. Garcia used a greater portion of the investors’ funds to repay other investors. He also used a significant portion of the funds for personal and business expenses, including artwork, rent, luxury car payments, domestic help (including a personal chef), jewelry, and dinner parties.
When investors began asking for their money back, Garcia provided a series of misrepresentations as to why he could not return their money, often insisting that they sign new agreements falsely appearing to convert their investments into loans. In addition, Garcia encouraged investors to mislead others, including investigators, about the true nature of their investments with him. He encouraged his investors to falsely claim that they had made a loan to his companies when, in fact, they had provided Garcia money to invest on their behalf.
Pursuant to the plea agreement, Garcia will forfeit to the United States five pieces of artwork that were purchased with fraud proceeds. In addition, he will also forfeit a $10,000 retainer that he paid to a law firm using fraud proceeds and will be liable for a forfeiture money judgment in the amount of the proceeds he obtained from the offense.
This case was investigated by the Federal Bureau of Investigation, with assistance from the Commodities Futures Trading Commission and the State of Florida, Office of Financial Regulation. It is being prosecuted by Assistant United States Attorney David G. Lazarus.
NYPD Officer Andre Clarke Arrested for Conspiracy to Distribute Oxycodone in VermontRead the Press Release
The Office of the United States Attorney for the District of Vermont stated that Andre Clarke, age 36, of the Bronx, New York, was arrested today in Queens for conspiring to distribute Oxycodone in Vermont from 2011 through June 2014. Clarke, who has been employed as a New York City police officer since 2002, will have his initial appearance tomorrow in federal court in Brooklyn. At this hearing, he is expected to be given a date to report to Vermont federal court for arraignment. At the arraignment in Vermont, he will enter a plea to the charge. On July 7, 2015, a federal grand jury sitting in Burlington handed down a multi-count Indictment, which charges Clarke, Michael Foreste, and Dannis Hackney with the Vermont Oxycodone conspiracy. Foreste and Hackney are charged with additional drug trafficking and money laundering offenses.
According to prosecutors, Clarke, who lived in the Bronx and Long Island during the events in question, supplied oxycodone to Michael Foreste, of Valley Stream, New York. Foreste, in turn, supplied the pills to Dannis Hackney, of Burlington, Vermont, who sold them to Burlington area addicts. Foreste personally brought Hackney pills, and sometimes sent them via U.S. Mail. Clarke, Foreste, and Hackney transferred drug proceeds using various bank accounts. Foreste and Hackney are also each charged with two counts of money laundering based on this banking activity. Foreste and Hackney have been in custody since their arrests in June 2014 and are awaiting trial.
The Indictment charging Clarke with drug trafficking is an accusation only; he is presumed innocent unless and until proven guilty. If convicted on the oxycodone conspiracy charge, each defendant faces up to 20 years in prison. The money laundering counts carry also carry a maximum penalty of 20 years' imprisonment. The actual sentence, in the event of conviction, will be determined by the Court with reference to the advisory Federal Sentencing Guidelines and other statutory sentencing factors.
The investigation spanned more than a year and was a collaborative effort of Homeland Security Investigations; the Federal Bureau of Investigation; the Drug Enforcement Administration; and the New York City Police Internal Affairs Bureau.
Assistant United States Attorney Christina E. Nolan is handling the prosecution.
Moundsville, WV man convicted of methamphetamine traffickingRead the Press Release
WHEELING, WEST VIRGINIA – Nicholas S. Dubrowski, 27, an oil and gas worker living in Moundsville, West Virginia, was convicted of methamphetamine trafficking, United States Attorney William J. Ihlenfeld, II, announced.
An investigation by the Marshall County Drug and Violent Crime Task Force, a HIDTA-funded initiative, revealed that Dubrowski received shipments of crystal methamphetamine from a source in the southwestern United States. He would then redistribute to fellow oil and gas industry workers in Marshall County, West Virginia.
Dubrowski, also known as “Country,” pled guilty to one count of “Possession with Intent to Distribute Methamphetamine.” He faces up to 20 years in prison and a fine of up to $1,000,000.00. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Sarah Montoro prosecuted the case on behalf of the government.
Senior U.S. District Judge Frederick P. Stamp presided.
Mercer County, New Jersey, Woman Sentenced to 37 Months in Prison for Paying $671,000 in Bribes to Fraudulently Obtain Government Construction ContractsRead the Press Release
TRENTON, N.J. – A Hopewell, New Jersey, woman was sentenced today to 37 months in prison for bribing a former Department of Veterans Affairs (VA) supervisory engineer at the VA’s campus in East Orange, New Jersey, in order to fraudulently obtain $6 million in construction contracts, including those reserved for service-disabled, veteran owned small businesses, U.S. Attorney Paul J. Fishman announced.
Donna Doremus, 47, previously pleaded guilty before U.S. District Judge Mary L. Cooper to three counts of a four-count information charging her with one count of bribing a public official, one count of conspiracy to defraud the United States and two counts of making and subscribing to false federal tax returns. Judge Cooper imposed the sentence today in Trenton federal court.
According to documents filed in this case and statements made in court:
The bribes were paid in connection with VA contracts awarded to companies Doremus owned. She also admitted to a conspiracy to defraud the United States by falsely representing that one of her companies was owned and controlled by a service-disabled veteran.
From 2007 to July 2012, Doremus paid approximately $671,000 in bribes to a former VA official, Jarod Machinga, 45, also of Hopewell, in connection with VA contracts awarded to three companies she owned and controlled. In his position as a supervisory engineer, Machinga had the authority and influence to direct certain VA construction contracts to particular companies. Machinga directed more than $6 million of VA construction projects to Doremus’ companies.
One of Doremus’s companies, Tyro General Construction (Tyro), entered into a service-disabled, veteran-owned small business contract with the VA. Congress has established a program whereby certain VA contracts are reserved for small businesses that are owned and controlled by service-disabled veterans. Doremus conspired with Machinga to falsely represent to the VA that Tyro was a service-disabled, veteran-owned small business so that Tyro could improperly obtain a lucrative construction contract from the VA. Machinga then used his official position and influence at the VA to award such a contract to Tyro. In total, Tyro was paid more than $3 million by the VA in connection with this service-disabled veteran-owned contract.
For tax years 2009 and 2010, Doremus falsely reported that certain bribe payments she made to Machinga, as well some personal expenditures, were her companies’ business expenses. As a result, she failed to pay $250,374 in federal income taxes that she owed the IRS.
In addition to the prison term, Judge Cooper ordered Doremus to serve one year of supervised release. Restitution will be determined at a hearing on Aug. 26, 2015. As part of her plea, she agreed to a forfeiture money judgment of $671,975.
On Sept.18, 2013, Machinga pleaded guilty before Judge Cooper in connection with his accepting kickbacks from Doremus and engaging in a scheme to defraud the VA. He was sentenced to 46 months in prison on June 30, 2015.
U.S. Attorney Fishman credited special agents of the Department of Veterans Affairs, Office of Inspector General, under the direction of Special Agent in Charge Jeffrey Hughes; the FBI, under the direction of Special Agent in Charge Richard M. Frankel; and IRS-Criminal Investigation, under the direction of Special Agent in Charge Jonathan D. Larsen, with the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorneys Vikas Khanna of the U.S. Attorney’s Office Special Prosecutions Division and Peter Gaeta of the U.S. Attorney’s Office Asset Forfeiture and Money Laundering Unit in Newark.
Defense counsel: Michael A. Caudo Esq., Philadelphia
Massachusetts Man Charged with Being a Felon in Possession of FirearmsRead the Press Release
Government Moves for Pretrial Detention Based on Terrorist Attack Plans
An Adams, Massachusetts, man has been arrested and charged in connection with a plot to engage in terrorism on behalf of ISIL. The announcement was made today by Assistant Attorney General for National Security John P. Carlin, U.S. Attorney Carmen M. Ortiz of the District of Massachusetts and Special Agent in Charge Vincent Lisi of the FBI’s Boston Field Division.
A criminal complaint, charging Alexander Ciccolo, aka Ali Al Amriki, 23, with being a felon in possession of firearms was unsealed today. Additional information regarding Ciccolo’s plans was filed this morning in advance of a detention hearing to be held tomorrow afternoon in Springfield, Massachusetts.
According to the complaint affidavit, on July 4, 2015, Ciccolo took delivery of four firearms which he had ordered from a person who was cooperating with members of the Western Massachusetts Joint Terrorism Task Force, and who had been communicating with Ciccolo about Ciccolo’s plans to engage in a terrorist act. Ciccolo was arrested immediately after taking delivery of the firearms, which included a Colt AR-15 .223 caliber rifle, a SigArms Model SG550-1 556 caliber rifle, a Glock 17- 9mm pistol and a Glock 20-10 mm pistol. Ciccolo had previously been convicted of a crime punishable by more than a year in jail and therefore was prohibited from possessing firearms.
In an affidavit filed in support of the government’s detention motion, it is alleged that Ciccolo is a supporter of the Islamic State of Iraq and the Levant (ISIL), a designated foreign terrorist organization. According to the affidavit, Ciccolo spoke with a cooperating witness in recorded conversations about his plans to commit acts of terrorism inspired by ISIL, including setting off improvised explosive devices, such as pressure cookers filled with black powder, nails, ball bearings and glass, in places where large numbers of people congregate, such as college cafeterias. Prior to his arrest, agents observed Ciccolo purchase a pressure cooker similar to that used in the Boston Marathon bombings.
It is also alleged that during a search of Ciccolo’s apartment after he was arrested, agents found several partially constructed “Molotov cocktails.” These incendiary devices contained what appeared to be shredded Styrofoam soaking in motor oil. Ciccolo had previously stated that this mixture would cause the fire from the exploded devices to stick to people’s skin and make it harder to put the fire out.
A detention hearing has been scheduled for July 14 at 3:30 p.m. at the U.S. District Court in Springfield, Massachusetts.
The charge of being a felon in possession of firearms provides a sentence of no greater than 10 years in prison, three years of supervised release, and a fine of $250,000. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
This investigation is being conducted by the Western Massachusetts Joint Terrorism Task Force. The case is being prosecuted by Assistant U.S. Attorneys Kevin O’Regan and Deepika Shukla of the District of Massachusetts and the National Security Division’s Counterterrorism Section.
The details contained in the charges are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Ciccolo Complaint
Ciccolo Detention Memo
Ciccolo Detention Memo (Exhibit A)
Ciccolo Detention Memo (Exhibit B)
Ciccolo Detention Memo (Exhibit C)
Massachusetts Man Charged with Being a Felon in Possession of FirearmsRead the Press Release
BOSTON – An Adams man has been arrested and charged in connection with a plot to engage in terrorism on behalf of ISIL. A criminal complaint, charging Alexander Ciccolo, a/k/a Ali Al Amriki, 23, with being a felon in possession of firearms was unsealed today. Additional information regarding Ciccolo’s plans was filed this morning in advance of a detention hearing to be held tomorrow afternoon in Springfield.
According to the complaint affidavit, on July 4, 2015, Ciccolo took delivery of four firearms which he had ordered from a person who was cooperating with members of the Western Massachusetts Joint Terrorism Task Force, and who had been communicating with Ciccolo about Ciccolo’s plans to engage in a terrorist act. Ciccolo was arrested immediately after taking delivery of the firearms, which included a Colt AR-15 .223 caliber rifle, a SigArms Model SG550-1, 556 caliber rifle, a Glock 17- 9mm pistol, and a Glock 20-10 mm pistol. Ciccolo had previously been convicted of a crime punishable by more than a year in jail and therefore was prohibited from possessing firearms.
In an affidavit filed in support of the government’s detention motion, it is alleged that Ciccolo is a supporter of the Islamic State of Iraq and the Levant (ISIL), a designated foreign terrorist organization. According to the affidavit, Ciccolo had spoken with a cooperating witness in recorded conversations about his plans to commit acts of terrorism inspired by ISIL, including setting off improvised explosive devices, such as pressure cookers filled with black powder, nails, ball bearings and glass, in places where large numbers of people congregate, like college cafeterias. Prior to his arrest, agents had observed Ciccolo purchase a pressure cooker similar to that used in the Boston Marathon bombings.
