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13 August 2015
Nursing Facility Chain Agrees to Repay $415,000 to Resolve Civil Overpayment AllegationsRead the Press Release
Signature Care Centers, LLC, and its seven related nursing facilities – Gowrie Care Center, Lake Park Care Center, Perry Health Care Center, Primghar Rehabilitation and Care Center, Rosewood Manor, Woodlands Rehabilitation Center, and Sutherland Care Center – agreed to pay $415,044.46 to resolve civil allegations that the facility submitted inaccurate cost reports for Medicaid payments for the 2008 and 2010 fiscal years. As part of the investigation, the government did not allege any patient harm or jeopardy to patients’ conditions, and there was no admission of liability or wrongdoing as part of the settlement.
“This agreement signifies both the importance our office places on ensuring that all providers play by the rules and our office’s dedication to ensuring no federal money is misspent,” said Kevin W. Techau, United States Attorney for the Northern District of Iowa. “We appreciate the cooperation we received throughout the investigation and the willingness to resolve our concerns without the needless expense of additional resources.”
The matter was jointly pursued by the United States Attorney’s Office for the Southern and Northern Districts of Iowa. Of the total amount recovered, approximately $231,000 related to conduct associated with facilities in the Southern District of Iowa and the remaining $184,000 related to conduct associated with facilities in the Northern District of Iowa. The districts worked cooperatively during the investigation with Iowa Medicaid Enterprise, Iowa’s Medicaid Fraud Control Unit, and the Iowa Attorney General’s Office.
Non-Indian Physician Employed by Indian Health Services Pleads Guilty to Federal Child Pornography ChargeRead the Press Release
ALBUQUERQUE – Thomas Murray, 62, a non-Indian who resides in Acoma Pueblo, N.M., pleaded guilty today in federal court in Albuquerque, N.M., to a federal child pornography charge.
Murray is a physician who relocated to New Mexico in Oct. 2014, from Ohio to take a position as a general practitioner with Indian Health Services at the Acoma-Canoncito-Laguna Service Unit located in Acoma Pueblo. Murray was charged in a criminal complaint with transporting, distributing and possessing visual depictions of minors engaged in sexually explicit conduct.
According to the criminal complaint, the FBI initiated the federal investigation leading to Murray’s arrest on Dec. 19, 2014, after receiving a report from the New Mexico Attorney General’s Office. The report alleged that investigation by an investigation by the New Mexico Internet Crimes Against Children (ICAC) Task Force revealed that an IP Address subscribed to Murray’s residential address in Acoma was being used to download and distributing images consistent with child pornography. According to the criminal complaint, the FBI arrested Murray and executed a federal search warrant at his residence on Jan. 5, 2015.
Murray was subsequently indicted on Jan. 21, 2015, and charged with receiving and possessing child pornography from Oct. 19, 2014 through Jan. 5, 2015, in Cibola County, N.M.
During today’s change of plea hearing, Murray pled guilty to possession of child pornography under a plea agreement with the U.S. Attorney’s Office.
At sentencing, Murray faces a maximum penalty of 20 years in federal prison. Murray will be required to register as a sex offender after completing his prison sentence.
This case was investigated by the Albuquerque office of the FBI, the New Mexico Attorney General’s Office, the New Mexico ICAC Task Force and the New Mexico Regional Computer Forensic Laboratory. The case is being prosecuted by Assistant U.S. Attorney Jacob A. Wishard 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.
New Jersey Man Faces Heroin ChargesRead the Press Release
The Office of the United States Attorney for the District of Vermont stated that, on August 12, 2015, Jonathan Nisbett, age 23, of Newark, New Jersey, was charged via federal criminal complaint with possessing with intent to distribute heroin. Nisbett made his initial appearance in federal court on August 12, 2015 before U.S. Magistrate Judge John M. Conroy. At that hearing, Judge Conroy scheduled a detention hearing for Monday, August 17, 2015. At the detention hearing, the Court will decide whether Nisbett will be detained pending trial or released to the supervision of the U.S. Probation Office. The U.S. Attorney’s Office has filed a motion asking the Court to detain Nisbett.
According to court records, the Vermont State Police Drug Task Force conducted a lengthy investigation into potential heroin distribution by Nisbett. On the evening of August 11, 2015, Vermont State Police officers arrested Nisbett at the Amtrak train station in Essex Junction, Vermont after Nisbett arrived in a train from New York City. In Nisbett’s bag, officers found approximately 2,250 bags of heroin. Colonel Matthew Birmingham of the Vermont State Police praised the work of the Drug Task Force, noting that Nisbett’s arrest was the culmination of many months of work by the local, state, and federal agents and officers assigned to the Task Force.
If convicted on the current charge, Nisbett would face a statutory maximum term of 20 years in prison. His actual sentence would be determined with reference to the federal sentencing guidelines. United States Attorney Eric Miller emphasized that the charge in the criminal complaint is only an accusation and Nisbett is presumed innocent unless and until he is proven guilty.
United States Attorney Miller added, “This case is a perfect example of federal, state, and local law enforcement agencies working hand-in-hand to combat heroin distribution in Vermont.” Miller commended the efforts of the agencies involved in investigating heroin crimes, which include the Drug Enforcement Administration, the Bureau of Alcohol Tobacco Firearms and Explosives, the Federal Bureau of Investigation, Homeland Security Investigations, the Vermont State Police Drug Task Force, and the Burlington Police Department.
The prosecution is being handled by Assistant U.S. Attorney Timothy C. Doherty, Jr. Nisbett is represented by David McColgin of the Federal Public Defender’s Office.
Nevada Man Pleads Guilty to Aggravated Identity TheftRead the Press Release
SACRAMENTO, Calif. —Glenn Litton, 47, of Carson City, Nevada, pleaded guilty today to aggravated identity theft arising from false statements he made in an application for a United States Passport, United States Attorney Benjamin B. Wagner announced.
According to court documents, on November 19, 2014, Litton submitted an application for a U.S. passport to a passport acceptance officer in Sacramento. In the application, Litton presented a number of false statements, including a false name, birthdate, and Social Security number that belonged to a real individual. Litton also presented a birth certificate, a debit card, and employment ID card all bearing the false name that he used in the passport application. As a result of the application, Litton was issued a U.S. passport in a false name.
This case is the product of an investigation by the U.S. State Department’s Diplomatic Security Service with assistance from the Federal Bureau of Investigation, the U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), and the Nevada Department of Motor Vehicles. Assistant United States Attorney Shelley D. Weger is prosecuting the case.
Litton remains in custody awaiting sentencing. He is scheduled to be sentenced by Judge Morrison C. England Jr. on November 12, 2015 at 9:00 a.m. Litton faces a statutory penalty of two years in prison and up to a maximum $250,000 fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Native of Mexico Charged with Illegal ReentryRead the Press Release
Antonio Carrillo-Ortiz, 53, a native of Mexico, was charged today by indictment with illegal reentry after deportation, announced United States Attorney Zane David Memeger.
If convicted, the defendant faces a statutory maximum sentence of 10 years in prison, a fine of up to $250,000, up to three years of supervised release, and a $100 special assessment.
The case was investigated by Homeland Security Investigations and is being prosecuted by Assistant United States Attorney Nancy Rue.
An Indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Naperville Businessman Sentenced to Seven Years in Federal Prison for Defrauding Investors of More Than $3 MillionRead the Press Release
CHICAGO — A Naperville businessman who fraudulently coaxed his clients into investing millions of dollars in bogus Turkish bonds was sentenced Thursday to seven years in federal prison.
JOHN T. BURNS III persuaded a dozen clients of USA Retirement Management Services to invest more than $3.3 million in Turkish bonds on the promise of lucrative returns. Burns fraudulently told his clients, many of whom were retirees, that he had substantial experience investing money on behalf of clients, that he and his parents were personally invested in the bonds, and that the profitable returns in those investments were providing financial security to him and his family. In reality, Burns was a mortgage salesman with no professional investment experience, and his family hadn’t invested in the Turkish bond program because it didn’t exist.
“You were a good salesman, and they bought it,” U.S. District Judge Charles P. Kocoras said in pronouncing the 84-month sentence. Judge Kocoras also ordered Burns, 56, of Naperville, to pay $3,383,113 in restitution.
A jury in November convicted Burns on two counts of wire fraud and three counts of mail fraud. His scam was part of a larger Ponzi-type scheme involving two principal members of USA Retirement Management Services – ROBERT PRIBILSKI and MAHMUT ERHAN DURMAZ, according to a federal indictment returned against the trio. Taken together, the total scheme defrauded 120 defendants out of $28 million, according to the indictment.
Pribilski, 57, of Lisle, pleaded guilty last year to one count of wire fraud and is awaiting sentencing. Durmaz, 45, formerly of Streamwood and Los Angeles, Calif., fled the United States in 2010 and is a fugitive believed to be residing in Turkey. USA Retirement Management Services, which had offices in Oak Brook Terrace and southern California, was shut down by the U.S. Securities and Exchange Commission in 2010.
“Despite having no prior experience in estate planning or handling investments for clients, the defendant held himself out as an experienced, certified estate planner” to gain access to financial records and to pitch the Turkish bond investment to clients, Assistant U.S. Attorney Ryan S. Hedges argued in the government’s sentencing memorandum. “The defendant’s motive to lie was greed; pure and simple,” argued Hedges, noting that Burns received substantial commissions from USA Retirement Management Services for each client who pledged funds into the bogus bonds.
Evidence at Burns’ week-long trial revealed that he identified potential investors by purporting to provide estate planning seminars in Illinois and California. Burns sent out mass mailings to lure people to the seminars, including a postcard that promoted his presentation and offered a free meal to attendees. Burns then used the seminars to schedule follow up interviews with prospective clients, during which he pitched what he claimed was a uniquely profitable investment opportunity in the Turkish bonds. What Burns didn’t tell the clients is that the Turkish bonds didn’t exist, and that their investments were being used to pay other investors in a Ponzi-type scheme.
The sentence was announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois; and Robert J. Holley, Special Agent-in-Charge of the Chicago Office of the Federal Bureau of Investigation. The government is being represented by Mr. Hedges and Assistant U.S. Attorney Matthew F. Madden.
The investigation falls under the umbrella of the Financial Fraud Enforcement Task Force, which includes representatives from a broad range of federal agencies, regulatory authorities, inspectors general, and state and local law enforcement. The task force is working to investigate and prosecute significant financial crimes, and to combat discrimination in the lending and financial markets. For more information on the task force, visit: www.StopFraud.gov.
Missouri Hospital Agrees to Pay United States $5.5 Million to Settle Alleged False Claims Act ViolationsRead the Press Release
Two Southwest Missouri health care providers have agreed to pay the United States $5.5 million to settle allegations that they violated the False Claims Act by engaging in improper financial relationships with referring physicians, the Justice Department announced today. The two providers are Mercy Health Springfield Communities, formerly known as St. John’s Health System Inc., which owns and operates a hospital in Springfield, Missouri, and its affiliate, Mercy Clinic Springfield Communities, formerly known as St. John’s Clinic, which operates health care facilities in southwest Missouri.
“Financial relationships between heath care providers and their referral sources must be structured to comply with all applicable laws,” said Principal Deputy Assistant Attorney General Benjamin C. Mizer, the head of the Justice Department’s Civil Division. “When physicians are rewarded financially for referring patients to hospitals or other health care providers, it can affect their medical judgment, resulting in overutilization of services that drives up health care costs for everyone. In addition to yielding a recovery for taxpayers, this settlement should deter similar conduct in the future and help make health care more affordable.”
“This settlement protects patients and the public by enforcing the federal protections against illegal profit incentives for physicians,” said U.S. Attorney Tammy Dickinson of the Western District of Missouri. “A bonus structure that rewards physicians based on the value of their referrals is detrimental to both the quality and the cost of health care. Patients deserve assurances that they are receiving appropriate medical care, unbiased by hidden incentives. And taxpayers deserve assurances that the cost of public health care programs is not inflated by unnecessary procedures and services.”
“Health care organizations paying physicians based on referrals – as alleged in this case – undermines public trust in medical institutions and the financial integrity of federal health care programs,” said Special Agent in Charge Gerald T. Roy of the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG). “We will aggressively pursue organizations that engage in conduct detrimental to taxpayers and government health programs.”
The settlement announced today resolved allegations that the defendants submitted false claims to the Medicare program for services rendered to patients referred by physicians who received bonuses based on a formula that improperly took into account the value of the physicians’ referrals of patients to the clinic. Federal law restricts the financial relationships that hospitals and clinics may have with doctors who refer patients to them.
The allegations settled today arose from a lawsuit filed by a whistleblower, Dr. Jean Moore, a physician who is employed by one of the defendants, under the qui tam provisions of the False Claims Act. Under the act, private citizens can bring suit on behalf of the government for false claims and share in any recovery. Dr. Moore will receive $825,000 from the recovery announced today.
This settlement illustrates the government’s emphasis on combating health care fraud and marks another achievement for the Health Care Fraud Prevention and Enforcement Action Team (HEAT) initiative, which was announced in May 2009 by the Attorney General and the Secretary of Health and Human Services. The partnership between the two departments has focused efforts to reduce and prevent Medicare and Medicaid financial fraud through enhanced cooperation. One of the most powerful tools in this effort is the False Claims Act. Since January 2009, the Justice Department has recovered a total of more than $24.9 billion through False Claims Act cases, with more than $15.9 billion of that amount recovered in cases involving fraud against federal health care programs.
The case, United States ex rel. Moore v. Mercy Health Springfield Communities f/k/a St. John’s Health System, Inc., et al., Case No. 13-3019-CV (W.D. Mo.), was handled by the Civil Division’s Commercial Litigation Branch, the U.S. Attorney’s Office of the Western District of Missouri and HHS-OIG. The claims settled by this agreement are allegations only, and there has been no determination of liability.
Metro Denver Bank Senior Vice President Pleads Guilty to EmbezzlementRead the Press Release
DENVER – Candice L. White, age 43, of Centennial, Colorado, pled guilty yesterday before U.S. District Court Judge Raymond P. Moore to two counts of embezzlement by a bank officer or employee, the U.S. Attorney’s Office, the Federal Bureau of Investigation (FBI) and the Special Inspector General of Troubled Asset Relief Program (SIGTARP) announced. White, who is free on bond, is scheduled to be sentenced by Judge Moore on November 3, 2015 at 4:00 p.m. White was first indicted by a federal grand jury in Denver on March 24, 2015.
According to the stipulated facts contained in the plea agreement, from at least July 2009 through March 2011, White, a Senior Vice President of Front Range Bank, knowingly and intentionally embezzled $92,930.27 from client accounts at the Bank. The plea agreement calls for White to pay restitution in this amount back to the Bank, which has already reimbursed its clients for their losses. The defendant accomplished her embezzlement by requesting cashier’s checks and withdrawing cash from escrow accounts and other accounts that were not closely monitored by the victim account holders. She would then use the embezzled money for her own personal use.
White was familiar with the victim accounts because she was the bank representative assigned to the accounts. To carry out her embezzlement, the defendant approached a teller at the bank with a type of withdrawal slip and falsely informed the teller that she needed the cashier’s check or cash for the client or to pay a bill on the client’s behalf. Due to her status as a Senior Vice President at the Bank, the tellers trusted that White was telling the truth and had the required supporting documentation for the transactions.
“Americans do not tolerate bank officials stealing money from bank customers. It’s that simple,” said U.S. Attorney John Walsh.
“Candice White’s guilty plea should send a strong message to anyone considering embezzling funds from banking institutions,” said FBI Denver Special Agent in Charge Thomas Ravenelle. “The FBI will continue to work with our law enforcement partners to protect financial institutions from those engaged in these types of schemes."
“As a senior executive at a TARP bank, the American taxpayers placed their trust in White,” said Christy Goldsmith Romero, Special Inspector General for TARP (SIGTARP). “White not only abused that trust, she also took advantage of her position within the bank to deceive her co-workers for her own personal gain. SIGTARP and our law enforcement partners will aggressively investigate allegations of crime undertaken at the expense of taxpayers' TARP investments and bring perpetrators to justice.”
Because Front Range Bank received TARP funds, the Special Inspector General (SIGTARP) assisted the FBI in the investigation.
The defendant faces not more than 30 years in federal prison, and up to a $250,000 fine, per count of conviction.
White is being prosecuted by Assistant U.S. Attorney Pegeen Rhyne.
Member of 19-Block Dipset Gang Sentenced to 87 Months in Prison for Possession of A FirearmRead the Press Release
United States Attorney Andrew M. Luger today announced the sentencing of MARTEL JAVELL EINFELDT, a/k/a “Peanut,” 26, to 87 months in federal prison, the top of the federal guideline range, for illegally possessing a firearm after having been previously convicted of two felonies in Hennepin County. The defendant, who was indicted on September 16, 2014, entered a guilty plea on January 21, 2015. EINFELDT was sentenced on August 12, 2015, before Judge Susan R. Nelson in U.S. District Court in St. Paul, Minn.
According to the defendant’s guilty plea and documents filed in court, on June 25, 2014, EINFELDT was found in possession of a Smith and Wesson, semi-automatic pistol. EINFELDT is a confirmed member of the 19-Block Dipset gang, whose members individually and collectively have engaged in patterns of violent criminal activity from 2006 until the present. EINFELDT warned law enforcement that members of a rival gang, the Taliban/Y.N.T. gang, would “get theirs,” for killing Tyrone Washington in 2013, the leader of the 19-Block Dipset gang. EINFELDT was previously convicted in Hennepin County for aggravated robbery and simple robbery, both felonies.
Assistant U.S. Attorney David Steinkamp said: “The defendant has personally suffered for being a member of the 19-Block Dipset. He has been shot twice, in the chest and in the face, lost his half-sister to gang violence, and has predicted he will be dead in three years. Hopefully, this lengthy prison sentence will give the defendant the chance to change the course of his life and prevent his prediction from becoming a reality.”
This case is part of a continuing effort by state and federal law enforcement to focus prosecutive resources on violent gang members who terrorize neighborhoods filled with law abiding, hard working citizens. This case was investigated by the Brooklyn Park Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Assistant United States Attorney David Steinkamp prosecuted this case.
Defendant Information:
MARTEL JAVELL EINFELDT, 26
Brooklyn Park, Minn.
Convicted:
- Felon in Possession of a Firearm, 1 count
Sentenced:
- 87 months in federal prison
- Three years supervised release
###
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
Maryland Owner of Loan Brokerage Firms Pleads Guilty to Fraud and Obstruction of Justice ChargesRead the Press Release
Baltimore, Maryland – Jeong Joon Moon, a/k/a Patrick Moon, age 47, of Germantown, Maryland, pleaded guilty today to charges arising from a scheme to defraud financial institutions who loaned money to small businesses.
The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Small Business Administration (SBA) Inspector General Peggy E. Gustafson; Acting Postal Inspector in Charge David G. Bowers of the U.S. Postal Inspection Service - Washington Division; Assistant Director in Charge Andrew G. McCabe of the Federal Bureau of Investigation - Washington Field Office; and Acting Inspector General Fred W. Gibson, Jr. of the Federal Deposit Insurance Corporation.
Moon owned and operated JM Capital Solutions, Inc. and RNB Consulting, Inc., which were loan brokerage firms with offices located in Annandale and Springfield, Virginia. These firms specialized in securing loans for individuals interested in purchasing or refinancing small businesses in Maryland, Virginia, the District of Columbia and elsewhere.
Moon encouraged prospective borrowers to apply for business loans through the SBA’s Section 7(a) program, which authorizes SBA to help small businesses obtain financing by guaranteeing 75 to 90 percent of qualified loans made by commercial lenders. Small business owners are required to invest a certain amount of their own money into the business before they can qualify for the loan. Moon compiled and submitted to lenders the documentation necessary to substantiate the borrowers’ equity injection and ability to repay loans guaranteed by SBA, as well as documentation needed for other commercial loans.
According to his agreement to plead guilty to the indictment, from 2006 to April 2014, Moon and others defrauded financial institutions by submitting false copies of the borrowers’ monthly bank statements to reflect more money than was actually in the borrowers’ bank accounts. Moon and others also prepared and submitted false tax returns for the borrowers which inflated the borrowers’ income. The financial institutions relied on the false information to lend funds to the borrowers, which resulted in loan broker commissions being paid to JM Capital and RNB Consulting.
On July 12 and 15, 2013, Moon altered, destroyed or concealed documents relating to six loans guaranteed by SBA for six small businesses, intending to impede the federal investigation of such loans.
Moon has agreed to forfeit $14,708,000, the amount of fraudulently obtained loans.
Moon faces a maximum sentence of 30 years in prison for conspiracy to commit bank fraud, and for each of the 18 counts of bank fraud; and 20 years in prison on each of six counts for destruction of records in a federal investigation. U.S. District Judge William D. Quarles, Jr. scheduled sentencing for November 24, 2015 at 1:00 p.m.
Today’s announcement is part of efforts underway by President Obama’s Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed more than 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,700 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.
United States Attorney Rod J. Rosenstein praised the SBA - OIG, U.S. Postal Inspection Service, FBI and FDIC - OIG for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorneys Leo J. Wise and Marty Clarke, who are prosecuting the case.
MS-13 Member Sentenced to over 15 Years for Leadership Role in Violent Racketeering ConspiracyRead the Press Release
Greenbelt, Maryland – U.S. District Judge Roger W. Titus sentenced Wilmer Argueta, a/k/a “Chengo,” age 23, of Hyattsville, Maryland, today to 188 months in prison followed by five years of supervised release for conspiracy to participate in a racketeering enterprise known as La Mara Salvatrucha, or MS-13.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division; Special Agent in Charge Andre Watson of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); Chief Mark A. Magaw of the Prince George’s County Police Department; Prince George’s County State’s Attorney Angela D. Alsobrooks; Chief J. Thomas Manger of the Montgomery County Police Department; Chief Alan Goldberg of the Takoma Park Police Department; and Montgomery County State’s Attorney John McCarthy.
MS-13 is a national and international gang composed primarily of immigrants or descendants from El Salvador. Branches or “cliques” of MS-13, one of the largest street gangs in the United States, operate throughout Prince George’s County and Montgomery County, Maryland. MS-13 members are required to commit acts of violence both to maintain membership and discipline within the gang and against rival gangs.
According to his plea agreement, from 2009 until at least 2012, Argueta was a member and leader of the Peajes Locos Salvatrucha clique of MS-13. He and members of the Peajes and other MS-13 cliques committed crimes to further the interests of the gang, including murder, assault, robbery, extortion by threat of violence, obstruction of justice, witness tampering and witness retaliation.
On January 3, 2010, Argueta and other MS-13 members attempted to kidnap and assault two individuals with weapons because Argueta and his co-conspirators believed one of the individuals was associating with a rival gang. After the individuals fled in different directions, several MS-13 members caught one of the victims and sexually assaulted her as retribution for associating with a rival gang.
In addition on January 13, 2011, Argueta attended a Peajes clique meeting during which another MS-13 member criticized members of the clique for not committing enough violent crimes and encouraging clique members to target rival gang members with acts of violence. After the meeting, Argueta and other MS-13 members strangled and stabbed an individual whom the clique members believed to be a member of a rival gang. Although the MS-13 members left the victim for dead, he survived.
Argueta also admitted that between March and November 2011, he and other members of the Peajes clique extorted a former MS-13 associate under the threat of a “greenlight” (an order to kill). Argueta ordered other MS-13 associates to relay the death threats to the victim, and he contacted the victim himself on multiple occasions to arrange extortion payments.
Between September and November 2011, Argueta conspired to kill an individual who had been assaulted by Argueta and other MS-13 members and who had agreed to testify as a witness against Argueta in state court. Specifically, Argueta admitted that, while incarcerated in the Prince George’s County Corrections Facility, he ordered the “greenlight” by contacting a co-conspirator who then relayed the instruction to other MS-13 members. On Nov. 15, 2011, three MS-13 members drove to the victim/witness’ home, and one of the co-conspirators shot at the victim from a moving vehicle, striking the victim in the chest. The victim survived.
To date, five of the 14 defendants charged in this case have pleaded guilty to participating in the racketeering conspiracy.
United States Attorney Rod J. Rosenstein commended HSI Baltimore, the Prince George’s County and Montgomery County Police Departments, the Prince George’s County and Montgomery County State’s Attorney’s Offices, and the Takoma Park Police Department for their work in the investigation. Mr. Rosenstein also recognized the Prince George’s County Sheriff’s Office, HSI Baltimore’s Operation Community Shield Task Force and the Maryland Department of Corrections Intelligence Unit for their assistance. Mr. Rosenstein thanked Assistant United States Attorneys William D. Moomau, Lindsay Eyler Kaplan, and Trial Attorney Kevin L. Rosenberg with the Justice Department Criminal Division’s Organized Crime and Gang Section, who prosecuted this case.
MS-13 Member Sentenced to over 15 Years for Leadership Role in Violent Racketeering ConspiracyRead the Press Release
Participated in Assault, Kidnapping and Attempted Murder of a State’s Witness
A Maryland gang member was sentenced to 188 months in prison today for conspiring to participate in a racketeering enterprise known as La Mara Salvatrucha, or MS-13.