It is also alleged that during a search of Ciccolo’s apartment after he was arrested, agents found several partially constructed “Molotov cocktails.” These incendiary devices contained what appeared to be shredded Styrofoam soaking in motor oil. Ciccolo had previously stated that this mixture would cause the fire from the exploded devices to stick to people’s skin and make it harder to put the fire out.
A detention hearing has been scheduled for July 14 at 3:30 p.m. in U.S. District Court in Springfield.
The charge of being a felon in possession of firearms provides a sentence of no greater than 10 years in prison, three years of supervised release, and a fine of $250,000. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Carmen M. Ortiz and Vincent Lisi, Special Agent in Charge of the Federal Bureau of Investigation’s Boston Field Division, made the announcement today. This investigation is being conducted by the Western Massachusetts Joint Terrorism Task Force, and member agencies of the JTTF including the Federal Bureau of Investigation, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Springfield Police Department, the Ludlow Police Department, the Holyoke Police Department, the West Springfield Police Department, the Easthampton Police Department, the Pittsfield Police Department, the Massachusetts State Police and Homeland Security Investigations, with critical assistance from the Adams Police Department and the Massachusetts State Regional Hazardous Materials Response Team.
The case is being prosecuted by Assistant U.S. Attorneys Kevin O’Regan and Deepika Shukla of Ortiz’s Springfield Branch Office in coordination with Department of Justice’s National Security Division.
The details contained in the charges are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Madison Woman Sentenced for Healthcare FraudRead the Press Release
Stephen R. Wigginton, United States Attorney for the Southern District of Illinois, announced today, that Angela Jones, 51, of Madison, Illinois, was sentenced on July 10, 2015, for engaging in a scheme to commit health care fraud by defrauding the Home Services Program, which is a Medicaid Waiver Program designed to allow individuals to stay in their homes instead of entering a nursing home.
Jones was sentenced to two years in federal prison, to be followed by three years of supervised release. In addition, Jones must pay a special assessment of $100, and restitution in the amount of $13,401.05. Jones pled guilty in United States District Court to the charges on March 12, 2015. At the plea she admitted that she had submitted false and fraudulent bills in regard to the providing of personal assistant services in the Home Services Program, a Medicaid Waiver Program designed to allow individuals to stay in their homes instead entering a nursing home. Jones admitted that she was actually incarcerated while she was billing the Home Services Program.
The investigation was conducted by the Department of Health and Human Services, Office of Inspector General, the Illinois State Police, Medicaid Fraud Control Bureau, and the Federal Bureau of Investigation. The case was prosecuted by Assistant United States Attorneys Ranley R. Killian and Michael Hallock.
Louisiana U.S. Attorneys announce grant awards totaling almost $29 million to support state and local law enforcementRead the Press Release
SHREVEPORT/MONROE/ALEXANDRIA/LAKE CHARLES/LAFAYETTE, La. – United States Attorneys Stephanie A. Finley of the Western District of Louisiana, Walt Green of the Middle District of Louisiana and Kenneth Polite of the Eastern District of Louisiana jointly announced today that the U.S. Department of Justice has awarded almost $29 million to the Louisiana Commission on Law Enforcement (LCLC), which is approximately three times the amount of the previous year’s awards.
LCLE is a state agency whose mission is to promote public safety by providing progressive leadership and coordination within the criminal justice community and to continue to improve the operations of the criminal justice community. U.S. Department of Justice awards, such as those being announced today, advance the LCLE’s mission by supporting the development, coordination, and implementation of broad system-wide programs, and by assisting in the improvement of the state’s criminal justice community through the funding of innovative, essential and needed initiatives at the state and local level.
U.S. Attorney Finley stated: “This increase in funding to the LCLE shows the Justice Department’s commitment to this program. We are eager to continue working with the LCLE and look forward to an increased partnership in the coming year. These funds will allow the LCLE to provide training and technical assistance to law enforcement statewide and to implement programs that will further its mission to improve the criminal justice system. I think that this is a major step in support of law enforcement that will benefit our communities statewide.”
U.S. Attorney Green stated: “We are extremely pleased to announce our increased support and partnership with LCLE, one of our most important statewide law enforcement partners. Chairman Sid Gautreaux and the other LCLE members have worked seamlessly with my office and other components of the U.S. Department of Justice in the pursuit of justice and security for everyone in this state. Today’s announcement reflects our deep commitment to assist, support, and enhance state and local law enforcement efforts in Louisiana through the LCLE. These awards strengthen our unity and our collective efforts against crime.”
U.S. Attorney Polite stated: “These vital awards will help fight crime and build safer communities across our state. We look forward to our continued work with LCLE in pursuing justice for all Louisiana residents.”
East Baton Rouge Parish Sheriff Sid Gautreaux, who serves as the LCLE Chairman, stated: “I am extremely proud that we have been able to secure this additional funding that will enhance and strengthen what is already a strong partnership focused on making our community safer. With the increased grant money we will be able to commit more personnel and resources through our local, state and federal partners in order to continue to combat drugs, illegal weapons and overall crime. Since taking office I have been committed to a level of unprecedented collaboration with our partners that only gets better with each year.”
To find out more about the LCLE visit www.cole.state.la.us.
Louisiana U.S. Attorneys Announce Grant Awards Totaling Almost $29 Million to Support State and Local Law EnforcementRead the Press Release
BATON ROUGE, LA – United States Attorneys Walt Green of the Middle District of Louisiana, Stephanie Finley of the Western District of Louisiana, and Kenneth Polite of the Eastern District of Louisiana jointly announced today that the U.S. Department of Justice has awarded almost $29 million to the Louisiana Commission on Law Enforcement (LCLC), which is approximately three times the amount of the previous year’s awards.
LCLE is a state agency whose mission is to promote public safety by providing progressive leadership and coordination within the criminal justice community and to continue to improve the operations of the criminal justice community. U.S. Department of Justice awards, such as those being announced today, advance the LCLE’s mission by supporting the development, coordination, and implementation of broad system-wide programs, and by assisting in the improvement of the state’s criminal justice community through the funding of innovative, essential and needed initiatives at the state and local level.
U.S. Attorney Green stated: "We are extremely pleased to announce our increased support and partnership with LCLE, one of our most important state-wide law enforcement partners. Chairman Sid Gautreaux and the other LCLE members have worked seamlessly with my office and other components of the U.S. Department of Justice in the pursuit of justice and security for everyone in this state. Today’s announcement reflects our deep commitment to assist, support, and enhance state and local law enforcement efforts in Louisiana through the LCLE. These awards strengthen our unity and our collective efforts against crime.”
U.S. Attorney Finley stated: “This increase in funding to the LCLE shows the Justice Department’s commitment to this program. We are eager to continue working with the LCLE and look forward to an increased partnership in the coming year. These funds will allow the LCLE to provide training and technical assistance to law enforcement statewide and to implement programs that will further its mission to improve the criminal justice system. I think that this is a major step in support of law enforcement that will benefit our communities statewide.”
U.S. Attorney Polite stated: “These vital awards will help fight crime and build safer communities across our state. We look forward to our continued work with LCLE in pursuing justice for all Louisiana residents.”
East Baton Rouge Parish Sheriff Sid Gautreaux, who serves as the LCLE Chairman, stated: “I am extremely proud that we have been able to secure this additional funding that will enhance and strengthen what is already a strong partnership focused on making our community safer. With the increased grant money we will be able to commit more personnel and resources through our local, state and federal partners in order to continue to combat drugs, illegal weapons and overall crime. Since taking office I have been committed to a level of unprecedented collaboration with our partners that only gets better with each year.”
Italian Fugitive Sentenced to Nine Years in Federal Prison on Drug ChargesRead the Press Release
Tampa, FL – U.S. District Judge Mary S. Scriven has sentenced Luciano Angrilli (39) to nine years in federal prison for conspiracy to possess with the intent to distribute five kilograms or more of cocaine. He pleaded guilty to the charges on December 22, 2006, and subsequently fled the United States to Italy.
According to court documents, Angrilli met with a DEA confidential source for the purpose of purchasing 10 kilograms of cocaine. Angrilli negotiated the purchase and delivery of the cocaine. He also facilitated the laundering of the monetary proceeds received by the confidential source.
Subsequent to his arrest, Angrilli was released on bond conditions. After pleading guilty to the conspiracy charge, he fled the United States to Italy. In March 2014, Angrilli was arrested in the Netherlands by Royal Military Police. He had in his possession fraudulent identification documents and was using a false identity.
This case was investigated by the Drug Enforcement Administration. It was prosecuted by Assistant United States Attorneys James A. Muench and Stacie B. Harris.
Investigation into July 4th Blast and Homicide Leads to Federal Charges Against 3 West Haven ResidentsRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, and Patricia M. Ferrick, Special Agent in Charge of the New Haven Division of the Federal Bureau of Investigation, today announced that three West Haven residents have been charged with federal offenses as a result of an investigation of an explosion and homicide that occurred in Hamden on July 4, 2015.
According to allegations contained in court documents, at approximately 11:00 a.m. on July 4, 2015, an explosion took place on Wintergreen Avenue in Hamden. Responding law enforcement located a deceased white male, who had been wrapped in plastic garbage bag material and bound by rope material, in a wooded area close to where the explosion had occurred. An explosive-type device and debris were also located in close proximity to the body. The victim, who had also sustained three apparent gunshot wounds, was subsequently identified as Edward Brooks, 39, of West Haven. After West Haven Police informed investigators that Brooks had been residing with CHRISTOPHER MILLER at 59 Front Avenue in West Haven, and that MILLER and other residents of 59 Front Avenue were subjects of an ongoing narcotics investigation, investigators executed a state narcotics search and seizure warrant at 59 Front Avenue and seized numerous items, including pipe bomb making materials that were consistent with the materials found at the Wintergreen Avenue explosion scene, approximately 16 grams of cocaine base (“crack cocaine), approximately 10.6 grams of methamphetamine and narcotics packaging material. Investigators also seized a surveillance DVR, which captured video surveillance from eight cameras placed around the residence.
CHRISTOPHER MILLER, 40, has been charged by federal criminal complaint with possession of an explosive that had been shipped or transported in or affecting interstate commerce. This offense carries a maximum term of imprisonment of 10 years. MILLER is currently in state custody and faces additional state charges.
A separate criminal complaint charges two other residents of 59 Front Avenue, DEBORAH MILLER, 59, and NATALI MARTINEZ, 29, with conspiracy to distribute and to possess with intent to distribute cocaine base and methamphetamine. This offense carries a maximum term of imprisonment of 20 years. DEBORAH MILLER, who is CHRISTOPHER MILLER’s mother, and MARTINEZ were arrested earlier today.
“This case highlights that great work can be accomplished quickly when local, state and federal law enforcement work together,” stated U.S. Attorney Daly. “I want to thank all of our investigative partners in this matter including the FBI, Connecticut State Police, West Haven Police, Hamden Police and our colleagues at the State’s Attorney’s Office for the Judicial District of Ansonia-Milford.”
U.S. Attorney Daly stressed that a complaint is only a charge and is not evidence of guilt. Charges are only allegations, and each defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This ongoing investigation is being conducted by the Federal Bureau of Investigation, Connecticut State Police, Hamden Police Department and West Haven Police Department. The case is being prosecuted by Assistant U.S. Attorneys Stephen Reynolds, Jacabed Rodriguez-Coss and Vanessa Richards. This investigation and prosecution is being coordinated with the State’s Attorney’s Office for the Judicial District of Ansonia-Milford.