The sentence was announced by Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division; U.S. Attorney Rod J. Rosenstein of the District of Maryland; Special Agent in Charge Andre Watson of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI); Chief Mark A. Magaw of the Prince George’s County, Maryland Police Department; Prince George’s County State’s Attorney Angela D. Alsobrooks; Chief J. Thomas Manger of the Montgomery County, Maryland, Police Department; Chief Alan Goldberg of the Takoma Park, Maryland, Police Department; and Montgomery County State’s Attorney John McCarthy.
Wilmer Argueta, aka Chengo, 23, of Hyattsville, Maryland, pleaded guilty on April 20, 2015, before U.S. District Judge Roger W. Titus of the District of Maryland to one count of Racketeer Influenced and Corrupt Organizations Act (RICO) conspiracy.
According to the stipulated facts agreed to in connection with Argueta’s guilty plea, MS-13 is an international criminal organization and one of the largest street gangs in the United States with branches or “cliques” operating throughout Prince George’s and Montgomery Counties in Maryland. Both to maintain membership in the gang and to enforce internal discipline, members are required to engage in acts of intimidation and violence, including against members of rival gangs.
In connection with his plea, Argueta admitted that from 2009 until at least 2012, he was a member and leader of the Peajes Locos Salvatrucha clique of MS-13, and that he and members of the Peajes and other MS-13 cliques committed crimes to further the interests of the gang, including murder, assault, robbery, extortion by threat of violence, obstruction of justice, witness tampering and witness retaliation.
Argueta admitted that on Jan. 3, 2010, he and other MS-13 members attempted to kidnap and assault two individuals with various weapons because Argueta and his co-conspirators believed one of the individuals was associating with a rival gang. After the individuals fled in different directions, several MS-13 members caught one of the victims and sexually assaulted her as retribution for associating with a rival gang.
In addition, according to the plea agreement, on Jan. 13, 2011, Argueta attended a Peajes clique meeting during which another MS-13 member criticized members of the clique for not committing enough violent crimes and encouraging clique members to target rival gang members with acts of violence. After the meeting, Argueta and other MS-13 members strangled and stabbed an individual whom the clique members believed to be a member of a rival gang. Although the MS-13 members left the victim for dead, he survived.
Argueta also admitted that between March and November 2011, he and other members of the Peajes clique extorted a former MS-13 associate under the threat of a “greenlight” (an order to kill). Argueta admitted that he ordered other MS-13 associates to relay the death threats to the victim, and he contacted the victim himself on multiple occasions to arrange extortion payments.
According to admissions made in connection with his plea, between September and November 2011, Argueta conspired to kill an individual who had been assaulted by Argueta and other MS-13 members and who had agreed to testify as a witness against Argueta in state court. Specifically, Argueta admitted that, while incarcerated in the Prince George’s County Corrections Facility, he ordered the “greenlight” by contacting a co-conspirator who then relayed the instruction to other MS-13 members. On Nov. 15, 2011, three MS-13 members drove to the victim/witness’ home, and one of the co-conspirators shot at the victim from a moving vehicle, striking the victim in the chest. The victim survived.
To date, five of the 14 defendants charged in this case have pleaded guilty to participating in the racketeering conspiracy.
The case is being investigated by HSI Baltimore, the Prince George’s County and Montgomery County Police Departments, the Prince George’s County State’s Attorney’s Office, the Takoma Park Police Department and the Montgomery County State’s Attorney’s Office. The Prince George’s County Sheriff’s Office, HSI Baltimore’s Operation Community Shield Task Force and the Maryland Department of Corrections Intelligence Unit also provided assistance.
The case is being prosecuted by Trial Attorney Kevin L. Rosenberg of the Criminal Division’s Organized Crime and Gang Section and Assistant U.S. Attorneys William D. Moomau and Lindsay Eyler Kaplan of the District of Maryland.
Leader of Methamphetamine Trafficking Conspiracy Sentenced to 18 Years in PrisonRead the Press Release
HONOLULU - United States District Judge Derrick K. Watson sentenced Serafine Magallon, 41, to 225 months imprisonment on August 11, for conspiracy to distribute and possess with intent to distribute more than five hundred grams of methamphetamine. In sentencing Magallon, a San Jose, California resident, Judge Watson found that he held a leadership role in the conspiracy.
United State Attorney Florence T. Nakakuni said that according to information produced in court, the case involved undercover and wiretap investigations and the coordinated efforts of law enforcement agents in Honolulu, Nevada, and California. The information reflected that in August 2012, an express mail parcel containing nine pounds of methamphetamine ("ice") was seized in Honolulu after it was sent from Las Vegas to Honolulu. The seizure resulted in the arrests of Honolulu and Las Vegas residents. Those arrests in turn led to additional arrests, including that of Magallon, and the seizure of approximately 20 more kilograms of "ice" in Las Vegas, Sacramento and Honolulu as a result of searches in all three locations.
The case resulted from an investigation by the Federal Bureau of Investigation and the Drug Enforcement Administration in the judicial districts of Hawaii, Nevada, and Eastern California, as well as the United States Postal Inspection Service. Assistant United States Attorney Beverly Wee Sameshima handled the prosecution.
KC Man Sentenced for Robbing Raytown BankRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Kansas City, Mo., man was sentenced in federal court today for robbing a Raytown, Mo., bank.
Anthony Beeks, 53, of Kansas City, was sentenced by U.S. District Judge Beth Phillips to six years and six months in federal prison without parole. The court also ordered Beeks to pay $2,025 in restitution to the bank.
Co-defendant Robert T. Morris, 32, of Kansas City, was sentenced on Aug. 4, 2015, to 19 months in federal prison without parole and is jointly and severally liable for the restitution.
Beeks and Morris each pleaded guilty to stealing $2,025 from First Federal Bank, 9330 E. Gregory, Raytown.
On April 24, 2014, Morris entered the bank, approached the teller counter and provided the teller with a demand note, which was similar in verbiage to the following, “YOU KNOW WHAT THIS IS, HURRY UP, PUT THE MONEY IN THE BAG, NO FUNNY BUSINESS, HURRY UP.” The teller did not have access to any money, but walked over to another teller and showed her the demand note. The second teller then provided Morris with $2,025. Morris put the stolen money in a manila envelope and fled from the bank. Beeks drove the getaway vehicle during the bank robbery.
A witness told law enforcement officers that Morris had admitted his role in the robbery to him. The witness also recognized Morris from bank surveillance photos that were posted on a media Web site. According to this witness, Morris and Beeks were planning to commit another bank robbery in the near future.
Over the course of several days, law enforcement officers conducted surveillance on Morris and Beeks. During this time frame, officers observed what they believed to be multiple “casings” of various banks in the Kansas City metropolitan area. On May 22, 2014, a federal search warrant was executed on the vehicle Morris and Beeks had been driving. Morris was arrested the same day.
This case was prosecuted by Special Assistant U.S. Attorney Adam Caine. It was investigated by the FBI and the Kansas City, Mo., Police Department.
Justice Department Intervenes in Private Discriminatory Policing Lawsuit Against Maricopa County, Arizona, Sheriff Joseph ArpaioRead the Press Release
Today, U.S. District Court of the District of Arizona granted a motion by the Department of Justice’s Civil Rights Division to intervene in a private lawsuit, Melendres v. Arpaio, brought against Maricopa County Sheriff Joseph M. Arpaio. In Melendres, the federal court found in May 2013 that the Maricopa County Sheriff’s Office (MCSO) had engaged in unlawful discrimination against Hispanic persons in its traffic enforcement operations in violation of the Fourth and 14th Amendments to the U.S. Constitution and Title VI of the Civil Rights Act of 1964. Last month, the department reached a partial settlement in a lawsuit against Maricopa County and Sheriff Arpaio, resolving claims not addressed in this intervention. Moving forward, the department, court, plaintiffs and independent monitor can work to ensure the Sheriff’s office implements the court-ordered reforms.
In October 2013, the court issued an injunction setting forth specific reforms for MCSO’s law enforcement practices and appointed an independent monitor to oversee implementation of the injunction. In June, the U.S. District Court of the District of Arizona granted the department’s motion for summary judgment on its discriminatory policing claim, based on the court’s findings in Melendres. The department filed for intervention in Melendres so that it may enforce the court’s injunction and any future remedies ordered by the court to address Sheriff Arpaio’s and MCSO’s alleged violations of the court’s orders.
“As a party in the Melendres case, the Department of Justice can now work together with the court, the plaintiffs and the independent monitor to ensure that the Maricopa County Sheriff’s Office meaningfully implements the court-ordered reforms so that the constitutional rights of all people of Maricopa County are protected,” said Deputy Assistant Attorney General Mark Kappelhoff of the Civil Rights Division. “The Constitution guarantees that all people receive the equal protection of the law, and the department is now positioned to ensure that this important right is upheld.”
The department has had an ongoing parallel lawsuit against Sheriff Arpaio and Maricopa County since May 2012. That lawsuit alleged four patterns or practices of unconstitutional conduct: discriminatory policing against Hispanic persons in MCSO’s saturation patrols, general traffic enforcement and worksite operations targeting Hispanic immigrants; detentions in violation of the Fourth Amendment during MCSO’s worksite raids targeting Hispanic immigrants; failures in the provision of language access to Hispanic limited English proficient jail inmates; and retaliatory police action against critics of Sheriff Arpaio and MCSO.
Last month, on July 17, the department entered into settlement agreements to resolve the claims in its lawsuit that were not addressed by the summary judgment–one agreement addressing MCSO’s unlawful detentions and retaliation, and a separate agreement addressing MCSO’s language access policies and practices in its jails. On the same date, the parties filed a joint motion requesting that the U.S. District Court of the District of Arizona approve and agree to enforce the settlement agreement concerning MCSO’s unlawful detentions and retaliation. That motion is still pending before the court.
The injunction in Melendres, the settlement agreements in the Justice Department’s separate case and a description of the department’s previous investigation of and litigation against the Maricopa County Sheriff Arpaio and Maricopa County, will be available at: http://www.justice.gov/crt/about/spl/
Judge Sentences Pittsburgh Man to 5+ Years in Prison for Robbing 6 Area BanksRead the Press Release
PITTSBURGH - A former Allegheny County resident has been sentenced in federal court on his conviction for six counts of bank robbery, United States Attorney David J. Hickton announced today. Furay received a sentence of 64 months imprisonment, followed by three years supervised release, and Furay was ordered to pay restitution in the amount of $16,645.80, of which $4,990.00 shall be paid through forfeiture of funds recovered from Furay.
United States District Judge Gustave Diamond imposed the sentence yesterday on Christopher Furay, 33, formerly of Pittsburgh, Pennsylvania.
According to information presented to the court, between Dec. 1, 2014, and Jan. 16, 2015, Furay robbed six different banks in the Pittsburgh area including a First Commonwealth Bank located in Dormont, Pa.; a First National Bank located in Castle Shannon, Pa.; a PNC Bank located in Bethel Park, Pa.; a Citizens Bank located in Bethel Park, Pa.; a First Commonwealth Bank located in West Mifflin, Pa.; and a Citizens Bank in Brentwood, Pa. All of the banks are insured by the Federal Deposit Insurance Corporation.
Assistant United States Attorney Cindy K. Chung prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the Federal Bureau of Investigation, Dormont Borough Police Department, Castle Shannon Police Department, Bethel Park Police Department, West Mifflin Police Department, and Brentwood Police Department for conducting the investigation leading to the successful prosecution of Furay.
Johnstown Couple Sentenced for Under-reporting Income TaxesRead the Press Release
JOHNSTOWN, Pa. - Two residents of Johnstown, Pa., have each been sentenced in federal court to four years’ probation, the first 12 months of which must be satisfied by a condition of home detention; 100 hours of community service; $25,000 fine and to pay full restitution, including back taxes, penalties and interest to the Internal Revenue Service, on their convictions of filing false income tax returns, United States Attorney David J. Hickton announced today.
United States District Judge Kim R. Gibson imposed the sentences on David J. Murphy and Joyce Murphy.
According to information presented to the court, the Murphys filed individual income tax returns for the calendar years 2008, 2009, 2010 and 2011 failing to report $431,073 in taxable income, resulting in an underpayment of $140,834 in income tax owed to the United States.
Assistant United States Attorney John J. Valkovci, Jr., prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the Internal Revenue Service-Criminal Investigation for the investigation leading to the successful prosecution of the Murphys.
Jefferson City Man Pleads Guilty to Child PornRead the Press Release
JEFFERSON CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Jefferson City, Mo., man pleaded guilty in federal court today to receiving and attempting to distribute child pornography over the Internet.
Dustin Clay Trail, 34, of Jefferson City, pleaded guilty before U.S. Magistrate Judge Matt J. Whitworth to all three of the counts contained in a Feb. 12, 2014, federal indictment.
By pleading guilty today, Trail admitted that he received child pornography over the Internet on Sept. 3, 2013. Trail also pleaded guilty to attempting to distribute child pornography over the Internet on Sept. 4, 2013, and to possessing child pornography from May 2013 to Oct. 31, 2013.
The investigation began in May 2013 when the National Center for Missing and Exploited Children received CyberTip report regarding child pornography being sent by e-mail. Law enforcement officers executed a search warrant at Trail’s residence and seized a desktop computer, three hard drives and compact discs, which Trail must forfeit to the government.
Under federal statutes, Trail is subject to a mandatory minimum sentence of five years in federal prison without parole, up to a sentence of 50 years in federal prison without parole, plus a fine up to $750,000. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Jim Lynn. It was investigated by the FBI, the Boone County Cyber Crimes Task Force and U.S. Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI).
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Illinois Man Pleads Guilty to Illegally Trafficking in PaddlefishRead the Press Release
JEFFERSON CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Hinsdale, Ill., man pleaded guilty in federal court today to illegally trafficking in paddlefish caviar after being caught in an undercover operation in the Warsaw, Mo., area.
In support of Missouri’s paddlefish conservation efforts, the U.S. Fish and Wildlife Service and the Missouri Department of Conservation conducted a covert investigation, “Operation Roadhouse,” centered on an area known as the Roadhouse in Warsaw. As part of the covert operation, state and federal officers operated a paddlefish snagging business during the 2011 and 2012 paddlefish seasons. Covert officers also sold paddlefish to people who were interested in buying them.
Fedor Pakhnyuk, 41, of Hinsdale, pleaded guilty before U.S. Magistrate Judge Matt J. Whitworth to trafficking in paddlefish and paddlefish eggs in violation of the Lacey Act.
Pakhnyuk admitted that he traveled to Missouri in April 2010. He spoke with covert agents about the merits of caviar, gave them a sample of caviar that he had made, and explained how he processed paddlefish eggs into caviar in his motel room. Pakhnyuk returned to the Roadhouse in April 2011 and began spending time at the dock area. Covert agents routinely saw him (along with his family members) processing paddlefish at a fish cleaning station behind a motel near the Roadhouse. Covert agents learned that he was making deals with fishermen in which he would take a portion of the eggs for cleaning their paddlefish. In some cases, Pakhnyuk would get all of the eggs for cleaning the fish. Covert agents watched Pakhnyuk process numerous paddlefish under this type of arrangement.
Both before and after leaving Missouri, Pakhnyuk had conversations with covert agents about the possibility of entering into a caviar business together. Pakhnyuk proposed that the covert agents provide him with all of the raw paddlefish eggs they could acquire, and he would process them into caviar and sell them at the markets he knew about in Chicago and Minneapolis. Pakhnyuk proposed that he and the covert agents would split the profits. In support of his plan, Pakhnyuk stated that he had processed 80 quarts of caviar during his time at the Roadhouse and that 72 quarts had already been sold for $15,000. Pakhnyuk claimed that he already had orders for 50 liters of caviar for the following year.
Pakhnyuk returned to the Roadhouse in March and April 2012 and resumed his practice of processing other fishermen’s paddlefish for a share of the processed caviar. During those months he continued to speak with covert agents about going into business together.
On April 29, 2012, Pakhnyuk negotiated with covert agents to purchase frozen paddlefish caviar from them to supplement the caviar he already obtained. Pakhnyuk stated that, in addition to the seven jars of caviar that he bought from the covert agents, he had 36 quarts of caviar from his arrangements with Roadhouse fishermen. The covert agents stated that it was risky to have that much caviar at once, but the defendant assured them that he would sell it without a problem. On April 30, 2012, Pakhnyuk transported approximately 40 jars of processed caviar from Missouri to Illinois.
Under federal statutes, Pakhnyuk is subject to a sentence of up to five years in federal prison without parole, plus a fine up to $250,000. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
The Lacey Act
The Lacey Act is a federal statute which makes it unlawful for any person to import, export, transport, sell, receive, acquire or purchase fish that were taken, possessed, transported or sold in violation of any law or regulation of any state, or to attempt to do so. Such conduct constitutes a felony crime if the defendant knowingly engaged in conduct involving the purchase or sale, offer to purchase or sell, or intent to purchase or sell, fish with a market value in excess of $350, knowing that the fish were taken, possessed, transported or sold in violation of, or in a manner unlawful under, a law or regulation of any state.
Paddlefish Trafficking
The American paddlefish (Polydon spathula), also called the Mississippi paddlefish or the “spoonbill,” is a freshwater fish that is primarily found in the Mississippi River drainage system. Paddlefish eggs are marketed as caviar. Paddlefish were once common in waters throughout the Midwest. However, the global decline in other caviar sources, such as sturgeon, has led to an increased demand for paddlefish caviar. This increased demand has led to over-fishing of paddlefish, and consequent decline of the paddlefish population.
Missouri law prohibits the transportation of paddlefish eggs which have been removed or extracted from a paddlefish carcass. Missouri law also prohibits the sale or purchase, or offer of sale or purchase, of paddlefish eggs. There are also several restrictions on the purchase and possession of whole paddlefish in Missouri.
This case is being prosecuted by Senior Trial Attorney James B. Nelson of the Department of Justice’s Environmental Crimes Section and Assistant U.S. Attorney Lawrence E. Miller of the U.S. Attorney’s Office for the Western District of Missouri. It was investigated by the U.S. Fish and Wildlife Service and the Missouri Department of Conservation, with assistance by the Oklahoma Department of Wildlife Conservation.
Houston Area Business Owner Charged with Defrauding Medicare of $5.6 MillionRead the Press Release
HOUSTON – Three people have been taken into custody on charges contained in a 21-count indictment alleging a conspiracy to defraud Medicare of approximately $5.6 million for various diagnostic tests which were never performed or were not medically necessary, announced U.S. Attorney Kenneth Magidson.
Joy Aneke, 47, her alleged physician assistant, Teodoro Seminario aka Dr. Ted, 48, and the manager of the Jadac Clinic, Maureen Henshall aka Ms. Mo, 59, are all charged with the conspiracy. The indictment also charges the three with health care fraud for filing false claims with Medicare for never-performed or not medically-necessary procedures. Aneke is also charged with two counts of money laundering and three counts of aggravated identity theft as well as health care fraud relating to her operation of a second diagnostic clinic, Almeda Physicians Clinic, and a home health agency, Bona Care.
The indictment was returned under seal July 15, 2015, and unsealed as to each defendant as they were taken into custody. Seminario and Henshall were arrested this morning, while Aneke was taken into custody last night. All are expected to make their initial appearances before U.S. Magistrate Judge Frances Stacy at 2:00 p.m. today.
According to the allegations in the indictment, Aneke, of Richmond, operated Jadac Unique Health Services Inc. as a diagnostic clinic from July 2008 through April 2012 and allegedly billed Medicare for approximately $5.6 million for various diagnostic tests which were never performed or were not medically necessary. Henshall, of Highlands, ran the clinic and paid marketers cash for every Medicare patient they brought to the clinic for alleged testing, according to the indictment. Seminario, of Houston, allegedly worked at the Jadac clinic as an unlicensed Physician’s Assistant known as “Dr. Ted.”
The indictment alleges that Aneke also fraudulently operated Almeda Physicians Clinic and Bona Care. Aneke allegedly received approximately $921,000 in Medicare money from the Bona Care bank account at Bank of America. The indictment further alleges Aneke transferred $100,000 from the Bona Care account to the United Bank of Africa.
According to the charges, Aneke used the personal identification information of a medical doctor without the doctor’s knowledge or permission in her scheme to defraud Medicare through Bona Care Home Health Agency.
Upon conviction, each of the 16 health care fraud counts as well as the underlying conspiracy carries a possible maximum penalty of 10 years in federal prison and a $250,000 fine. Aneke faces another 10 years if convicted of either of the two money laundering charges. In addition, if convicted of aggravated identity theft, Aneke also faces another 24 months for each count of aggravated identity theft which must be served consecutively to any other prison term imposed.
The criminal charges are the result of a joint investigation conducted by Department of Health and Human Services-Office of Inspector General and Homeland Security Investigations. Assistant U.S. Attorney Al Balboni is prosecuting the case.
An indictment is an accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless and until convicted through due process of law.Hoover Man Sentenced to Seven Years in Prison for Ponzi Scheme that Bilked Millions from InvestorsRead the Press Release
BIRMINGHAM -- A federal judge today sentenced a Hoover man to more than seven years in prison for defrauding investors out of more than $3 million through an illegal Ponzi scheme, announced U.S. Attorney Joyce White Vance, FBI Special Agent in Charge Roger C. Stanton, Alabama Securities Commission Director Joseph P. Borg and Hoover Police Chief Nick Derzis.
U.S. District Judge Virginia Emerson Hopkins sentenced BRYAN W. ANDERSON, 41, to seven years and three months in prison for wire fraud, money laundering and securities fraud. Anderson pleaded guilty to the charges in March. In accordance with his plea agreement with the government, the judge also ordered Anderson to pay restitution of almost $3.1 million to the victim investors and to forfeit that same amount to the government as proceeds of illegal activity. Anderson must report to prison Oct. 19
"Brian Anderson ran a Ponzi scheme for years, lying about investment options, risks and potential returns to lure unwitting investors into his snare," Vance said. "Those investors trusted Anderson, and when his Ponzi scheme inevitably crashed down, they lost millions. I am proud of the collaboration among the FBI, Alabama Securities Commission, Hoover Police Department and the U.S. Attorney's Office that, today, brings Anderson to punishment for his crimes," she said.
“Along with our partners, the FBI remains committed to investigating those who hide behind deceptive financial fraud schemes and victimize innocent consumers," Stanton said. "I encourage members of the public to learn ways to protect themselves from fraud at www.stopfraud.gov.”
“While this sentence sends a strong message to Anderson and other con-artists thinking about victimizing Alabamians, nothing will ever make up for the damages caused to victims and their families who lost millions of dollars," said the ASC's Borg. "We appreciate the team effort of all agencies involved and were glad to provide resources to assist in an investigation that led to the prosecution of Anderson.”
“I’m very proud of the role our detectives played in the resolution of this complex investigation," Derzis said. "Our Financial Crimes Unit is continuing to see bigger cases with significant financial losses to victims. In this particular case, we recognized the extent of the fraud committed by Mr. Anderson and contacted the Alabama Securities and Exchange Commission and the FBI," he said. "We continue to have excellent relationships with our law enforcement partners and this case represents what can be accomplished when we work together.”
According to court documents in the case, Anderson conducted his investment scheme as follows between 2009 and May 30, 2014:
During most of that time, Anderson was a registered financial broker working, first, with MetLife Securities, from October 1998 to February 2012, then with Pruco Securities, from February 2012 to Sept. 13, 2012, when Pruco terminated his employment.
As part of his scheme to defraud investors, he solicited them to invest in stock options that he said employed various trading strategies. The stock options he described were not registered securities, and Anderson had no authority to solicit investor money for the funds.
Anderson also offered investments in a company he owned, 360 Properties. Beginning about 2009, Anderson falsely represented to certain 360 Properties investors that their returns would come from leased property income, when there were no leased properties. Some of the investors believed the 360 Properties investments were affiliated with MetLife, and Anderson did nothing to correct that false belief.
Between January 2009 and January 2014, Anderson's false investment promises caused about 18 individual and family investors to deliver more than $8.4 million to Anderson, which he deposited into an account he and his wife held at BancorpSouth, a bank based in Tupelo, Miss. When Anderson's investment scheme collapsed in May 2014, about 12 investors lost about $3.1 million.
Anderson was operating a Ponzi scheme with investor funds, paying returns to existing investors with money from new investors, as well as paying personal expenses. He transferred investor money from one of his and his wife's bank accounts to another, making only a small percentage of the investments he had promised investors.
Anderson pleaded guilty to wire fraud for causing an investor, identified in court documents by the initials K.C., to wire transfer $571,378 from the investor's Wells Fargo bank account to Anderson's BancorpSouth account in the name of 360 Properties on Jan. 15, 2014.
Anderson pleaded guilty to money laundering for taking $368,000 of the $571,378 received from K.C. and, on Jan. 15, transferring it by wire to a second BancorpSouth account. The $571,378 was "criminally derived property" obtained through wire fraud. It is a violation of federal law to engage in a monetary transaction involving money or property worth more than $10,000 that was obtained through a criminal act.
Anderson pleaded guilty to securities fraud for fraudulently obtaining $100,000 from an investor, identified by the initials T.M., on Aug. 20, 2013, by falsely representing that he would invest the money in a specific type of hedge fund. T.M. wired the money from an account at Bryant Bank to one of Anderson's BankcorpSouth accounts and Anderson took the money and used it for non-investment purposes.