Huntington woman sentenced for role in heroin conspiracyRead the Press Release
HUNTINGTON, W.Va. – A Huntington woman who participated in a heroin distribution conspiracy in 2012 was sentenced today to five years’ probation, announced U.S. Attorney Booth Goodwin. Kathleen M. Young, 51, previously pleaded guilty in March 2015 to conspiring to distribute heroin. Chief United States District Judge Robert C. Chambers imposed the sentence.
During the month of June 2012, Young assisted others in distributing heroin in and around Huntington. Young frequently delivered heroin for others to locations where it was subsequently distributed. Young also collected cash proceeds from distributions and delivered them to other heroin dealers.
On June 28, 2012, Young was stopped by agents in the 2100 block of 9th Avenue in Huntington. Agents observed Young attempting to stuff a plastic bag in her pants and subsequently discovered the bag to contain approximately 20 grams of heroin.
The Huntington FBI Drug Task Force, Drug Enforcement Administration, and Huntington Police Department conducted the investigation. Assistant United States Attorney Joseph F. Adams handled the prosecution.
This case was 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.
Honolulu Businessman Convicted of Tax ChargesRead the Press Release
HONOLULU – A federal jury today found Albert S.N. Hee, 61, of Kailua, Hawaii, guilty of corruptly interfering with the Internal Revenue Service in the calculation and collection of his taxes, and with filing six false individual tax returns which failed to report his income for the years 2007 through 2012. The verdict concluded deliberations which had begun on Friday, July 10, after an 11-day trial.
Florence T. Nakakuni, United States Attorney for the District of Hawaii, said that, according to evidence presented in court, Hee owned Waimana Enterprises, Inc., a holding company which owned various subsidiaries including Sandwich Isles Communications and ClearCom, Inc. Between 2002 and 2012, Hee directed Waimana to pay approximately $2.3 million in personal and family expenses on his behalf, and falsely deducted the payments as if they were legitimate business expenses. According to the trial testimony, Hee also failed to report the value of the benefits which he received as income on his own income tax returns. The personal expenses paid for by Waimana included the following items:
- Personal massage payments totaling $96,000 for two-hour massages given to Hee twice a week;
- $119,909 in credit card charges made for personal expenses, including trips to DisneyWorld, Tahiti, France and Switzerland made by Hee’s wife, children, and others, and a four-day family vacation at the Mauna Lani resort, which Hee falsely characterized as a "stockholder’s meeting";
- College tuition and housing expenses totaling over $736,900 for Hee’s three children, who attended college on the mainland; and
- Approximately $1,676,685 in wages and fringe benefits paid to Hee’s wife and three children, who did little or no work for Waimana.
According to testimony presented during the trial, Hee also had Waimana buy a home in Santa Clara, California for $1.3 million, which he used as college housing for his two children. The children were also allowed to rent rooms out to others, and to keep the money to fund their own expenses.
Hee will face a maximum penalty of three years’ imprisonment, and a fine of $250,000, as to each of the seven counts when he is sentenced on October 26, 2015.
The case was investigated by the Internal Revenue Service, Criminal Investigation, and was prosecuted by Assistant U.S. Attorneys Les Osborne and Larry Tong, and Trial Attorney Quinn Harrington of the Tax Division of the Department of Justice.
Historic Memorandum of Agreement Signed Regarding Reentry Services on the Standing Rock ReservationRead the Press Release
Acting United States Attorney Randolph J. Seiler for the District of South Dakota, and Christopher C. Myers, Acting United States Attorney for the District of North Dakota, announced the signing of a Memorandum of Agreement (MOU) between the Standing Rock Sioux Tribe and the Multijurisdictional Reentry Services Team at a ceremony at Standing Rock Sioux Tribal Council Chambers in Fort Yates, ND. The ceremony took place on Tuesday July 7, 2015.
The historic agreement is the first time this many federal, state, and tribal agencies have worked together to address a nationwide problem that is amplified in Indian country. The agreement is also unique because it covers Standing Rock Reservation, which encompasses both South Dakota and North Dakota, and has jurisdictional issues because of its location. The Multijurisdictional Reentry Services Team recognizes that this remote area of reservation typically does not allow people returning home to have access to services and resources found in larger urban areas. The team shares a common interest and goal towards the successful reentry of people returning home to the reservation after their incarceration.
The agreement was lauded by Troy Morley, a reentry services team member, Assistant U.S Attorney, and Tribal Liaison for the District of South Dakota. “This truly is a great opportunity for the Standing Rock Sioux Tribe and all of the state and federal partners to work together. The goal of the team is taking positive steps towards re-acclimating tribal members, in a positive and culturally related manner, that are returning home from serving time away in prison. The population our team is targeting are returning home to the reservation regardless, so the Tribe’s creation of this working group, and the programs they intend to introduce, will increase public safety and reduce recidivism on the Standing Rock Reservation,” said Morley.
The agreement was also commended by Gary Delorme, a reentry services team member, and Assistant U.S. Attorney for the District of North Dakota. “It was a lengthy process that required the collaboration of many federal, state, and tribal reentry group members contributing significant time and expertise in formulating this groundbreaking agreement. We have a sovereign tribal government coming together with authorities from two different states and two different federal districts, historically agreeing to partner together in aiding the Standing Rock Tribe to formulate a reentry program that will benefit the community, increase the safety of tribal members, and assist tribal members returning from prison in choosing a path that will help lead them away from a life of crime,” said Delorme.
The MOU was signed by the South Dakota U.S. Attorney’s Office, North Dakota U.S. Attorney’s Office, Standing Rock Sioux Tribe, Bureau of Indian Affairs Office of Justice Services Standing Rock Agency, South Dakota Department of Corrections, North Dakota Department of Corrections and Rehabilitation, South Dakota Unified Judicial System, North Dakota U.S. Probation and Pretrial Services, South Dakota U.S. Probation and Pretrial Services, South Dakota Department of Tribal Relations, and the North Dakota Indian Affairs Commission.
Guilty Verdicts on All Counts in Mortgage Fraud Scheme for 4 Sacramento Area ResidentsRead the Press Release
SACRAMENTO, Calif. — Today, after a three-week jury trial, a federal jury found Olga Palamarchuk, 45, of Rancho Cordova; Pyotr Bondaruk, 44, of Sacramento; Vera Zhiry, 35, of Sacramento; and Peter Kuzmenko, 37, of West Sacramento, guilty of conspiracy to commit mail fraud, related to a mortgage fraud conspiracy. Palamarchuk and Bondaruk were also found guilty of making false statements to a financial institution and money laundering. Zhiry was also found guilty of money laundering.
According to evidence presented at trial, Palamarchuk, a loan officer at Capital Mortgage Lending Inc., recruited Bondaruk to purchase two houses using 100 percent financing and to refinance and obtain a home equity line of credit on one of the houses. In order to qualify for the loans, Palamarchuk and Bondaruk submitted fraudulent loan applications to lenders, falsely stating Bondaruk’s employment, income, assets, and intent to occupy the homes as his primary residence.
In addition, the defendants fraudulently inflated the value of the properties and diverted the excess funds to themselves. For example, Peter Kuzmenko received $32,378 in seller’s proceeds for landscaping and pool work his company Pete’s Pool Service purportedly performed on a house that didn’t have a pool. Similarly, Zhiry received $100,000 to pay off a purported debt owed by the sellers that the sellers denied existed, and Zhiry provided $40,000 of that money back to Olga Palamarchuk.
In February, Peter Kuzmenko was found guilty in a separate mortgage fraud scheme in this district. (2:11-cr-210-JAM) He is currently in custody.
This case is the product of an investigation by the Federal Bureau of Investigation and the Internal Revenue Service-Criminal Investigation. Assistant United States Attorneys Lee S. Bickley and Heiko P. Coppola are prosecuting the case.
The defendants’ sentencing is set for October 1, 2015, before United States District Judge Troy L. Nunley. The defendants face a maximum statutory penalty of 30 years in prison for conspiracy to commit mail fraud and making false statements to a financial institution, 10 years in prison for money laundering, and a $1 million fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Geographic Targeting Order Issued by FinCEN Aims at Combatting Stolen Identity Tax Refund Fraud in South FloridaRead the Press Release
MIAMI- Federal Authorities announced today that the Financial Crimes Enforcement Network (FinCEN) has issued a Geographic Targeting Order (GTO) for South Florida check cashers to temporarily enhance the identification requirements on customers cashing Federal tax refund checks. The GTO will require check cashers in Miami-Dade and Broward Counties to obtain and record specific identification information from customers cashing federal income tax refund checks over $1,000. This information will include the customer’s identification, a digital photograph of the customer taken at the time of the transaction, the customer’s telephone number, and, in accordance with Florida law, the individual’s thumbprint.
FinCEN issued the GTO in close coordination with the Internal Revenue Service Criminal Investigation (IRS-CI), Miami Field Office and the U.S. Attorney’s Office for the Southern District of Florida (SDFL), which established the South Florida Identity Theft Tax Fraud Strike Force to combat the wave of stolen identity tax refund scams over the last several years. The Florida Office of Financial Regulation further provided valuable assistance to the federal authorities in issuing the GTO.
FinCEN, the IRS, and the SDFL are particularly concerned that identity thieves are attempting to perpetrate their schemes outside of the tax filing season in hopes that their illegal activity will catch financial institutions off guard and be more likely to slip through their anti-money laundering controls, which are aimed at preventing criminal funds from entering and moving through the financial system. The GTO will, therefore, cover a time period (August 3, 2015, through January 30, 2016) in which the proportion of fraudulent tax refund transactions is high, but the total volume of transactions is relatively low.
U.S. Attorney Wifredo A. Ferrer for the Southern District of Florida stated, “Prosecuting stolen identity tax refund fraud remains a top priority for the U.S. Attorney’s Office. We greatly appreciate the continued efforts of FinCEN and the IRS in this area and look forward to working with financial institutions in the private sector through this GTO in order to further combat these fraudulent schemes that impact our South Florida communities.”
A copy of the Order is available at the following website: http://www.fincen.gov/news_room/nr/pdf/20150710GTO.pdf.
Failure to comply could result in substantial criminal and civil penalties.A copy of the FinCEN release may be found at the following website: http://www.fincen.gov/news_room/nr/pdf/20150713.pdf.
Gastonia Man Sentenced to 11.5 Years Prison for Bank RobberyRead the Press Release
CHARLOTTE, N.C. – U.S. District Judge Max O. Cogburn, Jr. sentenced today James McConnell, 48, of Gastonia, N.C. to 138 months in prison, followed by three years of supervised release on charges stemming from an April 2012 bank robbery, announced Jill Westmoreland Rose, Acting U.S. Attorney for the Western District of North Carolina.
Acting U.S. Attorney Rose is joined in making today’s announcement by John A. Strong, Special Agent in Charge of the Federal Bureau of Investigation (FBI), Charlotte Division, Chief Kerr Putney of the Charlotte Mecklenburg Police Department, and the Chief Robert C. Helton of the Gastonia Police Department.
According to court documents and today’s sentencing hearing, on April 11, 2012, McConnell robbed a BB&T branch located at 9200 S. Tryon Street, stealing $505 in cash. Court records show that McConnell walked into the branch and told the bank teller he had a gun and demanded $2,500 in large bills. Court records indicate that the teller told McConnell she did not have $2,500 and instead handed him $505 in small bills. McConnell then fled with the money in his hand. According to documents filed in the case, McConnell was arrested on June 16, 2012 on unrelated charges and was identified by a witness as the man captured on the bank’s cameras.
McConnell pleaded guilty in July 2014 to one count of bank robbery. According to court documents and statements made in court, McConnell has two prior federal bank robbery convictions.
McConnell remains in federal custody and will be turned to the custody of the Federal Bureau of Prisons upon designation of a federal facility. All federal sentences are served without the possibility of parole.
The investigation was handled by the FBI’s and the Charlotte Mecklenburg Police Department with assistance from the Gastonia Police Department. The prosecution for the government was handled by Assistant U.S. Attorney Corey Ellis of the U.S. Attorney’s Office in Charlotte.