The FBI, ASC and the Hoover Police Department investigated the case, which Assistant U.S. Attorney Pat Meadows prosecuted.
Honduran National Sentenced for Illegal ReentryRead the Press Release
U.S. Attorney Kenneth A. Polite announced that DANIEL FIGUEROA-MUNGUIA, age 30, a citizen of Honduras, was sentenced today after previously pleading guilty to a one-count Bill of Information charging him with illegal reentry into the United States.
U.S. District Judge Nannette Jolivette Brown sentenced FIGUEROA-MUNGUIA to time served and a $100 special assessment. FIGUEROA-MUNGUIA will be surrendered to the custody of the U.S. Immigration and Customs Enforcement for removal proceedings.
According to the court documents, March 30, 2015, FIGUEROA-MUNGUIA was found in the United States after having been deported on April 29, 2011.
U.S. Attorney Polite praised the work of the Department of Homeland Security in investigating this matter. Assistant United States Attorney Emily K. Greenfield was in charge of the prosecution.
Harrisburg Man Pleads Guilty to Defrauding the IRS of $337,000Read the Press Release
HARRISBURG – The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Hung Danh, age 55, of Harrisburg, Pennsylvania, pled guilty to conspiracy to evade $337,000 in employment taxes in connection with his operation of an employee leasing business known as HD Staffing. The guilty plea was accepted by U.S. District Court Judge John E. Jones, III and sentencing was scheduled for January 2016.
According to U.S. Attorney Peter Smith, Danh helped operate an employee leasing business between 2009 and 2010, known as HD Staffing. HD Staffing provided laborers to various businesses throughout the Harrisburg area and failed to withhold payroll taxes from the laborers’ wages.
Employers are required to withhold income taxes from employee wages based on the number of allowances on the employees’ W-4 Form. Employers are also required to withhold FICA taxes from their employees’ wages at the FICA tax rate and remit those payments, along with the employee’s matching FICA tax, when they file their Employer’s Quarterly Federal Income Tax Return-Form 941.
Danh admitted he conspired with two other previously convicted individuals to evade these employment taxes for HD Staffing. Danh was indicted in July 2014 along with two other individuals and remained a fugitive until he was detained by U.S. Customs authorities entering the country on July 12, 2015 at JFK airport.
On March 23, 2015, Vanny Son, age 34, of Harrisburg, was sentenced to 37 months’ imprisonment and ordered to pay $682,897 in restitution to the IRS for his role in the conspiracy. On March 24, 2015, Son Thach, age 56, of Harrisburg, was sentenced to one month imprisonment and ordered to pay $682,897 in restitution to the IRS for his role in the conspiracy.
The case was investigated by the Criminal Investigation Division of the IRS and is assigned to Assistant United States Attorney Bruce Brandler, Chief of the Criminal Division.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law is five years imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Hamburg Man Pleads Guilty to Wire Fraud and Tax Evasion in Connection with Investment Fraud SchemeRead 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 Christopher F. Venti, 46, of Hamburg, N.Y., pleaded guilty to wire fraud and tax evasion before U.S. District Judge Elizabeth Wolford. The wire fraud charge carries a maximum penalty of 20 years in prison and a $250,000 fine. The tax evasion charge carries a maximum possible sentence of 5 years in prison and a $250,000 fine.Assistant U.S. Attorney MaryEllen Kresse, who is handling the case, stated that the defendant pled guilty to devising and executing schemes to defraud and to obtain money from individuals by misrepresenting the existence and success of investment opportunities in order to convince these victims to transfer funds to him or to bank accounts he controlled. The defendant admitted engaging in three separate investment schemes between May 2011 and February 2014 as a result of which investors were defrauded of approximately $7.7 million. The defendant, without the authorization of the investors, utilized a portion of these investor funds for personal use.
The defendant also admitted that between 2006 and 2012, he filed Individual Income Tax Returns with the Internal Revenue Service on which he willfully evaded the payment of approximately $216,000 in taxes due and owing on the income reported on such returns.
The plea is the result of an investigation by Special Agents of the Federal Bureau of Investigation, under the direction of Brian P. Boetig, and by Special Agents of the Internal Revenue Service, Criminal Investigation Division, under the direction of Acting Special Agent in Charge Shantelle Kitchen.
Sentencing is scheduled for December 9, 2015 at 10:00 a.m. before Judge Wolford.Green Pleads Guilty to Selling Cocaine Base in LackawannaRead 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 Edward Green, 28, of Buffalo, N.Y., pleaded guilty to possession with intent to distribute and distribution of cocaine base within 1,000 feet of public housing property, before Magistrate Judge Leslie G. Foschio. The charge carries a mandatory minimum term of 1 year in prison and the maximum possible sentence of 40 years in prison, a fine of $2,000,000, a mandatory $100 special assessment and a term of supervised release of 6 years up to life.Assistant U.S. Attorney Edward H. White, who is handling the case, stated that on August 18, 2014, the defendant sold approximately 3 grams of cocaine base, a Schedule II controlled substance, to a confidential informant working with officers of the Lackawanna Police Department (LPD). The controlled purchase, observed by the LPD officers occurred within 1,000 feet of the Baker Homes Housing Project in Lackawanna, New York. On August 19, 2014, the defendant sold approximately 2 grams of cocaine base, a Schedule II controlled substance, to a confidential informant working with the LPD officers. The controlled purchase, observed by the LPD officers, occurred in the vicinity of Bethlehem Street in Lackawanna, New York.
The plea is the result of the culmination of an investigation by: Special Agents of the Federal Bureau of Investigation, under the direction of Brian Boetig; Special Agents of the Drug Enforcement Administration, under the direction of Michelle Spahn, Resident Agent in Charge; Special Agents of the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of Steven Dickey, Resident Agent in Charge; and the Lackawanna Police Department, under the direction of James L. Michel, Chief of Police.
Sentencing is scheduled to be set by Judge Skretny.
Fugitive Wanted on Tax Charges Is CapturedRead the Press Release
Carmen Basilis, a fugitive and owner of Basilis Tax Services, of Allentown, PA, was arrested this morning on a 58-count indictment charging tax violations, announced United States Attorney Zane David Memeger. Basilis had been a fugitive since her indictment on September 27, 2011. She is charged with willfully aiding and assisting in the preparation and filing of false federal income tax returns. According to the indictment, Basilis prepared materially false federal income tax returns for tax years 2005 through 2008 by inflating expenses, deductions and dependency exemptions on the tax returns which caused the filers to receive tax refunds in amounts greater than they were entitled to receive.
An initial appearance was held today in Allentown. Basilis remains in custody pending an August 17, 2015 detention hearing. If convicted of all charges, Basilis faces a statutory maximum of 174 years in prison, a fine of $14.5 million, a special assessment of $5,800, and one year of supervised release.
The case was investigated by Internal Revenue Service Criminal Investigations and the United States Department of Labor. It is being prosecuted by Assistant United States Attorney Floyd J. Miller.
An Indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Frederick Man Indicted for Alleged Firebombings of Loudoun County Probation OfficeRead the Press Release
ALEXANDRIA, Va. – Jonathan Ernesto Godoy, 25, of Frederick, Maryland, was indicted by a federal grand jury today on charges relating to his alleged involvement in two firebombings of the Loudoun County Department of Community Corrections (DCC) building. The charges include arson affecting interstate commerce, conspiracy to commit arson, attempted arson, possession of an unregistered destructive device, and the use and carry of a destructive device during or in relation to a crime of violence.
According to court documents, Godoy was serving a one year term of supervised probation through DCC. While on probation, Godoy tested positive for continued drug use and was told that his violations could result in him being sent to prison. In addition to submitted “dirty” urine samples, Godoy also missed scheduled drug testing and probation appointments. In an effort to avoid violating his probation and being sent to jail, Godoy devised a plan to destroy DCC through the use of destructive devices—gasoline filled bottles with cotton wicks—commonly referred to as a “Molotov Cocktail.” The indictment alleges that Godoy and a co-conspirator threw Molotov Cocktails at DCC in the early morning hours of Nov. 14, 2012. The fire on that date at the DCC caused serious damage to the building, causing DCC to relocate to another location.
According to the indictment, after the first fire Godoy missed additional appointments with his probation officer in Loudoun and was told to report on Dec. 19, 2012 to provide documentation for the missed appointments. On Dec. 19, 2012, Godoy allegedly attempted to destroy the relocated DCC by throwing a Molotov Cocktail at that location.
Godoy faces a mandatory minimum of 30 years in prison and a maximum penalty of life in prison, if convicted. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Linda Hale, Chief Fire Marshal, Loudon County Department of Fire, Rescue, and Emergency Management; and Charles E. Smith, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives’ (ATF) Washington Field Division, made the announcement.
This case was investigated by the Loudoun County Fire Marshal’s Office and the ATF. Assistant U.S. Attorneys Michael Rich and Zach Terwilliger are prosecuting the case, with assistance from the Loudoun County Commonwealth Attorney’s Office.
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-mj-382.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed to be innocent until and unless proven guilty in court.
Franklin County Man Indicted Federally for Production of Child PornographyRead the Press Release
HARRISBURG - The United States Attorney’s Office for the Middle District of Pennsylvania announced that a Franklin County man was taken into custody on charges of production, distribution and possession of child pornography.
According to United States Attorney Peter Smith, late yesterday a grand jury in Harrisburg indicted Martin Allen Mentzer, age 44, for allegedly producing child pornography in his home by using a 13 year old boy to engage in sexually explicit conduct for the purpose of producing the visual depictions of the activity. The conduct allegedly took place during a period beginning in October 2014.
This case was investigated by the Federal Bureau of Investigation and is being prosecuted by Assistant United States Attorney Daryl F. Bloom.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Indictments are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court. A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law is 60 years’ imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant’s educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Four Individuals Indicted on Drug Trafficking ChargesRead the Press Release
BOSTON – Four individuals involved in a Lawrence-based fentanyl, heroin, and cocaine trafficking organization were indicted yesterday in U.S. District Court in Boston.
Jerri Martinez-Tejeda, 31, of Lawrence; Yoelly Carmenatty, 27, of Lawrence; Joel Jahamal Rougeau, 41, of Texas; and Lily Solis, 28, of Texas; were indicted on one count of conspiracy to possess with intent to distribute and to distribute fentanyl, heroin, and cocaine. In July 2015, the defendants were initially charged in a criminal complaint.
According to court documents, in March 2014, an investigation into a drug trafficking organization operating in Massachusetts led law enforcement to Martinez-Tejeda. In late May or early June 2015, Martinez-Tejeda allegedly hired Rougeau and Solis to pick up nine kilograms of narcotics in California and transport them to the Northeast. On June 4, 2015, Oklahoma Highway Patrol intercepted Rougeau and Solis transporting nine kilograms of fentanyl to Martinez-Tejeda and his wife, Carmenatty, in Lawrence for distribution.
Based on evidence gathered from court authorized wire taps, law enforcement officers executed a search warrant at the Lawrence residence of Martinez-Tejeda and Carmenatty on July 12, 2015. During the search, law enforcement officers recovered $511,370 that was in the process of being counted and packaged, two handguns, various items for the processing and packaging of narcotics, and one kilogram of “cut,” a substance used to dilute the purity of heroin or other narcotics prior to sale. Documents such as ledgers that appeared to be part of the drug trafficking operation were also recovered.
The charging statute provides a maximum sentence of lifetime in prison, a lifetime of supervised release, and a fine of $10 million. 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 Michael J. Ferguson, Special Agent in Charge of the Drug Enforcement Administration, New England Field Division, made the announcement today. The case is being prosecuted by Assistant U.S. Attorney Thomas E. Kanwit of Ortiz’s Narcotics and Money Laundering Unit.
The details contained in the indictment are allegations. The defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Former Woodland Park Residents Found Liable for $884,666.09 in Unpaid U.S. Small Business Administration Loan GuaranteesRead the Press Release
DENVER – U.S. Magistrate Judge Craig Shaffer recently ruled that Robert and Marcia Konczak are liable to the United States in the sum of $884,666.09 arising from SBA loan guarantees that they failed to pay and fees associated with collection efforts, U.S. Attorney John Walsh announced. The Konczaks were sued in March 2014 by the U.S. Attorney’s Office on behalf of SBA for their outstanding debt, after the SBA and the Department of Treasury did not succeed in their attempts to collect the debt.
According to court documents, in 2003, “Konczak’s Koncepts,” a Woodland Park restaurant company run by the Konczaks, obtained a $684,000 loan from the SBA under its “504 loan program.” Under that program, the United States, acting through the SBA, guaranteed 100 percent of the Konczaks’ debt through a debenture. As part of the loan terms, the Konczaks also guaranteed the loan, making them personally liable for the debt. When Konczak’s Koncepts failed in 2007, it also defaulted on its obligation to repay the loan. The SBA then honored its debenture and paid the loan off, assumed the debt, and attempted to recover on the Konczaks’ guarantees.
But the Konczaks refused to pay. After several years of unsuccessful collection efforts, the SBA referred the matter to the U.S. Attorney’s Office for enforcement. After a trial, U.S. Magistrate Judge Shaffer ruled that the Konczaks are liable for the full amount of the loan guarantees, plus other mandatory statutory fees resulting from the SBA and Department of the Treasury’s collection efforts.
This case was handled by Assistant U.S. Attorneys Juan G. Villaseñor and Elizabeth M. Froehlke of the office’s Civil Division.
Former Army Pharmacy Specialist Pleads Guilty to Stealing Drugs from Walter Reed HospitalRead the Press Release
Greenbelt, Maryland – Lamelle Marquez Malone, age 35, of Las Vegas, Nevada, formerly of Columbia, Maryland, pleaded guilty today to conspiring to steal prescription drugs from a military hospital and to interstate transportation of stolen property.
The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Robert Craig of the Defense Criminal Investigative Service - Mid‑Atlantic Field Office; and Special Agent in Charge Antoinette V. Henry of the U.S. Food & Drug Administration, Office of Criminal Investigations.
Malone admitted that from April 8, 2011 through August 2012, he conspired with Roger Gurdon, and others to steal Somatropin, a form of human growth hormone, from the pharmacy located at the former Walter Reed Medical Center in Washington, D.C. Malone and his co-conspirators re-sold the stolen pharmaceuticals for profit.
Gurdon was a pharmacy technician at Walter Reed. Between January 2008 and the fall of 2011, Gurdon stole Somatropin from Walter Reed and sold it to a co-conspirator. When Gurdon traveled out of the country in April 2011, he arranged for the co-conspirator to obtain Somatropin from Malone, who was an enlisted member of the Army and worked as a pharmacy specialist at Walter Reed. Malone distributed stolen Somatropin to the co-conspirator from April until August 2011, when Walter Reed was closed. Malone paid a pharmacy technician at Walter Reed to order the Somatropin which Malone stole, and paid the non-commissioned officer who was in charge of the pharmacy to ignore the fact that Malone was stealing Somatropin. Malone transported the stolen Somatropin from Walter Reed to his home in Columbia, and to College Park, Maryland to distribute the Somatropin to the co-conspirator.
During the period that Malone was involved in the conspiracy, the government contends that he and his co-conspirators stole over $2 million worth of Somatropin from the Walter Reed pharmacy. Gurdon admitted that the total loss to the United States over the course of the entire conspiracy was at least $4,467,000.
U.S. District Judge Paul W. Grimm has scheduled sentencing for Malone on November 24, 2015 at 9:30 a.m.
Roger Gurdon, age 43, of Waldorf, Maryland, pleaded guilty to his role in the conspiracy and was sentenced to 78 months in prison, and was ordered to pay restitution of $4,467,000. Another conspirator, Issa Wasco Koroma, age 63, of Springdale, Maryland was sentenced to five years in prison for conspiring to steal prescription drugs from two federal military hospitals.
United States Attorney Rod J. Rosenstein praised the DCIS and FDA-OCI for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorney Mara Zusman Greenberg, who is prosecuting the case.
Florida Investment Advisor Pleads Guilty to Orchestrating $9 Million Investment Fraud SchemeRead the Press Release
A Tampa, Florida, area investment advisor pleaded guilty today to perpetrating a $9 million investment fraud scheme involving Facebook stock.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney A. Lee Bentley III of the Middle District of Florida, Special Agent in Charge Paul Wysopal of the FBI’s Tampa Field Office and Inspector in Charge Ronald J. Verrochio of the U.S. Postal Inspection Service (USPIS) Miami Division made the announcement.
Gignesh Movalia, 40, of Tampa, a registered investment advisor, pleaded guilty before U.S. Magistrate Judge Anthony E. Porcelli of the Middle District of Florida to one count of investment advisor fraud. Sentencing will be scheduled at a later date.
Movalia was the founder and manager of OM Global Investment Fund LLC (the OM Global Fund), an investment fund formed in 2009. According to admissions made in connection with his guilty plea, beginning in or about 2011, Movalia began soliciting investments for the OM Global Fund by, among other methods, touting access to pre-initial public offering (IPO) shares of Facebook Inc. Movalia admitted that, by the end of 2012, he had raised more than $15 million for the OM Global Fund, and that more than $9 million of the amount raised was for “side pocket” investments, which Movalia represented were to be used exclusively for purchasing of Facebook shares.
Movalia further admitted that, contrary to these representations and unknown to “side pocket” investors, he used funds designated exclusively for the purchase of Facebook shares for other investments, which he concealed from the investors. He also admitted that he made material misrepresentations and omissions to investors in order to mislead them about the nature and value of their investments in the OM Global Fund. The OM Global Fund lost approximately $9 million before it went into receivership in September 2013.
The case is being investigated by the FBI and USPIS, with assistance provided by the U.S. Securities and Exchange Commission’s Miami Regional Office. The case is being prosecuted by Trial Attorney Andrew H. Warren of the Criminal Division’s Fraud Section.
Movalia Plea Agreement
Felon Convicted in Federal Court of Unlawfully Possessing FirearmRead the Press Release
POCATELLO - Frank Lewis White, 55, of Great Falls, Montana, was convicted yesterday by a federal jury in Pocatello of unlawful possession of a firearm, U.S. Attorney Wendy J. Olson announced.
During the three-day trial, the jury heard evidence that when White was pulled over and arrested on October 4, 2014, in Idaho Falls, Idaho, for outstanding warrants, he had under his seat a loaded handgun. Upon being instructed to exit his car, White told officers the gun was under his seat. According to trial testimony, the gun had been in White’s car since the day before, when White had driven another individual to a pawn shop to retrieve the gun.
White faces up to 10 years in prison, a maximum fine of $250,000.00, and up to three years of supervised release.
Sentencing is set for November 2, 2015, before U.S. District Judge B. Lynn Winmill at the federal courthouse in Pocatello.
The case was investigated by Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the Idaho Falls Police Department, and the Ada County Sheriff’s Office Laboratory.
The case was prosecuted as part of Idaho’s Project Safe Neighborhoods Program, which seeks to reduce gun violence in Idaho.
Federal inmate pleads guilty to escapeRead the Press Release
Beckley, W.Va. – United States Attorney Booth Goodwin announced that a female inmate pled guilty yesterday in federal court in Beckley to escaping from a federal correctional facility. Patricia Alfieri, 54, admitted that she escaped from the Federal Prison Camp at Alderson, a federal prison for women, on June 18, 2015. Alfieri was captured in Lewisburg on June 28, 2015. At the time of her escape, Alfieri was serving a 41-month sentence imposed by a federal court in New York for mail fraud and making a false tax return. As a result of her escape, Alfieri faces up to five additional years in prison when she is sentenced on November 18, 2015.
This case was investigated by the United States Marshal Service and the Federal Bureau of Prisons. Assistant United States Attorney John File is handling the prosecution.
Federal Jury Convicts Kurbanov on Terrorism ChargesRead the Press Release
BOISE – A federal jury in the District of Idaho returned guilty verdicts today against Fazliddin Kurbanov, 33, on charges that he conspired and attempted to provide material support to a designated foreign terrorist organization and possessed an unregistered destructive device. The jury found the defendant not guilty on two other charges.
Assistant Attorney General for National Security John Carlin and U.S. Attorney Wendy J. Olson of the District of Idaho made the announcement.
Kurbanov’s conviction followed a 20-day trial before Senior U.S. District Court Judge Edward J. Lodge of the District of Idaho. The jury deliberated two days before reaching its verdict.
“Fazliddin Kurbanov conspired to provide material support to the Islamic Movement of Uzebekistan and procured bomb-making materials in the interest of perpetrating a terrorist attack on American soil,” said Assistant Attorney General Carlin. “Thanks to the tremendous efforts of the law enforcement community and its partners, the threat posed by Kurbanov was disrupted and he will now be held accountable for his crimes. The National Security Division’s highest priority is counterterrorism and we will continue to pursue justice against those who provide material support to foreign terrorist organizations and seek to do harm to our country and our citizens.”
“Today’s verdict sends the clear message that where individuals intend to pursue acts of terrorism against the United States – whether in Boise, Idaho, or any other community – they will be brought to justice,” said U.S. Attorney Olson. “Protecting our communities from terrorist activity is the number one priority of this office and of the entire Department of Justice. I commend the men and women at every level of law enforcement, including the FBI, the Department of Homeland Security, Homeland Security Investigations, Ada County and Canyon County Sheriff’s Offices and the Boise City Police Department, who assisted in this effort.”
“The investigation and subsequent trial of Fazliddin Kurbanov represent over three years of unrelenting effort by the FBI Southern Idaho Joint Terrorism Task Force, the U.S. Attorney’s Office for the District of Idaho, the Department of Homeland Security, the Ada County Sheriff’s Office, the Boise Police Department, and others. I commend the sustained dedication and commitment of all those involved in this endeavor, which have now resulted in the conviction of Mr. Kurbanov for multiple federal terrorism crimes. The Treasure Valley is a safer place as a result of this investigation and prosecution. Protecting the security of our Nation and its citizens is the FBI’s highest priority,” said Eric Barnhart, Special Agent in Charge, Salt Lake City Division.
According to evidence presented at trial:
Between the summer of 2012 and his arrest in May 2013, Kurbanov, an Uzbek national living in Boise, communicated by email and Skype with a person or persons operating a website for the Islamic Movement of Uzbekistan (IMU), a designated foreign terrorist organization. Kurbanov discussed with the website administrator his animosity toward Americans, particularly the military; his desire to build a bomb; possible targets in the United States, including military bases in Idaho and Texas – and his need for instruction on how to construct and remotely detonate a bomb. Additionally, Kurbanov searched for and later discussed with an FBI Confidential Human Source targets including military bases in the United States, specifically West Point Military Academy in New York. The website administrator asked the defendant to obtain a specific anti-virus software to protect the IMU’s website and to obtain and provide any amount of money. The defendant contacted his brother, who lived in Kyrgyzstan, about obtaining the anti-virus software and he sent the software to Kurbanov. Shortly before his arrest, the defendant caused an Idaho corporation to open, through which he intended to funnel money to the IMU.
Between at least November 15, 2012, and May 16, 2013, Kurbanov possessed bomb-making components at his Boise apartment, including a hollow hand grenade, a hobby fuse, ammunition containing smokeless powder, tannerite, aluminum powder, potassium nitrate, charcoal, yellow sulfur powder and fertilizer. He purchased these items during the summer and fall of 2012. FBI special agents observed the bomb-making components during a court-authorized search of Kurbanov’s apartment in November 2012 and seized many of the same items during a second court-authorized search in May 2013.
Kurbanov’s activities were closely monitored by federal agents during the investigation and no terrorist attack occurred.
Sentencing is set for November 10, 2015. Kurbanov faces a maximum of 15 years in prison on each of the conspiracy and attempt counts, and 10 years in prison for possession of an unregistered destructive device.
In addition, Kurbanov faces a separate one-count indictment in federal court in Utah alleging that from about January 14, 2013, continuing through January 24, 2013, he taught and demonstrated how to make explosive devices, and distributed information relating to the manufacture and use of an explosive or weapon of mass destruction. His alleged intent was that the teaching, demonstration and information be used for, and in furtherance of, an activity that would constitute a federal crime of violence. The Utah indictment was returned in May 2013, at the same time as the Idaho indictment.
The case was investigated by the FBI’s Joint Terrorism Task Force with assistance from the Boise Police Department, the Department of Homeland Security, Immigration and Customs Enforcement’s Homeland Security Investigations, the Ada County, Idaho, Sheriff’s Office and the Canyon County, Idaho, Sheriff’s Office.
The case is being prosecuted by Assistant U.S. Attorneys Aaron Lucoff and Heather Patricco of the District of Idaho and Trial Attorney Larry Schneider of the National Security Division’s Counterterrorism Section.
Federal Indictments Charge Federal Firearm OffensesRead the Press Release
United States Attorney Kenyen R. Brown of the Southern District of Alabama announces that Indictments charging defendants with federal firearms charges were unsealed today. This action follows early morning arrests of many of these defendants, by a multi-agency group of law enforcement led by Special Agents and Task Force Officers of the Bureau of Alcohol, Tobacco, Firearms & Explosives. The majority of the charges resulted from investigations of illegal firearm possession, which were referred by the Prichard Police Department to the local office of the Bureau of Alcohol, Tobacco, Firearms and Explosives, in cooperation with the Mobile Police Department.