Fredericksburg Man Sentenced for Investment Fraud Scheme Related to Quantico Corporate Center at StaffordRead the Press Release
RICHMOND, Va. – James Ashby Moncure, Jr., 42, of Fredericksburg, Virginia, was sentenced today to 65 months in prison, followed by three years of supervised release for wire fraud and engaging in unlawful monetary transactions. Additionally, Moncure was ordered to pay approximately $8.3 million in restitution to his victims.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Adam S. Lee, Special Agent in Charge of the FBI’s Richmond Field Office; Thomas Jankowski, Special Agent in Charge, Washington, D.C. Field Office, IRS-Criminal Investigation (IRS-CI); and David M. McGinnis, Acting Postal Inspector in Charge of the U.S. Postal Inspection Service (USPIS) – Washington Division, made the announcement after sentencing by U.S. District Judge Henry E. Hudson.
Moncure pleaded guilty to these charges on Feb. 6, 2015. According to court documents, Moncure agreed that, as a partial owner of Moncure Brothers LLC, he had partnered with The Silver Companies to develop property known as the Quantico Corporate Center at Stafford (QCCS), a business park located in Stafford County, Virginia., adjacent to Marine Corps Base Quantico. Beginning prior to January 2010 and continuing through March 2014, Moncure solicited individuals for investment opportunities in exchange for short term promissory notes offering returns ranging from 10 percent up to 25 percent. In connection with those investments, Moncure claimed that the investment funds would be used for acquiring and developing land for the QCCS or another specified property. He also made misrepresentations about how the promised returns would be generated and the security of investment funds. Instead, Moncure misappropriated a significant amount of investor funds for payment of returns to earlier investors and transfers to investment trading accounts from which he day-traded stocks and options.
This case was investigated by FBI’s Fredericksburg Resident Agency, IRS-CI, and USPIS. Assistant U.S. Attorneys Michael Gill and Katherine Lee Martin prosecuted the case.
This investigation was coordinated by the Virginia Financial and Securities Fraud Task Force, an unprecedented partnership between criminal investigators and civil regulators to investigate and prosecute complex financial fraud cases in the nation and in Virginia. The task force is comprised of several federal and state agencies, including the Virginia Attorney General’s Office, and it also serves as an investigative arm of the President’s Financial Fraud Enforcement Task Force (FFETF), an interagency national task force. For more information on FFETF, visit www.stopfraud.gov.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 3:14-cr-137.
Former Treasurer of Religious Conference Sentenced to Prison for Wire FraudRead the Press Release
PHOENIX – Today, Marie Ann Stoltz, 38, of Phoenix, Ariz., was sentenced by U.S. District Judge John J. Tuchi to 21 months’ imprisonment and ordered to pay $408,021 in restitution. Stoltz’s husband, Mark Edwin Stoltz, 44, of Phoenix, Ariz., was sentenced to 9 months of home confinement and also ordered to pay $408,821 in restitution. Both defendants previously pleaded guilty to conspiracy to commit wire fraud.
Ms. Stoltz abused her position as the treasurer and secretary of the Arizona Light & Life Conference of the Free Methodist Church to fraudulently obtain over $423,000. In the course of the scheme, she drafted over $79,000 in Conference checks made payable to her spouse, many of which he endorsed, and also used the Conference’s credit cards for personal expenses. As a result of fraud, the Conference was forced to cease operations, another conference was required to assume the Conference’s responsibilities, and three Conference employees lost their jobs. As of sentencing, the Stoltzes had repaid $15,063 to the Conference.
The investigation in this case was conducted by the Federal Bureau of Investigation with assistance from the Phoenix Police Department and the Arizona Department of Public Safety. The prosecution was handled by Frederick A. Battista, Assistant U.S. Attorney, District of Arizona, Phoenix.
CASE NUMBER: CR-15-444-PHX-JTT
RELEASE NUMBER: 2015-052_Stoltz
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Florida Business Owners Indicted for Harboring Illegal Aliens as Branson WorkersRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that two Florida men have been indicted by a federal grand jury for harboring illegal aliens working for their labor leasing businesses in Branson, Mo.
Martin Ghambaryan, 29, and Mikayel V. Abrahamyan, 34, both of whom are Armenian nationals and legal permanent residents of the United States residing in Delray Beach, Fla., were charged in an indictment returned by a federal grand jury in Kansas City, Mo., on Wednesday, July 8, 2015.
Ghambaryan incorporated MGM Union, LLC, in Missouri in 2008 and Abrahamyan incorporated Seasonal Labor Solutions, LLC, in Missouri in 2009. Both businesses have Branson addresses. According to today’s indictment, Ghambaryan and Abrahamyan allowed other persons to assert de facto control over those businesses and operate them as labor leasing companies that supplied workers to various businesses in and around the Branson area, such as hotels, restaurants, golf courses and entertainment venues.
The federal indictment alleges that Ghambaryan and Abrahamyan, knowingly and in reckless disregard of the fact that aliens were in the United States in violation of law, concealed, harbored, and shielded numerous illegal aliens from detection. The indictment alleges Ghambaryan and Abrahamyan conspired with, and aided and abetted, the de facto operators of MGM and Seasonal Labor Solutions to harbor those illegal aliens and conceal them from detection.
The operators of MGM applied for federal authorization to employ non-citizen workers with H-2B visas (a non-immigrant visa granted to aliens seeking to work in the United States on a temporary or seasonal non-agricultural work basis). MGM’s application to employ alien workers with H-2B visas was denied, the indictment says, and MGM never received authorization to employ alien workers with H-2B visas. No one acting on behalf of Seasonal Labor Solutions ever even applied for that authorization, according to the indictment.
Even though MGM and Seasonal Labor Solutions never received legal authorization to employ alien workers with H-2B visas, the indictment says, the operators of those companies routinely employed alien workers with H-2B visas, thereby placing the alien workers in an illegal employment status and rendering the alien workers subject to deportation for violating the terms and conditions of their visas.
The operators of MGM and Seasonal Labor Solutions allegedly also employed undocumented aliens who were not legally entitled to be in the United States, much less be employed.
These alien workers, whether they were undocumented or had some form of work visa, were typically required to live in certain hotels and apartments in the Branson area, the indictment says, creating a situation where the workers had to make a rent payment to the operators of MGM and Seasonal Labor Solutions. These alien workers also were dependent on the operators of MGM and Seasonal Labor Solutions for transportation to and from their living quarters to their jobs, and were transported in vans provided by their employers.
According to the indictment, workers often ended up owing large debts to the operators of MGM and Seasonal Labor Solutions, which were then deducted from the workers’ paychecks, leaving the workers with minimal take home pay.
The operators of MGM and Seasonal Labor Solutions routinely allowed alien workers to remain on the payroll following expiration of a temporary work visa, the indictment says. They allegedly collected fees from the alien workers based on the promise of obtaining extensions of the temporary work visa, but routinely failed to do so, leaving the alien workers in an illegal employment status. The operators of MGM and Seasonal Labor Solutions used the alien workers’ illegal employment status, and the threat of potential removal and deportation from the United States, as a way to compel the aliens to continue working.
The federal indictment alleges that Ghambaryan and Abrahamyan, knew, and acted in reckless disregard of the fact that the de facto operators of MGM and Seasonal Labor Solutions routinely employed alien workers with H-2B visas, thereby placing the alien workers in an illegal employment status, and rendering the alien workers subject to deportation for violating the terms and conditions of their visas. The indictment also alleges that Ghambaryan and Abrahamyan, knew, and acted in reckless disregard of the fact that the de facto operators of MGM and Seasonal Labor Solutions also employed undocumented aliens who were not legally entitled to be in the United States, much less be employed.
Between April 27, 2009, and Dec. 28, 2009, the de facto operators of MGM funneled more than $220,000 into MGM’s business checking account to pay the alien workers illegally employed by and harbored by MGM.
Between Jan. 8, 2010, and Nov. 2, 2010, the de facto operators of Seasonal Labor Solutions funneled more than $490,000 into Seasonal Labor Solutions’ business checking account to pay the alien workers illegally employed by and harbored by Seasonal Labor Solutions.
Dickinson cautioned that the charge contained in this indictment is simply an accusation, and not evidence of guilt. Evidence supporting the charge must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Criminal Division Chief Gene Porter. It was investigated by the U.S. Department of Labor, Office of Inspector General, and Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI). Also participating in the investigation were the U.S. Department of Homeland Security, Citizenship and Immigration Services; the U.S. Department of State, IRS-Criminal Investigation and the FBI.
Federal Grand Jury Criminal Indictments AnnouncedRead the Press Release
TULSA, Okla.—The results of the July 2015 Federal Grand Jury were announced today by Danny C. Williams Sr., United States Attorney for the Northern District of Oklahoma.
The following individuals have been charged with violations of United States law in indictments returned by the Grand Jury. The return of an indictment is a method of informing a defendant of alleged federal crimes which must be proven in a court of law beyond a reasonable doubt to overcome a defendant’s presumption of innocence.
Stuart H. Clark. Failure to Register as a Sex Offender. Clark, 24, of Tulsa, is charged with failing to register as a sex offender as required under the Sex Offender Registration and Notification Act. If convicted the statutory maximum penalty is 10 years in prison and a $250,000 fine. United States Marshals Service is the investigative agency.
Ray Diaz-Gonzalez. Alien in the United States After Deportation. Diaz-Gonzalez, 36, is charged with having returned to the United States unlawfully after being deported in December 2013 near Del Rio, Texas. If convicted, the statutory maximum penalty is 20 years in prison and a $250,000 fine. United States Immigration and Customs Enforcement is the investigating agency.
Jamie Christine Elliot. Possession of Counterfeit Obligations and Securities of the United States. Elliot, 27, of Tulsa, is charged with possessing counterfeit $10 bills in April 2015. If convicted, the statutory maximum penalty is 20 years in prison and a $250,000 fine. United States Secret Service is the investigating agency.
Victor Lozaria-Montoya. Alien in the United States After Deportation. Lozaria-Montoya, 22, is charged with having returned to the United States unlawfully after being deported in December 2014 near Del Rio, Texas. If convicted, the statutory maximum penalty is 20 years in prison and a $250,000 fine. United States Immigration and Customs Enforcement is the investigating agency.
Jose Juan Munoz-Martinez. Alien in the United States After Deportation. Munoz-Martinez, 44, is charged with having returned to the United States unlawfully after being deported in August 2011 near Hidalgo, Texas. If convicted, the statutory maximum penalty is 20 years in prison and a $250,000 fine. United States Immigration and Customs Enforcement is the investigating agency.
Kenneth Alexander Rostron. Assimilated Crime of Burglary in the Second Degree in Indian Country. Rostron, 20, of Tulsa, is charged with breaking and entering into a pickup truck. If convicted, the statutory minimum penalty is two years in prison and the maximum penalty is seven years with a $250,000 fine. The Osage Nation Police Department is the investigating agency.
Ronald Gene Thomas Jr. Assaulting a Federal Officer. Thomas, 37, of McAlester, Oklahoma, is charged with using a motor vehicle to assault a Deputy United States Marshal who was performing official duties. If convicted, the statutory maximum penalty is 20 years in prison and a $250,000 fine. United States Marshals Service is the investigating agency.Janet L. Whitfield. Theft of Government Funds. Whitfield, 57, of Tulsa, is charged with stealing approximately $24,272 in benefits from the Railroad Retirement Board from September 2012 to January 2015. If convicted, the statutory maximum penalty is 10 years in prison and a $250,000 fine. United States Railroad Retirement Board is the investigating agency.
Defendant Sentenced to 540 Months in PrisonRead the Press Release
SAN JUAN, Puerto Rico – William Santiago-Reyes was sentenced to 540 months (45 years) in prison for his participation in various crimes, including Hobbs Act robbery, carjacking and firearms violations, announced Rosa Emilia Rodríguez-Vélez, United States Attorney for the District of Puerto Rico. The defendant pled guilty on February 4, 2015, before United States District Court Senior Judge Daniel R. Domínguez.
On or about May 5, 2012, in the District of Puerto Rico, the defendant herein, aiding and abetting another individual, knowingly carried and used a firearm, during and in relation to a crime of violence, resulting in death of Ranger American Security Guard Nelson Mills Bernabe.
During the afternoon of May 5, 2012, at approximately 1:20 p.m., the defendant, William Santiago-Reyes and an associate by the name of Juan Benítez-Rodríguez (Benítez-Rodríguez) entered the Plaza Loíza Supermarket, wearing Suiza Dairy company polo shirts. The subjects were captured on video, which shows them scouting the area, looking for the manager. When they found the manager, Santiago-Reyes flashed the revolver that he was carrying and directed him to take the defendants to the money room.
Once inside the office, Benítez-Rodríguez ordered the manager to give them all the cash contained in the safe. Minutes later, a Ranger American Security Guard, Nelson Mills Bernabe, arrived at the supermarket for a scheduled money pick-up. Mills Bernabe proceeded to the manager’s office door where Santiago-Reyes assaulted him from behind, and a scuffle ensued between the two men. Both Santiago-Reyes and Benítez-Rodríguez attempted to subdue the guard, but Mills Bernabe was able to remove his pistol from the holster, and fired some shots at the two subjects, striking both of them.
Santiago-Reyes responded by firing shots at Mills Bernabe from the revolver he was carrying, wounding him on the right arm and shoulder. The defendants attempted to flee from a back door located in the cafeteria area but they were unable to do so. Benítez-Rodríguez collapsed by the door, and was pronounced dead at the scene. The video shows Santiago-Reyes as he picked up Mill Bernabe’s pistol and placed it inside his waistband; he flipped the body of Benítez-Rodríguez over and searched through his pockets, removing cash and car keys. He also picked up the red cooler, which contained the money stolen from the supermarket, $18,970.07, and exited through the front doors of the supermarket.
Santiago-Reyes got into a green Mitsubishi Lancer and attempted to exit the parking lot. The driver of the armored truck, attempted to block his exit, but was unable to do so. The police arrived and were able to apprehend the defendant without incident. Santiago-Reyes had been seriously injured, and was bleeding profusely at the time of his apprehension. He was transported to a local hospital, where he eventually recovered from his injuries. The security guard, Nelson Mills Bernabe was transported to a local hospital, but was unable to recover from his trauma, and was pronounced dead later that day.
The FBI Investigation revealed that William Santiago Reyes and Benítez-Rodríguez had broken out of local jail on or about April 15, 2012, approximately three weeks prior to the commission of the Plaza Loíza Supermarket armed robbery. They also were involved in another carjacking and an armed robbery to a Financial Institution while they were runaways from the local authorities.
The Federal Bureau of Investigation (FBI), the Puerto Rico Police Department (PRPD) and Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) were in charge of the investigation. The case was prosecuted by Assistant U.S. Attorney Olga B. Castellón.
Concord Resident Sentenced to Six Months in Custody for Role in Submitting Fraudulent Asylum ApplicationsRead the Press Release
SAN FRANCISCO – Buyantod Thomas was sentenced on July 9, 2015, to six months in prison, for aiding and abetting the submission of fraudulent asylum applications, announced United States Attorney Melinda Haag and Homeland Security Investigations Acting Special Agent in Charge Tatum King.
Thomas, 30, of Concord, Calif., pleaded guilty on March 27, 2015, to a one count indictment filed on January 27, 2015, charging her with knowingly aiding and abetting a person to make a false statement in an asylum application. Asylum applications generally are submitted to the U.S. Citizenship and Immigration Services in cases where removal from the United States would be contrary to law. To qualify for asylum, applicants must demonstrate that their removal would put them at significant risk based on their race, religion, nationality, political opinion, membership in a particular social group, or on account of a torture convention. In this case, Thomas admitted she helped Mongolian nationals apply for asylum based on fictitious stories and false documents.
At sentencing, the Honorable Susan Illston, U.S. District Judge found that Thomas assisted in filing at least 25 fraudulent asylum applications. In sentencing Thomas, Judge Illston emphasized the need for deterrence for crimes of this nature, explaining: “I find these to be very serious crimes. The asylum system is such a precious system we have and if it’s abused in the way that it was abused here, then it won’t be used anymore and we won’t have it… [this case] is really damaging to the immigration system that we have in place.” In addition to the prison term, Judge Illston also sentenced Thomas to a three year period of supervised release. The defendant will begin serving the sentence on September 4, 2015.
This case was prosecuted by the Office of the U.S. Attorney’s Special Prosecutions and National Security Unit. The prosecution is the result of a multi-year investigation by the Department of Homeland Security, Homeland Security Investigations San Francisco Document and Benefit Fraud Task Force.
Columbia County Man Sentenced to 37 Months in Prison for Money Laundering ConspiracyRead the Press Release
ALBANY, NEW YORK – Michael Elcox, 43, of Ghent, New York, was sentenced to 37 months in prison by United States District Judge Thomas J. McAvoy, announced United States Attorney Richard S. Hartunian, James J. Hunt, Special Agent in Charge of the Drug Enforcement Administration ("DEA"), New York Division, and Shantelle P. Kitchen, Special Agent in Charge IRS Criminal Investigations, New York Field Office. As part of the sentence, Judge McAvoy also imposed a $7,500 fine and three-year term of supervised release to follow Elcox’s prison term.
Elcox pled guilty in March 2015 for his role in a conspiracy to launder the proceeds of an illegal marijuana distribution network. The conspiracy involved routing illegal proceeds through various bank accounts and moving cash from New York to Florida. Federal agents seized more than $300,000 in cash, representing proceeds of Elcox’s illegal marijuana distribution, from locations in New York and Florida.
The case was investigated by Special Agents of the DEA in Albany, New York and Gainesville, Florida, and Internal Revenue Service–Criminal Investigations, New York Field Office, as well as the Columbia County Sherriff’s Department, as part of the DEA’s High Intensity Drug Trafficking Area Program. The case was prosecuted by Assistant United States Attorney Wayne A. Myers.
Champaign Man Charged with Child Pornography OffensesRead the Press Release
Springfield, Ill. – A federal grand jury in Springfield returned an indictment on Friday, July 10, that charges Ryan T. Hayman, 39, of the 2400 block of Leeper Drive, Champaign, Ill., with distribution and possession of child pornography, announced Jim Lewis, U.S. Attorney for the Central District of Illinois.
The indictment alleges that in March 2015 Hayman distributed images and videos of minors engaged in sexually explicit conduct. The indictment further alleges that in June 2015 Hayman possessed images and videos of minors engaged 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 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 possession of child pornography, the penalty is a maximum of 20 years in prison.
Hayman was arrested on June 18, 2015, and charged in a criminal complaint with distribution and possession of child pornography. During a court appearance on June 22, 2015, before U.S. Magistrate Judge Eric I. Long, in Urbana, Hayman was ordered detained in the custody of the U.S. Marshals Service. Arraignment for Hayman has been scheduled on July 17 at 10:00 a.m.
The case is being prosecuted by Assistant U.S. Attorney Katherine Boyle. The charges are the result of an investigation by U.S. Immigration and Customs Enforcement Homeland Security Investigations; Urbana Police Department, the Illinois Attorney General’s Internet Crimes Against Children Task Force and the East Central Illinois Cyber Crimes Working Group.
Members of the public are reminded that an indictment is merely an accusation; the 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.
CEO of Diplomat Companies Pleads Guilty to Defrauding InvestorRead the Press Release
R.C. Patel aka Rajesh C. Patel, 55, of Duluth, Georgia, pleaded guilty today in U.S. District Court in Nashville, Tenn., to two counts of wire fraud, for defrauding an investor, announced David Rivera, United States Attorney for the Middle District of Tennessee.
During a hearing before U.S. District Court Senior Judge William J. Haynes, Jr., Patel pleaded guilty to two counts of wire fraud arising from an investment deal involving a mortgage on a hotel property in Atlanta, Georgia. Patel was a hotel owner and developer and was also a substantial shareholder in a community bank in Georgia that was involved in bidding on mortgages being auctioned by the FDIC. Patel admitted accepting $500,000 from a Brentwood, Tennessee investor in connection with an anticipated $3.75M bid on a hotel mortgage. The bid submitted by Patel was not the winning bid and Patel instead, used these funds to pay a debt arising from an unrelated transaction. Patel also admitted making misrepresentations to the investor regarding the outcome of the mortgage auction and concealing the fact that he used the investor’s funds for unrelated purposes.
Patel has already made full restitution to the victim of this fraud.
Patel will be sentenced on October 5, 2015. He faces up to twenty years in prison on each count, in addition to potential fines and forfeiture of any money or property derived from the fraud.
The case was investigated by the Federal Bureau of Investigation. The United States is represented by Assistant U.S. Attorney Bill Abely.
Brooklyn Man Pleads Guilty in Manhattan Federal Court to Securities Fraud in Connection with Multimillion-Dollar Fraudulent Investment SchemeRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced today that MARCELLO TREBITSCH pled guilty in Manhattan federal court to an Information charging him with one count of securities fraud in connection with his operation of a Ponzi scheme that defrauded investors of nearly $6 million over the course of seven years. Among other things, TREBITSCH admitted that he lied to investors by telling them that he would invest their money through an investment fund he controlled that would generate double-digit returns with very low risk. To that end, TREBITSCH provided investors with phony account statements and federal tax forms that reflected significant gains, when, in reality, TREBITSCH invested only a portion of the investors’ money and suffered enormous trading losses, and used the remainder of the investors’ money for his own personal benefit and to pay back other investors. TREBITSCH was arrested on April 13, 2015, and pled guilty today before United States District Judge Vernon S. Broderick.
U.S. Attorney Preet Bharara said: “As Marcello Trebitsch admitted in court today, he ran a multimillion-dollar Ponzi scheme, defrauding investors who put their faith in him and entrusted him with their hard-earned savings. He returned their faith with deceit and self-dealing, lying about his trading losses and using investor money on himself. I want to thank the FBI for their outstanding investigative work on this case.”
According to the Complaint, the Information that was filed today in Manhattan federal court, and other statements made in open court:
From 2007 through 2014, TREBITSCH engaged in a multimillion-dollar fraudulent investment scheme, during which he solicited money from investors based on materially false and misleading representations. Specifically, TREBITSCH told the investors that he, through an investment fund he created called Allese Capital LLC, would (a) create and perfect public shell companies to sell to private companies; (b) execute specific trades at the direction of an investor; and (c) purchase and sell stocks on a daily basis, with little or no funds remaining invested in the market at the end of each trading day. In some cases, TREBITSCH told the investors that they would receive double digit returns with minimal risk of loss. In fact, TREBITSCH did not invest the money as he said he would, and instead principally used the investors’ money for his own personal benefit, including to repay other investors.
With respect to the portion of investor funds that he did use to purchase securities, TREBITSCH suffered net trading losses, which he did not disclose to the investors. Rather, TREBITSCH sent the investors false and misleading monthly account statements and tax forms, which purported to show positive annual returns.
During the course of the fraudulent scheme, TREBITSCH solicited more than $8 million from four investors.
* * *
TREBITSCH, 37, of Brooklyn, New York, pled guilty to one count of securities fraud, which carries a maximum sentence of 20 years in prison, a maximum fine of $5 million, or twice the gross gain or loss from the offense. The maximum potential sentence in this case is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge. As part of the plea agreement, TREBITSCH agreed to pay forfeiture and restitution to the victims of the offense in the amount of $5,905,949. TREBITSCH is scheduled to be sentenced by Judge Broderick on November 2, 2015, at 10:00 a.m.
Mr. Bharara praised the work of the Federal Bureau of Investigation.
The charges were brought in connection with the President’s Financial Fraud Enforcement Task Force. The task force was established to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices, and state and local partners, it is the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets; and conducting outreach to the public, victims, financial institutions and other organizations. Since fiscal year 2009, the Justice Department has filed over 18,000 financial fraud cases against more than 25,000 defendants. For more information on the task force, please visit www.StopFraud.gov.