The Indictments charge the majority of the defendants with being a prohibited person in possession of a firearm. In most of the cases the defendants were prohibited from possessing firearms or ammunition by virtue of a prior felony conviction, which is a violation of Title 18 United States Code § 922(g)(1). The statutory maximum penalty provided by law for each of these charges is 10 years imprisonment. However, if a defendant has qualifying prior felony convictions for serious drug offense or crimes of violence, the minimum mandatory sentence is 15 years, up to life imprisonment.
United States Attorney Kenyen Brown offered commendations for the collaborative efforts of the law enforcement agencies. "Today we are witness to the positive effects of cooperation and leadership in our community’s law enforcement agencies. I especially want to recognize the lead role taken by the local office of the Bureau of Alcohol, Tobacco, Firearms & Explosives. It is our mission to offer every bit of assistance available to small communities throughout our District, like the City of Prichard, who are striving to address violent crime, and the effects it has on its citizens."
Prichard Mayor Troy Ephriam said, "We appreciate the relationships and continued support of our county, state and federal law enforcement partners as we continue to make the City of Prichard a safe place to live and work. These agencies clearly want to help. We see this kind of collaborative effort as the path forward and will continue to develop and leverage our relationships to use all of the resources available to us in making our city a safe place to live and work."
Prichard Police Chief Bernard Parrish added, "Our top priority is to protect our citizens and keep the peace in the City of Prichard. It is important for people to know we are serious about enforcing the law and following the orders of the courts. We thank the U.S. Department of Justice, the U.S. Department of Alcohol, Tobacco and Firearms, the U.S. Marshall's Office, Mobile County Sheriff's Office and, of course, our own officers from the Prichard Police Department for this well-planned, targeted effort to make our city safer. Their support and active involvement is invaluable."
Eight men indicted for conspiracy that brought heroin, cocaine and methamphetamine from Mexico to Texas and then ClevelandRead the Press Release
Eight men were indicted for their roles in conspiracy that brought large amounts of heroin, cocaine and methamphetamine from Mexico into Texas and then to the Cleveland area, law enforcement officials said.
Named in the 15-count indictment are: Jose Palacio, 40, of McAllen, Texas; Efren Vega, 47, of Cleveland; Heleodoro Zepeda, 40, of Texas; Hugo Aguilar, 38, of Mission, Texas; Jacobo Banda-Bermudez, 44, of Mexico; William Overdear, 50, of Cleveland; Anthony W. Konicek, 40, of Cleveland, and Abdel Khalil, 44, of North Ridgeville.
Palacio, Zepeda, Aguilar and Banda-Bermudez obtained kilogram quantities of heroin, cocaine and methamphetamine from suppliers in Mexico. Palacio and Zepeda then used family members, friends and vehicles equipped with hidden compartments to ship the drugs across the border into Texas, according to the indictment.
Palacio and Zepeda distributed some of the drugs to Vega in Cleveland. The rest went to suppliers in Houston. This took place in 2014 and 2015, according to the indictment.
Palacio, Zepeda and Aguilar robbed rival drug traffickers of their drugs in McAllen, Texas. They provided anonymous tips to law enforcement so rival drug dealers would be arrested. They also surreptitiously installed GPS tracking devices on their transport vehicles and on the vehicles of some competitors to monitor their movement throughout Mexico and the U.S., according to the indictment.
Once the drugs were in Cleveland, Vega distributed them to other dealers from various locations on the West Side, according to court documents.
“This group is charged with shipping pounds of heroin, cocaine and methamphetamine into Cleveland and laundering hundreds of thousands of dollars,” said Steven M. Dettelbach, U.S. Attorney for the Northern District of Ohio.
“These eight individuals conspired to bring large amounts of heroin, cocaine and methamphetamines across the Mexico border into Texas and ultimately making its way to Northern Ohio,” said Stephen D. Anthony, Special Agent in Charge of the FBI’s Cleveland Office. “This wide-ranging investigation is another example of the comprehensive strategy by members of the Northern Ohio Law Enforcement Task Force to target, dismantle, and eliminate the most significant criminal enterprises bringing danger and narcotics to our city.”
"This investigation is an excellent example of collaboration between law enforcement agencies which was instrumental in successfully dismantling a major narcotics smuggling organization in the Cleveland area," said Marlon Miller, special agent in charge of HSI for Michigan and Ohio. "HSI will continue to utilize its broad authorities to aggressively target and take down groups who are distributing narcotics and posing a threat in our communities."
This case is being prosecuted by Assistant U.S. Attorneys Joseph M. Pinjuh and Henry F. DeBaggis following an investigation by Northern Ohio Law Enforcement Task Force and HSI. The NOLETF is a task force comprised of investigators from the Federal Bureau of Investigation, Cleveland Division of Police, Cuyahoga Metropolitan Housing Authority, Drug Enforcement Administration, Internal Revenue Service, Cuyahoga County Sheriff’s Office, Ohio Bureau of Criminal Investigation and the police departments of Cleveland Heights, Euclid, Lakewood, the Regional Transit Authority, Westlake and Shaker Heights.
If convicted, the defendants’ sentences will be determined by the court after a review of the federal sentencing guidelines and factors unique to the case, including the defendant’s prior criminal record (if any), the defendant’s role in the offense and the characteristics of the violation.
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.
Edcouch Woman Gets Nearly 12 Years for Enticing ConvictionRead the Press Release
McALLEN, Texas – Lydia Vasquez, 42, of Edcouch, has been ordered to federal prison following her conviction of enticing an individual to travel in interstate commerce in order to engage in illicit sexual activity, announced U.S. Attorney Kenneth Magidson. She pleaded guilty Dec. 5, 2014.
At the time of her plea, Vasquez admitted that on July 28, 2014, she began communicating with a 45-year-old male, who was later identified as an undercover source, in regards to a minor female relative. Throughout the next few weeks, Vasquez told the individual she wanted him to come to Texas from Michigan in so he could help the minor female relative explore sexually.
Vasquez and the adult male discussed specific acts which would constitute indecency with a child under the Texas Penal Code.
On Aug. 22, 2014, Vasquez went to the McAllen Miller International Airport in order to meet the male whom she believed had traveled from Detroit, Michigan, to McAllen. She was then taken into custody.
Today, U.S. District Judge Micaela Alvarez handed Vasquez a sentence of 140 months in federal prison. In handing down the sentence, Judge Alvarez stated that she needed to protect children from Vasquez; both her own and any child that would come into contact with Vasquez. She will also be required to register as a sex offender and will serve three years of supervised release following completion of his prison term. Judge Alvarez noted that she had listened to the recorded calls between Vasquez and the undercover source and heard the sexual abuse Vasquez had proposed occur. Judge Alvarez noted this is a case that she will never be able to get out of her head.
She will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The investigation leading to the charges was conducted by the FBI.
Assistant U.S. Attorneys Kimberly Ann Leo and Steven Schammel prosecuted the case.
Dubuque Felon Sent to Prison for 135 Months for Possessing a FirearmRead the Press Release
A convicted felon who possessed a firearm in Dubuque last November was sentenced this week to 135 months in federal prison.
Charles Michael Pledge a/k/a “Tennessee”, age 33, from Dubuque, Iowa, received the prison term after his April 6, 2015, guilty plea to the federal crime of Possession of a Firearm by a Felon. At the guilty plea hearing, Pledge admitted that he knowingly possessed a Hi-Point by Haskell JHP .45 caliber pistol on November 29, 2015. Pledge also admitted to four prior felony convictions in Tennessee state court for aggravated burglary.
Pledge was sentenced in Cedar Rapids by United States District Court Chief Judge Linda R. Reade to 135 months’ imprisonment. A special assessment of $100 was imposed. He must also serve a five-year term of supervised release after the prison term. There is no parole in the federal system. Pledge is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Tim Vavricek and investigated by the Dubuque Police Department. Court file information available at: https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is 15-CR-01004.
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District Man Pleads Guilty to Production of Child Pornography and First-Degree Sexual Abuse of GirlRead the Press Release
WASHINGTON – Rolando de la Rocha, 42, of Washington, D.C., pled guilty today to one charge of production of child pornography and another charge of first-degree child sexual abuse, announced Acting U.S. Attorney Vincent H. Cohen, Jr.
De la Rocha pled guilty in the U.S. District Court for the District of Columbia. The Honorable James E. Boasberg scheduled sentencing for Dec. 2, 2015. The child pornography charge, a federal offense, carries a mandatory minimum of 15 years in prison and a maximum of 30 years. First-degree child sexual abuse, a District of Columbia offense, carries a statutory maximum of 30 years in prison. Both charges also carry potential financial penalties. De la Rocha also will be required to register as a sex offender for at least 25 years.
According to the government’s evidence, de la Rocha was the former boyfriend of the girl’s mother, and had lived with the family in Northwest Washington until January 2014. In May of 2015, the girl’s mother called the Metropolitan Police Department (MPD) to report that she had discovered a recording in which de la Rocha is seen sexually assaulting her child. A subsequent examination of de la Rocha’s cellphone led to the discovery of videos depicting two such incidents.
A warrant was issued for the defendant’s arrest, and de la Rocha was arrested on May 29, 2015. He admitted to police that he produced the recordings and said that he had set up an iPad to film the sexual acts in the girl’s room without her knowledge. The girl told police about several incidents that took place when she was 12 or 13, and that ended in 2013. She expressed a fear of talking to police but ultimately agreed to an interview about the defendant’s conduct.
De la Rocha has been in custody since his arrest.
In announcing the plea, Acting U.S. Attorney Cohen commended the work of the officers and detectives who investigated the case for the Metropolitan Police Department, including those from the Third District and the Youth Investigations Division. He also expressed appreciation for the work of the FBI’s Washington Field Office. Finally, he acknowledged the efforts of Assistant U.S. Attorney Andrea L. Hertzfeld, who is prosecuting the case.
Detroit Man Convicted on Sex Trafficking ChargesRead the Press Release
A Detroit resident was convicted by a federal jury yesterday on charges of sex trafficking three minor victims using force and coercion, announced United States Attorney Barbara L. McQuade. McQuade was joined in the announcement by Special Agent in Charge Paul D. Abbate, Federal Bureau of Investigation. Willie Curry, 36, of Detroit, was convicted following a two-week jury trial before United States District Judge Denise Page Hood. Curry was also convicted of producing child pornography depicting the victims, and illegally possessing a firearm. Evidence presented at the trial established that Curry found his 15- and 16-year-old victims in Mt. Pleasant, Michigan, after they had run away from a residence where they had been placed by a juvenile court. Curry convinced the victims to come to Detroit by promising them new clothes and cellular telephones and offering to take care of them. Once in Detroit, however, Curry used physical violence and threats to control his victims, including beating one victim with a metal broomstick when she disobeyed his rules. He took explicit photographs of the victims, and then used the photographs in advertisements for commercial sex acts with the victims. When one of the victims refused to comply with Curry’s demands to engage in sex acts with strangers for money, he raped her. The next day, the victim climbed out of the bathroom window and fled from the home. She ran to a nearby gas station, where she approached a woman and asked for help. The woman called the girl’s father, who immediately started driving toward them. The woman returned the girl to her father near Lansing, Michigan. The girl was then interviewed by the Michigan State Police, and the information she provided led to the rescue of the other two victims from Curry’s home. “This defendant preyed on young, vulnerable victims, using false promises, threats and violence to compel them to engage in sex acts for his own profit,” McQuade said. “Sex traffickers like this one treat human beings like commodities to be traded for cash.” Sentencing is set for December 9, 2015. Curry faces a sentence of 15 years to life in prison. The case was investigated by the FBI’s Southeastern Michigan Crimes Against Children Task Force (SEMCAC). The Mt. Pleasant Police Department and the Michigan State Police provided crucial assistance in the investigation.
Department of Justice Settles with Golden Corral Restaurant in Farmington, New Mexico, to Make it AccessibleRead the Press Release
The Justice Department today announced a settlement agreement under the Americans with Disabilities Act (ADA) to make the Golden Corral in Farmington, New Mexico, accessible to persons with disabilities. The Golden Corral was investigated in conjunction with the department’s Project Civic Access, a Civil Rights Division initiative to ensure that cities, towns, counties and local businesses throughout the country comply with the ADA. The investigation revealed that the restaurant required architectural modifications to make it accessible to persons with disabilities.
Golden Corral Corp., headquartered in North Carolina, worked cooperatively with the department after the architectural barriers to access were identified and agreed to remedy the barriers in compliance with the 2010 ADA Standards for Accessible Design (2010 standards). Under the agreement, the Golden Corral will physically modify its:
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designated accessible parking spaces;
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counter;
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men’s Room signage, mirrors, coat hook and accessible toilet stall; and
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women’s Room signage, coat hook and accessible toilet stall.