This case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant U.S. Attorneys Daniel S. Goldman and Amy Lester are in charge of the prosecution.
Brentwood Man Pleads Guilty to Bankruptcy FraudRead the Press Release
Michael Ross Smith, 44, of Brentwood, Tenn., pleaded guilty today to making a false material statement under oath in a bankruptcy case, announced David Rivera, U.S. Attorney for the Middle District of Tennessee.
During the plea hearing, Smith acknowledged that he filed for bankruptcy and then committed bankruptcy fraud by providing false testimony, under oath, during an examination conducted by the U.S. Trustee. Smith falsely testified that he was no longer employed by a Nashville business at the time of the examination. Subsequently, the United States Trustee discovered that Smith continued to be employed by the business as the President of Sales, earning an annual base salary of $150,000.
Bankruptcy fraud carries a maximum penalty of 5 years in prison and a $250,000 fine. Smith will be sentenced on August 5, 2015.
The U.S. Trustee Program is the component of the Department of Justice that protects the integrity of the bankruptcy system by overseeing case administration and litigation to enforce the Bankruptcy Code.
This investigation was conducted by the FBI with assistance from the U.S. Trustee. The government is represented by Assistant U.S. Attorney Stephanie N. Toussaint and Special Asst. U.S. Attorney Lloyd E. Mueller.
Bay Area Man Sentenced to Prison for Coercion of Minors for ProstitutionRead the Press Release
SAN FRANCISCO – Omar Ahmad was sentenced to 63 months in prison for coercing and enticing two underage boys to engage in prostitution, announced United States Attorney Melinda Haag and FBI Special Agent in Charge David J. Johnson.
Ahmad, 29, of San Jose, pleaded guilty on April 2, 2015 to a superseding information charging him with one count of coercion and enticement of two male minors to travel interstate for commercial sexual activities. According to the plea agreement, Ahmad admitted that between October 2011 and September 2012, he traveled from California, to Las Vegas, Nevada, on two or three occasions in connection with the crime. On at least one occasion before leaving for Las Vegas, he attempted to knowingly persuade, entice, and induce the two male victims to travel from San Jose, California, to Las Vegas for the purpose of engaging in prostitution. Ahmad attempted to entice the minors by telling them of the amenities and opportunities available in Las Vegas. Ahmad also admitted the government could prove that both male victims were under the age of 18 at the time he attempted to persuade them to travel for prostitution.
Ahmad, was indicted by a federal grand jury on June 12, 2013. Initially, he was charged with two counts of sex trafficking of a minor, in violation of 18 U.S.C. § 1591; two counts of production of child pornography, in violation of 18 U.S.C.§ 2251, and one count of distribution of child pornography, in violation of 18 U.S.C. § 2252. The superseding information charging Ahmad with one count of coercion and enticement of travel for prostitution, in violation of 18 U.S.C. § 2422(a), was filed April 2, 2015. Ahmed has been in custody since his arrest in August 2013.
The sentence was handed down by the Honorable James Donato, U.S. District Judge, following Ahmad’s plea of guilty to the charge in the superseding information. Judge Donato also sentenced the defendant to a seven-year period of supervised release following his prison term, the first 12 months of which must be served under house arrest; to pay restitution to each of his victims in the amount of $2000 a piece (for a total restitution of $4000); and to register as a sex offender. The defendant will begin serving the sentence immediately.
Assistant U.S. Attorney Amie Rooney is prosecuting the case with the assistance of Laurie Worthen and Nina Burney. The prosecution is the result of an investigation by the FBI and the San Jose Police Department Human Trafficking Task Force.
Anyone who suspects instances of human trafficking are encouraged to call the FBI or the Human Trafficking Hotline at 1-888-373-7888. Anonymous calls are welcome.
In addition, suspected child sexual exploitation or missing children may be reported to the National Center for Missing & Exploited Children, via its toll-free 24-hour hotline, 1-800-843-5678.
Alien Deported Multiple Times Sentenced to Time Served for Illegally Returning to U.S.Read the Press Release
PITTSBURGH - An alien found in Armstrong County, Pennsylvania, has been sentenced in Pittsburgh to time served on his conviction of illegal re-entry after deportation, United States Attorney David J. Hickton announced today.
United States District Judge Cathy Bissoon imposed the sentenced on Ivan Villegas-Estrella, 26, of Mexico.
According to the information presented to the court, Ivan Villegas-Estrella, an alien, was formally removed from the United States by United States Immigration and Customs Enforcement on or about Sept. 21, 2008, March 19, 2009, Nov. 16, 2013, April 11, 2014, and April 24, 2014. Ivan Villegas-Estrella was found to be illegally present in Freeport, Pa., on May 12, 2015.
Assistant United States Attorney Paul E. Hull prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the U.S. Department of Homeland Security, Immigration and Customs Enforcement for the successful prosecution of Ivan Villegas-Estrella.
Albuquerque Man Arrested on Federal Child Pornography ChargesRead the Press Release
ALBUQUERQUE – Patrick M. Lopez, 47, of Albuquerque, N.M., was arrested on July 10, 2015, on federal child pornography charges. Lopez made his initial appearance in federal court earlier today. He remains in custody pending a preliminary hearing and detention hearing, both of which currently are scheduled for tomorrow morning.
The criminal complaint charges Lopez with possession of visual depictions of minors engaged in sexually explicit conduct. The charges against Lopez arise from an investigation by the FBI and the Bernalillo County Sheriff’s Office (BCSO). On July 10, 2015, the FBI and BCSO executed a federal search warrant at Lopez’s residence. During the search, forensic examiners found videos consistent with child pornography that had been downloaded onto a laptop computer.
If convicted on the charges in the criminal complaint, Lopez faces a federal prison term of up to ten years. Lopez also would be required to register as a sex offender. Charges in criminal complaints are merely accusations and criminal defendants are presumed innocent unless found guilty beyond a reasonable doubt.
This case was investigated by the Albuquerque office of the FBI and the BCSO, both members of the New Mexico Internet Crimes Against Children (ICAC) Task Force. The case is being prosecuted by Assistant U.S. Attorneys Shammara H. Henderson and Sarah Mease as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice (DOJ) to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices and DOJ’s Criminal Division’s Child Exploitation and Obscenity Section, 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 http://www.justice.gov/psc/.
The case also was brought as a part of the New Mexico ICAC Task Force’s mission, which is to locate, track, and capture Internet child sexual predators and Internet child pornographers in New Mexico. There are 82 federal, state and local law enforcement agencies associated with the New Mexico ICAC Task Force, which is funded by a grant administered by the NMAGO. Anyone with information relating to suspected child predators and suspected child abuse is encouraged to contact federal or local law enforcement.
Alabama Man Pleads Guilty to Involvement in Stolen Identity Refund Fraud SchemeRead the Press Release
A Montgomery County, Alabama, resident pleaded guilty to one count of mail fraud and one count of aggravated identity theft for his involvement in a stolen identity refund fraud (SIRF) scheme, Acting Assistant Attorney Caroline D. Ciraolo of the Justice Department’s Tax Division and U.S. Attorney George L. Beck Jr. of the Middle District of Alabama announced today.
According to court documents, Jerome Marcel Newton obtained the personal identifying information of others in various ways, including by paying other individuals to collect multiple identities or by recruiting people to provide their identities to him. Although Newton resided in Alabama, a number of the identities were of people living in Pittsburgh. Newton also obtained the identity information of prison inmates from jail records. In 2011, Newton used the identities he obtained to file false tax returns, directing the Internal Revenue Service (IRS) to deposit the fraudulent refunds claimed on those returns into bank accounts that he controlled or onto prepaid debit cards. Some of the prepaid debit cards were then mailed to addresses within the Middle District of Alabama.
Newton’s sentencing hearing has not yet been scheduled. At sentencing, Newton faces a statutory maximum sentence of 20 years in prison and a $250,000 fine for the mail fraud count and a mandatory two-year minimum sentence and a $250,000 fine for the aggravated identity theft count. Newton will also be subject to mandatory restitution.
Acting Assistant Attorney General Ciraolo and U.S. Attorney Beck commended special agents of the IRS – Criminal Investigation and officers of the Sheriff’s Office for Douglas County, Georgia, who investigated the case, as well as Trial Attorneys Jason H. Poole and Michael C. Boteler of the Tax Division and Assistant U.S. Attorney Jonathan S. Ross of the Middile District of Alabama, who are prosecuting the case.
Additional information about the Tax Division and its enforcement efforts can be found on the division’s website.
Alabama Man Pleads Guilty to Involvement in Stolen Identity Refund Fraud SchemeRead the Press Release
WASHINGTON – A Montgomery County, Alabama, resident pleaded guilty to one count of mail fraud and one count of aggravated identity theft for his involvement in a stolen identity refund fraud (SIRF) scheme, U.S. Attorney George L. Beck, Jr., of the Middle District of Alabama and acting Assistant Attorney General Caroline D. Ciraolo of the Justice Department’s Tax Division announced today.
According to court documents, Jerome Marcel Newton obtained the personal identifying information of others in various ways, including by paying other individuals to collect multiple identities or by recruiting people to provide their identities to him. Although Newton resided in Alabama, a number of the identities were of people living in Pittsburgh, Pennsylvania. Newton also obtained the identity information of prison inmates from jail records. In 2011, Newton used the identities he obtained to file false tax returns, directing the Internal Revenue Service (IRS) to deposit the fraudulent refunds claimed on those returns into bank accounts that he controlled or onto prepaid debit cards. Some of the prepaid debit cards were then mailed to addresses within the Middle District of Alabama.
Newton’s sentencing hearing has not yet been scheduled. At sentencing, Newton faces a statutory maximum sentence of 20 years in prison and a $250,000 fine for the mail fraud count and a mandatory two-year minimum sentence and a $250,000 fine for the aggravated identity theft count. Newton will also be subject to mandatory restitution.
U.S. Attorney Beck and acting Assistant Attorney General Ciraolo commended special agents of the IRS – Criminal Investigation and officers of the Sheriff’s Office for Douglas County, Georgia, who investigated the case, as well as Trial Attorneys Jason H. Poole and Michael C. Boteler of the Tax Division and Assistant U.S. Attorney Jonathan S. Ross, who are prosecuting the case.
Additional information about the Tax Division and its enforcement efforts can be found on the division’s website.
AIREKO Construction Company Indicted for Violations of the Clean Air ActRead the Press Release
SAN JUAN, Puerto Rico – Rosa Emilia Rodríguez-Vélez, United States Attorney for the District of Puerto Rico, announced today that a the grand jury in San Juan returned a six count indictment against AIREKO Construction Co. The charges are the result of the illegal removal of asbestos during the renovation of the 9th floor of the Minillas North Tower in May 2012.
The grand jury charged AIREKO with five counts of failing to comply with the National Emission Standards for Hazardous Air Pollutants (NESHAP) by failing: (1) to adequately wet the asbestos during the removal; (2) to have a properly trained supervisor on site during the removal; (3) to properly place the asbestos in leak tight bags; (4) failing to properly label the asbestos containing waste material; (5) to properly dispose of the asbestos containing material at an authorized land fill. Count Six charges the defendant with failing to notify immediately the appropriate government agency of the release of a reportable quantity of a hazard substance-asbestos.
The indictment alleges that between Saturday 12 and Sunday May 13, 2012, subcontractors, working within the scope of their employment and at least in part for the benefit AIREKO, removed ceiling materials containing > 1% asbestos and placed the asbestos containing materials in the trash area in back of the Minillas North Tower. The failure to notify charge focuses on conduct of corporate officials who discovered the release of asbestos on Monday May 14, and failed to make the appropriate notifications.
The illegal removal of the asbestos containing ceiling material and transporting it down to the trash area without following the NESHA work practice requirements resulted in the contamination of the entire office building. The building was ordered closed by the Public Building Authority on May 20, 2015. Clean-up required almost one year to complete.
In a related matter, the U.S. Attorney also filed a one count Information charging Edgardo Albino with failing to notify immediately the appropriate government agency of the release of a reportable quantity of a hazard substance-asbestos. Mr. Albino 60, of Caguas, Puerto Rico, is the Vice-President of Operations and Executive Owner of AIREKO. He was the senior AIREKO employee responsible for supervising the ninth floor renovation.
The case was investigated by the U. S. Environmental Protection Agency Region II Criminal Investigation Division. The case is being prosecuted by Howard P. Stewart, Senior Litigation Counsel, Environmental Crimes Section of the Department of Justice Washington, D.C., and Assistant United States Attorney Mariana E. Bauzá-Almonte with assistance from Carolina Jordan-García, EPA Region II Criminal Enforcement Counsel.
ACPD Sergeant Charged with Structuring and Making False Statements to the FBIRead the Press Release
CAMDEN, N.J. – An Atlantic City Police Department Sergeant was arrested by special agents of the FBI this morning for allegedly structuring financial transactions to avoid the filing of currency transaction reports and making false statements to federal agents, U.S. Attorney Paul J. Fishman announced.
Kiyia M. Harris, 39, of Egg Harbor Township, is charged by complaint with one count of structuring and one count of making false statements to FBI agents during two interviews in December 2014. She is scheduled to make her initial appearance later today before U.S. Magistrate Judge Karen M. Williams in Camden federal court.
According to documents filed in this case and statements made in court:
Harris was engaged in a personal relationship with a convicted drug dealer, D.W., who was on federal probation. In June 2012, Harris purchased a 1969 Camaro for D.W. in her name and structured the payments for the car in such a manner as to avoid the filing of a Currency Transaction Report (CTR) by the car dealership, and also to obscure D.W.’s involvement in the purchase. Harris caused $17,825 in cash to be deposited in amounts less than $10,000. On June 8, 2012, Harris paid $9,999 to the dealership. By check dated June 11, 2012, which was drawn on one of her personal accounts at TD Bank, Harris paid the balance due on the Camaro.
Some of the monies Harris used to pay for the Camaro were deposited into that same TD bank account on two separate dates at two different TD Bank branches. On June 11, 2012, Harris deposited at the TD Bank branch in Atlantic City $9,926: $3,926 in cash and a $6,000 check dated June 10, 2012 bearing the notation “loan for auto” from J.E., a friend of D.W. who loaned D.W. some of the monies to purchase the Camaro. The following day Harris deposited an additional $3,900 in cash into the same TD Bank account at the bank branch in English Creek, New Jersey.
CTR forms require disclosure of the identity of the individual who conducted the transaction and the individual or organization for whom the transaction was completed. Many individuals involved in illegal activities are aware of these reporting requirements and take active steps to cause financial institutions, including car dealerships, not to file CTRs in order to avoid detection of the movement of large amounts of U.S. currency or currency obtained from illegal activities, including drug trafficking. These steps are referred to as “structuring” and involve making multiple cash payments, deposits or withdrawals in amounts of $10,000 or less on the same day or consecutive days in order to avoid CTR filings.
Harris was interviewed by special agents from the FBI on two occasions in December 2014 about her relationship with D.W. and suspicious financial transactions. Harris made false statements to agents which were material to an ongoing federal drug trafficking and money laundering investigation. She falsely told FBI agents that she had never deposited cash into her bank accounts when, in actuality, from January 8, 2007 through November 26, 2014, Harris had deposited more than $120,000 in cash into her accounts. Harris repeatedly denied having engaged in financial transactions with D.W., when in actuality, Harris had conducted numerous transactions with D.W., including helping him with the purchase of the 1969 Camaro and also paying a $6,500 deposit on a 2012 Harley Davidson motorcycle for D.W. by a check drawn on one of Harris’ personal accounts at T.D. Bank.
Both charges carry a maximum potential penalty of five years in prison and a $250,000 fine on each count.
U.S. Attorney Fishman credited special agents of the FBI’s Newark Division, Atlantic City Resident Agency, under the direction of Special Agent in Charge Richard M. Frankel; the DEA’s Newark Division, under the direction of Special Agent in Charge Carl J. Kotowski; the Atlantic County Prosecutor’s Office, under the direction of Prosecutor James P. McClain; and the Atlantic City Police Department, under the direction of Police Chief Henry White, with the investigation leading to today’s arrest.
He also thanked the N.J. State Police; the Atlantic County Sheriff’s Office; the Bureau of Alcohol, Tobacco and Firearms; U.S. Immigration and Customs Enforcement (ICE)-Homeland Security Investigation (HSI); Cumberland County Sheriff’s Office and the Ventnor, Northfield and Millville police departments for their assistance.
The government is represented by Assistant U.S. Attorney Diana V. Carrig of the U.S. Attorney’s Office Criminal Division in Camden.
The charges and allegations contained in the complaint are merely accusations, and the defendant is considered innocent unless and until proven guilty.
Defense counsel:. James J. Leonard Jr. Esq. of Atlantic City
Sunday 12 July 2015
Attorney General Lynch Statement on Escape of Joaquin Guzman Loera "Chapo" from Mexican PrisonRead the Press Release
Attorney General Loretta E. Lynch provided the following statement on the escape of Joaquin Guzman Loera "Chapo" from a Mexican prison:
“We share the government of Mexico's concern regarding the escape of Joaquin Guzman Loera ‘Chapo’ from a Mexican prison. In addition to his crimes in Mexico, he faces multiple drug trafficking and organized crime charges in the United States.
“The U.S. government stands ready to work with our Mexican partners to provide any assistance that may help support his swift recapture.”
Friday 10 July 2015
Watertown Man Pleads Guilty to Marriage FraudRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051
BUFFALO, N.Y.-U.S. Attorney William J. Hochul Jr. announced today that Jasvir Kumar, 45, of Watertown, NY, pleaded guilty to conspiracy to commit marriage fraud, before U.S. District Judge Arcara. The defendant was also sentenced to time served (seven months) in prison.Assistant U.S. Attorney Carol G. Bridge, who handled the case, stated that Kumar, a native and citizen of India, came to the United States on a non-immigrant tourist visa on March 27, 2008. After overstaying his visa and remaining in the U.S. illegally, the defendant conspired with Suhkvinder Chhokar, a naturalized U.S. Citizen, also of Watertown, to marry a U.S. Citizen. This would allow Kumar to apply for lawful permanent resident status. Kumar and Chhokar paid the citizen $10,000.00 to get married and file the paperwork with U.S. Immigration Citizenship and Immigration Services (USCIS).
The defendant submitted staged photos and false affidavits to support his fraudulent marriage claim. When Kumar appeared with his “wife” in the Buffalo USCIS office on December 3, 2014 for a green card interview, his “wife” admitted to the fraudulent marriage. The defendant was immediately arrested and detained. Kumar was ordered deported from the U.S. at an immigration hearing on February 24, 2015.
Charges are pending against co-defendant Suhkvinder Chhokar. The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
The plea is the result of an investigation by U.S. Citizenship and Immigration Services, Fraud Detection and National Security Unit, under the direction of District Director Edward Newman and Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Acting Special Agent in Charge J. Michael Kennedy.Washington State Construction Company Settles Allegations of False Claims in Disadvantaged Business Enterprise ProgramRead the Press Release
Tri-State Construction, a privately-owned Washington State construction company, today agreed to pay more than $140,000 to settle allegations it submitted false records to the Washington State Department of Transportation related to the federally-funded I-5 HOV lane project between Port of Tacoma Road and the Pierce/King County line, announced U.S. Attorney Annette L. Hayes. The settlement involves Tri-State’s claims from 2010 to 2014 that it was renting a specialized machine from a certified Disadvantaged Business Enterprise (DBE). In fact, the machine was not owned by DBE – OMA Construction. The machine was actually owned by Tri-State, which attempted to use a lease/purchase agreement to make it appear, consistent with DBE set-aside requirements for federally-funded highway projects, that OMA owned the machine.
“Disadvantaged Business Enterprise fraud harms the integrity of the DBE program and law-abiding contractors by defeating efforts to ensure a level playing field in which all firms can compete fairly for contracts,” said William Swallow, Regional Special Agent-in-Charge of the U.S. Department of Transportation Office of Inspector General. “Our agents will continue to work with the Secretary of Transportation and other Federal, State, and local law enforcement and prosecutorial colleagues to expose and shut down DBE fraud schemes that adversely affect public trust and DOT-assisted highway programs.”
In all Tri-State will pay $142,440 to the U.S. Department of Transportation to settle the allegations. The company does not admit any misconduct. The machine at issue is a “chitosan” – used to process and clean wastewater generated by construction projects. The adequacy of Tri-State’s work on the I-5 project is not disputed.
The case was investigated by the U.S. Department of Transportation Office of Inspector General and the FBI. The case was handled by Assistant United States Attorneys Kayla Stahman and Priscilla Chan.
Washington D.C. Man Sentenced on Drug Trafficking and Firearm ChargesRead the Press Release
ALEXANDRIA, Va. – Keith Pyndell, 34, of Washington, D.C., was sentenced today to 186 months in prison, followed by five years of supervised release for conspiracy to distribute 280 grams or more of cocaine base, aka crack cocaine, and for possession of a firearm in furtherance of a drug trafficking crime. In connection with this conviction, Pyndell forfeited $47,200 in cash that was seized from his residence by the DEA.
Pyndell pleaded guilty on March 16, 2015. According to court documents, Pyndell ran an organization that distributed over 280 grams of cocaine base to customers in Northern Virginia, Maryland, and Washington D.C. Through his organization, Pyndell employed individuals as runners to deliver drugs to his customers and to return cash to him. One of those individuals, Angela Lemons, previously pleaded guilty to conspiring to distribute cocaine base and was sentenced to serve 40 months in prison followed by three years of supervised release. Pyndell admitted that a handgun with an obliterated serial number that was seized from his residence was used for protection in connection with his drug trafficking.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; and Karl C. Colder, Special Agent in Charge for DEA’s Washington Field Division, made the announcement after sentencing by U.S. District Judge Anthony J. Trenga. Assistant U.S. Attorney Whitney Dougherty Russell is prosecuting the case.
The case was investigated by the DEA’s Washington Office as part of the Organized Crime Drug Enforcement Task Force (OCDETF). The OCDETF program is a federal, multi-agency, multi-jurisdictional task force that supplies supplemental federal funding to federal and state agencies involved in the identification, investigation, and prosecution of major drug trafficking organizations. The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:15-cr-24.
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United States Files Enforcement Action against Iowa Dietary Supplement Company and Principals to Stop Distribution of Adulterated and Misbranded Dietary SupplementsRead the Press Release
The United States filed a civil complaint today in federal court against Iowa Select Herbs LLC, of Cedar Rapids, Iowa, its president and CEO, Gordon L. Freeman, and a partial owner, Lois A. Dotterweich, to prevent the distribution of adulterated and misbranded dietary supplements, announced Principal Deputy Assistant Attorney General Benjamin C. Mizer, head of the Justice Department’s Civil Division.
Iowa Select Herbs LLC manufactures and distributes a variety of dietary supplements, consisting primarily of extracts from various plants, including papaya leaf, echinacea, elderberry and nettle leaf. The firm also produces a product called “Cold BeGone,” which purports to be a complex of natural ingredients. The complaint alleges that the company’s dietary supplements are manufactured under conditions that are inadequate to ensure the safety of its products and also make unlawful claims to treat or prevent diseases. The department filed the injunction action in the Northern District of Iowa on behalf of the U.S. Food and Drug Administration (FDA).
“The Department of Justice is committed to ensuring that dietary supplements are manufactured and distributed in compliance with the law,” said Principal Deputy Assistant Attorney General Mizer. “We will pursue actions against manufacturers who do not manufacture their products under proper conditions or who make unlawful claims about them.”