“As we continue our yearlong celebration of the 25th anniversary of the enactment of the ADA, the Civil Rights Division of the Justice Department renews its commitment to the full and fair enforcement of this historic civil rights law, for large and small venues, alike,” said Principal Deputy Attorney General Vanita Gupta, head of the Civil Rights Division. “Accessibility in local businesses is equally important so that people with disabilities be able to enjoy goods and services in their own neighborhood.”
The ADA protects individuals with disabilities from discrimination by public accommodations, such as restaurants, and requires that persons with disabilities have full and equal enjoyment of a restaurant’s goods, services, facilities, privileges and advantages. The ADA also requires restaurants to make accommodations for persons with disabilities. In addition, businesses have an ongoing obligation to remove architectural barriers to make their businesses accessible to persons with disabilities. The department and Small Business Administration have provided an ADA Guide for Small Businesses describing the obligations under the ADA, as well as tax credits and deductions available, at http://www.ada.gov//smbustxt.htm. People interested in finding out more about the ADA or this agreement can call the Justice Department’s toll-free ADA Information Line at 1-800-514-0301 or 1-800-514-0383 (TTY), or access its ADA Web site at www.ada.gov.
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Defendant Involved in Bronx Shooting Sentenced to Seven Years in Prison for Illegally Possessing A Firearm After Previously Having Been Convicted of A FelonyRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced that JOHNNY MORGAN was sentenced today in Manhattan federal court to seven years in prison for illegally possessing a firearm after previously having been convicted of a felony. In November 2014, MORGAN was convicted after a jury trial. MORGAN was sentenced by United States District Judge Gregory H. Woods.
Manhattan U.S. Attorney Preet Bharara said: “Federal gun laws – including one that prohibits a convicted felon from possessing a firearm or ammunition – play a critical role in reducing gun violence in our communities. Following more than 40 convictions for crimes ranging from drugs to assault, Johnny Morgan not only possessed a gun, but shot it four times near a nightclub in the Bronx. For committing that federal crime, Morgan will now spend seven years in prison. I want thank the New York City Police Department for their excellent work in this and countless other gun cases our office brings with them. ”
According to the allegations contained in court documents previously filed in federal court, and statements made in Court during the trial and sentencing proceedings of MORGAN:
On or about February 20, 2012, MORGAN was asked to leave a nightclub (the “Club”) in the Bronx, New York, by the Club’s security staff. MORGAN left the Club, but returned several minutes later. Once inside, after being confronted by the Club’s staff and owner, MORGAN pulled out a .40 caliber, semi-automatic Glock pistol (the “Firearm”), and pointed it at the Club’s owner. Although MORGAN was ultimately persuaded to leave the Club without harming anyone, once outside, he walked a short distance away, and then fired four gunshots into the air.
New York City Police Department officers, responding to a 911 call, began to canvas the area. Officers ultimately found MORGAN walking alone, down a street several blocks away from the Club. MORGAN was arrested and the Firearm was recovered. Subsequent DNA testing by the New York City Office of Chief Medical Examiner (“OCME”) revealed that a profile of DNA found on the Firearm was consistent with MORGAN’s DNA.
MORGAN was taken into custody in February 2012. Before trial, MORGAN challenged the admissibility of OCME’s DNA testing, which was ultimately found to be sufficiently reliable to be admitted at trial. In November 2014, a jury trial was held before Judge Woods. The jury returned a guilty verdict on November 14, 2014.
Prior to his conviction on this charge, MORGAN had previously been convicted of 40 crimes, including a federal conviction in the Southern District of New York for marijuana distribution and state assault charges.
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In imposing today’s sentence, Judge Woods noted that in light of MORGAN’s extensive criminal history, he posed a significant risk of recidivism and had not been sufficiently deterred by his prior terms of imprisonment.
Mr. Bharara praised the investigative work of the New York City Police Department. He also thanked OCME for its efforts.
The case is being prosecuted by the Office’s General Crimes Unit. Assistant United States Attorneys Sidhardha Kamaraju and Robert Allen are in charge of the prosecution.
Dallas Man Sentenced for Bankruptcy FraudRead the Press Release
DALLAS — Jeff Carlton Noebel, 60, of Dallas, was sentenced yesterday afternoon by U.S. District Judge Jorge A. Solis to four months in federal prison following his guilty plea in March 2015 to an indictment charging one count of bankruptcy fraud, announced U.S. Attorney John Parker of the Northern District of Texas.
According to documents filed in the case, Noebel filed nine bankruptcy petitions from 1992-2013 as part of Noebel’s ongoing effort to stop foreclosure of his residence in Dallas. In February 2013, Noebel filed a bankruptcy petition. On April 23, 2013, U.S. Bankruptcy Judge Harlin Hale issued an order that dismissed this bankruptcy petition and barred Noebel from re-filing for 180 days. The goal of the charged bankruptcy fraud scheme was to allow Noebel to avoid compliance with Judge Hale’s court order.
In order to stop the foreclosure sale of Noebel’s house scheduled for June 4, 2013, Noebel caused his brother to force Noebel into “involuntary bankruptcy” to stop the imminent foreclosure sale. As part of the scheme, Noebel deceived his brother by concealing from his brother the existence of Judge Hale’s order barring Noebel from personally refiling for bankruptcy for 180 days. Noebel knew that his brother would refuse to file the involuntary bankruptcy petition on June 3, 2013, if his brother knew about the court order.
This case represents one of several felony prosecutions of bankruptcy-related crimes generated by the recent Bankruptcy Fraud Initiative within the Northern District of Texas. Since February 2013, 12 defendants have been charged with various felony offenses resulting from criminal referrals from the U.S. Trustee’s Office to the U.S. Attorney’s Office. Eight defendants have been convicted either following a trial or guilty plea; six have been sentenced. Three defendants are awaiting trial, and one defendant remains in fugitive status with an outstanding arrest warrant.
The U.S. Postal Inspection Service investigated the case. Assistant U.S. Attorney David Jarvis prosecuted.
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Chester County Woman Convicted of Worker's Compensation FraudRead the Press Release
PHILADELPHIA – Barbara Stanley, 62, of Nottingham, PA, was convicted by a jury today of five counts of wire fraud, two counts of theft of government funds, one count of making false statements, and two counts of making false statements regarding workers? compensation benefits, announced United States Attorney Zane David Memeger. The defendant was convicted of scheming to defraud the Department of Labor out of workers’ compensation benefits between July 2006 and December 2010 by concealing the fact that she had recovered from her work-related injury. She was also convicted of stealing the approximately $164,000 in workers’ compensation benefits that she received during that time period, and making false statements about her medical condition to the Department of Labor. The defendant was further convicted of stealing approximately $35,000 in Office of Personnel Management (OPM) disability retirement benefits that she received at the same time that she was receiving workers’ compensation benefits, and falsely denying her receipt of the OPM disability retirement benefits, resulting in total losses to the government of approximately $199,000.
U.S. District Court Judge Paul S. Diamond did not yet schedule sentencing. Stanley faces an estimated advisory sentencing guideline range of 24 to 30 months in prison.
The case was investigated by the United States Postal Service Office of the Inspector General, the Department of Labor Office of the Inspector General, and the Office of Personnel Management Office of the Inspector General. It is being prosecuted by Assistant United States Attorneys MaryTeresa Soltis and Mary E. Crawley.
Charleston man sentenced for being a convicted felon in possession of a firearmRead the Press Release
CHARLESTON, W.Va. – United States Attorney Booth Goodwin announced that Charles Corey Michael, 32, of Charleston, West Virginia was sentenced today in federal court in Charleston to 27 months in prison for being a convicted felon in possession of a firearm. Michael previously pled guilty to this charge in May of 2015. In March of 2015, officers with the Charleston Police Department executed a search warrant at Michael’s apartment on Charleston’s East End and recovered several firearms and heroin. Michael is prohibited by federal law from possessing any firearms because of a prior felony drug conviction in Ohio.
This case was investigated by the Charleston Police Department. The case is part of Project Safe Neighborhoods. Project Safe Neighborhoods is a nationwide commitment to reduce gun crime in the United States by networking existing local programs targeting gun crime.
Centralia Man Sentenced for Part in Drug ConspiracyRead the Press Release
Walter Gardner, Jr., 46, of Centralia, Illinois, was sentenced on August 13, 2015, to a total of 60 months in federal prison on one count of a four-count indictment charging him with Conspiracy to Distribute and Possess with the Intent to Distribute Cocaine, Stephen R. Wigginton, United States Attorney for the Southern District of Illinois, announced. Following his prison sentence, Gardner will be on federal supervised release for 4 years. He was ordered to pay a fine of $200, as well as a $100 special assessment.
Court filings showed that between approximately January 2010 and January 2013, Gardner was involved in an organization which engaged in a conspiracy to distribute and possess with the intent to distribute cocaine.
Evidence in support of this prosecution was obtained in an investigation which was conducted under the auspices of the Organized Crime Drug Enforcement Task Force (OCDETF). The OCDETF initiative is designed to bring federal, state, and local law enforcement agencies and resources together to identify, target and dismantle large national and international drug trafficking organizations.
This case was investigated by the Drug Enforcement Administration, Internal Revenue Service, MEGSI, and Illinois State Police, and prosecuted by Assistant United States Attorney Deirdre A. Durborow.
Carbondale Man Sentenced for Part in Drug ConspiracyRead the Press Release
Steven Schauf, Jr., 28, of Carbondale, Illinois, was sentenced to 24 months in prison today for his role in an eight-count indictment charging him with Conspiracy to Distribute and Possess with the Intent to Distribute a Controlled Substance, Unlawful Distribution of a Controlled Substance, Use of a Communications Facility in Aid of a Controlled Substance Offense, Possession with Intent to Distribute a Controlled Substance, and Laundering of Monetary Instruments, Stephen R. Wigginton, United States Attorney for the Southern District of Illinois, announced. Following his prison sentence, Schauf will be on supervised release for 3 years. In addition, he was ordered to pay a fine of $500 and a $700 special assessment. An Order of Forfeiture was entered for the sum of $6,787.64, as well as a 2010 Chrysler 300.
"Evidence in support of this prosecution was obtained in an investigation which was conducted under the auspices of the Organized Crime Drug Enforcement Task Force (OCDETF). The OCDETF initiative is designed to bring federal, state, and local law enforcement agencies and resources together to identify, target and dismantle large national and international drug trafficking organizations. I am pleased to note that the local law enforcement and federal law enforcement partnerships did just that in this case." noted United States Attorney Wigginton.
The case was prosecuted by Assistant United States Attorney Deirdre A. Durborow.
Canadian Man Sentenced for SmugglingRead 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 Aaron William Postma, 21, of Ontario, Canada, who was convicted of Conspiracy to Import LSD into the United States, Conspiracy to Distribute LSD, Importation of Controlled Substances, Possession of LSD with Intent to Distribute, and Smuggling Merchandise into the United States, was sentenced to two years of probation by U.S. District Judge William M. Skretny.Assistant U.S. Attorney Wei Xiang, who handled the case, stated that on September 24, 2014, U.S. Customs and Border Protection officers arrested Postma after he entered through the Peace Bridge Port of Entry. They found in his possession three sheets of blotter paper containing 150 hits of lysergic acid diethylamide (LSD) and quantities of marijuana and ketamine. Postma, a student at the University of Waterloo studying biochemistry, was travelling to meet a co-conspirator in Florida, then to peddle his LSD at a music concert in Atlanta, Georgia.
Text messages from Postma’s two cell phones revealed that he was selling LSD for $15 per hit. Postma sold and offered LSD, cocaine, Mollies, and a variety of narcotics to his fellow students in college. Ironically, Postma believed that his biochemistry studies gave him insight into safely creating, mixing, and ingesting drugs.
The sentencing is the result of an investigation by Homeland Security Investigations, the Border Enforcement Security Team, and Customs and Border Patrol.
Choctaw Woman Sentenced to Prison for Abusive Sexual Contact with a MinorRead the Press Release
Jackson, Miss. – Jenna Tubby, 27, of Choctaw, Mississippi, was sentenced today by U.S. District Judge Daniel P. Jordan III, to 18 months in prison followed by 5 years of supervised release for having abusive sexual contact with a minor, announced U.S. Attorney Gregory K. Davis. The crime occurred on the tribal lands of the Mississippi Band of Choctaw Indians.
This case was investigated by the Federal Bureau of Investigations and the Mississippi Band of Choctaw Indians Police Department. It was prosecuted by Assistant U.S. Attorney Patrick Lemon.