According to the complaint, an FDA inspection performed in August 2014 revealed that the company’s dietary supplements are adulterated within the meaning of the federal Food, Drug and Cosmetic Act because they are manufactured, prepared, packed or held in a manner that does not conform to Dietary Supplement Current Good Manufacturing Practices. The complaint alleges, for example, that the company repeatedly failed to test its dietary ingredients, in order to verify their identity, before using them. The complaint also alleges that the firm’s dietary supplements qualify as unapproved and misbranded drugs, in that they claim to treat or prevent a variety of diseases, including cancer, malaria and heart disease, but have never been submitted to the FDA for approval, and have never been found safe and effective for those purposes.
The government is represented by Trial Attorney Heide L. Herrmann of the Civil Division’s Consumer Protection Branch, with the assistance of Associate Chief Counsel for Enforcement Laura Akowuah of the Department of Health and Human Services’ Office of General Counsel – Food and Drug Division.
A complaint is merely a set of allegations that, if the case were to proceed to trial, the government would need to prove by a preponderance of the evidence.
U.S. Attorney Wendy J. Olson Issues Statement on Building Resilient CommunitiesRead the Press Release
U.S. Attorney Wendy J. Olson today announced the beginning steps of a grass roots effort to form a community and law enforcement coalition to build stronger, safer communities.
“Strong communities are safe communities,” said Olson. “We need to make our community resilient against threats posed by violent crime, violent extremism and on-line predators. When law enforcement, community groups, faith community leaders, business leaders and government officials work together, we more effectively prevent and reduce crime and make Idaho a better place to live.”
Olson said that on July 8, representatives from the refugee community, refugee support agencies, Muslim community, Boise Police Department, FBI, Intermountain Fair Housing Council, ACLU, and Stand Up America met with representatives from her office and discussed community responses to recent incidents in Idaho and across the country. “We are at a critical time in our nation and in our own community – from the shooting at the Emanuel AME Church in Charleston, to anti-refugee and anti-Muslim sentiments expressed by groups and individuals in Idaho, to defiance in parts of some states to the Supreme Court’s decision to legalize same sex marriage in Obergefell v. Hodges,” said Olson. “There are many currents that seek to divide communities. Instead, we have to come together. We need to stand up and form strategies against those who espouse extremist ideologies and recruit others to engage in violent acts in our communities on their behalf. We want to mentor our young people, educate parents, identify solutions, and form closer relationships between refugees and Idahoans who have been here for generations.”
Olson said that an immediate objective of the July 8 meeting was to reassure members of the refugee community and Muslim community that with the federal terrorism trial in United States v. Kurbanov scheduled to begin July 13, law enforcement officers will be vigilant to protecting them against bias crimes.
“To be certain, international terrorism and the conduct of those who are inspired by international terrorist groups to engage in violent conduct pose a serious threat to every community in this nation,” said Olson. “Law enforcement agencies and my office will be deliberate and thorough in pursuing such criminal cases. But we also take great care to ensure that individuals are investigated and prosecuted based on specific illegal acts, not based on how they appear, or how they worship or where they are from. Nor should investigation and prosecution of one person provide inspiration for others to act out against refugees or Muslims or to act out in support of extremism inspired by Al Qaeda or ISIL or other terrorist groups.”
Olson said that attendees at the July 8 meeting supported efforts for further outreach and education to build a resilient community. “There is clear support that a broader coalition would provide safer communities in two ways. First, it would provide tools for early awareness of a person being radicalized to commit a violent act, regardless of the ideology promoting the violence. Second, it would empower community members and allow us to stand together as a community in support of those who are targeted as victims, just as the white community in Charleston stood with the Emanuel AME congregation.”
Olson said that plans are being made for future building resilient communities sessions and invited interested participants to contact her office.
Two Florida Men Indicted on Federal Charges Stemming from Health Care Fraud SchemeRead the Press Release
WASHINGTON – Russell J. Sveda, 69, and Richard V. Schachter, 55, of Lauderdale-By-the-Sea, Fla., have been indicted for conspiracy, health care fraud, and related charges stemming from a scheme to submit false claims for non-existent medical reimbursements through the U.S. Office of Personnel Management’s Foreign Service Benefit Plan.
The indictment, which was returned in the U.S. District Court for the District of Columbia, was announced today by Acting U.S. Attorney Vincent H. Cohen, Jr.; Patrick E. McFarland, Inspector General for the Office of Personnel Management (OPM); Andrew G. McCabe, Assistant Director in Charge of the FBI’s Washington Field Office, and David M. McGinnis, Acting Inspector in Charge of the U.S. Postal Inspection Service’s (USPIS) Washington, D.C., Division.
Sveda and Schachter were arrested today in Florida and they made their first court appearances this afternoon in the U.S. District Court for the Southern District of Florida. Both were named in a 24-count indictment, unsealed today, that charges them with conspiracy, health care fraud, mail fraud, false claims, false statements, and theft. The indictment also includes forfeiture allegations seeking all proceeds that can be traced to the scheme. The defendants are scheduled to appear in the U.S. District Court for the District of Columbia on July 23, 2015.
According to the indictment, Sveda, a retired U.S. Department of State employee, was enrolled in the Foreign Service Benefit Plan, as his health care benefit program, with Coventry as the insurance administrator. Between January 2007 and January 2013, the indictment alleges, Sveda and Schachter attempted to obtain from Coventry approximately $599,000 in reimbursements for overseas pharmacy purchases and $637,000 in reimbursements for overseas medical care, for an approximate total of $1.2 million. The indictment charges that Sveda and Schachter submitted materially false and fraudulent claims and invoices, with most of the claims being submitted under the name of Sveda, in the care of Schachter. The indictment further charges that claims were false in that they represented that Sveda had purchased and paid for prescription medications and other pharmaceutical items from the Stadt-Apotheke Fussen, a pharmacy in Fussen, Germany, and that he had received and paid for health care items and medical services from doctors, hospitals, clinics, and other medical providers in the German cities/towns of Fussen, Bad Liebenstein, Bad Salzungen, Bad Ems, Baden, Schweina, and other locations in Germany.
Finally, the indictment states that after obtaining funds as reimbursements for medical expenses supposedly incurred, Sveda and Schachter used these funds, in part, to help finance joint travel around Europe and to pay for other joint expenditures wholly unrelated to medical services.
An indictment is merely a formal charge that a defendant has committed a violation of criminal laws and every defendant is presumed innocent until, and unless, proven guilty.
In announcing the charges, Acting U.S. Attorney Cohen, Inspector General McFarland, Assistant Director in Charge McCabe, and Acting Inspector in Charge McGinnis expressed appreciation for the work performed by Special Agents and analysts from OPM’s Office of Inspector General and the FBI, and Postal Inspectors and analysts with the U.S. Postal Inspection Service. They also expressed appreciation for the assistance provided by the Office of the Inspector General for the Social Security Administration. In addition, they acknowledged the efforts of those who are working on the case from the U.S. Attorney’s Office, including Paralegal Specialists Donna Galindo, Kristy Penny, John Lowell, Jessica Mundi, and Corinne Kleinman, Assistant U.S. Attorneys Ted Radway and Diane Lucas, and Assistant U.S. Attorney Virginia Cheatham, who is prosecuting the case.
Twenty people indicted for conspiracy that brought heroin and cocaine to Akron from New YorkRead the Press Release
Twenty people were indicted for their roles in a conspiracy in which kilogram-quantities of heroin and cocaine went from New York to Akron and then were throughout Northeast Ohio by drug dealers, law enforcement officials said.
Named in the 51-count indictment are: Emery Lee, 60, of Akron; Angel Pichardo-Martinez, 30, of the Bronx, N.Y.; Lesley Pichardo Feliz, 29, of the Bronx, N.Y.; Antoine Dortch, 25, of Akron; Ailyson Clipper, 29, of Akron; Leardrus Burris, 31, of Cuyahoga Falls; Ronnie Johnson, Jr., 44, of Mentor; Larry Smoot, 34, of Akron; Kyle Ballard, 30, of Akron; Collie Brooks, 51, of Akron; George Locke, Jr., 58, of Akron; Demond Baker, 39, of Akron; Tyrone Allen, 54, of Akron; Rhonda Collins, 46, of Akron; Sharae Ramsey, 25, of Akron; David Robinson, 38, of Akron; Divine Daniels, 24, of Akron; Orlando Reed, 43, of Akron; Reginald Blair, 44, of Akron; and Larry Dixon, 57, of Akron.
The charges include conspiracy to possess with the intent to distribute and distribution of cocaine and heroin in Count 1, and with use of a telecommunication facility to facilitate a drug trafficking offense in Counts 15-51. Blair is charged with possession with the intent to distribute heroin in Counts 2 and 3, possession with the intent to distribute cocaine in Count 5 and being a felon in possession of a firearm and ammunition in Count 12.
Lee is charged with possession with the intent to distribute heroin in Counts 4 and 8, possession with the intent to distribute cocaine in Counts 6, 7, and 9, and being a felon in possession of a firearm and ammunition in Count 13. Burris is charged possession with the intent to distribute heroin in Count 10 and being a felon in possession of a firearm and ammunition in Count 11. Collins is charged with being a felon in possession of a firearm and ammunition in Count 14.
Lee obtained heroin and cocaine from Pichardo-Martinez, Pichardo Feliz and others. Lee then provided the drugs to others named in the indictment for distribution. This took place dating back to 2010, according to the indictment.
The investigation was conducted by members of the Akron/Summit County HIDTA Initiative, and included assistance by the Summit County Sheriff’s Office, Akron Police Department, Barberton Police Department, Copley Police Department, Cuyahoga Falls Police Department, New Franklin Police Department, Ohio State Highway Patrol, Reminderville Police Department, Springfield Twp. Police Department, Stow Police Department, Summit County Prosecutor’s Office, Tallmadge Police Department, University of Akron Police Department, Drug Enforcement Administration, and Federal Bureau of Investigation.
The case is being prosecuted by Assistant United States Attorney Teresa L. Riley.
This investigation has resulted in the recovery of six firearms, a Kevlar vest, ammunition, cocaine, crack cocaine, heroin, and U.S. currency.
If convicted, the defendants’ sentences will be determined by the Court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violations. In all cases, the sentence will not exceed the statutory maximum and, in most cases, it will be less than the maximum.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Three Sentenced to Prison This Week in Montana Meth ConspiracyRead the Press Release
MISSOULA – A federal judge sentenced three defendants this week for a methamphetamine conspiracy in Montana. Robert Anthony Vaughn, 37, of Bozeman, Montana, was sentenced today to 46 months in federal prison, followed by three years of supervised release, for conspiracy to possess meth with the intent to distribute. Two other defendants in the conspiracy were also sentenced this week for the offense. Zachary Ryan Mills, 34, and Tracy Ann Hohenstatt, 45, both from Phoenix, Arizona, were each sentenced to five years in prison, followed by five years of supervised release. An additional defendant, Janet Jorgenson Card, was sentenced to five years in prison followed by three years of supervised release. Chief U.S. District Court Judge Dana Christensen presided over the proceedings.
In an Offer of Proof filed by Assistant U.S. Attorney Paulette Stewart, the government stated that if the case had proceeded to trial, the government would have proven that from summer 2012 until roughly Fall 2013, Card received methamphetamine from Mills and Hohenstatt. Mills and Hohenstatt would drive the meth from the Phoenix, Arizona, area to Three Forks, Montana. Card then distributed the methamphetamine to others in the area, including Vaughn. Card estimated that she received 3600 grams from Mills and Hohenstatt. Law enforcement interviewed Vaughn, who stated that he purchased methamphetamine from Card for approximately nine months at her Three Forks residence for a total of 350 grams. Law enforcement seized additional meth and two loaded firearms from Mills and Hohenstatt.
Assistant U.S. Attorney Paulette Stewart prosecuted the cases. The crimes were investigated by the FBI, DEA and the Missouri River Drug Task Force. The defendants will have to serve at least 85% of their sentences before being released from federal prison.